TARP Reversal, Paulson ADHD?
Paulson leads his dramatic redirection of the Trouble Asset Relief Program (TARP) with an adaption of John Maynard Keynes, “When the facts change, I change my mind – what do you do, sir?”:
Treasury Secretary Henry Paulson, whipping out his dead economist quote book, used this gem from John Maynard Keynes to justify his bombshell Troubled Asset Relief Program update and redirection:
“I will never apologize for — for changing an approach or a strategy when the facts change. I think the apologies should come the other way if — if someone doesn’t change when the facts change.”
I am not sure that the facts have necessarily changed, but Paulson definitely shows a penchant for changing his mind.
Other TARP Update Coverage:
- Mortgage Bonds Fall to New Lows as Paulson Scraps US Buying [Bloomberg]
- Asian Stocks Tumble, Extend Global Rout, on US Treasury Shift [Bloomberg]
Mortgage Servicers on the Hot Seat
Financial Services Committee Chair Barney Frank (D-MA) calls mortgage servicers into the Mortgage Meltdown Blame Chamber:
“We have not seen servicers participating in any significant way. I believe we now have a situation that requires legislation. We are getting some progress where the loans are owned in a definable way …
“But where we have servicers administering the securities we apparently have a problem,” Frank said.
China Rapidly Slowing
This is going to be a big story and impact…
- China Industrial-Output Growth is Slowest in 7 Years [Bloomberg]
- China Unveils Stimulus Package as Growth Slows [Marketwatch.com]
- Retail Sales Growth Slows to 22% in October [ShanghaiDaily.com]
- Trade Growth Slows in October [ShanghaiDaily.com]
Beers UP!
Market Down 30 percent, but Beer is Up 30 percent–perfectly correlated companions:
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I am Bill Rice the Managing Editor of MortgageLoan.com. These are my morning notes. If you have comments, feedback, or pointers to something interesting email me or follow me on Twitter.
(photo credit: Economist)
About Bill Rice