What We’re Reading, 6/4/12
Every morning, we poll the staff and round up their favorite economic, financial and political reads of the day. On our radar as the week starts up: economic slowdown, existential crisis, and the many money problems of the ultra-rich and famous.
"Investors Brace for Slowdown," by Jonathan Cheng, Charles Forelle and E.S. Browning (Wall Street Journal). Well, the week is off to a less-than-thrilling start. Investors are getting antsy as Europe, China and the U.S. show fresh signs of economic turbulence. Just a smattering of the rough market news: Asian markets are down sharply, European stocks slumped last week, and on Friday, the Dow dropped to its lowest point in six months. Happy Monday, everyone!
"Euro Zone is Lurching to a Crossroad," by Landon Thomas Jr. (New York Times). The euro zone faces an existential crisis of the most massive (and massively expensive) kind. Key to the region’s proverbial angst: Should it seek greater fiscal unity or just break up? While Spanish and Italian leaders called for euro bonds and central authority this weekend, they face political opposition from the likes of Angela Merkel, who hesitates to bail Spain out. (If this is all starting to sound rather dizzying and Game-of-Thrones-esque, the Times has helpful interactive charts on the timeline of the crisis and the players in it.)
"Remarks at the Festival of Economics," by George Soros (GeorgeSoros.com). While your friendly curator can think of no festival more dull-sounding than the “Festival of Economics” — are there demand-curve roller-coasters? Keynesian funnel cakes? — Soros’ remarks in Trento, Italy are certainly worth a read. The billionaire investor argues, in grandiose TED-talk fashion, that the foundations of economic theory fail to account for human mistakes. Significantly, he also says the eurozone has about three months to right itself. If that seems dense, CNBC has the Spark Notes.
"The Mayor of Mayors," by Gabriel Sherman (New York). He banned trans fat! He shrinks your soft drinks! Michael Bloomberg may be the most visible mayor in the U.S., and certainly one of the most controversial — which leads Sherman to the question, where will he go next?
"Who Has the Spine to Fix the U.S. Economy?" By Fred Hiatt (Washington Post). Spoiler alert: No one. “It’s hard to be optimistic,” Hiatt writes. “Obama has the eloquence, but neither Obama as president nor Romney as governor showed much patience for legislative jawboning or relationship-building … It would be nice to think that the forthcoming campaigns will focus on this issue enough to give voters a basis on which to do more than guess. Judging by the debate so far, any optimism on that score seems even more naïve than refusing to give up on a grand bargain in 2013.”
"Small Fish Burned in Facebook IPO Knew Better," by William Cohan (Bloomberg). Critics railed against Wall Street, Morgan Stanley, Nasdaq, and Facebook itself — but if you fall in Cohan’s camp, small investors who lost big can only blame themselves.
"Life After the NFL a Struggle for Many Former Players," by Jeffri Chadiha (ESPN). Today in people-we-don’t-feel-very-sorry-for: “Terrell Owens hasn’t officially retired yet, and he already has blown the $80 million he earned during his career. Warren Sapp recently filed for bankruptcy. Former first-round picks Michael Bennett and William Joseph currently face federal charges of tax fraud and identity theft.” Apparently uber-rich ex-athletes can’t manage their millions! Seventy-eight percent of NFL retirees are bankrupt or financially strained.
"Mitt Romney Reports He’s Worth Up to $255 Million," by Reid Epstein (Politico). In other breaking news, Mitt Romney’s still rich. (More interestingly, Obama’s tax plan would cost him $5 million. Mo’ money mo’ problems, as they say.)
Happy reading, Tumblers!
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