Monthly Archives: January 2008

January 31, 2008

• The Monster Employment Index Takes a Dive
  by Yves Smith 3:23 pm

• Credit Default Prices Up Sharply on MBIA Losses, Planned S&P Ratings Actions
  by Yves Smith 9:31 am

• "Stop behaving as whiner of first resort"
  by Yves Smith 2:52 am

• Cuomo Using Martin Act to Pursue Subprime Securities Fraud
  by Yves Smith 2:41 am

• MBIA Posts $2.3 Billion Loss for 4Q, Raising Odds of Downgrade
  by Yves Smith 2:01 am

• SEC Changes Accounting Treatment to Help Subprime Lenders
  by Yves Smith 1:34 am

• Thain Says Industry Wide Bond Insurer Rescue Unworkable
  by Yves Smith 12:47 am

• Links 1/31/08
  by Yves Smith 12:05 am

January 30, 2008

• Bond Insurer Death Watch: FGIC Loses AAA from Fitch; Ackman Estimates Losses for MBIA and Ambac Each at $11.6 Billion (Updated)
  by Yves Smith 9:45 pm

• S&P Drops $534 Billion Bombshell
  by Yves Smith 7:03 pm

• Central Bankers: Securitization is Dead, Long Live Banking
  by Yves Smith 4:32 am

• Bond Insurers Still Twisting in the Wind
  by Yves Smith 3:22 am

• UBS Posts Loss After $14 Billion Writedown
  by Yves Smith 2:05 am

• Links 1/30/08
  by Yves Smith 1:43 am

• Yet More Cheery Housing Charts
  by Yves Smith 12:01 am

January 29, 2008

• Non-Borrowed Bank Reserves Now Negative (Updated)
  by Yves Smith 11:20 pm

• Analysts: Bond Insurer Bailout Likely to Come Too Late
  by Yves Smith 3:35 pm

• Bond Insurer Update: Surprisingly Positive Noises from the FT; Egan Jones Conference Call
  by Yves Smith 4:27 am

• Fed Approaches Negative Real Interest Rate Territory
  by Yves Smith 2:23 am

• Credit Crunch Collateral Damage: Deal for Credit Card Processor on the Rocks
  by Yves Smith 1:25 am

• Links 12/29/08
  by Yves Smith 12:46 am

January 28, 2008

• Regulatory Implications of the Failure of Quantitative Risk Management Approaches
  by Yves Smith 5:53 pm

• IMF, Larry Summers: The Wile E. Coyote Moment Has Arrived
  by Yves Smith 2:45 am

• What Happened to the Promised S&P and Moody’s Review of MBIA and Ambac?
  by Yves Smith 2:14 am

• Trust Me, You Will Enjoy This Piece (Multitasking Edition)
  by Yves Smith 2:09 am

• Credit Default Swaps Increase Odds of Bankruptcy
  by Yves Smith 12:38 am

• The Real Failure of Controls at Societe Generale
  by Yves Smith 12:07 am

January 27, 2008

• "Paying the Price for the Fed’s Success"
  by Yves Smith 4:47 pm

• Ben Stein Tells Us It’s All the Traders’ Fault
  by Yves Smith 4:04 am

• Robert Shiller Calls for More Encompassing Solutions to Credit Market Woes
  by Yves Smith 2:53 am

• Qatar Pursuing $3 Billion Investment in Credit Suisse
  by Yves Smith 2:20 am

• Links 1/27/08
  by Yves Smith 12:05 am

January 26, 2008

• "Welfare for Wall Street, Federal Reserve-Style"
  by Yves Smith 3:04 am

• US Commercial Real Estate Sales Tank
  by Yves Smith 2:55 am

• Does Violating International Law Make Us Safer?
  by Yves Smith 2:43 am

• Links 1/26/08
  by Yves Smith 12:57 am

• Massachusetts Subpoenas MBIA and Ambac Over Disclosure
  by Yves Smith 12:40 am

January 25, 2008

• Goldman Sued on Countrywide Underwriting
  by Yves Smith 5:06 pm

• Willem Buiter Heaps Scorn on Fed’s 75 Basis Point Rate Cut
  by Yves Smith 1:54 pm

• Further Bank Writedowns: Barclays Says $143 Billion for Bond Insurance; Oliver Wyman Says $300 Billion in General
  by Yves Smith 1:39 pm

• So Far, Hype Exceeds Progress on Bond Insurer Rescue Front
  by Yves Smith 4:31 am

