So the big news today is that Rick Wagoner (CEO of General Motors) is going to “step down” at the request of the White House. Meanwhile, plenty of other GM workers are losing their jobs, courtesy of not-quite-a-bankruptcy and government intervention. On the open market, one could buy all of GM for $2.21 Billion. But our government is no cheapskate: GM has already received $13.4 | Read More »
This week, Detroit will once again come to Congress and beg for money, after car-pooling or taking commercial flights to Washington. We can probably greet them at Gate 24 at United, in Reagan National. But Homeland Security might want us to wait in the baggage area. Be wary .. they have a lot of baggage. BMW, Toyota, and Honda seem to be doing ok … | Read More »
As Nancy Pelosi casts the pieces of “The Paulson Plan” on the waters, Congress on both sides of the aisle might consider their sins of the past. From Alan Greenspan’s 2004 testimony to Congress: GSEs–the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac), and the Federal Home Loan Banks (FHLBs)–collectively dominate the financing of residential housing in the United | Read More »
I can’t believe our Republican leadership let an insurance salesman in the door. Some have proposed that we just guarantee the prices (provide insurance) for the buyers of securities. It is said this would cost less than $700B. “Insurance” guarantees that taxpayers will lose money on every mortgage backed security (MBS) that defaults. And make little on any that work out. Bad as it is, | Read More »
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