Monthly Archives: January 2010

Taibbi Assaults “Criticizing Wall Street = Populism” Meme

One of the things that has been driving me crazy about MSM coverage of the latest public demands for tougher reforms of Wall Street is that they typically engage in subtle or not-so-subtle demonization of the critics. It is a blatant effort to put the shoe on the wrong foot. No, it isn’t that the […]

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Breaking: Darrell Issa Requests Subpoena in AIG/Fed Bailout Cover-Up

Rep. Darrell Issa of the House Oversight Committee has asked to Committee Chairman Towns to subpoena more documents from the Fed regarding its decision-making process in the AIG bailout. Readers have no doubt noted that the efforts so far have been to try to infer how much Geithner was involved in this process. We’ve noted […]

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“A Plea to the President: Tear Up That Speech”

By Stephanie Kelton, Associate Professor of Economics, University of Missouri-Kansas City My colleague and fellow blogger, Randy Wray, has just argued that President Obama should scrap the speech he’s planning to deliver tonight and surprise the American people with something entirely different. I couldn’t agree more. And while I agree that job creation must be […]

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Links 1/27/10

Warning: Your Cell Phone May Be Hazardous to Your Health GQ Is Bernanke Hiding A Smoking Gun? Ryan Grim, Huffington Post (hat tip reader Betsy). There appears to be something sus, but we don’t know what yet. Finance: The hindered haircut Henny Sender, Gillian Tett and Francesco Guerrera, Financial Times Courts as Battlefields in Climate […]

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Meryvn King Calls for Structural Overhaul to Banking Industry

Mervyn King, the governor of the Bank of England, gets it. Why does he have so little company on this side of the pond? King discussed what it would take to fix the financial services industry, and it’s more ambitious than anything you see under consideration in the US. Per the Independent: The Governor said […]

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Why Did Fed Board of Governors Nix Guaranteeing AIG’s CDS?

More and more revealing pieces of the AIG bailout puzzle keep emerging as various subpoenas and FOIA requests extract more and more details. One odd bit is why the Fed decided to take out the AIG credit default swap counterparties at par, rather than simply guarantee the contracts? The Fed keeps protesting that the rescue […]

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Obama’s new triangulation strategy

By Edward Harrison of Credit Writedowns As I indicated in my post Grading Obama’s economic policy after one year, I see the President as a triangulating center-left politician of the Bill Clinton variety. The reason we have seen public policy which has been favorable to big business and reactive to events on the ground during this […]

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Guest Post: Why is National Security Being Invoked to Keep Basic Financial Information Secret?

Reuters notes: U.S. securities regulators originally treated the New York Federal Reserve’s bid to keep secret many of the details of the American International Group bailout like a request to protect matters of national security, according to emails obtained by Reuters. The national security claim may seem outlandish, but it is nothing new. As Business […]

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Links Australia Day

If you are down under, pet a roo for me today! Partnered in the struggle for a place to call home Boston Globe Here comes the new cell phone etiquette ComputerWorld Consequences of the Mass. Election Bruce Krasting Fallout Is Wide in Failed Deal for Stuyvesant Town New York Times Funding Public Health Care With […]

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Is There An Overlooked Reason for Fed Secrecy on AIG?

Not that I have the time or patience to dig through 250,000 pages of documents, but I have a nagging suspicion that the people who are pouring through various AIG-related disclosures may be missing key points or snookered into interpretations that may be unduly flattering to various banksters. The focus of the recent investigations into […]

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UK Claims Global Support Increasing for Transaction Tax

We’ve said that a Tobin tax, meaning a tax on transactions, could help both as a financial reform measure and as a tax generator. The logic is that trading, particularly OTC trading, involves costs (periodic taxpayer-funded bailouts) that are not borne by the buyers and seller (ie, they should be paying for rescue insurance as […]

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SIGTARP Opens Investigation into NY Fed (and House Oversight Committee Turn Up Heat)

Oh, this is starting to get VERY interesting. L’affaire Fed/AIG is beginning to smell a little like Watergate, where an imperial organization that thinks it writes its own rules (then the Nixon administration, here the Fed) fights tooth and nail to keep certain activities hidden well away (recall, for instance, the Saturday night massacre). Now […]

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Tell Senate “No” on Bernanke Cloture

The Administration put on a full court press this weekend to shore up Bernanke’s confirmation vote, which was looking increasingly doubtful as of Friday. Over the weekend, Democratic and Republican leaders in the Senate said they were confident that Bernanke would be confirmed. The media took up the call, with stories appearing in virtually every […]

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