• China’s Tough Choices
  by Yves Smith 3:30 am

• Egan Jones: Bond Insurers Need $200 Billion to Retain AAA
  by Yves Smith 1:04 am

• Links and Quick Takes 1/25/08
  by Yves Smith 12:27 am

• Mortgage Servicing Kickbacks?
  by Yves Smith 12:15 am

• More Wall Street Bloodletting
  by Yves Smith 12:05 am

January 24, 2008

• Wilbur Ross Considering Ambac Investment + Sanity Check
  by Yves Smith 6:03 pm

• Worrisome Signs for the Bond Insurer Bailout
  by Yves Smith 5:25 am

• When Sensible People Advocate Continued Credit Dependence (George Magnus/Fed Edition)
  by Yves Smith 3:18 am

• Links 1/24/08
  by Yves Smith 2:29 am

• Hedge Fund and Private Equity Managers to Take it on the Chin
  by Yves Smith 1:07 am

• Robert Reich Grasps the Enormity of the Problem
  by Yves Smith 12:17 am

• Fed Taken to the Woodshed at Davos
  by Yves Smith 12:01 am

January 23, 2008

• Banks Being Pressured to Bail Out Bond Insurers (Updated)
  by Yves Smith 10:20 pm

• Some Very Blunt Warnings from Soros, El-Erian, Setser, and Other Sensible People
  by Yves Smith 5:42 am

• Links 1/23/08
  by Yves Smith 3:41 am

• David Leonhardt: Was the "Great Moderation" An Illusion?
  by Yves Smith 2:58 am

• Campuses in the Business of Repression?
  by Yves Smith 1:25 am

• Less Than Respectful Commentary on the Fed Put and Fiscal Rescue Efforts
  by Yves Smith 12:27 am

January 22, 2008

• Credit Market Woes Du Jour: Ambac Losses, 95% Fall in Earnings at BofA
  by Yves Smith 9:05 am

• ISDA Says Credit Default Swap Losses Will Be Only $15 Billion
  by Yves Smith 8:53 am

• Fed: Emergency 75 Basis Point Rate Cut
  by Yves Smith 8:35 am

• Fiscal Stimulus: "Why One Percent of GDP?"
  by Yves Smith 3:00 am

• Bank of America’s Scheme to Stiff Countrywide Bondholders
  by Yves Smith 2:08 am

• Rich Nations’ Environmental Damage to Third-World Countries Costs Them More Than Foreign Debt
  by Yves Smith 1:07 am

• Links 1/22/08
  by Yves Smith 12:42 am

• Privacy and Security Are Not a Zero Sum Game
  by Yves Smith 12:01 am

January 21, 2008

• The Rout in Japan Continues
  by Yves Smith 8:57 pm

• "America’s recession will be hard to shift"
  by Yves Smith 5:33 pm

• Bond Insurer ACA Still on Life Suport
  by Yves Smith 5:13 pm

• John Coffee Explains Why Regulation Is Good for You
  by Yves Smith 2:33 am

• Brad Setser and Tony Jackson on Foreigners Buying Up the US
  by Yves Smith 1:57 am

• Links 1/21/08
  by Yves Smith 12:43 am

• Nikkei is Tanking
  by Yves Smith 12:02 am

January 20, 2008

• Inflation or Deflation?
  by Yves Smith 3:57 am

• "President Bush Questions Saudi Ability to Raise Oil Supply"
  by Yves Smith 2:54 am

• Sentiment Indicators, Sort Of
  by Yves Smith 2:12 am

• Links 1/20/08
  by Yves Smith 1:41 am

January 19, 2008

• Markets Want Christmas in January (Rate Cuts Edition)
  by Yves Smith 2:55 am

• Is the Journal Letting Merrill Off Easy?
  by Yves Smith 12:56 am

• Links 1/19/08
  by Yves Smith 12:52 am

• Ambac Fallout Begins: Fitch Downgrades 420 ABS Issues
  by Yves Smith 12:01 am

January 18, 2008

• Family Seeks $1.14 Billion from Lehman
  by Yves Smith 5:10 pm

• Ambac Downgraded by Fitch
  by Yves Smith 3:18 pm

• WSJ and FT on How Far Down is Down, Exactly? (Bond Insurer/Counterparty Risk Edition)
  by Yves Smith 3:28 am

• "The Case Against Fiscal Stimulus"
  by Yves Smith 2:30 am

• Michael Lewis’ Theory of Why Goldman Got It Right
  by Yves Smith 2:24 am

• Links 1/18/08
  by Yves Smith 1:17 am

• UK Retail Property Fund Halts Redemptions
  by Yves Smith 12:06 am

January 17, 2008

• Bond Insurer Death Watch: Stock and CDS Markets Give Another Thumbs Down
  by Yves Smith 12:27 pm

