Opening Bell

Opening Bell: 11.29.12

Blankfein: Seems Like “Fiscal Cliff” Deal Could Be “Reachable” (CNBC)
Goldman Sachs CEO Lloyd Blankfein described President Barack Obama’s plan for Washington to reach an agreement on the “fiscal cliff” as detailed and “very credible.” However, he cautioned that marginal income tax rates may have to rise to seal a deal. In an interview with CNBC after meetings between the president and several CEOs, Blankfein said, of course, it’s hard to tell if a deal will be reached but “if I were involved in a negotiation like this, and everybody was purporting to be where they are, I would say that an agreement was reachable.” Blankfein said he thought concessions on both the revenue and entitlement sides would be necessary to reach a final deal to avert the fiscal cliff, when large spending cuts and tax increases are slated to take effect on Jan.1. “Look, at the end of the day, the most important value is to get the economy moving forward,” Blankfein said. “That’s not going to happen if our budget deficit keeps widening.” He added that the marginal income tax rate may have to rise in order to reach a deal. “I would prefer as low of a marginal rate as possible because it’s the marginal rate that provides the incentive to do incremental work by people, but I’m not dogmatic — I wouldn’t go to the end for that,” he said.

Blankfein: “We Can All Be Winners Here” (CNBC)
“The most important thing is that we increase the wealth pie of the United States and that we don’t reduce it. If we don’t sort out our economy, people will be fighting over their slice of a shrinking pie. I think we can all be winners here, even those pay a marginally higher rate, or a bigger proportion of revenue, if they are winners, as we all will be, because the economy is improving.”

Krugman: Fiscal Cliff Is No Way To Run A Country (HP)
The Nobel Prize-winning economist expressed his frustration with the government’s endless budget wrangling, especially over the so-called fiscal cliff, during a Wednesday interview with WNYC. “It’s no way to run a country,” Krugman said, referring specifically to the prospect of going over the cliff, a decision that would trigger a series of tax hikes and spending cuts next year, which would probably slow the economy. Given the options though, Krugman admits going over the cliff might be preferable to the likely alternatives. “There is nothing in there [the fiscal cliff] that is going to cause the economy to implode,” Krugman said. “Better to go a few months into this thing if necessary than to have a panicked response or to give in to blackmail, which is certainly the question that’s facing President Obama.” In Krugman’s view, the fiscal cliff “has nothing to do with the budget deficit,” he added. “This is about a dysfunctional political process. It’s about kind of a self-inflicted wound here.” Krugman’s not alone in his view that jumping over the cliff may be preferable to giving in to Congressional Republicans’ demands. Peter Orszag, a former economic adviser to President Barack Obama, and Robert Greenstein, president of the Center on Budget and Policy Priorities, have both said recently that the jumping off the cliff may end up the country’s best option.

Foreign Banks Rebuffed By Fed (WSJ)
Daniel Tarullo, who is responsible for shaping banking policy at the Federal Reserve, said in a speech Wednesday that the central bank will require foreign banks with large U.S. operations to house their U.S. arms in corporate structures that comply with requirements under the Dodd-Frank Act. Mr. Tarullo didn’t specify which foreign banks would need to adhere to the new structure. But the change would bring Germany’s Deutsche Bank and the U.K.’s Barclays back under a regulatory regime they tried to escape through corporate restructurings.

EU Clears Spanish Bank Rescue (WSJ)
European Union regulators gave the green light to €37 billion ($47.9 billion) in euro-zone funding for Spain’s stricken banking sector on Wednesday, setting in motion a long-term cleanup. In exchange, four nationalized banks agreed to make sharp cuts in their balance sheets and payrolls—a retrenchment that carries the risk of intensifying Spain’s credit crunch in the midst of a deep recession.

Argentina wins debt reprieve, default averted for now (Reuters)
Argentina has won a reprieve against having to pay $1.33 billion next month to “holdout” investors who rejected a restructuring of its defaulted debt and have waged a long legal battle to be paid in full. A U.S. appeals court granted an emergency stay order on Wednesday that gives Argentina more time to fight a debt ruling favoring the holdout creditors and eases investor fears of a new default as early as next month. Last week, U.S. District Judge Thomas Griesa ordered Argentina to deposit the $1.33 billion payment by December 15 for investors who rejected two restructurings of bonds left over from its massive 2002 default.

Drunk ‘Bohemian Rhapsody’ singer wears Viking hat to court (Canada)
The man who became a YouTube viral sensation for singing “Bohemian Rhapsody” from the back seat of an police cruiser, has been convicted of impaired driving and for refusing to take a breathalyser test. He went to court wearing a Viking hat, sunglasses and NASA T-shirt proclaiming, “I need my space.” He is being forced to pay a $1,400 fine and will be barred from driving for one year. The video footage was originally capture on the cruiser’s built-in camera. His passionate performance was used as evidence during his trial. Because his friends told him to, Robert Wilkinson, posted the video to YouTube where it gained nine million people watched it.

Fed Likely To Keep Buying Bonds (WSJ)
Three months after launching an aggressive push to restart the lumbering U.S. economy, Federal Reserve officials are nearing a decision to continue those efforts into 2013 as the U.S. faces threats from the fiscal cliff at home and fragile economies elsewhere in the world.

