Archive - Nov 1, 2009 - Blog entry
Golf Carts: Obama Taketh With The Right Hand And Giveth With The Left
Submitted by Econophile on 11/01/2009 20:19 -0500Check out this report on the Obama Administration's latest gift: free golf cart! This is from the Wall Street Journal. I really can't add much to this. Other than: Get one!
Dispelling Recent Fed Funds "Myths"
Submitted by scriabinop23 on 11/01/2009 14:37 -0500I'm following chatter of media and friends about the imminent doom that may come from Fed Funds rates increases, and that the market perceives a higher chance that the Fed pull away from zero interest rate policy soon. First, 2 Fed Funds charts showing no evidence the market perceives a risk that the Fed changes its policy near term. In fact, quite the opposite, bets are being put on that support extension of zero interest rates. The past 2 weeks have most definitely seen increased expectations for lengthening of current policy.
Global " recovery " mirrors in sovereign debt insurance costs
Submitted by Cheeky Bastard on 11/01/2009 13:48 -0500The sudden surge of optimism regarding the global economy resulted in the massive reduction in the costs of sovereign debt insurance. While the drop is not a surprise, the reasoning and the actions behind it surely are.
Britain to break up the taxpayer owned banks: Citigroup Beware
Submitted by inoculatedinvestor on 11/01/2009 12:12 -0500So, it looks like Lloyds and RBS are going to get broken up into smaller, more manageable pieces by the Brits. I think it is clear that something similar is needed in the US to dismantle the banking oligarchy. Could it happen here? Well, maybe the follow the leader dynamic that occurred during the misguided attempt to ban short sales will play out in this case as well.
Goldman Sachs exotic housing bet; was it illegal ?
Submitted by Cheeky Bastard on 11/01/2009 11:43 -0500An interesting report coming from McClatchy, concerning Goldman Sachs bets on the housing crash.
Richmond Fed on the GSE’s – “They Encourage Defaults”
Submitted by Bruce Krasting on 11/01/2009 08:58 -0500The deep thinkers at the Richmond Fed have come up with an analytic report on mortgages. The scary conclusion is that when the government is the provider of mortgages there is a significantly higher probability that the loan will default versus a private sector lender. In other words, Uncle Sam is a "soft touch" lender, no need to pay.That conclusion will not sit well with Congress, so it is unlikely that this report will see the light of day. I doubt that many in Congress could read it anyway.
The report breaks down each individual State's rules on defaulting on a mortgage. A must read for those thinking of going down that path.