• Grim Stats Du Jour: Housing Starts and Manufacturing Index Fall
  by Yves Smith 12:00 pm

• "Doctrinaire economists understand less about trade than the average person"
  by Yves Smith 11:33 am

• Mohamed El-Erian: A Backhanded Indictment of Central Banks
  by Yves Smith 3:44 am

• Thomas Palley: "Investing in China: Fool’s Gold?"
  by Yves Smith 2:45 am

• The Yen May Be Shifting Gears
  by Yves Smith 2:26 am

• Links and Quick Takes 1/17/08
  by Yves Smith 12:37 am

January 16, 2008

• Bond Insurer Death Watch Continues
  by Yves Smith 9:32 pm

• MBIA 14% Notes Fall 12% in One Week
  by Yves Smith 4:02 pm

• Martin Wolf: "Why regulators should intervene in bankers’ pay"
  by Yves Smith 3:57 am

• UK Housing Market Continuing Down the US Path
  by Yves Smith 2:51 am

• Dizard on Rating Agencies, Old and New
  by Yves Smith 2:06 am

• Japanese to the Rescue Too (to Their Detriment)
  by Yves Smith 1:40 am

• Links 12/16/08
  by Yves Smith 1:13 am

January 15, 2008

• Banks and Auditors Get a Free Pass From Supreme Court
  by Yves Smith 2:13 pm

• The Monoline/Credit Default Swap Nexus (Not for the Fainthearted)
  by Yves Smith 4:28 am

• Menzie Chinn on the Merits of Fiscal Stimulus Via Improvements to Automatic Stabilizers
  by Yves Smith 3:48 am

• Greenspan to Join Hedge Fund Paulson & Co. as Adviser
  by Yves Smith 3:13 am

• Links and Quick Takes 1/15/08
  by Yves Smith 1:08 am

• Moody’s Takes on "Aggressive" Buy-Out Artists
  by Yves Smith 12:53 am

January 14, 2008

• Goldman Net Short Subprime Risk for Most of 2007
  by Yves Smith 5:12 pm

• High Volume of Options Trades Reveals Market Nervousness
  by Yves Smith 7:59 am

• Links 1/14/08
  by Yves Smith 3:42 am

• Wolfgang Munchau on the Risks of Credit Default Swaps
  by Yves Smith 3:16 am

• MBIA, Ambac: Dead Men Walking
  by Yves Smith 2:56 am

• Judges Catching on to Countrywide’s Policy of "Mistakes"
  by Yves Smith 1:05 am

January 13, 2008

• "Why America needs a little less laissez-faire"
  by Yves Smith 4:44 pm

• Darwin Awards 2007
  by Yves Smith 2:42 am

• Ben Stein and the Slapstick Approach to Economics
  by Yves Smith 2:08 am

• Links and Quick Takes 1/13/08
  by Yves Smith 12:18 am

January 12, 2008

• Will Investigations of "Exception" Mortgages Go Anywhere?
  by Yves Smith 2:23 am

• Al-Waleed to the Citi’s Rescue Again?
  by Yves Smith 12:56 am

• The Economist’s "R-Word Index"
  by Yves Smith 12:39 am

• Links and Quick Takes 1/12/08
  by Yves Smith 12:30 am

• BofA to Get Big Tax Bennies on Countrywide Purchase (and Critiques of the Deal)
  by Yves Smith 12:01 am

January 11, 2008

• MBIA Issues Debt at Distressed Yield
  by Yves Smith 3:46 pm

• Willem Buiter: "Why the US may well need a recession"
  by Yves Smith 1:22 am

• Merrill to Take $15 Billion Writedown
  by Yves Smith 1:16 am

• Links and Quick Takes 1/11/08
  by Yves Smith 12:13 am

• China’s Trade Surplus Grew 48% in 2007 (and Bloomberg’s Rewriting of Its Story)
  by Yves Smith 12:01 am

January 10, 2008

• On Merrill’s and Citi’s Quest for More Dough
  by Yves Smith 2:06 am

• Links 1/10/08 and a Scary Tidbit
  by Yves Smith 2:00 am

January 9, 2008

• Berkshire Hathaway Now Says They May Invest in Guarantors
  by Yves Smith 4:34 pm

• On the Causes and Possible Outcomes of Our Financial Mess
  by Yves Smith 4:11 am

