Submitted by Edward Harrison of Credit Writedowns. Just when you thought things couldn’t get any more questionable in Washington, then along comes this (hat tip Tom). Washington Post publisher Katharine Weymouth said today she was canceling plans for an exclusive "salon" at her home where for as much as $250,000, the Post offered lobbyists and […]
Read more...Submitted by Edward Harrison of Credit Writedowns. Yves said her piece about the new affordable FHFA program to allow home ‘owners’ in negative equity to stay in their homes. And I had a crack at it yesterday as well. But, I have some thoughts to run by you here using a specific example of an […]
Read more...Submitted by Edward Harrison of Credit Writedowns. Of late, there have been a lot of worries about he potential for inflation in the U.S. Marc Faber is the most noted pundit in this regard. Over-the-top comments he made back in May about hyperinflation in the U.S. may have been a catalyst for all of the […]
Read more...Submitted by Edward Harrison of Credit Writedowns. Here’s a conspiracy theory for you. As I am not much of a conspiracy theorist, I ill keep this one pretty simple. Here’s the chain of events. Back in late September when the world was falling apart, Ben Bernanke, Tim Geithner and Hank Paulson were all desperate to […]
Read more...Submitted by Edward Harrison of Credit Writedowns. During Alan Greenspan’s tenure at the helm of the Federal Reserve, he was often accused of using monetary policy to target asset markets so as to keep the party going. In short, Alan Greenspan was seen by many, including myself, as the bubble blower-in-chief. All of this came […]
Read more...Moody’s Joins S.& P. in Warning on California Debt DealBook. Always late to the party. The Plaza Stirs NY Times. "Few developments rode the wave of high prices in the Manhattan residential real estate the way the 181 condominium apartments at the Plaza Hotel did, and few have chilled as much in the downturn" China […]
Read more...Submitted by Edward Harrison of Credit Writedowns. So, things are looking a lot brighter we are told by most economists and policy makers. The crisis is over and the banking system is on the mend. Now is the time for true reform and for bankers to get back to business as usual. While the foregoing […]
Read more...When it comes to global banks, size matters Gillian Tett Too Big To Fail, Politically Simon Johnson. Every reform-minded economist hates the Obama white paper. Bankers seems pretty happy, though. Volcker: Sure, don’t regulate the hedge funds much. But don’t let them mooch off the safety net, either. Robert Johnson Roubini: New Regulations "Go in […]
Read more...Goldman’s Blankfein issues apology as bank prepares to repay $10bn Telegraph King calls for banks to be ‘cut down to size’ Guardian "An Interview with Paul Samuelson" Economist’s View In reform, more of the same Marshall Auerback. This line sums up his view about Obama’s reforms: "As with so much of the Obama administration, great-sounding […]
Read more...Submitted by Edward Harrison of Credit Writedowns. If you listen to the criticism from the right and from the left, from pro-regulation and anti-regulation pundits, you can understand the political constraints which produced the white paper which the President unveiled yesterday. Given those constraints, I consider the white paper a good effort. My initial reaction, […]
Read more...Submitted by Edward Harrison of Credit Writedowns. Having read through the draft of President Obama’s financial regulatory proposal, my initial reaction is largely positive. He sets the right tone and says all of the right things. However, the devil is in the details and we will need to see how these firm up as these […]
Read more...Submitted by Edward Harrison of Credit Writedowns. This morning I was reading Simon Johnson’s excellent post “President Obama’s Regulatory Reforms Announcement: A Viewer’s Guide” about what Barack Obama should say when he makes his regulatory reform pitch today at 12:30 PM. I agree with what he has to say about the need to re-assure us […]
Read more...Obama frets on debt, sees U.S. unemployment rising BBC News MySpace cuts ‘bloated’ staff FT. We’re talking 30% here. Think of MySpace as the Yahoo to Facebook’s Google. The recession tracks the Great Depression Martin Wolf, FT High Housing Starts Do not Reflect Reality CNBC. We saw a lot of spec building that doesn’t necessarily […]
Read more...Edward Harrison is the main writer at Credit Writedowns. Yesterday, I argued that the United States faced a policy dilemma in avoiding debt deflationary forces while maintaining fiscal prudence. The reality is that President Obama faces political constraints in Washington right now in regards to budget deficits. He is not likely to get another stimulus […]
Read more...Moody’s bank downgrades, pain in Spain edition – FT Alphaville. 25 banks get downgrades. Santander gets negative watch. Was I too early on Santander or just plain wrong? Lincoln National to Take Federal Bailout Funds DealBook. Is this getting any press? They are not a bank. Marijuana Damages DNA And May Cause Cancer, New Test […]
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