Today's Headlines

Bloomberg:
- The European Central Bank may have “overreacted” last week when it poured money into the banking system to avert a crisis of confidence in the credit market, said Paul de Grauwe, an academic at Belgium’s University of Leuven.
- Yield premiums on AAA and AA rated securities backed by US subprime or second mortgages have widened enough to make the bonds attractive, analysts at JPMorgan said.
- Sears Holdings(SHLD) rose the most in more than a year after the biggest US dept.-store company said it plans to buy back $1.5 billion in stock.
- Goldman Sachs(GS) will invest about $2 billion to shore up its Global Equity Opportunities Fund after a 28% decline this month.

Wall Street Journal:
- Former Fed Chairman Greenspan has been hired by Deutsche Bank AG as a consultant for its corporate and investment banking unit, Deutsche Bank Securities.
- Pakistani voters would be eager to take a stand against violent radicals and militants if they were given a chance to vote with their conscience, said Benazir Bhutto, the country’s main opposition leader and a former prime minister.
- Karl Rove, President Bush’s longtime political adviser, is resigning as White House deputy chief of staff effective Aug. 31, and returning to Texas, marking a turning point for the Bush presidency.

NY Times:
- Two of the three leading US automakers are being run by industry outsiders as the traditional notion of “car guys” take a back seat to broader pragmatic knowledge.
- Pack Mentality Among Hedge Funds Fuels Market Volatility.

Business Week:
- After the Drop, It’s Time to Stock-Shop.

USA Today:
- High-profile attacks in Iraq dropped almost 50% to about 70 in July from a 12-month peak of about 130 in March because of higher troop levels, citing the US military command in Iraq.

Handelsblatt:
- Jean-Michel Six, chief European economist at S&P in London, expects interest rates in the 13 countries sharing the euro to peak at 4.25%.