Monthly Archives: September 2008

Links 10/1/08

Beaked whales: Sounding off BBC The world’s 23 toughest math questions NetworkWorld House limits constituent e-mails to prevent crash The Hill. In case your were wondering. The Solution to Hunting’s Woes? Setting Sights on Women. Wall Street Journal. Is this sport, or cover for new fears about survival? Yes, you too can put food on […]

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Calls to Congressmen Running in Favor of Bailout Bill

Despite the hue and cry among the officialdom in favor of the bailout bill, the reading we have gotten from professional investors, some of them with very high level connections, and economists among our readership and personal network is strongly negative. Nevertheless, by making the bill a de facto ultimatum (“do this or we do […]

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Why The Bailout Bill Will Not Solve the Credit Crunch (And What Could)

This message comes from a savvy reader/investor/economist, and is refreshingly succinct: At this stage, I think the bailout complicates matters enormously, because the immediate problem is 1) Preventing further runs on banks and money market funds by extending deposit insurance & mmmf insurance 2) Reviving the interbank market by placing the Fed as counterparty and […]

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Libor Surges to Nearly 7% But US Stock Futures Rise on Bailout Bill Revival Hopes

Markets continue to be roiled by the upset of the effort to pass the touted Paulson bailout bill. As of this writing, the FTSE and Dj Stoxx 50 are up slightly, but money markets took a beating, the reaction worsened by end-of-quarter factors. From Bloomberg: The cost of borrowing in dollars overnight surged the most […]

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Merrill: Low Treasury Yields to Go Even Lower

Conventional wisdom has been that Treasuries have been the yet another bubble as cash exited equities and other risky investments, first feeding a commodities spike, then seeking a better home in Treasuries. But Merrill’s David Rosenberg, who was in a decided minority in seeing deflation as the likely outcome for the US (he has for […]

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Links 9/30/08

Obama Runs Constructive Criticism Ad Against McCain The Onion Obama winning over ‘Wal-Mart moms’ Financial Times The methane time bomb Independent Mission Creep Dispatch: Winslow Wheeler Mother Jones News. A departure from our usual programming. On global Pentagon strategy. NYT Promotes Hysteria on Bailout Bill Dean Baker How I learned to love the Fed Steve […]

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Mitsubishi UFJ Loses $500 Million on Morgan Stanley Stake

Boy, there have been bigger bad investments (TPG putting $7 billion into WaMu comes to mind) but seldom has one come cropper as quickly as Mitsubishi UFJ’s $9 billion interest in Morgan Stanley. The bank took a cool $500 million one-day loss. From Bloomberg: Mitsubishi UFJ Financial Group Inc. took a $506 million paper loss […]

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Credit Stress: Repos Behaving Badly

This report from Bloomberg: Rates in the $7 trillion-a-day market for borrowing and lending securities show that the logjam in credit markets is approaching the level seen after the March collapse of Bears Stearns Cos. Securities that can be borrowed at interest rates close to the Federal Reserve’s target rate for overnight loans between banks […]

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Fed Adds $300 Billion to Term Auction Facility

This is on top of the $330 billion increase in dollar swap lines we mentioned this morning. From Bloomberg: The Federal Reserve will pump an additional $630 billion into the global financial system, flooding banks with cash to alleviate the worst banking crisis since the Great Depression. The Fed increased its existing currency swaps with […]

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