The annual World Economic Forum in Davos, Switzerland is underway and reports are that the attendees to this exclusive alpine confab — the 1% if ever there was such a thing — are seriously bummed out over the global state of affairs. Twitter lights up with many comments under the #Davos and #WEF rubric when the event is in session. So how better to capture some of this action than with Storify? And so I have. Your end-of-the-week Davos reading is thusly furnished.
Facebook founder and CEO Mark Zuckerberg speaks during a news conference at Facebook headquarters on October 6, 2010 in Palo Alto, California.
The long-awaited day will finally arrive next week, when Facebook files for its initial public offering (IPO) later this year. According to the Wall Street Journal, the offering — which will be fairly limited as far as actual stock sold goes — will price the social network at $75-$100 billion. That would make it one of the biggest IPOs of all time. It could actually help California balance its budget.
But there's more!
The Vampire Squid — aka Goldman Sachs — may not get to lead the IPO. the WSJ reports that Morgan Stanley, Goldman's main Wall Street rival, will get the plumb role.
Let's not sugar-coat it: This would be humiliating for Goldman, which has been angling to lead Facebook's IPO ever since it set up a private market in Facebook shares in 2011 (and likely before that). It would also be costly. While Goldman will certainly participate, it won't get the millions in fees it was probably expecting, and definitely lobbying for.
Honda delivers a 2013 Fit EV to the city of Torrance as a part of the Honda Electric Vehicle Demonstration Program.
I unfortunately missed the delivery of Honda Fit EVs (for "electric vehicles) to the City of Torrance last week. I regret that because this was actually an important move for Honda. As I pointed out in conversation with the Wall Street Journal's car critic, Dan Neil, on "AirTalk" as the Detroit Auto Show was kicking off, Honda is going through something of an identity crisis. It was hit hard by the 2011 earthquake and tsunami in Japan that roiled the global auto supply chain. But Honda has also struggled to retain customers and lost market share in the past year to Ford, Nissan, and Hyundai, as well as General Motors and Toyota.
That's the bad news. The Fit, on the other hand, is the good news. This compact hatchback has been a big hit for Honda. It might be the best small car made by humans on Planet Earth (although Ford and Chevy have some excellent small rides these days, as well — the competition is fierce).
Leave it to a designer educated in California to create what might be the best explanation of the Wall Street financial crisis. Jonathan Jarvis graduated from Art Center College of Design in 2009 and got hired by Google. He was recently asked back to the prestigious art and design school — perhaps best known for schooling car designers — to elaborate on his experiences at Art Center and beyond and accept an award, but also to talk about "The Crisis of Credit Visualized."
It's a superb piece of information delivery. If you want to understand why everything went horribly, horribly wrong in 2008, just watch it (the entire animation lasts about 11 minutes — a miracle of concision). What's truly impressive is that Jarvis says that he knew nothing about finance before undertaking the project.
Brendan Smialowski/Getty Images
Secretary of the Treasury Timothy F. Geithner (L) and William C. Dudley (R), President and Chief Executive Officer of the Federal Reserve Bank of New York, listen to Federal Reserve Chairman Ben S. Bernanke (C) speak during a hearing of the House Financial Services Committee on Capitol Hill March 24, 2009 in Washington, D.C.
The fourth quarter of 2011 was much better for the U.S. economy than the year as a whole. But if you can believe it, it actually disappointed many economists. The economy grew at a rate of 2.8 percent, a vast improvement over the sub-2-percent growth that typified the year. But we were looking for 3 percent GDP growth.
I know, I know — 0.2 percent doesn't sound like such a big deal. Unless your yearly GDP is $14.5 trillion and you need to add something like 350,000-400,000 jobs each and every month to bring unemployment down to pre-crisis levels (nationally, it's at 8.5 percent now).
The Fed on Wednesday said it expected to keep interest rates at rock bottom levels at least through late 2014, and Chairman Ben Bernanke said the central bank was mulling further asset purchases to speed the recovery.
The central bank warned the economy still faced big risks, a suggestion the euro zone debt crisis could still hit hard.
"We're still repairing the damage done by the financial crisis. On top of that we face a more challenging world. We have a lot of challenges ahead in the United States," U.S. Treasury Secretary Timothy Geithner said at the World Economic Forum in Davos.
Prospects of sluggish growth could hurt President Barack Obama's chances of re-election in November.
The economy grew 1.7 percent in 2011 after expanding 3 percent the prior year, and the unemployment stood at a still-high 8.5 percent in December.