Archive for the 'Economy' Category
Economist: “America May Default On Its Debt”
July 22nd, 2008Via: Economist: Only six months ago, politicians were counting on Fannie Mae and Freddie Mac, the country’s mortgage giants, to bolster the housing market by buying more mortgages. Now the rescuers themselves have needed rescuing. After a headlong plunge in the two firms’ share prices (see chart 1), Hank Paulson, the treasury secretary, felt obliged […]
The Global Economy Is at The Point of Maximum Danger
July 22nd, 2008Via: Telegraph: It feels like the summer of 1931. The world’s two biggest financial institutions have had a heart attack. The global currency system is breaking down. The policy doctrines that got us into this mess are bankrupt. No world leader seems able to discern the problem, let alone forge a solution. The International Monetary […]
Given a Shovel, Americans Dig Deeper Into Debt
July 21st, 2008Via: New York Times: Years of spending more than they earn have left a record number of Americans like Ms. McLeod standing at the financial precipice. They have amassed a mountain of debt that grows ever bigger because of high interest rates and fees. While the circumstances surrounding these downfalls vary, one element is identical: […]
8,500 U.S. Banks; Many Will Die Soon
July 21st, 2008Via: DailyKos / Stranded Wind How bad is this going to get? Bear Stearns got bailed out ‘cause they were highly visible (read: failure would have exposed aforementioned funny money to the average Joe), Freddie Mac and Fannie Mae are Government Sponsored Entities who now have their sickly balance sheets backstopped by the U.S. Treasury […]
China’s Expansion Into Africa
July 20th, 2008I wasn’t aware of the extent of China’s interest in Africa. I thought it was much more piecemeal. Their grand strategy makes perfect sense, given the dire problems China is facing. There are some howlers in this article, though, such as, “Despite Britain’s commendable colonial legacy of a network of roads, railways and schools, the […]
It’s Unanimous: Banks Have Bottomed! (Not)
July 20th, 2008Via: The Big Picture: Very strange confluence of media coverage this morning on the banking sector. All three major financial papers (WSJ, NYT, Barron’s) have stories on the bottom of the banking sector: WSJ: Jitters Ease as Citi, Rivals Show Signs of Bottoming Out NYT: Hope, and Hints, That Financial Stocks Have Finally Touched Bottom […]
Concern Mounts About FDIC Deposit Fund; Roubini Says, “They’re Going to Run Out of Money, with Certainty”
July 20th, 2008Via: RTT News: The FDIC is looking for ways to shore up its depleted deposit fund, including charging higher premiums on riskier brokered deposits, FDIC Chairman Sheila Bair said Friday. However, that fund is “a myth,” according to longtime banking consultant Bert Ely, and consumers may end up paying the price of what is expected […]
Fannie, Freddie Spent Millions on Lobbying
July 20th, 2008Via: AP: For years, mortgage giants Fannie Mae and Freddie Mac tenaciously worked to nurture, and then protect, their financial empires by invoking the political sacred cow of homeownership and fielding an army of lobbyists, power brokers and political contributors. New attention is being focused on the bruised mortgage companies as the Bush administration presses […]
Banks Place Extended Hold on IndyMac Checks
July 18th, 2008Via: AP: The frustration didn’t end for some IndyMac customers when they finally were able to withdraw their funds from the failing Southern California bank seized last week by federal regulators. Some people have run into more problems when they tried to deposit IndyMac cashier checks at other banks. Sheryl MacPhee said she waited in […]
U.S. Air Force Comfort Capsules
July 18th, 2008The U.S. is a banana republic with nuclear weapons. Via: Washington Post: The Air Force’s top leadership sought for three years to spend counterterrorism funds on “comfort capsules” to be installed on military planes that ferry senior officers and civilian leaders around the world, with at least four top generals involved in design details such […]
