What If We Don’t Get A Bailout?
At this moment on Friday morning, Congress looks set to do… well, there’s simply no information to answer the question. Members of both parties appear to be just as frozen in place as the credit markets, deeply fearful of being tarred and feathered by angry voters if they pass the Paulson bailout plan.I’m going to leave aside the very interesting but not definitively-answered question of | Read More »
Economists for the Paulson Plan
Economists Defending Paulson PlanPolicymakers battling the approval of Paulson’s bailout package have taken pride in throwing around the names of a large list of the top academic economists who wrote a letter to Congress stating their opposition to the plan. Indeed, Sen. Shelby mentioned this yesterday as he left the White House. However, don’t be misled to think that all economists are against the bailout. | Read More »
Friday Morning Market Update
And the fun and games on Capitol Hill will recommence soon. We’re still sorting out what happened yesterday to throw the Paulson bailout plan into a cocked hat.The spin in the reporting this morning is that Barack Obama hopped up to support an alternative bailout plan proposed by several Republicans. The alternative has had little in the way of review by the Treasury Department, and | Read More »
Congressional Democrats Show Us What Leadership Is All About
Published reports have it that Congress couldn’t get a deal done on the Paulson bailout plan. Sketchy reports at mid-day said that Congressional leaders had the outlines of a plan in place, with a raft of what appeared to be largely extraneous changes to the structure of the deal.Evidently those modifications were intended to give Congress a way to second-guess the progress and implementation of | Read More »
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 »