Economist Mark Blyth talks on Europe and rescuing the banks… See 35 minutes in on context for LIBOR troubles. (70% of the special investment vehicles designed to pump and dump mortgages belong to European not American banks … Euro banks listed their periphery debt as Tier One Capital under Basel.)
Yves Smith spells out her strong opinion of our dilemma nationally for the elections of 2012. This particular arena of regulating banks and non banks and and accountability also takes on a wider symbolic meaning in this election cycle. How this plays out in determining national budget spending priorities through the lens of an explosion […]
Commentary: Subprime Thinking from Wednesday morningre-posted with permission from the author When I started this blog in January 2005, one of my goals was to alert people to the housing bubble, and to discuss the possible consequences of the then approaching housing bust. Residential investment has historical been one of the best leading indicators for […]
The NYT reports on the Financial Crisis Inquiry Commission. “The Republican members of the commission appointed by Congress to investigate the causes of the financial crisis plan to release on Wednesday a document that assigns government housing policies substantial blame for the origins of the 2008 financial crisis. “ Update from MG: Here is the […]
by divorced one like Bush Well, well, well, seems our Robert will have some more thinking to do. Via C & L to Radamisto who want’s to know if we have ADD or what comes the Bloomberg story that the money from money machine is being restarted. Morgan Stanley plans to repackage a downgraded collateralized […]
By divorced one like Bush The following from Robert’s post got me thinking about railroads. “There have been three big banking booms in modern U.S. history. The first began in the late nineteenth century, during the Second Industrial Revolution, when bankers like J. P. Morgan funded the creation of industrial giants like U.S. Steel and […]
In this corner, as previously mentioned, Yves Smith goes for the slam dunk: Let’s see, the credit default swaps market, due to some netting, is now somewhere north of $30 trillion (as opposed to its earlier “north of $60 trillion” level). Investment banks were believed to have hedged most of their exposure via offsetting contracts, […]
Dr. Black (you know the site) links to AIG Strike Three. And unlike the Citi debacle previously discussed (relatively) positively and rather negatively here, this one makes some form of sense. The difference comes down to the meaning of an accounting concept: ongoing concern. More below the break (yes, this might get wonkish. It’s me, […]
Brad DeLong sends us to Rex Nutting at MarketWatch: U.S. nonfarm payrolls plunged by an astonishing 533,000 in November, the worst job loss in 34 years, the Labor Department reported Friday. It’s only the fourth time in the past 58 years that payrolls have fallen by more than 500,000 in a month. Since the recession […]
Via Felix, we discover Joe Nocera at the NYT reporting that securitization professionals are not as stupid as they would have had us believe: What [the FDIC] has discovered, said [Michael H. Krimminger, the F.D.I.C.’s special adviser to the chairman for policy], is that the contracts are rarely as constricting as investors and servicers have […]