Willem Buiter Picked By Citi In First Round Of Chief Economist Draft, Promptly Adopts "Bianco-esque" Party Line
With Citigroup's latest Chief Economist addition in the face of one Willem Buiter who earlier ironically had said that "Citigroup [was] a conglomeration of worst-practice from across the financial spectrum" now facing much more pro-cyclical scrutiny, it is not surprising that earlier he promptly picked up the party line and stated in a Bloomberg TV interview that Dubai is "not systemically significant." The jury is still out on what the full fallout of the massive CRE collapse in the middle east, which is basically what Dubai was a levered play on, will cost the developed world. Nonetheless, one does get flashbacks to many other short-sighted pundits (some long since gone from the public arena, others who are about to be renominated for Fed Chairman positions) who claimed that subprime was also comparably contained. Time and a few hundred billions in additiona bailouts will determine if Citi's new macro brain is proven right.
on Mon, 11/30/2009 - 12:43
#146329
This is a guy who recently said that auditing the Fed was a bloody good idea. Has he already lost any credibility......selling out so soon??
on Mon, 11/30/2009 - 12:46
#146332
And, at the same time that Buiter pronounces these grave words, there is this:
Dubai government will not guarantee Dubai World's debts, says top finance official
http://www.telegraph.co.uk/finance/financetopics/financialcrisis/6691823...
And I quote:
Not systematically significant?
Only in the sense that Bernie Madoff was not systematically significant, I suppose. Though a perfect example of the corruption of the world financial system.
on Mon, 11/30/2009 - 13:09
#146352
Another Goldman tentacle?
"Currently a professor of political economy at the L.S.E., a well-known economics commentator and blogger and a consultant to Goldman Sachs, Mr. Buiter previously held posts at the European Bank for Reconstruction & Development and the Monetary Policy Committee of the Bank of New England."
on Mon, 11/30/2009 - 13:09
#146355
Wish Margaret was wearing that red dress again ;-(
on Mon, 11/30/2009 - 13:19
#146375
The Great Plutonomy, by the group that defined it. Citigroups own document defining itself.
on Mon, 11/30/2009 - 13:27
#146383
It's a damn good thing we don't have one of them thar CRE problems here in the United Socialist States of America. Phew.....
Speaking of Bianco-esque, rumor has it that someone on his team upgraded HSBC today, so it seems that the dubai problem is genuinely not a big deal, it is over, and everything is okay in our little world. hot cocoa and warm fuzzy blankets can come out again.
also speaking of Dave "Mr. Overweight the Financial Sector" Bianco, how come Wells Fargo, certainly one of the largest financial institutions in the USA, is still on extended review?
on Mon, 11/30/2009 - 13:33
#146397
DH - Who needs to personally deliver an ace of spades to get that answer out of Bianco? BTW, ya forgot a key Buiter essential... The fresh ready whip for that cocoa.
on Mon, 11/30/2009 - 17:29
#146826
aaah, the ready whip.
the problem my friend Miles is that there is no ready whip. the economists at the Fed have turned all the cans rightside up and sucked the nitrous out and are running around and giggling that all is well and the subprime crisis is contained.
it's a whippets frenzy.
on Mon, 11/30/2009 - 13:33
#146402
You are correct Sir. HBC upgraded to outperform at FBR Capital, and Buy from Neutral from BAC. [sarcasm]I guess exposure to Dubai is a good thing. [/sarcasm]
on Mon, 11/30/2009 - 13:30
#146393
A transitional move for a transitional operator. The key with Buiter always has been in the what, when and where he chooses to do what he does. It is worth noting that Buiter is now in this particular position. Perhaps his decision to summer at Martha's Vineyard is paying dividends.
on Mon, 11/30/2009 - 13:43
#146414
Paraphrasing the late, great Burt Blumert:
"Mr. Buiter doesn't like gold, unlike Mr. Chang"
http://blogs.ft.com/maverecon/2009/11/yapping-away-at-gold-lessons-from-the-last-days-of-the-rai/
I think he is exactly where he belongs.
on Mon, 11/30/2009 - 14:17
#146480
You gotta' wonder how much of Iran's "fuel enrichment plant" funding was tied up in Dubai's CRE scam.
on Mon, 11/30/2009 - 14:49
#146538
I usually remember about Buiter as the guy explaining "the duty of civil disobedience when law is injust". There are some good ideas in his blog.
About Dubai I found this post on his blog, where he does not sound like a CNBC cheerleader:
Probably the guy is not sellling his ass directly, but he is apparently being used. I would love to know his opinion about the lettersign "Buiter: Dubai no big deal" appearing right over his talk, as a "brief" for the masses.
on Mon, 11/30/2009 - 15:27
#146612
Bite the Hand or be the Hand
on Mon, 11/30/2009 - 17:05
#146784
With Buiter how to reconcile Plutonomy and good banks for Citigroup?
http://mgiannini.blogspot.com/2009/11/plutonomy-and-good-bank-for-citigroup.html
on Mon, 11/30/2009 - 17:36
#146838
An "economist". What more needs to be said?
on Mon, 11/30/2009 - 23:23
#147226
Simple explanation: 24 mo. gteed at $75K/month plus bonus. When the new chair comes in, he can walk. Give him six months and he's gone, got the kid's tuition covered and a new home on the Vineyard. Nice work if you can get it.
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