Izabella Kaminska has an interesting take on the record-high gold price, via Bedlam Asset Management: essentially, it’s rising because the big gold ETFs, like GLD, are so incredibly easy to buy and to speculate with. Gold is now something that individuals can easily trade in and out of daily — goldbugs are no longer just hold-it-until-you-die inflation hawks and eschatologically-inclined survivalists.
These present two very different views of the recent rally. The first shows it to be a strong bounce off a deep low, which brings us back to a point which is perfectly normal for a recession. The second shows the bounce to be smaller, and largely a function of the weak dollar.
Why did Jamie Dimon fire Bill Winters as head of JP Morgan’s investment bank? According to Bloomberg, it’s because he felt Winters shouldn’t be CEO of the bank as a whole. And so, by the inexorable up-or-out logic of Wall Street, Winters was out.
Paul Krugman gave a pleasingly wonkish talk at the World Business Forum today: the attendees with their Speaker Workbooks will have found it difficult to fill out the Paul Krugman Summary Sheet on page 95, complete with blanks where they are meant to write in their Action Plans and associated Due Date. Instead, he gave a smart and detailed disquisition on the past, present, and future state of international trade.