Banking crisis

    Initial Reaction to the Obama Mortgage Bailout Plan

    By: Francis Cianfrocca (Diary)  |  February 18th at 01:06 PM  | 

    He only announced it a few minutes ago in Mesa, Arizona, but let’s look at how the markets are reacting to Obama’s mortgage-relief plan. The idea is to spend about $275 billion to give more money to Fannie Mae and Freddie Mac, and to facilitate refinancings of distressed mortgages. It’s still too early to give you an actual analysis of the plan, but I did | Read More »

    Picking Winners and Losers Among The Large Banks

    By: Francis Cianfrocca (Diary)  |  February 18th at 10:13 AM  | 

    Ok, so the Teacher And Firefighter Job-Preservation Act of 2009 is now law. Last week, President Obama told us that starting today, the stimulus would immediately speed saving succor to the US economy, using metaphors that suggested the stanching of an open wound. Are you feeling stimulated? A more true metaphor is that the stimulus will be like a fart in a windstorm. Why? Three | Read More »

    A Banking System Frozen in Amber

    By: Francis Cianfrocca (Diary)  |  January 22nd at 08:23 AM  | 

    One of the most critical problems facing the US economy is the “credit crunch,” which shows up as an extreme reluctance by banks and other financial intermediaries to lend money. Without a normal flow of credit, no sector of the economy can function up to its capacity, and that of course leads to lower output and higher unemployment. You’ve read a lot about the TARP | Read More »