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STORIES:
Hedge Fund Titan Plans to Return $2 Billion to Investors -
(www.nytimes.com) A hedge fund titan has decided to return a
large sum of money to investors, a revealing illustration of how dried-up
markets, vicious volatility and a paralysis of ideas all borne of the crisis in
Europe have been particularly hard on the traders who swing for the fences on
currencies, stocks and bonds all over the world. Louis M. Bacon, who together
with Paul Tudor Jones and George
Soros has come to define this style of high-stakes macro
investing for more than 20 years, said in a letter to his investors on
Wednesday that he would be giving back $2 billion, about one quarter of the
size his benchmark Moore Global Investment fund.
GSE
regulator DeMarco says NO principal reduction - (www.ochousingnews.com) The regulator for government-run housing
finance giants Fannie Mae and Freddie Mac said on Tuesday that using
taxpayer-funded bank bailout money could encourage defaults and not make a big
improvement in reducing foreclosures in a cost-effective way for taxpayers. “The
anticipated benefits do not outweigh the costs and risks,” said the Federal
Housing Finance Agency’s head Edward DeMarco, who has come under intense
pressure from the government to agree to the plan.
Governments overestimate cenbank's capacity: Weidmann - (www.reuters.com) Governments overestimate the central bank's
capacities and place too many demands on it, Bundesbank President Jens Weidmann
said in an internal interview conducted on June 29 and released by the
Bundesbank on Wednesday. Marking its 55-year anniversary, the bank published an
interview with Weidmann and former Bundesbank president Helmut Schlesinger in
which Weidmann underscored the importance of the central bank's independence,
saying that in the past not everything governments wanted had made economic
sense.
Economic Thinkers Try to Solve the Euro Puzzle - (www.nytimes.com) Most people have heard of the
Marshall Plan. Some might even know what Brady bonds are. But they have not yet
heard of the Brunnermeier plan. Or Bishop bonds. Or the Gros accord. That is
because they do not exist yet — except as dreamy proposals by economic thinkers
to fix the European debt crisis.
While dealing with Europe’s financial difficulties has been a grim slog for the
Continent’s austerity-weary citizens and its frustrated policy makers, it is
the opportunity of a lifetime for ambitious idea merchants looking for fame.
De Guindos Said to Push More Spain Cuts as Germany Signals Aid
- (www.bloomberg.com) Spanish Economy Minister Luis
de Guindos is pushing for additional budget cuts after Germany
signaled to him that such a move would be rewarded by bond market assistance,
according to two people in Madrid familiar with his thinking. De Guindos wants
further cuts in health and education spending after his German counterpart, Wolfgang
Schaeuble, told him that such a move would enable Germany to support
any steps by the European Central Bank to push down
Spanish borrowing costs, said the people, who discussed the proposal with the
economy minister. They asked not to be named as the discussions were
confidential. ECB President Mario
Draghi also backs de Guindos’s push, said one of the people.
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