Groupon CEO Says He Remains Right Person To Run Company (WSJ)
FYI.

World Economy in Best Shape for 18 Months, Poll Shows (Bloomberg)
So that’s nice.

Actor Tim Allen’s Car Stolen By Man Claiming To Be Son (Fox2)
To the untrained eye, actor Tim Allen’s 1996 Chevy Impala may not look like much, but with its custom engine and one of a kind interior, it’s worth a lot of money. America’s funnyman Tim Allen loved his car so much, he featured it in a YouTube commercial. The car was special, expensive, upgraded, and was also one of the superstar’s favorites. He even drove it to the People’s Choice Awards and mentioned it on stage when he won his award…So how did Allen’s prized possession make its way from his Los Angeles garage to a corner in Northeast Denver? Faustino Ibarra is facing charges for stealing it. “It’s a priceless vehicle.” Ibarra said to Fox 31 Denver’s Justin Joseph in an exclusive jailhouse interview. “I`m trying to make it simple for you to understand. I didn’t break into (Allen’s) garage. He left the door open and he left me the keys so I could get the car and take it to Denver.” Ibarra claims Allen adopted him years ago and that Allen had allowed him to take the car. “I emailed my dad the morning that I got the car in and everything is fine and I’ve got the car and it`s ready for you and we need to talk about me coming to live with you,” said the inmate. “What you say sounds a little crazy.” Joseph said. “I don`t care how it sounds, I know who I am. He knows who I am. He knows who he is,” Ibarra said. He denies that he has mental health issues and says no matter what anyone thinks, his alleged father, a superstar, will not pursue charges. “My dad loves the heck out of me. He’s ultra-proud of me and he wants to see the best for me in every way,” Ibarra told Joseph. FOX 31 Denver reached out to Allen’s publicist but did not hear back from Allen’s team. FOX 31 Denver also found no independent evidence that Ibarra was ever adopted by Allen.

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89 Responses to “Opening Bell: 11.29.12”

  1. Guest says:

    Shirt would have been funnier if it read "I need Myspace"

  2. Wilson says:

    Tim, I think it's time I give you some advice about not having your garage code be 1-2-3-4

  3. russian roulette says:

    Nothing like starting the day off reading advice from: Lloyd, Lloyd, Krugs, and Benny. To quote Tony the Tiger, today is going to be great

  4. VonSloneker says:

    I see a little silhouetto of a tard…

    – The Ghost of Freddie Mercury

  5. Guest says:

    Ogilvy & Wollensky

  6. Guest says:

    I mean, who wouldn't want Tim the Toolman Taylor as their father?

  7. Wilson says:

    Well, Tim, I'm reminded of what the Chinese philosopher Chuang Tse said.You cannot speak of the ocean to a well frog, you cannot speak of ice to a summer insect.

  8. Guest says:

    Reasons given by Mason supporting his claim: 0
    Barriers to entry in "industry": 0
    Differentiation of product: 0
    Competitors to Groupon: > 500
    = chance of him remaining CEO: 0

  9. Guest says:

    "My dad loves the heck out of me"

    Sure sounds like he was adopted

  10. Guest says:

    Lloyd forgot a comma after the word "economy".

  11. Guest says:

    Fiscal Cliff Asness is always the way to run a country.

    -Biff

  12. Al Borland says:

    "Bumps in the road" : Stock down 80% : : Bombing of Hiroshima/Nagasaki : Fireworks

  13. MD in Need says:

    I’m an MD at a MM IB, I recently discovered that a female Associate I have engaged in an affair with made between 10 and 20 porn videos when she was huge campus slut at a Big 10 school. Simply put, I am devastated. When I confronted her about it, she cried and told me that with this hot body and a lot of attention from student-athletes, plus the financial gain, it was hard to turn down doing them. I don’t know if I can forgive her. She has been a great coworker and her sex makes my home life with my wife and kids a lot more bearable. Yet I simply cannot get over the pain I feel. I’m just not sure what to do.

  14. Shecky Sol Estes says:

    An electricity trader for a major Wall Street firm decides to go out for a run one Saturday afternoon and tells his beautiful wife, "My buddy Bob from Goldman might come by while I'm out running. I thought he might get here around noon but I'm not going to wait for him. Would you tell him I've gone for a run?" Wife says "sure".

    Twenty minutes after hubby has left to go running, Bob knocks at the door. Wife tells Bob that hubby is out running. Because Bob is cute, wife invites him in for a beverage. After a couple of glasses of wine, Bob says, " You know….you have beautiful breasts! I'd pay $100 to see just one!" Wife is tipsy and says, What the heck…." and pulls up her Oklahoma sweatshirt and pull out her beautiful right breast. "Where's that hundred?" she giggles. Bob pays her with a crisp $100 bill. Then Bob says, "Might as well say it….I'd give another $100 to see the other one!" Wife wastes no time and heaves out the other breast. Bob slaps the second $100 bill on the table and says, "On that note I better be getting on about my other errands this afternoon..!" He leaves.

    The electricity trader soon returns from his run sweaty and out of breath. Wife says, "By the way, your friend Bob did come by…but he couldn't wait and had to leave " Trader replies, "I hope he brought that $200 he owes me!!

  15. Guest says:

    comment would have been funnier if it read "___________"

    try harder.