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Word of the Week

Posted Friday, October 30, 2009 - 11:03am

In his written testimony to the House financial services committee yesterday, Timothy Geithner discussed how the government plans to prevent, or at least deal with, the failure of big financial institutions in the future.

  • Caitlin McDevitt is an editorial assistant at The Big Money.

Wonk Watch 10.27.09

Posted Tuesday, October 27, 2009 - 4:13pm

Following his bullish streak, Barry Ritholtz says, “I am now starting to pull my horns in a bit, as this rally looks to be getting a little tired and showing signs of technical deterioration.” He predicts a 5 percent to 15 percent correction over the next 60 days. Ritholtz lists five indicators that inform his renewed caution:

  • Matthew McKnight is an intern at The Big Money.

Wonk Watch 10.26.09

Posted Monday, October 26, 2009 - 4:03pm

All the way from Quito, Ecuador, Paul Krugman, says the dollar is gold. This is to say that the dollar is weighing down the Ecuadorian economy and policy options the same way that gold did to protectionist countries in the 1930s. These countries used import restrictions to peg the value of their currency to gold.

  • Matthew McKnight is an intern at The Big Money.

Word of the Week

Posted Friday, October 23, 2009 - 2:56pm

This week, Kenneth Feinberg, the government’s special master for executive compensation, said that the seven largest companies that haven't yet paid back their government bailout funds have to slash their top executives' compensation.

  • Caitlin McDevitt is an editorial assistant at The Big Money.

Memo to Blodget: Most Journalism is Local


Posted Wednesday, October 21, 2009 - 5:22pm

Henry Blodget has written another one of those "journalism isn't really dying" things. People need, he says, to stop "whining" about it. Newspapers might be dying, he says, but that doesn't mean journalism is.

  • Dan Mitchell has written for The New York Times, The Chicago Tribune, The MInneapolis Star-Tribune and Wired.

Wonk Watch 10.20.09

Posted Tuesday, October 20, 2009 - 3:49pm

Felix Salmon discusses a “stunning” selection from Andrew Sorkin’s new book, Too Big to Fail, which was released today.

  • Matthew McKnight is an intern at The Big Money.

Wonk Watch 10.19.09

Posted Monday, October 19, 2009 - 3:50pm

Last week, the House financial services committee passed an amendment to a bill that would influence the regulation of banks and credit unions. Today, Felix Salmon weighed in. The legislation proposes the creation of the Consumer Financial Protection Agency, which would keep an eye on everything from home loans to credit cards and payday loans.

  • Matthew McKnight is an intern at The Big Money.

Wonk Watch 10.16.09

Posted Friday, October 16, 2009 - 3:59pm

Obama’s pay czar, Kenneth Feinberg, made a less-than-bold move today, says Felix Salmon. Feinberg requested that former Bank of America (BAC) CEO and Chairman Ken Lewis not receive his $1.5 million salary for 2009. Lewis will, however, still walk out with $125 million—$53 million in pension and $72 million in accrued and deferred stock compensation.

  • Matthew McKnight is an intern at The Big Money.

Teach for America Responds


Posted Friday, October 16, 2009 - 2:15pm

The following is a letter to the editor in response to Chadwick Matlin's piece, "Teach for America Gets a Timeout":

To the Editor,

Word of the Week

Posted Friday, October 16, 2009 - 2:09pm

For the first time since 1975, Social Security recipients won’t be getting a cost-of-living adjustment—also called a COLA—next year. In other words, more than 57 million Americans who draw Social Security checks won’t see an increase in their monthly payments. What gives? Cost of living adjustments are tied to inflation, as measured by the Consumer Price Index. Up until this year, inflation had risen annually and, as an offset, social security payments were increased annually as well.

  • Caitlin McDevitt is an editorial assistant at The Big Money.

Forget the Dow—and Sweat the Dole

Posted Thursday, October 15, 2009 - 2:55pm
Photograph by Getty Images

For the past few months, the media has been watching the Dow Jones Industrial Average the way a hypochondriac checks his thermometer. And the higher the Dow's temperature goes, the more we need to sweat. 

  • Heidi N. Moore is a business writer in New York City.
Photograph by Getty Images

Bloomberg Got a Bargain

Posted Wednesday, October 14, 2009 - 10:19am

Press reports of Bloomberg’s purchase of Business Week seem largely to miss the point. The Wall Street Journal story this morning, for example, sees McGraw-Hill’s desire to shed the title as part of a pattern of publishers "closing print titles and slashing investments in traditional publications, a sign they don't expect these businesses to return to strong health as the economy recovers."

