If your retirement account is in good shape this year, you are ahead of Wall Street’s finest. One of the world’s largest hedge funds has nearly been cut in half. John Paulson made billions with a huge bet on the housing bubble. His success attracted a flood of capital. At the peak, Paulson’s funds managed […]
Would a Greek Default be Bullish For Europe?
In contrast to the "Lehman 2.0" viewpoint, some argue a Greek default could actually be bullish for Europe and the euro. What happens when Greece finally defaults? It’s a question the whole world is wondering — or the whole investment world anyway. Opinions on Greek default have settled into two camps. One side sees […]
Bellwethers in Freefall as Bernanke Strikes Out
The Federal Reserve’s "Operation Twist" turned out to be a dud… and now multiple bellwethers are predicting global economic slowdown. They came, they saw, they tanked the markets… Wednesday was supposed to be a good day for bulls. High hopes were placed on the Federal Reserve, and the likelihood they would "do something" […]
How to Keep Rogue Trades Out of Your Investment Portfolio
The parallels to 2008 keep piling up. Early that year, French bank Société Générale revealed $7.2 billion in losses (that’s billion with a "b") at the hands of a single rogue trader. The culprit: A 31-year-old trader named Jerome Kerviel. The Société Générale losses came on a massive $73 billion worth of positions, which […]
China’s Biggest Bubble Warning Ever
It’s the biggest and clearest sign yet: China is a giant bubble waiting to burst. With Europe in the spotlight, few are thinking about China these days. And when China does come up, it is typecast as the wealthy uncle with deep pockets — the one player rich enough to help keep Europe afloat. […]
Mr. Market Wakes Up to the Jobs and Wages Problem
The credit downgrade and debt ceiling aftermath highlight a much more serious problem — a jobs and wages problem — that Mr. Market is finally waking up to. It’s been a violent week on both sides of the Atlantic. In the United Kingdom, rioters are looting shops and causing mayhem seemingly at random. The worst […]