Timothy Geithner

Geithner Loses It After Bair Refuses To Yield Power To Fed

It seems the Secretary of the Treasury forgot to take his Xanax on Friday. The WSJ reports that "Timothy Geithner blasted top U.S. financial regulators in an expletive-laced critique last Friday as frustration grows over the Obama administration's faltering plan to overhaul U.S. financial regulation." Presumably the source of Geithner's ire was Sheila Bair's (and probably Mary Schapiro's) unwillingness to yield power over to Bernanke.

Thinking The Unthinkable: The Treasury Black Swan, And The LIBOR-UST Inversion

The below piece is a good analysis of a hypothetical Treasury/Dollar black swan event, courtesy of Eugenio Aleman from, surprisngly, Wells Fargo. Eugenio does the classic Taleb thought experiment: what happens if the unthinkable become not just thinkable, but reality. Agree or disagree, now that we have gotten to a point where 6 sigma events are a daily ocurrence, it might be prudent to consider all the alternatives.

Thinking the Unthinkable

The Latest From The Utter Lunacy Rumor Mill

In complete denial of everything the government leaked earlier, Morgan Stanley is now expected to need $1.5 billion in new capital.

I am happy to send my $10 by regular airmail or via carrier pigeon straight to PDT.

May 6 (Bloomberg) -- Banks that need to raise capital under the government’s stress tests will have until June 8 to develop a plan and until Nov. 9 to implement it, U.S. bank regulators said today.