Dear readers, I am going to try my best, but posts from me are pretty certain to be thin through August 3. The book manuscript is due in August 1, which since that is a Saturday, the due date is really August 3. I have one more chapter to write, one chapter that needs a […]
Read more...A study by the Boston Fed came to the credulity-straining conclusion that securitization was not a culprit in the noteworthy dearth of loan mods on residential mortgages, Lew Ranieri remarked back in 2008 at the Milken Conference that he was appalled by what was going on, that servicers used to do mods (as in no […]
Read more...Submitted by Leo Kolivakis, publisher of Pension Pulse. The USA Today reports that pension freezes are on the rise, but are they effective?: Nearly a third of the pension plans offered by Fortune 1,000 firms are now frozen, according to a report from Watson Wyatt. Though the rate at which companies are freezing plans has […]
Read more...Submitted by Edward Harrison of Credit Writedowns. Germany never participated in the upswing of the housing bubble. This fact has led German politicians of all stripes to mistakenly believe their banking system was somehow immune to the problems infecting bubble markets like the US or Spain. Unfortunately, it has not worked out that way because […]
Read more...Watergate Hotel attracts no bids BBC Medieval battle records go online BBC Radar could save bats from wind turbines Live Science Leszek Kolakowski Telegraph (hat tip Dave R) Obama is good for K Street lobbyists The Hill (hat tip DoctoRx). This is funny, if you are into black humor, that is. Details Emerge of Atrocious […]
Read more...Submitted by Leo Kolivakis, publisher of Pension Pulse. As if California didn’t have enough to deal with its budget crisis, now the FT reports that the two largest pension funds in the US have recorded steep losses following the turmoil in stock markets, with the value of their combined portfolios shrinking by almost $100bn: The […]
Read more...Ratings agency Standard & Poors has managed a stunt which to my knowledge has no precedent in the history of the dark art of ratings. It downgraded some not all that highly structured commercial mortgage bonds last week to an eyepopping degree, from AAA to BBB-, just this side of being junk. Then they restored […]
Read more...Served by Jesse of Le Café AméricainSome controversy was triggered over a line of questioning this morning during Ben Bernanke’s testimony before Congress, as reported on some of the top financial blog sites Zerohedge and Naked Capitalism. We read them both daily and are often envious of the depth and breadth of their expertise. Congressman […]
Read more...Submitted by Edward Harrison of Credit Writedowns. Over the past week, America’s banks have had a bumper earning season, in part courtesy of the Federal Reserve’s accommodative monetary policy. Even before this week, a number of market pundits (including me) began to wonder aloud whether the Fed had any strategy with which to remove all […]
Read more...I found this exchange intriguing. First, the unflappable Bernanke looks stressed. I can’t put my finger on why, but the Congressional attacks seem to be getting to him. Second is the stunning lack of candor as to why the dollar swap lines were put in place, that there was massive dollar deleveraging happening. It would […]
Read more...This is admittedly one data point, but one has to assume that Citi is making similar calls to others similarly situated. From a reader: I had an interesting conversation yesterday with a neighbor of mine. He said that he and his wife received a call from Citibank offering to refinance their mortgage at a lower […]
Read more...Moonwalkers: Reflections from Sterling, Diamandis and more h+ (hat tip reader David C) States close rest areas in bid to stave off shortfalls: Travel expert warns safety could suffer USA Today (hat tip reader DoctoRx) Man bursts into flames after being hit by Taser Telegraph The Case Against Larry Summers Elizabeth McDonald (hat tip Barry […]
Read more...Submitted by Marshall Auerback, an investment manager who also writes at New Deal 2.0: Republicans and Democrats alike embraced legislation last week that would make California IOUs acceptable payment for all taxes, fees and other payments owed to the state – an action that effectively would mean that California is entering the currency business. Some […]
Read more...Is the leopard changing its spots? First we have the Wall Street Journal, of all places, lambasting Goldman, while incredibly, the Washington Post springs to its defense. If that isn’t bizarre enough, today we have the Wall Street Journal, which along with just about every mainstream media outlet, likes to inveigh about coming Social Security […]
Read more...Submitted by Leo Kolivakis, publisher of Pension Pulse. The WSJ reports that three days before Pete Nowicki announced he was retiring, fire department trustees agreed to increase his salary in a practice called “pension spiking.” The resulting bump in his annual pension has angered colleagues and residents in this Northern California area. (See related article.) […]
Read more...