Lunchtime Links 5-8
Tales of an MBA nothing (Blogspot) “Current market value of an MBA from a top tier school: $0 … Business school tuition: $140,000 … Opportunity cost of foregone wages: $375,000 … Desperately hoping that your pre-business school employer will take you back: priceless.”
MBAs — like law degrees and most pieces of paper from a for-profit school — look overpriced. This blog is published by a UofC undergrad/Tuck (Dartmouth) MBA who’s having trouble landing work. On paper, that should be a recipe for success…
Kanellos, the Greek protest dog (Guardian) Fun slideshow of a dog that seems to show up at lots of Greek protests…
BofA/Citi to pay $400m or more on UK bonus tax (Keoun/Moore, Bloomberg)
Gold Charts: Gold coin sales hot, double the average monthly rate so far in May … Meanwhile: GLD — the biggest gold ETF — reported the largest rise in its holdings since Feb ’09 (Culp, Reuters) We’re not near the same level of panic buying in the gold market seen in late ’08/early ’09, but fears are growing that central banks will monetize deficits to stop debt contagion, igniting inflation or a currency crisis.
European leaders want to set up crisis fund (Thomson, AFP) Curious to see how they’ll fund it, though if contagion spreads to Spain — with an economy 5x larger than Greece’s — it will be a bit tougher for Germans to ride to the rescue…
Food stamp tally nears 40 million, sets record (Abbott, Reuters)
Leading with two minds (Brooks, NYT) Great column.
Volcker: Derivatives rule goes too far, banks shouldn’t have to shed businesses (Dennis, WaPo) I disagree with Tall Paul on this one. Meanwhile, in other financial reform news….
Senate votes against amendment to shrink banks (Duboff, Daily Intel) Size does matter folks. New resolution authority will be nice for regulators, but it’s a long shot to work. These big banks are so big and complex, winding them down in a crisis likely isn’t possible without igniting a systemic crash. Could be done, perhaps, but why take the risk? Getting them out of derivatives and shrinking them down to size would be expensive, sure, but would make future problems far more manageable.
Plan B for the oil spill? (YouTube)