http://www.freerepublic.com/tag/financialcrisis/ en-us Sun, 20 Dec 2009 13:48:35 GMT Focus Forum 15 http://www.freerepublic.com/focus/f-news/2411629/posts SAN FRANCISCO (MarketWatch) -- Seven U.S. banks were closed by regulators on Friday, bring the total this year to 140 as the effects of the credit crisis continued to be felt across the country. What's more, the Federal Deposit Insurance Corp. established temporary institutions to help close two of the failed banks. Dow Jones / Market Watch http://www.freerepublic.com/focus/f-news/2411629/posts#comment Sun, 20 Dec 2009 13:48:35 GMT http://www.freerepublic.com/focus/f-news/2408077/posts Regular readers may recall that I have occasionally declared the Claremont Review of Books (subscribe here) to be my favorite magazine. The Fall issue is in the mail and the Claremont folks have once again let me select two pieces from the new issue to preview. First up is James Keller's "Is Deregulation to Blame?" In the review Keller evaluates two new books on cause of the financial crisis. Taking issue with Judge Richard Posner'sA Failure of Capitalism, Keller asserts that the financial crisis wasn't caused by financial deregulation. The solution to the crisis is therefore not more regulation. The... Powerline http://www.freerepublic.com/focus/f-news/2408077/posts#comment Tue, 15 Dec 2009 18:36:57 GMT http://www.freerepublic.com/focus/f-news/2407759/posts U.S. taxpayers could ultimately see a profit of $13 billion to $14 billion from Citigroup's payback of bailout investments, including dividends paid, a U.S. Treasury official said on Monday. That amount includes the gain on the government's 34 percent stake in Citi common shares , which was close to $5.8 billion as of Friday's close, as well as trust preferred securities with a $5.2 billion face value, received in a loss-sharing agreement backing a pool of Citigroup assets. The official also said the total also includes estimates of nearly $3 billion in dividends paid on the government's investments in the... Reuters via CNBC http://www.freerepublic.com/focus/f-news/2407759/posts#comment Tue, 15 Dec 2009 08:22:43 GMT http://www.freerepublic.com/focus/f-news/2407186/posts When I first began writing for The Times, I was naïve about many things. But my biggest misconception was this: I actually believed that influential people could be moved by evidence, that they would change their views if events completely refuted their beliefs. And to be fair, it does happen now and then. I’ve been highly critical of Alan Greenspan over the years (since long before it was fashionable), but give the former Fed chairman credit: he has admitted that he was wrong about the ability of financial markets to police themselves. But he’s a rare case. Just how rare... New York Times http://www.freerepublic.com/focus/f-news/2407186/posts#comment Mon, 14 Dec 2009 16:00:42 GMT http://www.freerepublic.com/focus/f-news/2406371/posts It's bad business for Obama's party to reward him for rewarding Wall Street shills ___ Washington's favorite term these days is "moral hazard." Though this buzzphrase may seem like a complex and even intimidating idea, most of us, whether consciously or not, understand the principle because it's basic common sense. But financial moral hazard is only half the story. The other half is political moral hazard -- the mother of all other moral hazards. Consider, for instance, Federal Reserve chairman Ben Bernanke. He's the top regulator who not only sowed financial moral hazard with the Fed's post-meltdown bailouts but openly... Salon http://www.freerepublic.com/focus/f-news/2406371/posts#comment Sun, 13 Dec 2009 01:14:48 GMT http://www.freerepublic.com/focus/f-news/2405875/posts Wall Street Titan's Role Shown in Journal Analysis; Firm Says Problems Hidden Goldman Sachs Group Inc. played a bigger role than has been publicly disclosed in fueling the mortgage bets that nearly felled American Insurance Group Inc. Goldman was one of 16 banks paid off when the U.S. government last year spent billions closing out soured trades that AIG made with the financial firms. A Wall Street Journal analysis of AIG's trades, which were on pools of mortgage debt, shows that Goldman was a key player in many of them, even the ones involving other banks. Goldman originated or bought... WSJ http://www.freerepublic.com/focus/f-news/2405875/posts#comment Sat, 12 Dec 2009 01:55:01 GMT http://www.freerepublic.com/focus/f-news/2405092/posts New Delhi: A US nuclear trade mission of around 50 companies, currently doing the rounds