Nobel Prize in economics awarded to trio including Ben Bernanke for work on financial crises [CNN]
Former Federal Reserve Chair Ben Bernanke, Douglas Diamond and Philip Dybvig were awarded the Nobel Prize in economics on Monday for their work on banks and financial crises…. “People had seen that banks fail, but it was more thought [of] as a consequence of the crisis rather than [a] cause of the crisis,” the economist John Hassler, who serves on the Nobel committee, said at a press conference. “Now the views of Bernanke have become the conventional wisdom.”
World’s Emergency-Lending Capacity Is Getting Stretched as Crises Deepen [WSJ]
The IMF has committed $258 billion to 93 countries since the onset of the pandemic, and an additional $90 billion to 16 countries since Russia’s invasion of Ukraine…. At the end of September, the IMF had a record $135 billion of loans outstanding, up 45% from 2019, and more than double the amount in 2017…. Total lending by the World Bank has risen 53% since 2019 to a record $104 billion by September….
“The resources available to these banks are scarce and must be used most effectively,” [U.S. Treasury Secretary Janet] Yellen said.
Elon Musk Got More Time to Close Twitter Deal, Not More Options [WSJ]
Musk’s latest move has limited his options, legal observers say, because he now has represented to the judge that he intends to close the deal, and he’ll face pressure to get financing lined up ahead of the deadline. He could open himself up to securities fraud violations on top of shareholder lawsuits if he fails to move forward…. If Mr. Musk plays games, the games are being played on the judge, not the company, and that is far more serious, said Zohar Goshen, a professor of transactional law at Columbia University Law School.
“He practically closed all exits,” Mr. Goshen said.
Bank of England doubles bond-buying limit amid pension fund fears [Guardian]
The central bank has so far bought only about £5bn in gilts over the first eight days of the scheme, significantly below a maximum limit of £40bn. However, it signalled it was “prepared to deploy this unused capacity” over the coming days to help ease the pressure in bond markets…. The Bank said in addition to increasing the size of the bond-buying programme it would launch a facility to help commercial banks to support pension funds struggling to find buyers and sellers for assets.
Paul Tudor Jones believes we are in or near a recession and history shows stocks have more to fall [CNBC]
“Inflation is a bit like toothpaste. Once you get it out of the tube, it’s hard to get it back in,” Jones said. “The Fed is furiously trying to wash that taste out of their mouth. ... If we go into recession, that has really negative consequences for a variety of assets.”
Steve Cohen Hired the Best Mets Money Could Buy. They Were Still the Mets. [Bloomberg]
The team crashed out of the Wild Card round of the Major League Baseball playoffs Sunday night in ignominious fashion, mustering only one hit in a 6-0 loss to the San Diego Padres in the deciding game of their best-of-three series…. He spent a league-leading $314 million on payroll with a number of big free-agent signings, including a record-breaking $43 million a year for pitcher Max Scherzer. Scherzer went 11-5 in the regular season but surrendered four home runs when he started on Friday and was pulled in the fifth inning.