The guys on Wall Street will report to a woman as their boss—but that isn’t what’s truly remarkable. For the first time in a generation an actual Democrat will be in charge of monetary policy.
After months of indecision and the flotation—and puncturing—of a Larry Summers trial balloon, President Obama is set to nominate Janet Yellen to be the next chair of the Federal Reserve.The fact that Yellen,the current vice chair of the nation’s central bank, is a woman isn’t the most remarkable historical fact about her impending appointment. Of course, that is remarkable. For the first time in their careers, the heads of Wall Street’s investment banks and hedge funds will, in effect, be reporting to a woman as their boss.
If 1995 is any guide, the government shutdown won’t be too bad, right? Wrong, says Daniel Gross. Ours is a very different economy.
I’m generally an optimist about the resilience of the U.S. economy, its ability to bounce back from shocks and power through disasters, whether they’re imposed by nature, markets, or politics. But today, four years into an expansion that few people saw coming, I’m more pessimistic than many about the impact of the shutdown.The predictions have come fast and furious. The shutdown costs $300 million in lost gross domestic product per day, according to IHS Global Insight.
Don’t let the Excel-and-PowerPoint set fool you into thinking blowing through the debt limit is no big deal. The tsunami of value destruction would dwarf the Lehman Brothers implosion, says Daniel Gross.
Generals always fight the last war. And financial analysts always analyze the last crisis. So with the rapid approach of the October 17 debt-limit deadline, it’s no surprise the Excel-and-Powerpoint set are dusting off their histories of the Lehman Brothers debacle. Many Republicans may view blowing through the debt limit and potentially missing a few interest payments as no big deal. In a Pew Research Center poll released Monday, 54 percent of Republicans said the U.
Don’t be fooled by the blue ribbon that’s he got, he’s still Benjamin Franklin from the Federal Reserve. Daniel Gross on the $100 bill’s 100th-birthday facelift.
The U.S. government remains shut, crippling a growing range of businesses and gumming up the gears of commerce at home and abroad. Amid all this chaos, however, America is about to launch a new version of one of the government’s most important and valuable products: the $100 bill.The Federal Reserve this week is rolling out new Benjamins as part of its continuing efforts to stay ahead of cheaters. “The U.S. government basically redesigns Federal Reserve notes to stay ahead of counterfeiting,” said Michael Lambert, associate director at the Federal Reserve.
From the richest man in Brazil losing nearly everything to the ambitions of The Guardian, The Daily Beast brings you the best in business journalism from the week of October 5, 2013.
How Brazil’s Richest Man Lost $34.5 Billion Juan Pablo Spinetto, Peter Millard, and Ken Wells—BusinessWeek Going from one of the richest men in the world to the verge of bankruptcy in the span of 18 months seems impossible. And yet, through a combination of hubris, ignorance and excess, Eike Batista did just that. Once a symbol of Brazil’s high-powered growth, Batista is now also a symbol of its current struggles.A Virginia Businesswoman’s Mission to Save Somalia Keith Kloor—Washington Post Magazine 1.
Markets are just fine.
With the government withholding money from all but its necessary functions, you’d think the financial markets would be freaking out appropriately. You’d be wrong. The Dow Jones Industrial Average actually rose 76.10 points on Friday, and the 30-stock average declined just 1.2 percent over the course of the week. Investors seem to see the shutdown as no big deal—yet. Many reportedly don’t think this shutdown will go on long enough to be too much of a problem and are counting on the Fed to keep the economy going. But the debt-ceiling battle in a couple of weeks could cause problems. Said the president this week, “When you have a situation in which a faction is willing potentially to default on U.S. government obligations, then we are in trouble.”
The company has grown massively in a short time, to 215 million users. But can it turn a profit? Daniel Gross isn’t so sure.
Twitter is going public. After filing a stealthy filing a few weeks ago, on Thursday afternoon, the company filed a formal S-1. This granted investors, gawkers, and the generally curious a look under the hood of the company for the first time.What they found shouldn’t be surprising to veteran internet-related companies: it’s a firm with insane growth in eyeballs, rapidly growing revenues, no profits (yet), and a quasi-messianic do-good mission.
Define ‘nonessential.’ From mines to loans to oil fields, businesses across the country say they need federal employees back on the job to keep their work going. By Daniel Gross.
You know the adage. For want of a nail, the shoe was lost, triggering a chain of events that leads to much greater debacles. For want of a nail, ultimately, the kingdom was lost.That’s a great lesson in leverage—how the removal of one small, seemingly insignificant item can trigger much larger consequences. It’s also a great metaphor for the way in which the government shutdown is affecting the economy. Fox News may tell its audience that the shutdown is in fact a “slimdown.
In another one of his now-famous “poison pen” letters, activist investor Dan Loeb aims to shake up storied auction house Sotheby’s
Most bigtime hedge fund investors are interested in big brands. But Dan Loeb, the billionaire activist investor, is more interested in shaking up the companies behind them than in acquiring the products they produce. In recent years, Loeb, founder and proprietor of Third Point has gone and acquired stakes in companies like Yahoo! and Sony, and then encouraged management to make significant changes. At Yahoo!, Loeb helped install new CEO Marisa Mayer and then sold most of his stake after the stock appreciated significantly.
It’s all about taxes, friends. Taxes, and holding on to as much cash as possible, however possible, and whatever the consequences. Daniel Gross on the continuing insanity of the GOP-CEO lovefest.
Are the Republicans finally losing big business?Not yet.On Wednesday, a group of Wall Street chief executive officers came to Washington to meet at the White House. At the end of the meeting, Goldman Sachs CEO Lloyd Blankfein obliquely took Republicans to task. “Individual members of our group represent every point on the political spectrum,” Blankfein said. “But the one thing they have in common is: You can litigate these policy issues, you can relitigate these policy issues in a public forum, but they shouldn’t use the threat of causing the U.
With an Ohio Walmart hosting a holiday food drive for its own workers, The Daily Beast's Michael Tomasky criticizes the notoriously stingy company for not paying them more.
The judge in the Oscar Pistorius murder trial is trying to gain some control over social and conventional media, in a case that has gripped the world and led witnesses to complain about violations of their dignity.