in the Indian capital and dropping loud hints of sourcing nuclear engineering products from India, may be feeling the New Delhi chill a bit more harsher than others. With NPT zealots in the Obama administration ensuring that the 123 Agreement takes its time to materialise, New Delhi may have atlast decided to shed some of its forced cordiality to all things American and not rollout the red carpet. Ostensibly, the delegation has made the trip to try and understand the ''policy challenges'' that stand between... domain-b.com http://www.freerepublic.com/focus/f-news/2405092/posts#comment Fri, 11 Dec 2009 02:24:39 GMT http://www.freerepublic.com/focus/f-news/2398404/posts /begin my excerpts Chinese official: China should increase its gold holdings to 10,000 tons Financial Crisis Alerts China to Protect the Foreign Exchange Reserve China Youth Daily By Wang Lei “We recommend that China’s gold reserve should reach 6000 tons in 3~5 years, and probably reach as high as 10,000 tons in 8~10 years,” according to Ji Xiaonan on November 28 at the third Chinese Industry Stability Forum. He is the head of the supervisory committee at the state-owned Assets Supervision and Administration Commission. This was what he said regarding when gold should be included as a key component for... China Youth Daily http://www.freerepublic.com/focus/f-news/2398404/posts#comment Wed, 2 Dec 2009 14:27:42 GMT http://www.freerepublic.com/focus/f-news/2395758/posts (snip) I am concerned, however, that a number of the legislative proposals being circulated would significantly reduce the capacity of the Federal Reserve to perform its core functions. Notably, some leading proposals in the Senate would strip the Fed of all its bank regulatory powers. And a House committee recently voted to repeal a 1978 provision that was intended to protect monetary policy from short-term political influence. These measures are very much out of step with the global consensus on the appropriate role of central banks, and they would seriously impair the prospects for economic and financial stability in the... The Washington Post http://www.freerepublic.com/focus/f-news/2395758/posts#comment Sat, 28 Nov 2009 07:14:14 GMT http://www.freerepublic.com/focus/f-news/2395420/posts When it comes to the problems facing this country, an old slogan comes to mind: “You Ain’t Seen Nothing Yet.” High unemployment, the recession, and a terrorist resurgence in Afghanistan are bad enough. But there are a number of problems on the horizon that could dwarf President Obama’s first-year trials. Why the pessimism? In short, we are doing nothing to prepare for the crises to come. A global recession has led to low oil prices. Yet in this window of opportunity, America has not decreased its foreign-oil dependence. We are not encouraging domestic exploration. And we are still ambivalent on... National Review http://www.freerepublic.com/focus/f-news/2395420/posts#comment Fri, 27 Nov 2009 16:32:08 GMT http://www.freerepublic.com/focus/f-bloggers/2394731/posts <p>Beyond fiscal stimulus and government bailouts, the economic recovery that appears under way may be based on little more than self-fulfilling prophecy.</p> <p>Consider this possibility: after all these months, people start to think it’s time for the recession to end. The very thought begins to renew confidence, and some people start spending again — in turn, generating visible signs of recovery. This may seem absurd, and is rarely mentioned as an explanation for mass behavior late in a recession, but economic theorists have long been fascinated by such a possibility.</p> ConceptualGuerilla.com http://www.freerepublic.com/focus/f-bloggers/2394731/posts#comment Thu, 26 Nov 2009 04:16:47 GMT http://www.freerepublic.com/focus/f-news/2393425/posts Let us now praise Goldman Sachs, for the sole reason that it and it alone among the major, capital-intensive Wall Street institutions – both recently deceased and still living – actually understands something about risk and risk-taking. By his own admission, Lloyd Blankfein, Goldman’s chief executive, ranks risk management as his number one daily priority, even ahead of doing God’s work. “I’m a risk manager and I’ve been that for a long time, a lot longer than I’ve been CEO,” he said recently at a breakfast in New York sponsored by Fortune magazine. “I live 98 per cent of my... Financial Times http://www.freerepublic.com/focus/f-news/2393425/posts#comment Tue, 24 Nov 2009 15:04:24 GMT http://www.freerepublic.com/focus/f-news/2389523/posts (snip) "We participated in things