Matt Taibbi at TrueSlant.com takes a slightly different view of the success of Bank Bailouts. Citing reports from the New York Times and the Financial Times, "telling us the bailout is working because the government has made some money on TARP," Taibbi thinks the math is selective at best. Take a look a Matt's argument for yourself: "This is sort of like calculating the returns on a mutual fund by only counting the stocks in the fund that have gone up. Forgetting for a moment that TARP is … [Read more...]
Small Bank Bailouts, The Great Recession, JP Morgan Loan Modifications, Global ZIRP, PMI Losses, GM No Bailout Merger
November 3, 2008 By Leave a Comment
Small Bank Bailouts Financial market calamity was narrowly averted today as Farmers National Bank of Emlenton is expected to get a much needed capital injection from the US government. William Marsh, CEO led with this, "they were giving out free stuff"-type quote in the WSJ: "It seemed like the consensus in the industry was...go out and get this," said William Marsh, president and chief executive of Farmers National Bank of Emlenton, in Emlenton, Pa. Mr. Marsh said his bank is healthy and viable … [Read more...]
Weekend Notes
October 25, 2008 By Leave a Comment
Why loan modification plans have an uphill battle? Investors on Loan Modifications Here come the insurance bailouts Peter Lynch on finding/timing the market bottom Lindzon is shorting fluff--I think a lot of investors and CONSUMERS will be, we have been sufficiently shocked China sees opportunity to get superpower respect. In financial currency markets? Banking innovation slowly unwinding--back to brick and mortar? Next consumer credit crisis front--credit cards--the Mark Cuban … [Read more...]
Update on Troubled Asset Relief Program Implementation
October 13, 2008 By Leave a Comment
Interim Assistant Secretary for Financial Stability Neel Kashkari gave his 10 day update on implementing Congress' $700 billion Treasury-led bailout. This is the visual synopsis of his remarks: (tag cloud: wordle.net, technique hat tip: Paul Kedrosky, full text: WSJ) Kashkari higlighted a strategy "with one simple goal--to restore capital flows to the consumers and businesses that form the core of our economy." Some of the highlights of implementation ("tools") include: MBS purchase … [Read more...]
Good Quick Analysis on UK Bank Bailout
October 8, 2008 By Leave a Comment
Mish's Global Economic Trend Analysis does a quick, down and dirty analysis of the UK banking bailout. Bailout plan sends European indices and US futures into a predictable downward trend. Mish predicts coordinated US Fed, Bank of England, European Central Bank rate action. … [Read more...]
All Fannie Mae and Freddie Mac
August 20, 2008 By Leave a Comment
These two massive GSE's staged for a monumental meltdown are sucking the air out of the proverbial (mortgage market news) room. Lots of good coverage and analysis: Associated Press: Fannie Mae, Freddie Mac shares plummet Shares of mortgage finance companies Fannie Mae and Freddie Mac continued their plunge Wednesday as investors are increasingly convinced that the stocks will drop to zero if the government bails out the troubled companies. Marketwatch.com: Freddie, Fannie tumble in early … [Read more...]
Stagflation, Another Bank Failure, Fannie Mae/Freddie Mac Bailout, 10-year Treasury, Lehman, Inflation Hits Stocks
August 19, 2008 By Leave a Comment
Angry Bear: Have we hit stagflation? Rdan over at the Angry Bear Blog makes his case: Is when Unemployment is 5% or more and when Inflation is 5% or more at the same time. June 2008 - July 2008 (Un-5.6% and Inf-5.31%, 2 months so far) BloggingStocks: Wachovia or Washington Mutual next to fail? Economists are rallying to predict the next victim of the mortgage market anchor that has been sinking banks on a regular schedule over the last year. Who is next? Here is some of the latest … [Read more...]
