Monthly Archives: June 2010

On Fannie’s Escalating Threats Against “Strategic Defaulters”

This blog warned a few weeks ago of a coming campaign by the officialdom against so-called “strategic defaulters”. It has arrived even sooner than we expected. We warned that this development was the inevitable result of financial firms, taking an increasingly predatory posture toward their customers. Borrowers are responding in kind, by taking a cold-blooded […]

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Deficit Doves, the Gift that Keeps on Giving

The first section of this post is by Warren Mosler, the President of Valance Co. who writes for New Deal 2.0 Deficit doves are doing more harm than the hawks — here’s what they need to know. The deficit hawks are prevailing. The economy remains an economic and social disaster. Medicare has already been cut […]

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Links 6/26/10

Lunar eclipse ‘magnified’ in US BBC The Anosognosic’s Dilemma: Something’s Wrong but You’ll Never Know What It Is (Part 1) Errol Morris, New York Times (hat tip reader Sundog) Scientific expertise lacking among ‘doubters’ of climate change, says Stanford-led analysis PhysOrg Burned girl a symbol of Roma hate and hope CNN (hat tip reader Glenn […]

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Misnamed Financial Services “Reform” Bill Passes, Systemic Risk is Alive and Well

I want the word “reform” back. Between health care “reform” and financial services “reform,” Obama, his operatives, and media cheerleaders are trying to depict both initiatives as being far more salutary and far-reaching than they are. This abuse of language is yet another case of the Obama Adminsitration using branding to cover up substantive shortcomings. […]

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BP: Gulf Resident Gives Behind the Scenes Account, Slams Cleanup and Safety

Gulf resident and fisherman’s wife Kindra Arnesen took advantage of the offer extended to her to visit cleanup sites and staff meetings: At any rate, I was invited the following week to go behind “enemy lines.” They gave me, of all people, security clearance to go into the base of operations meetings in Venice, Louisiana […]

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Links 6/25/10

Still a bit under the weather. Went to Greenwich and croaked a book talk (was losing my voice) to a very nice and savvy group, the Stamford CFA Society. Bionic feet for amputee cat BBC (hat tip reader John M) Biologist: Ocean pollution ‘threatening the human food supply’ Raw Story (hat tip reader John M) […]

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Tom Adams: Face to Face With Polished Wall Street Psychopathy (SEC Says that ICP Stole from My Old Company Edition)

By Tom Adams, an attorney and former monoline executive When the financial crisis hit, I was in the direct line of fire. My company blew up very early in the crisis, giving me the dubious opportunity to see how bad things were going to get long before most of the rest of the world, including […]

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Mirabile Dictu: $19 Billion Fee Added to Financial Reform Bill (Updated)

In a weak nod to “too big to fail” concerns, House Financial Services Committee chairman Barney Frank announced that larger banks and hedge funds would pay a fee as a way of pre-funding resolution costs. From the Financial Times: The proposed levy emerged as an unwelcome surprise for the industry deep into a late-evening congressional […]

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More on China’s Renminbi Headfake

It was hard to miss the Chinese central bank’s announcement last weekend that it was implementing a ore “flexible” policy toward managing its currency. Numerous Western officials and analysts declared the statement to be a major move, signaling China’s willingness to allow the renminbi to appreciate to a meaningful degree. We, by contrast, called it […]

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Mike Konczal: Underwater and the Strategic Default PR Campaign: What we got when we didn’t get cramdown

By Mike Konczal, a former financial engineer and fellow with the Roosevelt Institute who writes at New Deal 2.0 A year ago a week from today I discussed the financial innovation that wasn’t. It was a look at Lewis Ranieri, the creator of the mortgage backed security, as well as one of the minds behind […]

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Links 6/24/10

Personality shows up in brain structure Paging Dr. Gupta (hat tip Glenn Stehle) Goal! The thrill of World Cup victory Andrew Leonard, Salon (hat tip reader Frank A) Energy Use in the US & Global Agri-Food Systems: Implications for Sustainable Agriculture The Oil Drum (hat tip Swedish Lex). While this raises an important issue, it […]

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The Buyers’ Strike in the Securitization Markets

One of the dead bodies in plain sight that generally goes unremarked upon in polite company is the buyers’ strike in the securitization market. Issuance of private label (as in non-government guaranteed) residential mortgage backed securities has collapsed, with government entities insuring 96.5% of all home mortgages in the first quarter 2010. The commercial mortgage […]

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