The Money Game Fri 2010-07-16 18:52 EDT

Here's The Real Reason Cities And States Would Never Be Allowed To Default

David Goldman at Asia Times nails it: It's not about the impact on the real economy (the attendant cut in public services and public employment), it's about the effect that such defaults would have on the banks...that's a good rule of thumb. If it's going to hurt the banks, it's probably not going to be allowed to happen...The $800 billion bailout package for Europe's PIIGS (Portugal, Ireland, Italy, Greece, Spain) in May was in fact a bailout for the banking system...

allowed; default; Money game; Real Reason Cities; s; state.

PRAGMATIC CAPITALISM Tue 2010-05-18 15:17 EDT

11 REASON WHY DEFLATION REMAINS THE GREATER RISK

TPC

A nice follow-up here on our earlier piece. David Rosenberg has really nailed the macro picture in terms of inflation and deflation...why deflation remains the greater risk... * Credit is contracting. * Wage rates are stagnating. * Money supply growth is vanishing * The U.S. dollar is strong. * Commodities have peaked. * U.S. home prices are rolling over ... again. * Lumber prices tumbling (down nearly 17% from April 2010 highs) * Wal-Mart is cutting prices on 10,000 items. * Home Depot just cut prices on flowers, fertilizers, lawn equipment and outdoor furniture. * Taco Bell is offering two dollar combo meals. * The April U.S. retail sales report hinted at deflation in groceries, electronics, apparel and sporting goods.

11 reasons; deflation remains; greater risk; PRAGMATIC CAPITALISM.

naked capitalism Tue 2010-05-11 09:04 EDT

Richard Smith: Another Nail in the ``Hoocoodanode'' Defense, Circa April 2007

Richard Smith

Here's someone with his head screwed on, back in April 2007, who proves singlehandedly that ``hoocoodanode'' was no defense for failing to anticipate the implosion of the shadow banking system (more on this prescient analyst in due course)...So who is this fellow who got it, back in that mythical time when nobody knew what was going on? According to an email correspondent of mine, he is ``a no-name equity guy'' in London. Actually his name is Henry Maxey, and he is chief investment officer and chief executive elect of Ruffer LLP, a small London fund manager. So there's no chance of making him US Treasury Secretary or head of the NYFRB, I'm afraid...

Circa April 2007; defense; Hoocoodanode; nail; naked capitalism; Richard Smith.

Minyanville Sun 2009-09-20 11:17 EDT

Our Marionette Economy

This morning in the Wall Street Journal Wells Fargo CEO John Stumpf is quoted saying ``If it's not a government program it's basically not getting done.'' While Stumpf's comment was targeted to the mortgage market and associated with a plea for Fannie Mae (FNM) and Freddie Mac (FRE) to raise their size limits so as to be able to pick up more jumbo mortgages I believe he nailed the current state of our economy: ``If it's not a government program it's basically not getting done.''...But to me, there's a fundamental flaw to the notion that the government can create a sustainable economic recovery...I kept coming back to a comment from Bennet Sedacca: ``They (the government) can make 'em bounce, but they can't make 'em fly.''

Marionette Economy; Minyanville.

Tue 2008-09-02 00:00 EDT

naked capitalism: Freddie, Fannie Nail-Biting Continues

Fannie Nail-Biting Continues; Freddie; naked capitalism.