I’m sure readers have noticed that talking about the global economic downturn as a depression is suddenly respectable. A mere three months, use of that term would have gotten one branded as a alarmist (even Nouriel Roubini, who has a taste for drama, often used the code of “L shaped recession”). As a result, economists […]
Read more...Even though Congress in general seems pretty clueless on matters financial (the Wall Street/high end variety), some members appear to understand the mindset. One consequence of the ever-delayed “buy the bad assets” program, which clearly has to pay at or above banks’ current marks (otherwise they show losses, which hurts their capital bases, something that […]
Read more...Fire aftermath ‘too distressing’ BBC Unexpected Headline: Obama Backs Bush On Rendition Case, Secrecy Time. Jeez, so remind me why I voted for Obama, exactly? (and for the record I was not an enthusiast). Aside from not having Palin as VP, the reasons are getting thinner with every passing day. Why Obama’s new Tarp will […]
Read more...The big year to year fall in Chinese exports, at 17.%, far in excess of expectations, was accompanied by an even bigger decline in imports, still leaving China with a near-record monthly trade surplus. Thus, while China’s foreign exchange reserves are continuing to mount, the fall in each side of the trade equation, exports and […]
Read more...I cannot recall a major US policy initiative being met with as much immediate revulsion as the so-called Geithner plan. Even the horrific TARP, which showed utter contempt for Congress and the American public was in some ways less troubling. Paulson demanded $700 billion, nearly $200 billion bigger than the Department of Defense, via a […]
Read more...On the one hand, the demand by China that the US somehow guarantee its $682 billion in Treasury holding reads like a political and negotiating strategem rolled into one. It reenforces the idea that the economic crisis is the solely the fault of the corrupt, profligate West and it constitutes a demand that the US […]
Read more...The Freddie/Fannie conservatorship, which seemed like an epic event at the time, was succeeded by so many crises, Lehman, the September/October meltdowns, AIG, the European bank rescues, that it seems like a distant memory. But the Treasury made a commitment to maintain positive net worth for both the mortgage lenders/guarantors and was remarkably non-specific as […]
Read more...Sorry for being a little light on posts tonight. I can only stand so much annoyance in one evening, and the ongoing bank bailout machinations are a rich source. Victorian Bushfire Relief Fund: In light of the current bushfire tragedies in Victoria, the American Australian Association has established the Victorian Bushfire Relief Fund that will […]
Read more...That one word assessment of the Geithner plan, as previewed in the New York Times tonight, comes from reader Scott, and is good enough to print. I am so disgusted with this entire proceeding that I am going to dispatch it quickly. Let’s start with the basics. The US banking system is insolvent. Got that? […]
Read more...I’ve never seen Martin Wolf speak before, and he’s refreshingly energetic and direct. Watch Part One here. And Part Two.
Read more...We’ve been of the view that despite its theoretical advantages, (enabling various liabilities and cliaiims to be restructured more easily) a bankruptcy filing for a big automaker would be likely to lead to liquidation. A pre-pack is impossible for companies of this scale; an article in the Deal laid out the process and contended that […]
Read more...Death toll climbs to 130 in Australia’s worst-ever fires Times Online. This is awful, and no end in sight. Plunging price of carbon may threaten investment Independent Dissecting China’s GDP Yields … Confusion WSJ Economics Blog Swiss banks to announce massive losses Brieitbart (hat tip reader Dwight) China Institute Proposes Weaker Yuan to Boost Growth […]
Read more...Remember the embarrassing ten weeks of so of Henry Paulson failing about to try to get his “get the bad assets out of the structured investment vehicles” effort, the MLEC, also fondly known as The Entity, off the ground? It quietly faded from the headlines.. Why? It was supposed to be a private sector solution, […]
Read more...Lloyd Blankfein, in a Financial Times comment, offers some suggestions to policymakers and regulators on how to deal with the financial services industry. I’m sure most readers would like to see more sackcloth and hair shirt, less prescription. But setting the tone aside, I found one bit particularly interesting. Blankfein proposes that firms go back […]
Read more...Even a casual market observer like your humble blogger has noticed the dramatic increase in Treasury bond yields from 2.5% on the 30 year bond to over 3.5% in a bit more than a month. I had assumed that the Fed, at its last FOMC meeting, would shed a bit of light on its December […]
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