Daily Archives: July 21, 2009
Securitization was maddeningly complex. Mandated transparency is the only solution.
With so much complexity, and uncertainty about future performance, it is not surprising that the securities are difficult to price and that trading dried up. Without market prices, valuation on the books of banks is suspect and counterparties are reluctant … Continue reading
Consumer woes mean US not free of peril yet
The reason that the savings gauge has leapt is not that Americans are saving more, but only that they are paying off their past, huge borrowings because of financial distress. Americans actually cut savings in the form of financial assets … Continue reading
Obama’s Squandered Stimulus Plan
To promote car sales and home buying, Congress could have provided temporary but generous tax breaks. It didn’t. The housing tax credit applied to a fraction of first-time buyers; the car tax break permitted federal tax deductions for state sales … Continue reading
The End?
Error One was to permit a bubble in the 1980s. Error Two was to wait a decade before opting for monetary “shock and awe” through quantitative easing. The US Federal Reserve has moved faster but already seems to think the … Continue reading
A growing list of one term presidents
The stock market is rallying. The economy will recover by year end, and strong profits among big players like Goldman Sachs, IBM and Google will spread to other big corporations. However, many small businesses and working Americans won’t be cheering. … Continue reading
Two anti-coal articles
Clean Coal: An Unsustainable Polital Myth – Bill Frezza, RealClearMarkets Ending America’s Deadly Coal Addiction – Robert Kennedy, Financial Times
