Week InReview
Friday | Jan 31, 2020
Tweet of the Week
in case you missed it...
A key slice of the U.S. yield curve inverted on Thursday for the first time since October, reviving memories of growth fears that plagued investors last year and signaling doubts that the Federal Reserve will succeed in reviving inflation. (Bloomberg Government | Jan 30)

Investors are hooked, and it won’t end well. Private equity assets have  increased sevenfold  since 2002, with annual deal activity now averaging well over $500 billion per year. Yet just as private equity fueled a massive increase in demand for corporate debt, banks sharply limited their exposure to the riskier parts of the corporate credit market. Not only had the banks found this type of lending to be unprofitable, but government regulators were warning that it posed a systemic risk to the economy.  (Institutional Investors | Jan 28)

The U.S. economy will grow at a “solid” rate of 2.2% this year, the non-partisan Congressional Budget Office forecast on Tuesday, but the federal budget deficit will hit $1.02 trillion. At this rate, the U.S. federal debt is on track to reach $31.4 trillion, or 98% of national GDP, by the end of 2030, the CBO said. (Reuters | Jan 28)

A task force made up of former federal government officials and lawyers is calling upon Congress to pass a law specifically outlawing insider trading. The group said the current approach that relies on laws prohibiting fraud and deception to fight insider trading has "failed to keep up with the times." (Reuters | Jan 27)

The Federal Reserve's move to inject cash into the financial system through bond purchases, which began in the latter part of 2019, had the desired effect of calming the markets. However, new challenges are likely to emerge as it attempts to end the process. (Reuters | Jan 27) See also : Stress index sinks to new low as Fed sedates markets (Financial Times | Jan 24)
Fannie-Freddie regulator FHFA announces restructure of agency
(Jan 30) —  Fannie Mae and Freddie Mac’s regulator, the Federal Housing Finance Agency, establishes three new units that will report to the director, according to a  statement .
  • New divisions include: research and statistics headed by deputy director Lynn Fisher; Accounting and financial standards headed by deputy director Nina Nichols; and office of Equal Opportunity and Fairness
  • Restructuring “is designed to ensure that the agency is well-positioned for the enterprises to responsibly exit conservatorship,” according to the statement
  • Change will include two new hires to head the Division of Enterprise Regulation; and promote four key positions in the agency
the cyber cafe
Even inexperienced hackers can purchase "ransomware-in-a-box"
The same technologies enabling cloud computing are also feeding hackers, even down to the availability of "ransomware-in-a-box," writes Tom Kulik of Dallas-based law firm Scheef & Stone. In this analysis, he outlines ways to create "a strong digital umbrella" of cybersecurity to meet the inevitable storms.

New ransomware bypasses Windows Defender
The new Ragnarok ransomware is able in some cases to bypass Windows Defender to infect Citrix ADC servers, even those recently patched. The list of countries in which it will not encrypt files suggests that the developers are based in Russia or Eastern Europe.

SEC cybersecurity best-practices guide focuses on mobile security
The Securities and Exchange Commission has released a best-practices guide on cybersecurity, data loss and privacy breaches. The guide focuses heavily on mobile device security, noting "mobile devices and applications may create additional and unique vulnerabilities." See also:  SEC Office of Compliance Inspections and Examinations publishes observations on cybersecurity and resiliency practices
—  ThinkAdvisor
binge reading disorder
Credit: Courtesy of Paramount
Real-life ‘Wolf of Wall Street’ claims he was scammed by film's producers, seeks $300 million in lawsuit
Jordan Belfort, the pump-and-dump scammer immortalized in Martin Scorsese’s “ The Wolf of Wall Street ,” said in a lawsuit that he was victimized by a far grander scam perpetrated by the film’s producers.
—  Variety

Wine, bees and seagrass: where to invest $1 million right now
Five experts offer investment ideas to help fight climate change.

Need more ZZZs? Sleep retreats are a (glorious) thing
Sleep tourism is the latest trend in the lucrative wellness industry. Given that 1 in 3 adults doesn’t get enough sleep, according to the Centers for Disease Control and Prevention, and that wellness travelers reportedly spend nearly 60 percent more than the average international tourist, it was only a matter of time before wellness tourism took off.
—  Ozy  
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