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Archive for March, 2010

Guest Post: Greenspan Says The Financial Crisis Was Caused By A ‘Once-In-A-Century’ Event • Taleb Says Any Pilot Who Doesn’t Know About Storms Shouldn’t Be In the Cockpit

29 Mar

→ Washington’s Blog (see blog for embedded videos – I can’t figure out how to embed here). Greenspan’s big defense is that the financial crisis was caused by a “once-in-a-century” event. Forget about the fact that the “once-in-a-century event” couldn’t have happened if Greenspan’s Fed hadn’t: Turned its cheek and allowed massive fraud Acted as […]

 
 

Housing: Washington Only Delaying Inevitable

29 Mar

“In simple English, HAMP (the Home Affordable Modification Program), announced with great fanfare and high expectations early on in the Obama administration, isn’t working, and so more of the same is required. The original intent of HAMP was to “better assist responsible homeowners who have been [negatively] affected by the economic crisis through no fault […]

 
 

CitiFinancial to pay $1.25 million for mortgage disclosure violations

29 Mar

“The $1.25 million penalty is the largest ever related to the Home Mortgage Disclosure Act, said Steven L. Antonakes, the Massachusetts commissioner of banks. The states involved in the settlement, including Maryland and Virginia, can use the money for investigations or educational purposes or add it to their general funds.”

 
 

When Did Hoenig Grow A Brain?

29 Mar

A speech by Kansas City Fed President Thomas Hoenig has raised some interesting points…. interesting in that they tend to mesh well with what I have preached for three years. When did Thomas get a brain transplant?  Not that it matters when it comes to outcome, but one does wonder – has Mr. Hoenig had […]

 
 

Links: 2010-03-29 – Using central bank reserves as a slush fund

29 Mar

The first link is interesting. And too bad it is in Spanish for those of you who don’t speak English. It is an important piece about what happens when a central bank is not independent.  The opinion piece from Argentine daily “La Nacion” points out that that country’s President Cristina Fernandez de Kirchner has demanded […]

 
 

Tom Adams: Goldman Not Exonerated on CDOs

29 Mar

By Tom Adams, an attorney and former monoline executive Felix Salmon at Reuters and Steve Gandel at Curious Capitalist used some of the analysis in Michael Lewis’s The Big Short as an opportunity to attempt to exonerate Goldman Sachs for the charge of deliberately constructing CDOs to go bad for their own profit. In particular, […]

 
 

Expanded mortgage aid should cut foreclosures

29 Mar

“The Obama administration’s revamped mortgage program may help more borrowers keep their homes, but economists say it could also delay foreclosures that can’t be prevented.”

 
 

Denninger Gets The Point Across on

26 Mar

Karl Denninger nails it with a few of the choice favorites of ours in this one, particularly here: I disagree that most of this was not the fault of the administration, if you include all administrations, past and present. Nearly all of these things in fact are government’s fault. Let’s take a look at a […]

 
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Bloomberg: Justice Department Files Criminal Anti Trust Case Against Major Wall Street Firms

26 Mar

This is one of those quiet moments that is supposed to be broken only by a very soft, extended rising and then falling whistle. One that fades off so gradually that there you are again, in the silence. What DO you know? Alleged Collusion to extort monies; false trades and kick-backs… Really?  and this alleged […]

 

Bloomberg: Fed Officials Signal Asset Sales to Play Bigger Role

26 Mar

Bloomberg reports on the Fed’s ‘asset sales’ strategy for ‘some sort of return to normal looking balance sheets’ – according to Fed officials. “The programs are not monetary policy as conventionally defined, but rather fiscal policy or credit-allocation policy,” said Stanford University economist John Taylor, who also testified before the House committee yesterday. “They try […]