Simon Johnson

Frontrunning: November 19

  • Cowen Scorned as Irish Mourn Loss of Sovereignty With Bailout (Bloomberg)
  • Irish Bailout May Unleash Vigilantes on Portugal (Bloomberg)
  • Spain and Portugal rule out rescue packages (FT)... until they rule them in
  • Hong Kong Said to Plan New Property Curbs; Stocks Decline (Bloomberg)
  • Andy Kessler: What's Really Behind Bernanke's Easing? (WSJ)
  • In Shanghai, prices fly high (Reuters)
  • Heat Stays on California $10 Billion Note Offering (WSJ)
  • Special report on SAC's "information arbitrage" strategies  (Reuters)
  • Pimco Said to Seek $1 Billion to Buy Troubled Assets From Banks (Bloomberg)
Reggie Middleton's picture

A more in depth look at Morgan Stanley’s returns on equity reveal an even uglier snapshot of performance than the unimpressive, cursory annual overview illustrated in our quarterly analysis released yesterday. Bubblicious credit, QE x 2, and regulators that look the other way from rotting assets still result in piss poor economic performance. What do you think will happen when rates resume their upward move?

Frontrunning: November 4

  • Fed takes bold, risky step to bolster weak economy (Reuters)
  • Oil rises towards $86 on Fed, weak dollar (Reuters), we expect $90 oil within a week
  • Asia Girds for Stronger Currencies, Bubble Threat From Fed Move (Bloomberg)
  • Obama Says He'll Negotiate With Republicans on Bush Tax Cuts (Bloomberg)
  • Sarkozy To Meet Hu As France Takes G20 Lead (FT)
  • Pettis Op-ed: Targeting Currencies Will Not Stop Trade Imbalances (FT)
  • Bank of America Edges Closer to Tipping Point: Jonathan Weil (Bloomberg)
  • Analysis: Strategic tensions threaten Asia as China rises (Reuters)
  • Goldman's Pay Pool Shrinks Fastest as Traders' Fortunes Dwindle (Bloomberg)

Guest Post: The Stealth Coup D'Etat: U.S.A. 2008-2010

In the popular view, a coup d'etat is a sudden event, over in a few hours or at most days, a drama played out in impoverished Third World nations. The stealth coup which has occurred in the U.S. is an entirely different kind of coup--one that has operated in stealth mode for the most part, a process of gradual infiltration and opportunistic grasping of key levers of dependence and control.

Reggie Middleton's picture

“Goldman, unlike the rest of the street and practically the rest of the I banking world, is ratcheting up VIE risk!!! Is BoomBustBlog the only one inquiring as to WHY??? We have a few reasons in mind… And to think, many thought the Enronesque days of “hide the sausage” games have come to an end…”

Guest Post: The Age of Mammon


As our economy hurtles towards its meeting with destiny, the political class seeks to assign blame on their enemies for this Greater Depression. The Republicans would like you to believe that Bill Clinton, Robert Rubin, Chris Dodd, and Barney Frank and their Community Reinvest Act caused the collapse of our financial system. Democrats want you to believe that George Bush and his band of unregulated free market capitalists created a financial disaster of epic proportions. The truth is that America has been captured by a financial class that makes no distinction between parties. These barbarians have sucked the life out of a once productive nation by raping and pillaging with impunity while enriching only them. They live in 20,000 square foot $10 million mansions in Greenwich, CT and in $3 million dollar penthouses on Central Park West. These are the robber barons that represent the Age of Mammon

Econophile's picture

Until I began to examine the Dodd-Frank financial overhaul bill I had no idea that it would so significantly change the direction of the United States. It's scope is so vast and pervasive that it is difficult to grasp its totality. I wrote this article to try to explain this and why I believe it is so important for us to understand it. This is the final part of this four part series. I examine the consequences of Dodd-Frank.

Frontrunning: July 9

  • Immediate leak to refute that Postbank, or any other bank, will fail stress tests. Can't have a failure of confidence in a massively insolvent bank can we (Bloomberg)
  • Computerized stock trading leaves investors vulnerable (USA Today)
  • Biggest defaulters on mortgages are the rich (NYT)
  • US will not brand China a currency manipulator, US exports now have no excuse to continue sucking (Reuters)
  • Google says China renews its internet license (Google), sending Google stock higher, BIDU lower
  • Dumbest money clinging to shattered V-shaped dreams like Moody's to AAA rating of subprime (Reuters)

Frontrunning: June 24

  • Options Clearinghouse wants access to Fed's discount window (Bloomberg) next up - $1,000 E-trade retail accounts have access to TALF and TLGP
  • Jonathan Weil: Pimco's loss is a win for Wall Street crooks (Bloomberg)
  • Wall Street reform bill goes into final hours with key provisions still unresolved (Reuters)
  • BP relied on faulty US data (WSJ)
  • Swiss banks winning funds from investors with weakening euro, buoying franc (Bloomberg)
  • China central bank to inject 201 billion yuan into market this week to calm exploding money markets (iii)
  • Banks on hook for $6.5 trillion GSEs? Bank execs panic over proposed change to orderly liquidation authority -- Dodd unhappy with Brown -- Zero hour arrives as derivatives, 'Volcker rule' remain unresolved (Counteroffer, Politico)
  • Gillard breaks with tax policies that doomed Rudd (Bloomberg)
  • The best stimulus: spend less, borrow less (Fortune)
  • Venezuela to nationalize set of oil rigs belonging to Helmrich and Payne (Reuters)
  • Yuan closes higher after moving in wide daily range of 150 bps (iii)
  • Obama approval rating plunges on handling of BP catastrophe (Reuters)
  • On Wall Street - so much cash, so little time (NYT)
  • Simon Johnson endorses Paul Krugman for head spender, budget director and "quadrillion" redefiner (Baseline)
  • The drilling ban is Soros' bonanza (IBD)