Monthly Archives: September 2007

Bookstaber Looks for a Government Bailout

Posted on September 11, 2007 by Felix

Rick Bookstaber thinks that bailouts – some bailouts, anyway –
can be a
jolly good idea. If Citadel can bail out troubled companies and make money
at it, why can’t the government do so as well?
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FT.com Struggling in the US

Posted on September 11, 2007 by Felix

Paul
Kedrosky has a fascinating list of the most popular business websites in
the US.
Continue reading →

Posted in Media | Comments Off on FT.com Struggling in the US

Whither Countrywide?

Posted on September 11, 2007 by Felix

While I’m on the subject of bank valuations, it’s worth revisiting Countrywide,
which is now languishing at about $16.50 per share and looking
for a second white knight to come in and provide much-needed operating
capital.
Continue reading →

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Barclays: Going Cheap

Posted on September 11, 2007 by Felix

The market really doesn’t want Barclays to buy ABN Amro. After Barclays president
Bob Diamond all
but threw in the towel yesterday, the bank’s shares
are up 20p, or 3.45%, today.
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Posted in banking, M&A | Comments Off on Barclays: Going Cheap

The Downside of Homeownership

Posted on September 10, 2007 by Felix

Matt Cooper and I agree on many things: we agree that the tax deduction for
mortgage-interest payments should be abolished (although now’s maybe not the
best time to do it), and we agree that the subprime mess is messy. But Matt,
like Ben
Stein and Jack
Flack, is a big proponent of the
virtues of homeownership.
Continue reading →

Posted in housing | 1 Comment

GM’s Weak Arguments Against Increased Fuel Economy

Posted on September 10, 2007 by Felix

What wonders of disingenuousness the auto industry is capable of! Right now,
the Big Three are worried about proposals to mandate that they increase the
fuel economy of the vehicles they sell, and so they’re wheeling
out economists to say that the proposals don’t make sense.
Continue reading →

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Australia: Ahead of the Regulatory Curve

Posted on September 10, 2007 by Felix

Which country is most ahead of the regulatory curve these days? A couple of
recent developments suggest that it might be Australia.
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Bloomberg’s Pastorini Profile Appears

Posted on September 10, 2007 by Felix

Back at the beginning of July, I wondered
where the long-awaited Bloomberg profile of Lawrence Niren (a/k/a Edward Pastorini,
a/k/a Theodore Roxford) might have got to.
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Posted in facial hair, Media | Comments Off on Bloomberg’s Pastorini Profile Appears

What is Ben Stein Smoking? (Part 3)

Posted on September 10, 2007 by Felix

One of the great things about being on holiday in Europe is that there’s no chance of running across a Ben Stein column by mistake.
Continue reading →

Posted in ben stein watch, housing, Media | Comments Off on What is Ben Stein Smoking? (Part 3)

Labor vs Capital at the WSJ

Posted on September 10, 2007 by Felix

The Wall Street Journal’s reporters want Rupert Murdoch’s money – and
they’re not shy about asking for it.
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Citi in Japan

Posted on September 10, 2007 by Felix

A Japanese listing makes sense for Citigroup.
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Rescuing Libor

Posted on September 10, 2007 by Felix

The credit crunch started in the subprime market, but it seems that nowadays it’s most visible, and most problematic, in the money market.
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Posted in fiscal and monetary policy | Comments Off on Rescuing Libor

Why Goldman Might Sell its Loans at a Discount

Posted on September 10, 2007 by Felix

The Breaking Views column in today’s WSJ features a column
by Lauren Silva originally published last Thursday. "Can Goldman Win on
Debt?" is the headline on the piece, which asks whether Goldman Sachs is
"about to turn the credit crunch to its advantage".
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Felix Returns

Posted on September 9, 2007 by Felix

I’m back! Didja miss me?
Continue reading →

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Europe vs the USA, Train Station Edition

Posted on September 9, 2007 by Felix

A tourist mother was overheard in the lobby of the MetLife building telling her daughter that it was a train station. This is something which could only happen in America. I love US train stations, especially the grand ones along … Continue reading →

