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The capital of Pennsylvania just fell into bankruptcy. What? You didn't hear? Neither did the financial markets -- yet. The day after Harrisburg bit the bullet, the Dow barely trembled, while the Nasdaq actually rose slightly. But two of our smartest investors seem to think this is a very big deal indeed.
Some stocks may seem like bargains when they're really duds. Here's how you can find stable, defensive stocks that might provide market-beating returns. You can start with these nine high-quality stocks that should do well for buy-and-hold investors.
Publishing companies McGraw-Hill and Pearson both saw earnings buoyed by their education segments.
While Amazon sucked up most of the air in book publishing circles this week, both Scholastic and McGraw-Hill quietly posted encouraging earnings reports, with promising signs of good tidings over the next three months.
While defending the rating agencies last week before the Financial Crisis Inquiry Commission, Warren Buffett also admitted, "I don't need them." It seems that more and more, the financial markets are coming to agree with Buffett's stance on ratings.
European proposals aimed at better oversight of the ratings agencies will create a EU-wide watchdog to license and oversee the big three, taking these duties from member nations. But critics say the proposals don't go far enough.
Before the Financial Crisis Inquiry Commission, The World's Greatest Investor essentially said this: We are all of us, myself included, a bunch of junkies -- and history shows that markets will always oblige us with a fix.
Lawmakers' decision to restrict financial institutions' ability to select a credit-rating agency to evaluate their bonds may open the market -- and S&P, Moody's and Fitch -- to competition.
The Senate is moving to end the ability of financial institutions to choose the credit rating agencies that rate their investment products, with two amendments to the financial reform bill that could force banks and others to vouch for their own offerings.
MBIA has sued Merrill Lynch because the CDOs on which Merrill bought insurance from MBIA were AAA-rated junk. MBIA says Merrill knew the CDOs didn't deserve the top rating at the time it insured them. If this case succeeds, big banks may find dud ratings very expensive.
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