Paulson’s Bailout Plan Bad for Taxpayers
Secretary Paulson is trying to help but he is so immersed in Wall Street think that he cannot look at the situation with clear eyes. Poorly managed firms must be allowed to fail to clean out the system of toxic business entities. There are many investment houses and banks who have not made poor choices and endangered themselves. The government would be best advised to | Read More »
Fire Sale On Wall Street
It is becoming abundantly clear that if the Paulson Plan does not pass by market close on Friday, the world will be a very different and more unstable place come sunrise Monday morning.Why?The credit market is crashing. There is not enough credit in the market right now. Come Monday, if Wall Street does not have the assurance of a workable plan, the nightmare scenario that | Read More »
Financial Markets On Edge
The basic storyline in financial markets remains unchanged today, as everyone waits for Congress to act on the Paulson bailout plan. In the meantime, overnight conditions in the world’s money markets are again approaching the extreme stress levels we saw exactly one week ago. Keep reading…
Chairman Bernanke Finally Spills The Beans
The attention of financial markets yesterday was fixed on the Congressional testimony of Treasury Secretary Paulson and Fed Chairman Bernanke. It was an up and down day, mostly down. Bernanke finally gave us an (elliptical) answer to one of the questions that most concerns Wall Street about the bailout plan: the valuation at which distressed mortgage-backed securities will be purchased. The other question, whether there | Read More »
Greed Is Good
“The point is, ladies and gentleman, that greed- for lack of a better word- is good.”Greed is right.”Greed works.”Greed clarifies, cuts through, and captures the essence of the evolutionary spirit.”Greed, in all of its forms- greed for life, for money, for love, knowledge- has marked the upward surge of mankind.”And greed should also cut down, in bloody fashion, those who make bad business choices.
Self Immolation or Democrat’s Economic Plan? Can I get back to you?
Years ago in the salad days of my youth and naiveté, I was part of a merger team. During that tenure we were working on a critical deal which involved some in-depth, albeit brief in duration analysis. After what seemed like an extraordinarily short, inadequate period one senior executive asked the group if from our perspective we should close the deal. This “deal” was not | Read More »
A Few Important Questions for Mr. Paulson and Mr. Bernanke
We’re now into our second day of market reactions to the Treasury and Fed’s Troubled Assets Relief Program (“TARP”), or if you prefer, Mother of All Bailouts (“MOAB”). Market reaction in general is quite positive, which I’ll get to shortly. But the action is moving to Capitol Hill, where Paulson and Bernanke need to convince Congress to pass enabling legislation for the plan before they | Read More »
Wall Street Hits A Rough Patch- Updated
In my judgment we’re now at a point where fear and uncertainty are worse than they were during the depths of the Bear Stearns scare last March.The combination of investment bank failures, the nationalization of America’s largest insurer, and most especially the disruption of money markets have brought us to a very delicate moment.Which shoe will drop next? There are at least two possibilities. That’s | Read More »
What has to be done with the Wall Street mess…
The collapse of the financial institutes is scary not only for the short term but for the long term. There is a reason that the financial institutions were deregulated for a very good reason. The regulations were strangling the banks and the investment houses. As a matter of fact deregulating this industry was the reason for the big bubble that bailed out the failed Presidency | Read More »
Focus, Republicans, Focus on the Economy Claims by Big Brobama!
Focus on countering the claims Big Brobama is and will be making about the crashes on Wall Street!Big Brobama is already putting out a 2-minute ad full of the usual stereotypes: class warfare agitprop of the most typical kind, blaming W. and the Republicans and greedy businessmen for everything.History lessons about how the mess can be traced back in part to Clinton’s Jamie Gorelick (q.v.) | Read More »
McCain/Palin Troops beware
Crossposted at OpinionTimes.comThe recently converted McCain supporters (once disaffected members of the Republican base) should be excited about the current McCain bump. But it will be all for naught if the McCain campaign doesn’t focus that energy on a strong effort to get like-minded voters to the polls. Just kiss it all goodbye without a grassroots effort which eclipses 2004. And Karl Rove (love him | Read More »
Breaking News! Foxes to investigate Henhouse thefts!
Not that I’m suprised or anything, but could there be a more lucid example of the complete and utter fecklessness that has become the hallmark of Pelosi and the House Democrats. Please pardon the barnyard analogy but this is like locking the barn after the horse is already out. Pelosi orders wide Wall Street probe House Speaker Nancy Pelosi has ordered a broad, swift investigation | Read More »
Is the American economic system strong or not?
Obamaphiles seem to be going crazy shouting that John McCain has declared the American economy fundamentaly strong. They see this as further proof that Obama is part of the “reality-based community” whereas McCain lives in his own made up world.But this is just more hyperventilating from the left who would be happy with a devastating depression if only it would help Obama win. But here | Read More »
Obama blames Wall St. crisis on Republican policy
Obama blames GOPI wonder what Wall Street expects in return?Obama contributions
Why Blackhedd Needs a Publicist
Fortune is running an interesting piece about some financial types who foretold the credit crisis that nearly swamped the US economy. They probably don’t have much name recognition even among people who follow the markets on a more or less regular basis.