England’s credit crisis: different players, same result.
A bit of an antidote to certain, ah, reflexive ways of thinking: Bad Times Visit Our Betters in Europe LONDON — Think that credit collapse that triggered the Bush administration’s $700 billion bank bailout was necessary because of Republican hostility to regulation and the ineptness of President George W. Bush? If it were that simple, then British Prime Minister Gordon Brown and his Labor Party | Read More »
Why China Can’t Save Us
From mcmikep2.blogspot.comYesterday the Chinese government announced it would spend nearly 600 billion USD in stimulus efforts. Morgan Stanley’s Qing Wang and Steven Zhang gave us a heads up that this was coming here. They expected the announcement of a proactive stimulus policy to be made at the end of the month. Not only was it made earlier, but prior to the announcement, Chinese finance minister | Read More »
Uninformed Opinions About The Credit Crisis
Megan McArdle advises Matt Taibbi to stop. And has some good advice for people who only tuned in to the financial world during the credit crisis: No one who did not know what a CDO was before the crisis should be opining as to the causes or the possible solutions. And anyone who tells you that they understand exactly why this happened, why we got | Read More »
Chris Dodd’s Show Trial
enator Chris Dodd (D-FNMA) is convening a hearing of the Senate Banking Committee today, on the genesis of the current economic crisis. The odd thing about the hearing, as the Wall Street Journal points out, is that Dodd is only allowing testimony from witnesses who agree with his narrative — which helpfully ignores his role in the crash:
Influencing Economic Expectations, Redux
Earlier this week, I posted an article (on my blog and here at Redstate ) that voiced one of my main criticisms of monetary policymakers throughout the efforts to pass the Paulson rescue package. This is not an armchair criticism; this is a complaint, based on insufficient management of a fundamental approach to monetary policy.
The Rescue, Part II
As expected, the ‘rescue package’ legislation was approved this afternoon by the House, after being previously approved by the Senate on Wednesday. Despite the previous failure of the bill and many people here at Redstate saying the package wouldn’t be approved, we’ve now taken at least one step in the right direction, so that we can continue moving forward with further efforts to really relieve | Read More »
Influencing Economic Expectations
If you have been following my articles , I have strongly advocated that the Congress approve the rescue plan proposed by Hank Paulson and Ben Bernanke. I won’t rehash all of the reasons why I think this must happen, but suffice to say, our financial system needs liquidity to be stabilized and that’s what this bailout is all about. You can read my other previous | Read More »
The Other Bailout
A bounce in the markets yesterday was not unexpected after the day we had Tuesday, but many people were surprised to see the Dow jump 400 points. Many people chalked this up to the idea that the markets were already recovering from the plunge after the bailout was rejected, but this is because the majority of people didn’t realize fundamentally why the increases happened.
On the Suspension of Mark to Market
[UPDATE]: Allow me to update this piece with this delightful piece of news re the commercial paper market. AT&T can probably survive this for a little while. Plenty of other companies can’t. One of the items in the proposed bailout that a number of Republicans seem to be insisting on is either a suspension or outright end to mandatory mark to market accounting rules. It | Read More »
Stocks Rally: Fear Mongering Media Brought Down a Level
As Usual cross posted @ Voices in the Wilderness In a shocking turn of events the sky refused to defy physics today as the stock market rallied. The Mainstream Media (MSM) showed its frustration that not passing the bailout did not cause the complete breakdown of the system and those who voted against the bailout showed how unfazed and fearless they were by taking a | Read More »
Great crisis creates great opportunity–McCain must appeal directly to the people
Dear friends and fellow Americans, Like many conservatives, I have grown increasingly depressed during the past week–worried about the prospects of Republican-electoral disaster, the consequent enactment of socialist policies by a federal government dominated by liberals, and the consequent crippling of our national prosperity. Jim Geraghty wrote something yesterday that gave me hope–and indicates that the great crisis presents a great opportunity for conservativism and | Read More »
A Few More Points to Consider
rick brought up a very pertinent discussion about the crisis emerging after today’s failed vote on the bailout package, in which he outlines a few points for readers to consider. I am not disagreeing with him, but I think the points require some further consideration. As such, I commented on some of these in the original post, but some had recommended to outline these items | Read More »
No Way, No How, No Bailout!
Originally Posted @ Voices in the Wilderness The rich, the poor and the middle class made their beds and now we have to lay in it. I understand the consequences of allowing the markets to fail and not passing a bailout but it seems to me that it is necessary to go through this pain in order to ensure that it never happens again. Solomon, | Read More »
Obama and Schumer’s Sugar Daddy Pockets $20 Million Off WaMu Collapse
One of Barack Obama’s and Charles Schumer’s political moneybag donors dating from very early in both of their U.S. Senate careers stands to make close to $20 million for 17 days on the job for presiding over the largest bank failure in U.S. history. That’s nearly $20 MILLION DOLLARS for 17 days on the job. He basically signed the papers delivering the company into government | Read More »
Finally A Voice of Reason
Greg Mankiw’s link today sums up my thoughts on the economic crisis and the controversy around the proposed bailout from Paulson and Bernanke. Everyone should listen to him … especially those folks on the Hill who have allowed their vision to be obstructed. From Mankiw …