The eco machine that can magic water out of thin air Guardian
Americans’ ’Hypocrisy’ in Auto Rescue Spurs Me-Too Trading Ire Bloomberg. An auto industry rescue may run afoul of WTO rules. Charming.
A reassuring figure for Treasury Economist. On why Geithner is a good pick for Treasury. The problem is that the Bush Administration has so lowered standards that someone who is competent is applauded as a good choice, as in ideology and past record are ignored if you have a respectable background and are not a patronage choice. Competence is a minimum standard, folks. What does the candidate stand for? The MSM ducks that issue, choosing to characterize Geithner as a technocrat. That is incomplete and inaccurate.
The Fed Is Out of Ammunition Christopher Wood, Wall Street Journal. I take issue with some of the particulars, (such as a defense of Paulson) but the broad outlines are worth considering.
The Citi Deal Looks Like Citi-Wachovia Conglomerate
The First Thing We Do, Economists, etc. Paul Kedrosky
Citigroup Scores Robert Reich
World’s house values fall for the first time Guardian
For Detroit, Chapter 11 Would Be the Final Chapter Spencer Abramam, New York Times (hat tip reader Crocodile Chuck)
Job Centers See Crush of People in Need New York Times
Big Three’s Troubles May Touch Financial Sector New York Times. Duh, but the article tries to tease out particulars.
Antidote du jour (hat tip reader Ernesto):
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Competence is a minimum standard, folks. What does the candidate stand for? The MSM ducks that issue, choosing to characterize Geithner as a technocrat. That is incomplete and inaccurate
Hear, hear. Everything about Geithner (including, of course, his yeoman work over the weekend, along with Hank & Ben, to ram through the latest boondoggle: the Citigroup bailout) suggests an intervenor extraordinaire, an inflationist, a cozy buddy to Wall St.
The spigots are open and Geithner will do little to shut them. Being a competent technocrat, and all, he'll probably find a way to open them wider.
Watch your wallets.
Taser inc. stock up 3.65 on the back of 10k unit order from L.A. police. This is a huge one time order. Now here is some thing that bears watching, Non lethal crowd control devices/law enforcement orders and which city’s.
Skippy
Great catch Yves. I believe that Cris Wood’s take on how this mess will play out is as good a guess as has been put forward.
Long bonds, anyone?
Obviously the kid is going through the motions, while the canine is at least (friggn) trying! I admire the condition of sincerity and as I recall, imitation is the sincerest form of flattery.
I’m curious why you’re not impressed with Geithner?
YS:
I read the Wood article too. I have no sympathy for Paulson. Let us not forget, he was GSG’s Big Cheese before GSG “lent” him to Treasury. If He (capitalized intentionally) is so smart, why didn’t He tell his GSG cronies while still there what not to do? I agree with Wood’s conclusion, “the present crisis in the West will ultimately end up discrediting mechanical monetarism–and with it the fiat paper-money system in general. … The catalyst will be foreign creditors fleeing the dollar for gold”. Gold, my favorite four-letter word.
Yves,
Peter Kovalski indicates C has another Achilles heel, emerging markets, that will be catching up with C in the coming months. I am of course not in the banking industry, so have no visibility on C's emerging mkt risks in the coming months.
Citigroup remains vulnerable to losses on loans and securities outside the U.S., said Peter Kovalski, a portfolio manager at Alpine Woods Capital Investors LLC in Purchase, New York, which oversees $8 billion and holds Citigroup shares. The government plan “gives them a little bit of breathing room, but longer term, things may deteriorate and losses increase,” said Kovalski. “The Achilles heel with Citi is their exposure to emerging markets and what’s going to happen when emerging markets turn down, as they’re doing now.”
http://www.bloomberg.com/apps/news?pid=20601103&sid=aoAIRJWrcnO4&refer=news
From Jesse: Federal Reserve and Treasury Offer Half of US GDP to the Wall Street Banks
Love, jobs, 401k
Ppl consulting psychics about their homes, stocks & investments.
“When conditions are this volatile, consulting a psychic can be as good a strategy as any other.”
I hope that they’re both praying for the economy!
Sweetheart Deals passing for “rescues”. There is little more than pure politics being played in all the major “rescues” this year. And those unconnected are left to die (LEH, Big Three still have to grovel).
As a nation we are in a state of intense denial over
1)The magnitude of the earthquake that hit Wall Street. Think 8.4 : Near total destruction with fires plus tsunamis. No major firm was unscathed, no building still stands.
2)The utter worthlessness of off and on-balance sheet assets which are being prevented from being marked or valuated, let alone sold via TARP because there are no bids
3)The degree of political collusion which has guided all Treasury and most Fed actions. A bailout for “our friends”. Nobody held accountable, nobody even being fingered as in all past crises. Defense being used is the old “the system is to blame, not individuals” and “well they all took so I did too”.
4)We are being led down the exact path that Japan took with regard to toxic assets held by banks: all non-performing assets were held with minimal transparency adn marked doen over 12 years with total government collusion
5)There is no engine of financial growth left for when good times return. With crippled Wall Street, the prospects are grim. Foregin competitors are salivating on the sidelines.
6)Princes, Communist strong men, and other totalitarians have rushed in with capital where angels fear to tread. Our financials are now controlled in good measure by these folks. Think they are going to favor Main Street USA?
Hehe
Sweetheart Deals passing for “rescues”. There is little more than pure politics being played in all the major “rescues” this year. And those unconnected are left to die (LEH, Big Three still have to grovel).
As a nation we are in a state of intense denial over
1)The magnitude of the earthquake that hit Wall Street. Think 8.4 : Near total destruction with fires plus tsunamis. No major firm was unscathed, no building still stands.
2)The utter worthlessness of off and on-balance sheet assets which are being prevented from being marked or valuated, let alone sold via TARP because there are no bids
3)The degree of political collusion which has guided all Treasury and most Fed actions. A bailout for “our friends”. Nobody held accountable, nobody even being fingered as in all past crises. Defense being used is the old “the system is to blame, not individuals” and “well they all took so I did too”.
4)We are being led down the exact path that Japan took with regard to toxic assets held by banks: all non-performing assets were held with minimal transparency adn marked doen over 12 years with total government collusion
5)There is no engine of financial growth left for when good times return. With crippled Wall Street, the prospects are grim. Foregin competitors are salivating on the sidelines.
6)Princes, Communist strong men, and other totalitarians have rushed in with capital where angels fear to tread. Our financials are now controlled in good measure by these folks. Think they are going to favor Main Street USA?
Hehe
“Taser inc. stock up 3.65 on the back of 10k unit order from L.A. police.” What a coincidence: the government has just announced a large purchase for England.