Monthly Archives: September 2008

Fearful Consumers Cut Spending in August

Consumers, whose spending had been THE driver of this economy, shut their wallets in August. From Reuters (hat tip reader Brian): Consumers facing rising unemployment kept their spending unchanged in August even though incomes rose, according to a government report Monday that showed optimism about the economy’s direction was fading. The Commerce Department said consumer […]

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Wow, the Mother of All Bailouts Failed to Pass the House (Further Update: Carnage Assessments)

I’m actually quite surprised. The stock market in a panic. I wonder whether Paulson and Bernanke have a Plan B. Jamie Galbraith outlined a good interim idea (needs tweaking but has merit) in the Washington Post last week. Hope someone paid attention. From Bloomberg: U.S. stocks plunged and the Standard & Poor’s 500 Index tumbled […]

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Fed Increases Dollar Swap Facilities by $330 Billion, More than Double

The numbers attached to various emergency interventions just keep getting bigger and bigger. From Blooomberg: The Federal Reserve increased the size of previously arranged currency swaps with foreign central banks to $620 billion from $290 billion to make more dollars available to banks worldwide. Banks and brokers have slowed lending as they struggle to restore […]

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Nouriel Roubini Really, Really Hates the Bailout Plan

Did we say really? Even by the normal standards of Roubini’s tendency to hyperventilate state his case forcefully, the good professor rises to levels of choler heretofore unseen. Roubini focuses on many of the issues we have discussed in our earlier posts (most notably this one) but he teases out some of the issues in […]

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Links and Quick Takes 9/29/08

Private equity boss kills himself Times Online Analyzing The Bailout: What’s In It, Anyway? Clusterstock. A good, pointed summary. The NYT Wants the Government to Support the Price of Pets.com Dean Baker. Lehman’s Demise Triggered Cash Crunch Around Globe Wall Street Journal. A weird piece. It focuses mostly on the history of Lehman’s unraveling, and […]

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Congressional Charade: Changes in Bailout Bill Cosmetic, and Everyone Knows That

For a quick, one-stop synopsis of the Mother of All Bailouts (as of this month), see this readable version at Clusterstock (we’ve become a recent convert to this site). Reader and sometimes contributor Lune, who was once a Congressional staffer and still subscribes to the the inside-the-Beltway press, provided a wrap of their coverage of […]

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Mussolini-Style Corporatism in Action: Treasury Conference Call on Bailout Bill to Analysts (Updated)

Various readers wrote us, and it was confirmed by a detailed report on the call at DealBreaker, that the Treasury Department held a conference call this evening for analysts on the bailout bill. A memo was evidently sent to SIFMA members; others may have been contacted by other means. But the report I got from […]

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Fortis Rescued, but Hypo Bank May Go Bankrupt Monday

Banks are falling over like kingpins. Not good at all. First, on the Fortis salvage operation: Belgium, The Netherlands and Luxembourg invested 11.2 billion euros ($16.3 billion) in Fortis, Belgium’s biggest financial-services firm, to restore confidence in the bank after shares fell 35 percent last week. Belgium will buy a 49 percent stake in Fortis’s […]

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