11/25/2009
The Gathering Geithner Storm -- It was jarring last week to see the Treasury Secretary under intense fire before Congress, being asked to resign for the good of the country. It was more like Prime Minister's Questions in the British Parliament than the more deferential mode we are used to. Timothy Geithner fought back vigorously, but he lost his cool. His team at Treasury was said to be happy to see him showing a little moxie. Unfortunately the episode didn't add to his gravitas, which is in short supply. -- (Source: Forbes)

The Case for Deficit Spending -- If there was one thing seemed certain about the Obama administration, it was their commitment to Keynesian deficit spending to boost the economy out of its slump. But Keynes beware: With unemployment at a whopping 10.2 percent, and probably rising, the White House has begun trumpeting its commitment to Hoover-style deficit busting. On November 13, the White House warned cabinet departments of a spending freeze. -- (Source: The New Republic)

Hulu's Tough Choices -- Since its launch in late 2007, Hulu has pretty much defined the Old Media vision of video on the Web. Each month the site's 1,700-title catalog of TV shows and movies attracts nearly 40 million viewers—people who will endure a couple of commercials per sitcom (vs. eight or more on TV) in exchange for the luxury of being able to watch a show for free, just one day after it airs on network TV. Those days may now be coming to an end. NBC (GE: Charts, News, Offers), Fox (NWS: Charts, News, Offers), and ABC (DIS: Charts, News, Offers), the broadcasters that control Hulu, are warming to the idea of charging for at least some content. -- (Source: BusinessWeek)

BlackRock, Wall Street's Newest Giant -- Laurence Fink doesn't look like a guy who controls $3 trillion. Bespectacled and balding, he comes across more like a shoe salesman, a job he once held in his parents' store, growing up in Van Nuys, Calif. But after college he traded his shoehorn for a career in finance, working his way up to a managing director position at First Boston. He and some friends would eventually create a new money-management shop in the late '80s, starting with almost $1 billion in assets and turning it into a growing but unassuming fixture on Wall Street. -- (Source: Smart Money)

Will JP Morgan's CEO Be The Next Treasury Secretary? -- Wow, this is a really amusing report from the New York Post. Apparently, some people are pushing for JP Morgan CEO JPM Jamie Dimon to replace Timothy Geithner as Treasury Secretary. And he might want the job. This is unlikely on so many levels that I hardly know where to begin. -- (Source: The Atlantic)

On the data front

Since this is basically a 3 day trading week, a slew of economic reports were released today. Chief among them were:

Jobless claims - They came in better than expected falling to 466,000 which is a 14 month low. Economists were looking for 500,000.

New home sales - They rose to a 430,000 annual rate in October . The street was only looking for a 404,000 annual rate.

Consumer income and spending - Both income and spending rose last month , with the former jumping 0.2% and the latter rising 0.7%.

Durable goods orders - This was a surprise to downside with durable good orders falling 0.6% while the street was looking for a 0.5% increase.

Stuff that made people sit up and take notice

Bank of America CEO Search May Extend Into 2010 - The 'bank of opportunity' is struggling to find someone to run the place.

'Godfather of Spam' going to prison - 51 months in the big house for sending too many notes offering to enlarge you know what.

GE CEO Makes Headway in NBC Deal - Jeff Immelt has personally flown to Paris to deal with the Vivendi folks and get the NBC deal done once and for all.

AIG resolves Greenberg cases, may pay $150 million - The insurance company has put an end to years of legal wrangling with the ma ....

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A loan from one company to another which is used to buy goods from the company providing the loan. In this way, the vendor increases sales, earns interest, and may sometimes also acquire an interest in the customer. This increases the risk profile of a company if it is carried out on a large scale, since many companies do not have the skill to conduct credit analysis. Large, creditworthy buyers are ... MoreA loan from one company to another which is used to buy goods from the company providing the loan. In this way, the vendor increases sales, earns interest, and may sometimes also acquire an interest in the customer. This increases the risk profile of a company if it is carried out on a large scale, since many companies do not have the skill to conduct credit analysis. Large, creditworthy buyers are unlikely to make use of this arrangement, since they will be able to borrow money at lower rates from other sources.