Posted in Not economics | 2 Comments

A Call for Central Bankers to Hang Tough

Posted on September 7, 2007 by Felix

Yves Smith at Naked Capitalism submits: With today’s weak non-farm payrolls report, financial markets participants have turned up the volume on their calls to the Fed to lower interest rates. Even Barney Frank, chairman of the House Financial Services Committee, … Continue reading →

Posted in fiscal and monetary policy | 1 Comment

Getting Behind Today’s Employment Report

Posted on September 7, 2007 by Felix

Yves Smith at Naked Capitalism submits: Those who have been following the job creation story weren’t surprised at the weak BLS employment (the so-called “non-farm payroll”) report today, or by the fact that it revised the results for the last … Continue reading →

Posted in labor | Comments Off on Getting Behind Today’s Employment Report

Nostalgia for Glass Steagall

Posted on September 7, 2007 by Felix

Yves Smith at Naked Capitalism submits: Boy, is sentiment changing. The latest indicator: an article in MarketWatch bemoaning the demise of Glass Steagall, the law enacted in 1933 that separated commercial banking from investment banking. The article by Thomas Kostigen … Continue reading →

Posted in banking, Media, regulation | Comments Off on Nostalgia for Glass Steagall

The Journal Tells Us Quants Have Suffered

Posted on September 7, 2007 by Felix

Yves Smith at Naked Capitalism submits: Readers have probably figured out that I think the reporting in the Wall Street Journal is overrated. We have a prime example on page one today, “How Market Turmoil Waylaid the ‘Quants’.” My understanding … Continue reading →

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Extreme Measures III: Cambiz Alikhani at the Financial Times

Posted on September 6, 2007 by Felix

Yves Smith of Naked Capitalism submits: As concern about tightening conditions in the credit markets and the continued erosion of the US supbrime and broader housing market has grown, so too have calls for Extreme Measures to combat these snowballing … Continue reading →

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Steve Jobs Gives Me $100

Posted on September 6, 2007 by Felix

Steve Jobs is giving me $100! Thanks, Steve! I’m happy about this: my $499 iPhone has now essentially become a $399 iPhone, which is a very attractive price indeed. True, the real $399 iPhone has twice the capacity of mine. … Continue reading →

Posted in Not economics | 1 Comment

It’s Official: Most Hedge Fund Strategies Lost Money in August

Posted on September 6, 2007 by Felix

Yves Smith of Naked Capitalism submits: The UK’s Times Online, citing Hedge Fund Research (HFR), reports that hedge fund strategies of all sorts took a beating in August: Of the 20 daily hedge fund indices tracked by HFR, only one … Continue reading →

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Another Blow to Rating Agency Credibility

Posted on September 6, 2007 by Felix

Yves Smith of Naked Capitalism submits: A Bloomberg story today tells us that CreditSights found that AAA ratings for a new type of credit derivative may be as likely to default as junk. In a report titled “Distressed CPDOs: We’re … Continue reading →

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Commercial Real Estate Prices May Drop 15% in Next Year

Posted on September 5, 2007 by Felix

Yves Smith at Naked Capitalism submits: Experts warn that the boom in commercial real estate prices, fueled by cheap credit, is going sharply into reverse. Fitch had noted as early as April, and again in July that commercial real estate … Continue reading →

Posted in banking, bonds and loans, investing | Comments Off on Commercial Real Estate Prices May Drop 15% in Next Year

Brad DeLong Argues That Central Banks Should Cut Interest Rates

Posted on September 5, 2007 by Felix

Yves Smith at Naked Capitalism submits: It’s always dangerous for mere mortals to take issue with Serious Economists, but let’s start with Professor of Economics at U.C Berkeley Brad DeLong’s thesis (hat tip Mark Thoma): The fact that there is … Continue reading →

Posted in banking, bonds and loans, economics, fiscal and monetary policy | Comments Off on Brad DeLong Argues That Central Banks Should Cut Interest Rates