Monthly Archives: April 2009

Fed to Prop Up Commercial Real Estate Loan Pre Expected Implosion

The Fed never met a bubble it wasn’t keen to reflate. The latest wrinkle is that it is trying to learn from its old behavior, although most of us would disapprove of the lessons it has drawn. One of the cognitive biases in the readings of past crises is to attribute failure to official intervention, […]

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Bankruptcy Cramdown Defeated: Banksters Again Prevail Over Real Economy

In another disheartening development on the banking front, the Senate defeated legislation giving judges the authority to modify residential mortgages in bankruptcy. Note that the popular description is often misconstrued in short form descriptions. Judges would not have had open-ended authority to make changes. The construct is that mortgages are collateralized loans. The mortgage balance […]

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Links 4/30/09

UK wages collapse at fastest rate in 60 years Telegraph Timing of Goldman bond sale raises questions Financial Times Why Congress Won’t Investigate Wall Street Thomas Frank, Wall Street Journal. How Government Guaranteed Bank Debt May CRUSH Public Borrowing Clusterstock Jobless Rate Rises In All US Metro Areas In March Huffington Post Gagging on Google […]

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Chrysler Chapter 11 Filing Expected

The New York Times reports that the Chrysler brinkmanship continues, with some small hedge funds acting as pigs in the hope of extracting yet more concessions from the government, as the bankruptcy deadline looms. The reason the funds can play such hardball is that the Administration does not want to BK Chrysler. Despite all the […]

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Guest post: Trouble looms for Lewis at annual meeting with MAC clause top of mind

Submitted by Edward Harrison of the site Credit Writedowns This is an updated version of a post that I wrote yesterday at Credit Writedowns. Today we are going to see whether shareholders are going to back Ken Lewis, the embattled CEO of Bank of America, and his board. I see this as a watershed event […]

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Guest Post: CPPIB Gets Grilled in Ottawa

Submitted by Leo Kolivakis, publisher of Pension Pulse. The third meeting of the Standing Committee on Finance focusing on pensions took place on Tuesday morning, placing more senior pension executives on the hot seat. Before I continue, let’s recap what happened at the two first meetings. I went to Ottawa last week to expose the […]

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Links 4/29/09

Chemical ‘caterpillar’ points to electronics-free robots New Scientist. Rudd sides with the bigots Larvatus Prodeo.I had found Australians to more tolerant of gays than Americans (you see a gay angles played up in advertising, which is inconceivable here) so this is surprising. The Last Temptation of Risk Barry Eichengren (hat tip reader Dave) Fed Is […]

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Martin Wolf: "Those Who Hope for Swift Return to Normalcy" are "Deluded"

Well, that isn’t exactly how the Financial Times’ Martin Wolf put it, but his comment today does carry a sobering message. Bank balance sheets need a tremendous amount of additional shoring up. Some not too pretty factoids: We appear to be less than halfway through writedowns, and the fundraising and recapitalizations to date are falling […]

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Yet Another Program to Enrich Banks at Taxpayer and Borrower Expense

The chicanery never ends. The latest bit of looting fobbed off as a win for homeowners is a program to shovel money to second mortgage lenders: The Obama administration unveiled a new program to help borrowers with second mortgages stay out of foreclosure, offering cash to servicers, investors and borrowers who modify loan terms. Guess […]

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Guest Post: Pensions’ Death Spiral?

Submitted by Leo Kolivakis, publisher of Pension Pulse. The New York Times reports that the plight of carmakers could upset all pensions: Decisions that the government will make soon on the future of General Motors and Chrysler could accelerate the decline of traditional pension plans, which have sheltered generations of workers from an impoverished old […]

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Guest Post: Stress tests reveal Citi and BofA need more capital, but you knew that already

Submitted by Edward Harrison of the site Credit Writedowns The leaks about who failed the stress tests are already starting. Who got a big fat ‘F’? Apparently, Citi and BofA for starters. But is that any surprise? Regulators have told Bank of America Corp. and Citigroup Inc. that the banks may need to raise more […]

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Links 4/28/09

Shark fins protection welcomed BBC. Sharks are alpha predators, so their importance is well out of proportion to their numbers. Dumped pets pay price of recession Guardian Dying is no reason to give up online social life The Daily Record Man Downloads Movie While In Mexico, Receives $62,000 Wireless Bill Consumerist. Ouch Monetarism Defiant City […]

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