Jesse's Café Américain Fri 2009-09-04 19:00 EDT
1. Seasonality 2. Continuing Risks in the Financial System 3. Moral Hazard: Tipping Point In Confidence From Over a Decade of Monetary and Regulatory Policy Errors 4. Blowback from Banking Frauds on the Rest of World 5. A Failure in Political Leadership to Deliver Essential Reforms
Bruce Krasting Fri 2009-09-04 18:31 EDT
Fannie Mae's 8k has an interesting slide. It is a look at their questionable assets. The slide is not easy to read. It can be found in the 2009 Second Quarter Supplement, on page 5. The report describes FNM's exposure to problematic classes of mortgages on their book. That total comes to a whopping .9 Trillion. The total book of business is $2.7 Trillion, fully 32% of their book is troubled.
Calculated Risk Thu 2009-09-03 11:43 EDT
To calculate the cost of a tax credit per additional unit sold, we need to sum up the total cost of the credit - as an example $2.877 billion for Cash-for-Clunkers according to the Dept. of Transportation - and then divide by the estimated increase in sales because of the credit. Remember some cars or houses would have been sold anyway (even though they still receive the tax credit), but it is the additional sales that matter. That was the purpose of the tax credit! (update: Shnaps notes that the auto credit had an additional benefit of better mileage). Highly inefficient subsidies for home and auto purchases.
Additional Units Sold; auto; Calculated Risk; cost; Housing; Tax credit.
naked capitalism Thu 2009-08-27 10:50 EDT
In a show of how much our government thinks that serving the financial oligarchy, rather than the citizenry, is its prime duty, the Fed is fighting to stop the court-ordered disclosure of who borrowed money under the Fed's various lending facilities. The reason I lump the Fed in with "the government" is that the central bank has been serving as an off-balance sheet entity of the Treasury for quite some time. And not only are the Fed and Treasury acting in near lockstep, but there has been no meaningful change in the government stance towards the banksters. Yes, Team Obama makes more of a show of trying to rein them in, but push comes to shove, it's merely Paulson version 2.0: same content, better packaging. Paulson's success in muscling...
Fed Uses Scare Tactics; Forestall Loan Disclosures; naked capitalism; Quelle Surprise; trying.
Mish's Global Economic Trend Analysis Wed 2009-08-26 15:55 EDT
Here is an interesting Email from a Bank Owner and CEO regarding As of Friday August 14, 2009, FDIC is Bankrupt. ``I have been in banking for over 30 years and from my perspective this is much worse than anything I have seen.'' ABO, who as been in the business 30 years, writes: A comment concerning the FDIC - As of June 30 the rates being charged banks have increased substantially. Risk 1 category went to 12 basis points from 5, risk 2, 17 basis points, risk 3, 35 basis points, and risk 5, 50 basis points. Additionally, a 5 basis point special assessment is being charged on September 30 on total assets less tier 1 capital. It is probable that a second assessment will also be charged in December. The cost of FDIC insurance for a two hundred million dollar, 1 risk rated bank last year would have been around...
bank owner; capitalized banks; Email; FDIC; Mish's Global Economic Trend Analysis.
ClubOrlov Wed 2009-08-26 10:59 EDT
It's official: The government in Beijing has announced that the Yuan can now be used in international trade. Their mouthpiece for this occasion was the Industrial and Commercial Bank of China, a private entity, which made the announcement on their behalf. By the end of this year, it is expected that fully 50% of all transactions with Hong Kong will be denominated in the Yuan. In turn, Hong Kong re-exports 90% of its Chinese imports. Importer #1 is the European Union; importer #2 is the United States. Some of these countries may soon find themselves hard-pressed to earn enough Yuan to continue importing Chinese-made products. This is only the next small step in Beijing's "policy of small steps." Already the Chinese government has ramped down its purchases of US... US dollar losing reserve status; yuan-denominated accounts available in Hong Kong.
Thu 2009-07-30 00:00 EDT
-- ``the lions share of the planned sales of Treasuries in 2009 cannot be met by demand from the market..Auctions will fail and the Fed will step in...the 2009 budget deficit is more likely to widen to levels between $2.5 and $3 trillion rather than the CBOs $1.8 trillion forecast. We also believe that inflation could start setting in as early as Q3 of 2009 and will accelerate sharply by 2010.''
The Economic Populist - Speak Your Mind 2 Cents at a Time Tue 2009-04-21 00:00 EDT
``whatever the fundamental problem with banking system is it is at the very least 35 years old, if not older...Wall Street proved themselves to be unable to detect toxic debt from bubble assets''
economic populist; happened; Mind 2 Cents; prevent; speaking; Time.
Tue 2009-02-24 00:00 EST
Thu 2009-01-15 00:00 EST
0; naked capitalism; Quantitative Easing; trepidation; Versioning 2.
Thu 2008-11-13 00:00 EST
``Expect to see a narrowing of the reported trade deficit from ~7% to 2% or less of GDP (now at slightly less than 5%).''
Falling International Reserves Explored; Mish's Global Economic Trend Analysis; strange case.
Fri 2008-11-07 00:00 EST
Fri 2008-11-07 00:00 EST
Tue 2008-10-07 00:00 EDT
