14 Awesome Insights From Wall Street's Sharpest MindsReported by Business Insider on Saturday, 12 May 2012 (on May 12, 2012)
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 Investors had a lot to digest this week. Following last weekend's elections, Greece scrambled to get its government together. And they're still not done.
Then on Thursday, markets learned that J.P. Morgan, arguably the most well-regarded bank on Wall Street, would lose at least $2 billion on trading within its Chief Investment Office in London.
This week, analysts offered some progressive ideas regarding market movements, currency valuation, volatility, and the gold trade.
-Richard Koo Explains How In The End, It Really Is All Germany's Fault-
"If Germany had addressed its balance sheet recession with greater fiscal stimulus, the ECB would not have had to lower interest rates as much as it did, and the housing bubbles in Spain and Portugal would not have expanded to the extent they did.
In the event, however, Germany chose to observe the Maastricht Treaty’s 3% cap on fiscal deficits. That prevented the government from administering needed fiscal stimulus and shifted the burden onto the shoulders of ECB’s monetary policy. The ECB then lowered short-term interest rates, triggering bubbles in Ireland and southern Europe."
*Read more here >*
-Bank of America On The Odds Of A 'Thelma & Louise' Ending To The Fiscal Cliff Story-
"If the partisan gap is so large, why don’t you assume the “Thelma and Louise” outcome where we sail over the cliff?:* *Fortunately, we think politicians’ bark is worse than their bite. Faced with a weak economy and financial markets, we would expect both sides to eventually capitulate. We have seen this repeatedly. Obama “blinked” around the first Bush tax cut extension. Republicans “blinked” around the extended payroll tax cut and unemployment benefits. The result could still be suboptimal, and the process is awful, but we don’t expect the worst. A reasonable range of the resulting fiscal drag this time could be between 1 and more than 3% of GDP."
*Read more here >*
-Willem Buiter: Central Banks Need To Drop Money From Helicopters, And Perhaps ABOLISH CURRENCY COMPLETELY-
"The obvious solutions are: (1) abolishing currency completely and moving to E- money on which negative interest rates can be paid as easily as zero or positive rates; (2) taxing holdings of bank notes (a solution first proposed by Gesell (1916) and also advocated by Irving Fisher (1933)) or (3) ending the fixed exchange rate between currency and central bank reserves (which, like all deposits, can carry negative nominal interest rates as easily as positive nominal interest rates, a solution due to Eisler (1932))."
*Read more here >*
See the rest of the story at Business Insider
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