MORNING HEADLINES

*smart move to wait, because prices will go down next year
Harvard's endowment loses talent as it shies from risk
Marc Seidner and Michael Llodra, bond managers for Harvard Management, are leaving after the endowment shunned an investment strategy they advocated. The strategy involves purchasing distressed assets, including mortgage-backed bonds. "Harvard is actively managing its mix of cash and investments with an eye toward the future," said Jane Mendillo, investment chief at the endowment. "We see some enticing investment opportunities today, and have put money back into several of our target markets, but we are holding some cash for even better opportunities down the road." The Wall Street Journal (23 Jun.)

*they need to do away with the 401K altogether. You raise the IRA limits instead. That is what's best for consumers, not Wall Street.
U.S. lawmakers work to overhaul 401(k) plans
U.S. Reps. George Miller, D-Calif., and Rob Andrews, D-N.J., are set to introduce the 401(k) Fair Disclosure and Pension Security Act this week. The legislation is expected to address "conflicted" investment advice and fee disclosure and incorporate pieces of existing legislation into a broader, more comprehensive bill. InvestmentNews (22 Jun.)

ECONOMICS
*and what are you going to do about it?
White House expects 10% unemployment in next few months
With joblessness at 9.4% in the U.S., the Obama administration is looking for unemployment to reach 10% before the year is over, a White House spokesman said. "I think the president has said this, and I would certainly say this: I think you're likely to see unemployment at 10% within the next couple of months," White House spokesman Robert Gibbs said. Reuters (22 Jun.)

*Is Spain having their own Depression? US Depression had 25% unemployment.
Spain leads developed world with 18.1% unemployment
The country-to-country variation in how the global economy's slump has impacted employment is quite spectacular. With 18.1% joblessness, Spain's rate is the highest in the developed world, while Russia faces serious unemployment as well. Increases have been minimal in Germany and Argentina. The Economist (22 Jun.)

MARKET ACTIVITY
*what happens in the US doesn't stay in the US
Renewed economic concerns drag down Asian share markets
Investor fears that markets have risen more quickly than they should resulted in share markets across Asia falling Tuesday. Tokyo's Nikkei 225 dropped 2.8%, Australia's S&P/ASX 200 lost 3.1% and Hong Kong's Hang Seng Index gave up 2.9%. South Korea's Kospi Composite was down 2.8%, Singapore's Straits Times Index fell 1% and New Zealand's NZX 50 slid 1.2%. Taiwan's Taiex dropped 2.3%, shares in the Philippines were down 1.7% and Indonesian shares slid 2.5%. The Wall Street Journal (23 Jun.)