Robert Waldmann Felix Salmon wrote “S&P and Moody’s are clearly completely incompetent, and no one should base any investment decisions on the random series of letters they apply to bonds.” second quote (from comments) “… But without rating agencies…… who other than big investment companies/funds that have their own in-house muscle to do due-diligence can […]
Reuters reminds us financial reform law still in the works: Although a final vote is expected within days on the White House’s top domestic priority, lawmakers have yet to settle disputes on regulating over-the-counter derivatives; curbing risky trading by banks; and the power of state authorities. There will need to be resolution on these topics […]
How else to explain a 20% drop in prices since The Destruction of the Gulf of Mexico? Oil fell below $70 Monday, reaching a low of $69.27 before rebounding slightly…The turnaround has been sudden — oil hit an 18-month high of $87.15 a barrel during trading on May 3. The plunge in oil extended to […]
No wonder Brad DeLong has had no luck persuading Christopher Edley to get rid of the malfeasant John Yoo. As Bob Somersby observes: Christopher Edley thinks he’s one of your “betters.” It’s hard to believe, but that’s the exceptionally low-IQ framework this self-proclaimed member of the elite enunciated in Sunday’s piece. According to Edley, rubes […]
by Mike Kimelcrossposted with Presimetrics blog The Effect of Tax Cuts and Tax Hikes on Economic Expansions Right about now, the U.S. economy appears to be recovering from a recession (and a nasty one at that). It’s not smooth sailing though; the recovery is still very fragile, and there are plenty of problems at home […]
by Linda Bealecrossposted at Ataxingmatter From offshore accounts of individuals to transfer pricing scams of corporations From offshore accounts of individuals to transfer pricing scams of corporationsMichigan’s Levin says the next big thing for the government to focus on, now that the offshore accounting schemes of individual taxpayers have gotten its full attention, should be […]
The opening chapter of Jack Cashill’s Popes and Bankers relates his version of the tale of Melonie Griffith-Evans, a woman who in 2004 borrowed her way to losing her house. Ms. Griffith-Evans accepted loans in order to buy a house priced at $470,000 that resulted in her having to pay “roughly $3,500 a month.” Of […]
Sometimes, I hate being right. Most of those times are when I take a pessimistic view of data; this has happened a lot recently. It gets worse when the people who agree with you are none other than The Giant Vampire Squid. As the Wall Street Journal notes: Zero — First quarter GDP growth, minus […]
When you need to understand something, look to the comics for the best explainations. And a this sketch on the subprime problem.
Round One to the Banks, More to Come writes Robert Weissman: On the Wall Street reform bill, the Senate, late last Thursday, rejected probably the most important measure proposed to reduce Wall Street power, strengthen financial stability and fortify our democracy: breaking up the banks. By a 33-61 vote, the Senate defeated the Brown-Kaufman amendment, […]