Unstructured Finance

UF Weekend Reads

A beautiful spring day in the NYC metro area. Let’s Go Mets! Here’s this weekend’s stories courtesy of Sam Forgione.

 

From The New York Times

Jennifer Medina reports that California’s economy is either booming and busting, depending on which city you’re in.

From The Nation

William Greider has some suggestions on how the Federal Reserve can work with politicians to improve the housing crisis.

From Foreign Affairs:

Blake Clayton argues speculators in the oil market should be thanked and not criticized for keeping the industry in balance.

From Institutional Investor:

Julie Segal writes about an Iowan retirement money manager’s foray into emerging markets.

Who changed the financial crisis narrative?

By Matthew Goldstein

So riddle me this: How did we go from blaming “banksters” for all our financial ills to now casting teachers, cops and firefighters as overpaid government slackers who are keeping an economic recovery from picking up steam?

Somewhere, somehow, the narrative of the worst financial crisis since the Great Depression changed. Not too long ago, all the talk was about exotic securities backed by crappy mortgages, inadequate bank regulation, excessive CEO pay and burdensome consumer debt. Now the conversation in Washington and Wall Street is more focused on overly generous pensions for public employees and the levels of government spending on the poor, for education, new roads and middle class health benefits.

This isn’t too say that runaway government deficits aren’t a problem that need to be addressed–most likely with a combination of tax hikes and spending cuts. But the financial crisis didn’t begin in summer 2007 with concern about government spending.

Hedge fund leaders duck for cover

By Matthew Goldstein

Top hedge fund managers are great at enriching themselves through savvy trades that presumably come from a keen insight into the markets and economic trends. But all too often these titans of Wall Street come up small when asked for their opinions on the pressing economic questions of the day.

That’s what happened when three Reuters reporters recently asked 30 of the top U.S. hedge fund managers to respond to a quick email survey about the political morass in Washington and the potential for a double dip recession. Less than a handful of  managers offered any thoughts on the subject. The overwhelming majority either didn’t respond, or had a representative reply that the manager was either too busy to comment, or didn’t want to participate.

I’m not going to embarrass any one by calling them out for not responding but it’s hard to fathom how some of the wealthiest people on the planet couldn’t find the time to have someone on their staff take 5 to 10 minutes out to respond to a three question survey. (We were trying to make it real easy to get some responses).

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