The Fed and the stock market are set for a showdown this week. What’s at stake.

Let’s get ready to rumble. The Federal Reserve and investors appear to be locked in what one veteran market watcher has described as an epic game of “chicken.” What Fed Chair Jerome Powell says Wednesday could determine the winner. Here’s the conflict. Fed policy makers have steadily insisted that the fed-funds rate, now at 4.25% … Read more

Sam Bankman-Fried’s Supersized Bet: $1 Billion for a Bitcoin Miner on the Kazakh Steppe

Sam Bankman-Fried’s Supersized Bet: $1 Billion for a Bitcoin Miner on the Kazakh Steppe

Caroline Ellison says she’s ‘truly sorry for what I did,’ as she pleads guilty

Caroline Ellison has apologized for stealing billions in customer deposits at crypto exchange platform FTX to make bets at Alameda Research, the hedge fund she ran. “‘I am truly sorry for what I did.’” — Caroline Ellison, former head of Alameda Research Ellison made her comments in front of a judge in New York federal … Read more

The Crypto Ice Age Is Here. It Could Get Even Worse.

For crypto investors, the only thing to celebrate about 2022 is that it is almost over. The industry is fighting for its life amid a cascade of scandals, bankruptcies, and fury in Washington over its freewheeling, if not fraudulent, ways. Bitcoin has lost 67%  since late 2021. The token market is down by $2 trillion … Read more

FTX fiasco one of the most egregious cases of ‘gross negligence,’ says Ackman

Hedge-fund titan Bill Ackman appears to be walking back comments he made via Twitter last week about Sam Bankman-Fried that some interpreted as implicit support for the 30-something who presided over one of the most epic bankruptcies in financial markets in recent memory. Last week, Ackman tweeted that Bankman-Fried’s statements made during a widely watched … Read more

FTX bankruptcy is ‘somebody running a company that’s just dumb-as-f—ing greedy,’ says Mark Cuban

Billionaire tech entrepreneur and Dallas Mavericks owner Mark Cuban has offered his perspective on the implosion of crypto platform FTX late this week. “‘That’s somebody running a company that’s just dumb-as-fucking greedy.’” — Mark Cuban Cuban, speaking on Friday at a conference in Washington, D.C., hosted by Sports Business Journal, shared the view that avarice … Read more

FTX collapse nothing like Theranos, says Tim Draper

Tim Draper, founder and managing partner of Draper Associates and Draper University, balked at comparing the stunning implosion of crypto trading platform FTX to the notorious biotech startup Theranos, in a conversation with MarketWatch. “It’s not like Theranos,” he said. In a Friday phone interview, Draper said he hadn’t been aware of anyone genuinely comparing … Read more

Fed says it may hike interest rates at slower pace, but destination is now 5% or higher

The Federal Reserve on Wednesday approved the fourth straight jumbo increase in a key U.S. interest rate and signaled rates are likely to go higher than previously forecast. News of a higher terminal rate overshadowed more dovish comments from the central bank statement that it might move more slowly to better evaluate the effects on … Read more

Another jumbo Fed rate hike is expected this week — and then life gets difficult for Powell

First the easy part. Economists widely expect Federal Reserve monetary-policy makers to approve a fourth straight jumbo interest-rate rise at its meeting this week. A hike of three-quarters of a percentage point would bring the central bank’s benchmark rate to a level of 3.75%- 4%. “The November decision is a lock. Well, I would be … Read more

This stock market strategist says the coming recession could be the biggest ever. ‘I recommend prayer.’

Keith McCullough, founder and CEO of Hedgeye Risk Management, isn’t one to mince words about financial markets, the Federal Reserve or the economy. Right now he has a few less-than-charitable things to say about how the Fed’s rate hikes have ground up stock and bond investors. His investment-research firm’s economic models turned bearish on stocks and … Read more