• How Recessions May Indeed Improve Efficiency
  by Yves Smith 1:39 am

• "Bankers’ pay is deeply flawed"
  by Yves Smith 12:55 am

• Be Careful What You Wish For: Regulator Pushed for Berkshire Insurance Entry
  by Yves Smith 12:15 am

• Links 1/9/08
  by Yves Smith 12:09 am

January 8, 2008

• MBIA, Ambac Tank Due to Countrywide Bankruptcy Rumors
  by Yves Smith 4:36 pm

• "America’s inflated asset prices must fall"
  by Yves Smith 4:36 am

• Investors Making It Costly To Modify Leveraged Loans
  by Yves Smith 3:34 am

• Paulson on Housing: "Let Them Eat Cake"
  by Yves Smith 3:09 am

• Risk Exposures Cannot Be Measured Fully
  by Yves Smith 1:12 am

• Links 1/8/08
  by Yves Smith 12:21 am

January 7, 2008

• Bear’s Cayne to Step Down as CEO, Remain Chairman
  by Yves Smith 8:36 pm

• Moody’s: Junk Bond Defaults to Increase Five-Fold From 26-Year Low
  by Yves Smith 6:03 pm

• Wolfgang Munchau Argues for the Long-Term Benefits of Securitization
  by Yves Smith 12:55 pm

• $200 Oil Options Increase Ten-Fold
  by Yves Smith 3:07 am

• Advisor to the Fed Argues Against Further Rate Cuts (Plus a Wee Rant About Japan)
  by Yves Smith 2:01 am

• Links 1/7/08
  by Yves Smith 1:41 am

January 6, 2008

• Short -Term Treasury Prices Say Investors Are Pretty Spooked
  by Yves Smith 8:13 pm

• Larry Summers’ "Why America Must Have a Fiscal Stimulus"
  by Yves Smith 5:27 pm

• Links 1/6/08
  by Yves Smith 12:58 pm

• "Is too much respect given to fundamentalist/literalist clap trap?"
  by Yves Smith 2:32 am

• Public Service Announcement: Your Bank Will Turn Over Your Social Security Payment
  by Yves Smith 1:36 am

January 5, 2008

• Why the Weak Relationship Between Income Inequality and Redistribution Efforts?
  by Yves Smith 3:55 am

• Shorter Winters Reduce Effectiveness of Forests as Carbon Sinks
  by Yves Smith 2:56 am

• Merrill Investigated by Massachusetts for CDO Sales
  by Yves Smith 2:49 am

• Links 1/5/08
  by Yves Smith 1:03 am

January 4, 2008

• Insects May Have Done in Dinos
  by Yves Smith 11:13 pm

• Credit Default Swap Prices Up Sharply This Week
  by Yves Smith 3:29 pm

• "Business growth is not an end in itself"
  by Yves Smith 2:26 am

• Health Spending vs. Life Expectancy
  by Yves Smith 1:14 am

• Links 1/4/08
  by Yves Smith 12:46 am

• William Cohan Gets HIs Financial History Very Wrong
  by Yves Smith 12:01 am

January 3, 2008

• Citi Restricts ATM Withdrawals in NYC
  by Yves Smith 9:50 pm

• Asset Backed Commercial Outstandings Increase for First Time Since August
  by Yves Smith 1:45 pm

• Henry Kaufman Takes the Fed to the Woodshed
  by Yves Smith 3:32 am

• "Post credit bubble wealth transfer will beggar belief"
  by Yves Smith 1:56 am

• A Former Reporter on Why TV News is So Wretched
  by Yves Smith 12:40 am

• Is a Bear Psychology Taking Hold?
  by Yves Smith 12:36 am

• Links 1/3/08
  by Yves Smith 12:15 am

January 2, 2008

• Shopping Mall Zombies as Economic Saviors?
  by Yves Smith 8:56 pm

• Fed Policy Leaders’ Forecasts Deemed a "Waste of Effort"
  by Yves Smith 2:37 pm

• "Japan offers a salutary tale in banking crises"
  by Yves Smith 3:52 am

• Investors Looking for Subprime Bargains
  by Yves Smith 2:41 am

• Goldman Predicts 20 Years of Agricultural Commodity Inflation, Um, Appreciation
  by Yves Smith 2:19 am

• Links 1/2/08
  by Yves Smith 12:55 am

January 1, 2008

• Pet Post Picks from 2007
  by Yves Smith 3:56 am

• Links Happy New Year’s Day
  by Yves Smith 12:45 am

• 2007 International Privacy Ranking
  by Yves Smith 12:25 am