  • James Ledbetter is editor of The Big Money, and of The Great Depression: A Diary, published this month by Public Affairs.

Wonk Watch 10.13.09

Posted Tuesday, October 13, 2009 - 5:13pm

Felix Salmon responds to Andrew Ross Sorkin’s column today, in which Sorkin makes the claim that Americans—after wishing that the government save the banks from their nosedive—want Goldman Sachs (GS) and the other big Wall Street banks to “fall flat again.” As Goldman readies to release its third quarter results on Thursday, which are expected

  • Matthew McKnight is an intern at The Big Money.

TBM Readers Respond: Bank-Borrower Breakups

Posted Tuesday, October 13, 2009 - 1:52pm

Relationships are tough. Breakups are even tougher.

Last week, Mark Gimein stood up for the increasing numbers of Americans who have walked out on their mortgages; it’s within their legal rights, he says. And the laws are meant to keep banks responsible and honest.

But there’s always another side of the story. And many of our readers have commented, arguing for both positions.

Wonk Watch 10.12.09

Posted Monday, October 12, 2009 - 4:55pm

After a few months off, Wonk Watch is back! To the quick hits:

  • Matthew McKnight is an intern at The Big Money.

What’s Your Question About Offshoring Services?


Posted Monday, October 12, 2009 - 1:51pm

Later this month, TBM editor James Ledbetter will conduct an exclusive one-on-one video interview with Robert E. Kennedy of the University of Michigan’s Ross School of Business, and coauthor of The Services Shift: Seizing the Ultimate Offshore Opportunity.

Word of the Week

Posted Friday, October 9, 2009 - 3:43pm

U.S. currency fell to a 14-month low relative to its rivals this week. We know this thanks to the Dollar Index, which measures the value of the U.S. dollar against a basket of other world currencies. The dollar is sized up relative to the euro, the Japanese yen, the Canadian dollar, the British pound, the Swedish krona, and the Swiss franc.

  • Caitlin McDevitt is an editorial assistant at The Big Money.

More Bad Lessons from Board Games


Posted Wednesday, October 7, 2009 - 1:58pm

Back in June, TBM took a look at the terrible financial lessons we’ve learned from our favorite board games. Most of the games we mentioned were classics—like Monopoly or the Game of Life. Now, there’s a newly-released game to give a whole new generation of kids some more timely—but still not-so-great—financial advice. It’s called Bailout!

  • Caitlin McDevitt is an editorial assistant at The Big Money.

Michael Moore's 15 Clicks of Fame Are Up


Posted Wednesday, October 7, 2009 - 1:54pm

Writers, readers, comrades:

It's Wednesday, which means we've been talking about Michael Moore for seven days. Surely we can agree this situation is untenable for all parties (except Mr. Moore). And so I write to put an end to our festivities here. It's been a nice ride, and my only regret is that we couldn't find anybody to muster a fawning defense of the film. Maybe for the sequel ...

Michael Moore Needs To Get Out More


Posted Wednesday, October 7, 2009 - 1:47pm

All,

Michael Moore: God-Loving Socialist


Posted Wednesday, October 7, 2009 - 1:06pm

Folks, 

What does Moore think of bailouts? Chad, you asked the question first. He's obviously upset at having government bail out companies, but he also seems to be against companies cutting costs or in any way reducing their work force. 

  • Heidi N. Moore is a business writer in New York City.

Michael Moore: Dishonest Comrade of the Revolution


Posted Tuesday, October 6, 2009 - 1:31pm

Comrades,

  • Paul Smalera has written for Condé Nast Portfolio, The New York Times and The New York Observer among others. He blogs at true/slant.

Michael Moore: A Fan of Blue Bails?


Posted Monday, October 5, 2009 - 2:56pm

Folks,

Despite your well-reasoned appeals that Capitalism: A Love Story wasn’t actually as bad as I thought, I still found myself warning people away this weekend. The movie’s message has not fermented well in the two weeks since I’ve seen it, and I think it’s because of something Jim said last week:

Word of the Week

Posted Friday, October 2, 2009 - 2:09pm

Last Friday, the G20 leaders endorsed a statement recommending new controls on banker pay. The stricter rules—which include forbidding guaranteed bonuses and deferral of payment over time—are meant to deter the kind of risk-taking that led to the financial collapse.  Also included is a provision for the “clawback” of compensation previously earned.

  • Caitlin McDevitt is an editorial assistant at The Big Money.

Michael Moore: A Self-Love Story


Posted Friday, October 2, 2009 - 11:55am
  • Heidi N. Moore is a business writer in New York City.

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