Archive - Mar 14, 2010 - Blog entry

This week in The IRA, we remind one and all about the impending FDIC rule-making process on bank securitizations. Then we ponder whether zombie love won't bring together Barclays Bank and Citigroup in an unholy but politically fortuitous union. And we feature an interview with derivatives market veteran Bill King about OTC derivatives and earnings fraud. The rant on the President's Working Group follows below. -- Chris

In contrast to the cheery mood of the markets, the latest readings from consumers and small business owners indicate economic sentiment isn’t improving. This divergence has got the Wall Street scratching its collective head. In short, the disparity may be deciphered in one word – liquidity - which Wall Street has plenty of, while main street remains strapped.

With 3 out of 4 of our measures registering extreme readings, few words are needed to describe investor sentiment this week.

Do you know where credit really comes from?

Those that want to ban CDS don't understand how the world works. They certainly don't get the fact that the US mortgage market is one gigantic CDS mess.

Bill Hemling, a widely respected agricultural economist, told the Kansas City Star that “we’re heading for a recession we haven’t seen the likes of since the 1930s.” Let's pray he is is wrong — again.