Contributing Editors' Blog Entries
Biden: "It's a Depression For Millions of Americans"
Submitted by George Washington on 10/20/2009 - 18:07 What do you think?
Patrick Parkinson: A Case Study in How to Get Promoted at the Fed
Submitted by EB on 10/20/2009 - 16:37 Patrick Parkinson Track the career of the man who in 1999 testified to Congress against derivatives regulation on behalf of the Fed and PPT, only to recant in 2008, then become Fed's Director of Banking Supervision.Hussman: Average Americans Are Getting Scalped So That Bondholders Can Be Saved from Taking a Haircut
Submitted by George Washington on 10/20/2009 - 13:55 The government rescued bondholders so they wouldn't have to take a haircut. Everyday Americans? We've been scalped ...
Nassim Taleb: His Solution To Solve The Crisis Won't Work
Submitted by Econophile on 10/19/2009 - 23:45 Nassim Taleb Nassim Taleb, author of The Black Swan and Fooled By Randomness, writes brilliantly on investment risk, but his proposed solution to the economic crisis, converting defaulting mortgages to equity by banks, will result in America catching the Japanese Disease. We can't keep debt lingering on the books of banks like they did in Japan. And you can't magically turn stone into bread. Read this and tell me what you think. Perhaps he is creating another black swan.
The Administration on the Agencies – Step One
Submitted by Bruce Krasting on 10/19/2009 - 22:28 Are Fannie and Freddie dead or are they not? That is the question. Keefe, Bruyette & Woods says the stock is toast. As of today the Administration is putting them to work for a few more years. Is the outcome the same but the timing different? What is the "Trickle Up" theory? Will it work?
Curb Your Enthusiasm?
Submitted by Leo Kolivakis on 10/19/2009 - 20:50 I believe monetary authorities are desperately trying to reflate the real economy by flooding the financial system with a tsunami of liquidity. Asset bubbles are being formed as we speak. Equity and commodity prices will head much higher but it remains to be seen whether higher asset prices will translate into higher real prices. Stay tuned, but in the meantime you might want to curb your enthusiasm and remain very alert as asset prices disconnect from fundamentals.Tavakoli: "We Should Impose a 95% Excess Profits Tax—Or Windfall Profits Tax—On Certain Financial Institutions... Enriching Themselves" at...
Submitted by George Washington on 10/19/2009 - 20:11 Janet Tavakol says: "During World War II, we imposed an excess profits tax. We should impose a 95% excess profits tax—or windfall profits tax—on certain financial institutions (including Goldman Sachs) enriching themselves with ongoing low-cost Fed funding and debt guarantees." What do you think?
Russia shot itself in a foot
Submitted by Vitaliy Katsenelson on 10/19/2009 - 16:33 Russia shot itself in a foot last year when in dispute with Ukraine, it shut off natural gas supplies to Europe. That experienced was very unpleasant for Europe and underlined its dependence on a single nation.Congress Actually Stands Up to Banks . . . But What About the Senate?
Submitted by George Washington on 10/19/2009 - 15:17 House Financial Services Committee DOESN'T wimp out!
Get Your Federally Insured Hedge Fund Here, Twice the Price Sale Going on Now!
Submitted by Reggie Middleton on 10/19/2009 - 13:27 In reviewing the last couple of quarter's results of Goldman Sachs operating results, I have come to the conclusion that Goldman is a Federally insured, publicly traded hedge fund!Has the Government Sowed the Seeds for Green Shoots or Another Depression?
Submitted by George Washington on 10/19/2009 - 12:49 Green Shoots Pass this on to people who get their news from the talking heads on tv . . .
Good morning, worker drones: This Week In Mayhem
Submitted by Project Mayhem on 10/19/2009 - 09:49 Project Mayhem reviews the most important financial and geopolitical news of the past week and takes a look at the week aheadIf a Bubble Bubble Bursts Off Balance Sheet, Will Anyone Be There to Hear It? Pt 4 - Wells Fargo
Submitted by Reggie Middleton on 10/19/2009 - 04:46 Wells Fargo Let me know the chances of the FDIC's absorbing a behemoth such as the CDO trading, CDS writing, off balance sheet VIE having, QSPE bulging, California and Florida Zero recovery 2nd lien sporting Wells Fargo in the case some of its arcane and non-performing assets really hit the fan. I am getting ahead of myself though. Let's take this from the beginning.
