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Frontrunning: December 18
- Skies darken for Ben Bernanke nomination (Politico)
- Discord behind TARP payment (WSJ)
- UK public sector net borrowing hits record high in November (BBC)
- The Great stabilization: The recession was less calamitous than many feared. Its aftermath will be more dangerous than many expect (Economist)
- Bank of England official says crisis shows U.K. bank exodus may be no bad thing (Bloomberg)
- Obama loses lending lever as Citigroup, Wells Fargo repay TARP (Bloomberg)
- Oil rises after report that Iranian forces surround Iraqi well (Bloomberg)
- Harvard swaps are so toxic even Summers won't explain (Bloomberg)
- Why Franklin's $100 bill now $1,000 (Bloomberg)
- RBS cash buys "two pints of beer, packet of chips" (Bloomberg)
- Calling on Congress to stop the debt tsunami (WaPo)
- GM's fails to sell Saab again, car maker to be wound down (Bloomberg)
- Deutsche Bank to globalize bonus pain (FT)
- Suddenly, safe haven Treasurys get tricky (Fortune)
- Google convicted in French copyright case (AP)
»
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Citigroup: Watch the InsidersHarvard swaps are so toxic even Summers won't explain (Bloomberg)
Aah, yes. Once again.
Larry Summers: the smartest guy in the room.
If these folks represent the "best and the brightest" then I say the whole process of determining who is the best and brightest is deeply flawed. Unless of course, the whole concept is centered upon whose kneepads last the longest.
Agreed. In the business world as well as government, the qualification is very different from what the Webster dictionary terms would indicate.
Who can best leave their ethical and fair play considerations at the door as s/he rapes and pillages their way to the top? The top line is always the bottom line. We are all suckers in the eyes of the smartest guys in the room.
Folks, as long as we enable these bastards, this will not stop. Just as you can never get a alcoholic to stop when you're feeding them more booze to stave off the delirium tremors, neither will we stop this outrageous behavior while we still buy into the so-called free market capitalist system. It's not a free market. And at best, it's a bastardization of capitalism.
Having looked into the Harvard swaps, how I see it is as follows:
Summers decided that locking in swap rates as a pre-hedge for a fixed rate bond issue was a good idea, because he expected the long end rates to rise. I think it was his arrogance that assumed that his successors as Treasury Secretary would not be able to manage the economy as well as he could, so he was assuming bond prices would fall.
Of course, what they could not hedge was the credit spread on Harvard debt, and this is what caused the pain.
I think what shows his true colors is his refusal to discuss the subject, to even say, it was a sensible idea but certain things happened and on reflection maybe we should have looked at alternatives. But no, he's too fucking smart to even have the time to explain his reasons and anyway, that's ancient history - he's busy saving the world (or at least his rich and powerful friends).
From the Politico article:
Sens. Jim Bunning (R-Ky.) and David Vitter (R-La.), in particular, complained about the Fed’s lack of transparency. In the case of AIG, some banking committee staffers were allowed access to documents, Bunning said, but individual senators and the public were not allowed to see the information because the Fed said it was “protected.”
In the case of AIG, as in many other things, Bernanke is exercising powers the Fed doesn't even legally have and yet he asserts that neither Senators or the American public have any right to see the details.
Given where the American public stands on the Fed based on opinion polls, if the Senators opposing Bernanke go on the offensive by pointing to his secrecy on AIG and other bailouts, I believe they could create enough public backlash to derail his nomination for another term.
If Banana Ben gets in, I think many will take out their frustration on the senators who voted for them. It seems the only thing these self-serving dirtbags understand is when THEIR job is on the line.
Yeah, notice the article goes on to cite "some support" from Republicans, and mentions that fascist Judd Gregg, who, guess what, isn't even running, so could give a shit, he is more worried about his sure-to-come job consulting to Wall Street on how to get New Hampshire government businesses.
Remember those young idealistic Standford boys who were committed to do no harm. Ahhh, the sweet nectar of Wall St.
Hehe, and now China has taken a page from Wall Street.
“We will do our own verification,” China’s Yu Qingtai, said in a Dec. 12 interview in Copenhagen.
http://www.bloomberg.com/apps/news?pid=20601087&sid=aw5cl6zyKr60&pos=8
Say, tyler and Marla, not to gripe, but can the links be set up so that they open in a separate window? It just makes life easier.
thanks
With Firefox just hold down the ctrl and click on them to open on a new tab.
Confirmed. Iran has made one or more incursions into disupted Iraqi territory.
http://www.reuters.com/article/idUSTRE5BH1Y920091218
TURN is complaining to the cpuc that disconnect for non-payment of electric bills is averaging 70k a month in California. Electricity is generally the last bill you stop paying. 70k is a lot. I'll look for a link
And who says rappers are not educated...
"Santa Needs a Bailout (Please)"
http://www.youtube.com/watch?v=6jLdyzuljqo
Benjamins that turn into bubble soap!? When are we getting Goldman brand lube?
http://www.discountcondomking.com/images/products/Wet%20Lubricant.jpg