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Frontrunning: July 16
- Must read: Jonathan Weil on the Fed endorsed trampling of the gibberish known as accounting rules (Bloomberg)
- Secret Sanction MOU - Regulators are secretly overhauling Bank of America (WSJ)
- Another secret deal in the works: Citigroup (FT) - Dear President, where is all your touted transparency?
- As even the UK is set to enhance banking transparency (FT)
- CIT failure to cost $2.3 billion in taxpayer TARP funding, about what JPM earned this quarter (Bloomberg)
- China's manipulated economic data beats expectations: one must get some benefit for the trillions in new debt (Bloomberg)
- Goldman soon to get the biggest "look" ever (Bloomberg)
- Geithner says US can't afford to put break on massive money printing... er growth, prematurely (Bloomberg)
- Janet Tavakoli: What Wall Street owes you (CNN)
- JP Morgan - Another bank with record investment banking fees in the biggest recession ever (Bloomberg)
- What the Fed's exit strategy will mean for the economy (Delta Global Advisors)
- Twitter calls lawyer over hacking (BBC)
- Is Goldman evil? (Falkenblog)
- Paul McCulley: What If? (PIMCO)
- Dennis Kneale really needs to find another topic to discuss soon: Dennis, hope is great, but when it is unjustified, selling it is simply irresponsible, angled and merely so much more propaganda which ends up hurting your cause (CNBC)
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NEW YORK, July 16 /PRNewswire-FirstCall/ - Led by a dramatic decline in the expectations of U.S. consumers for the near future of the U.S. economy, the most recent results of the RBC CASH (Consumer Attitudes and Spending by Household) Index show a marked downward shift for July 2009, continuing the slide begun last month. The RBC CASH Index for July 2009 stands at 22.4, an 11.9 point decline from June's 34.3 reading.
http://tinyurl.com/lau525
The banks were saved but the people were destroyed.
Important interview question: Goldman calls you and wants to buy CDS, or insurance of any kind. What do you do?
Never buy anything Goldman Sachs is willing to sell you.
What goldman sells, it sells to the sheeple via third party. They don't want to get involved in the mess and the subsequent cleanup. They just want the moola.
"We don't sell anything to the public"....
that's the veil behind which GS hides and yet they sold worthless mortgage securities and derivative shit to pension funds, mutual funds and other buyers, that impact the public direly and indirectly.
What do you do?
Tell them thanks but I already have a Kirby Vacuum
The McCulley piece is very very interesting. Key points:
1. A glowing review by McCulley of more aggressive monetary policy via targeting of inflation levels, or even price levels.
2. An invitation for central banks to inculcate a climate of inflation expectations, specifically by, in essence, promising to be irresponsible (in what McCulley calls the orthodox sense, his viewing reflation as the responsible course). Bernanke writing on his recommended policy for BOJ during its lost decade:
"A successful effort to eliminate the price-level gap would proceed, roughly, in two stages. During the first stage, the inflation rate would exceed the long-term desired inflation rate, as the price-level gap was eliminated and the effects of previous deflation undone. Call this the reflationary phase of policy. Second, once the price-level target was reached, or nearly so, the objective for policy would become a conventional inflation target or a price-level target that increases over time at the average desired rate of inflation.”
One cannot help, when reading this description of the first stage, but to summon up images of a step change in currency valuation such as was undertaken by FDR; how else to quickly "eliminate" a "price level gap"?
One must also ask, in earnest, why someone from PIMCO is advocating inflation. My immediate reaction is that fear stalks the halls at PIMCO. Does PIMCO have less to lose from inflation than from massive defaults? Is it that bad? Thoughts anyone?
-As even the UK is set to enhance banking transparency (FT)
an ironic little title. the existing regulation was brought in with a mandate to require the institution to prove their behavior credible. so why is this headline repeated every 10 years?
quote "we are here to protect the profits of large institutions, not the retail investor, think of us as a barrier to entry"
when first set up their remit was to get rid of small firms (no i was not one fortunately)
put in your diary for 2019 "UK is set to enhance banking transparency"