Monthly Archives: March 2010

FBI warns of mortgage fraud ‘epidemic’: Seeks to head off ‘next S&L crisis’

Rampant fraud in the mortgage industry has increased so sharply that the FBI warned Friday of an "epidemic" of financial crimes which, if not curtailed, could become "the next S&L crisis." Assistant FBI Director Chris Swecker said the booming mortgage market, fueled by low interest rates and soaring home values, has attracted unscrupulous professionals and […]

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Links 3/31/10

Magnets ‘can modify our morality’ BBC Bobcat Walks Into Home In Port Ludlow, Washington Through Open Front Door Huffington Post Australia reveals prototype ‘bionic’ eye Raw Story (hat tip reader John D). Department of “Huh?”: Default Discounts in U.S. Treasury Interest Rates????????? Edition Brad DeLong Sex infection gonorrhea risks becoming “superbug” Reuters A Samsung Robot […]

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Alford: Time to Stop Giving the Fed a Free Pass

By Richard Alford, a former economist at the New York Fed. Since then, he has worked in the financial industry as a trading floor economist and strategist on both the sell side and the buy side. Wide swaths of families, businesses, investors, taxpayers, and others have had not just their net worth but their lives […]

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Auerback/Parenteau: Operation Twist, Part Deux?

By Marshall Auerback, a fund manager and investment strategist and Rob Parenteau, CFA, sole proprietor of MacroStrategy Edge, editor of The Richebacher Letter, and a research associate of The Levy Economics Institute Who funds our budget deficit? It is a question taking on increasing significance, given the recent back up on longer-dated bond yields, which […]

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Links 3/30/10

Hyena laughs and giggles decoded BBC Beyond ACTA: Proposed EU – Canada Trade Agreement Intellectual Property Chapter Leaks Michael Geist. What does sovereignity mean when you are bullied like this? RNC investigating money spent at L.A. bondage nightclub The Hill (hat tip Jim in MN). Now we know why Palin has been dressing like a […]

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Auerback: Greece and the EuroZone: Angie, Ain’t it Time to Say Goodbye?

By Marshall Auerback, a fund manager and investment strategist who writes for New Deal 2.0. Arthur Conan Doyle’s literary creation, Sherlock Holmes, once solved a murder by noting the dog that didn’t bark. It doesn’t take Holmes’s ingenuity to see that the plan on offer for Greece is clearly a rescue package which doesn’t rescue. […]

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Guest Post: Dodd’s Financial “Reform” Bill Is Nothing but a Placebo for a Very Sick Economy

→ Washington’s Blog On March 3rd, Richard Fisher – President of the Federal Reserve Bank of Dallas – told the Council on Foreign Relations: A truly effective restructuring of our regulatory regime will have to neutralize what I consider to be the greatest threat to our financial system’s stability—the so-called too-big-to-fail, or TBTF, banks. In […]

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SEC Launches Repo 105 Investigation

The Financial Times reports that the SEC has launched a probe into whether other financial firms used repos to engage in what amounted to financial fraud (as in fraudulent financial reporting), although perilous few are using the “F” word. From the Financial Times: US regulators on Monday asked more than 20 financial groups whether they […]

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Health Care Bill Bait and Switch: Insurers Had Wriggle Room to Refuse Coverage for Pre-Existing Conditions

Two reasons that many people went along with the Obama administration’s health care reform proposal was that it was purported to extend coverage to the uninsured and would eliminate the ability of insurers to deny coverage (including rescind existing policies) for pre-existing conditions. The latter claim was false (more on that shortly) and some gaps […]

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Links 3/29/10

Sorry, I had this ready at 6:00 AM and failed to publish it. How the stimulating smell of wasabi can save lives BBC Felony Marijuana Cases Getting Tossed Out Of Court Huffington Post Are cosmic rays really causing Toyota’s woes? Detroit Free Press Obama throws out the political rules Clive Crook, Financial Times What does […]

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Tom Adams: Goldman Not Exonerated on CDOs

By Tom Adams, an attorney and former monoline executive Felix Salmon at Reuters and Steve Gandel at Curious Capitalist used some of the analysis in Michael Lewis’s The Big Short as an opportunity to attempt to exonerate Goldman Sachs for the charge of deliberately constructing CDOs to go bad for their own profit. In particular, […]

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High Income Disparity Leads to Low Savings Rates

Andrew Dittmer, who was an important collaborator on ECONNED, sent me pdfs of the notorious Citigroup Plutonomy reports for leisure reading. Michael Moore highlighted these two research reports (2005 and 2006) in Capitalism: A Love Story . On the one hand, the authors, Ajay Kapur, Niall Macleod, and Narendra Singh get some credit for addressing […]

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Links 3/28/10

Security Watch: Beware the NSA’s Geek-Spy Complex Wired. Huh? Did anyone ever think the NSA was trustworthy? The Rage Is Not About Health Care Frank Rich, New York Times Palin Rejoins McCain on Campaign Trail Wall Street Journal. You must look at the picture. First Glenn Beck in jackboots, now Palin dressed like a domme. […]

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