that were clearly wrong and have reason to regret," said Goldman Sachs’ Lloyd Blankfein. "We apologize." Blankfein had told a British newspaper the other day that Goldman was doing “God’s work”. That caused a firestorm online. (snip) ABC News http://www.freerepublic.com/focus/f-news/2389523/posts#comment Thu, 19 Nov 2009 01:39:04 GMT http://www.freerepublic.com/focus/f-news/2389264/posts Dear Lloyd Blankfein: You know it, don’t you? You know that it doesn’t matter. You can’t win. You could shed tears in an hour-long mea culpa on Oprah! You could pay yourself no more than one dollar for the next ten years. You could pledge $5 billion to a hundred of Barney Frank’s favorite charities. meanstreet And it still wouldn’t matter. The public anger towards Goldman is just too hardened. In an economy full of losers, everyone is fixated on hating the winner. And that kind of hate doesn’t just go away. It takes time to dissipate. And, unfortunately, the... Wall Street Journal http://www.freerepublic.com/focus/f-news/2389264/posts#comment Wed, 18 Nov 2009 20:13:33 GMT http://www.freerepublic.com/focus/f-news/2388467/posts ATLANTA -- In the waning days of the Great Recession, the federal government is still jumpstarting the economy and propping up financial markets. It is also trying to sell Dresden Heights, a failed condo development on a noisy freeway ramp next to a Motel 6, a Waffle House and a Do-It-Yourself Pest Control. For more than a year, the Federal Deposit Insurance Corp. has been seeking a buyer for 36 partially built condos it inherited from a high-flying, short-lived Atlanta bank. The agency has been fending off vandals, haggling with architects and uncovering the developer's blunders, all in a bid... WSJ http://www.freerepublic.com/focus/f-news/2388467/posts#comment Tue, 17 Nov 2009 21:09:02 GMT http://www.freerepublic.com/focus/f-news/2387408/posts During the best of the times, Miguel Salcedo’s son, an illegal immigrant in San Diego, would be sending home hundreds of dollars a month to support his struggling family in Mexico. But at times like these, with the American economy out of whack and his son out of work, Mr. Salcedo finds himself doing what he never imagined he would have to do: wiring pesos north. ==snip== Still, poverty is a relative concept. It is easier to get by on little in Mexico, especially in rural areas, allowing the poor to help the even more precarious. NY Times http://www.freerepublic.com/focus/f-news/2387408/posts#comment Mon, 16 Nov 2009 14:52:29 GMT http://www.freerepublic.com/focus/f-news/2387193/posts Link only, per FR copyright rules The Detroit News http://www.freerepublic.com/focus/f-news/2387193/posts#comment Mon, 16 Nov 2009 02:58:52 GMT http://www.freerepublic.com/focus/f-news/2386118/posts Regulators close two Florida banks and on in California, costing the FDIC $986.4 million. NEW YORK (CNNMoney.com) -- Two Florida banks and one in California failed Friday night, bring the 2009 national tally to 123. Regulators closed Century Bank, Federal Savings Bank in Sarasota, Fla., Orion Bank in Naples, Fla., and Pacific Coast National Bank in San Clemente, Calif. Customers of all the failed banks are protected, however. The Federal Deposit Insurance Corp., which has insured bank deposits since the Great Depression, currently covers customer accounts up to $250,000. CNN Money http://www.freerepublic.com/focus/f-news/2386118/posts#comment Sat, 14 Nov 2009 03:49:24 GMT http://www.freerepublic.com/focus/f-news/2384497/posts Volkswagen Group has displaced Toyota for the first time as the world's largest car manufacturer in terms of production. The German carmaker produced 4.4 million vehicles in the first nine months of the year, overtaking its Japanese rival by 400,000 units, consulting firm IHS Global Insight said on Wednesday. Volkswagen Group owns a variety of models such as Skoda and Seat and high-end lines Audi, Bentley, Bugatti and Lamborghini. In July it expanded its stable by acquiring Porsche. HIS Global Insight said Volkswagen was able to beat Toyota thanks to increased sales in China, Germany and the U.K. even amid... The Chosun Ilbo http://www.freerepublic.com/focus/f-news/2384497/posts#comment Thu, 12 Nov 2009 06:47:24 GMT http://www.freerepublic.com/focus/f-news/2382486/posts MANHATTAN, Kan. (AP) — The head of the Federal Deposit Insurance Corp. on Monday said Congress needs to provide regulators greater tools to control the risky financial behavior that helped trigger the recession and to unwind major firms on the verge of collapse. FDIC Chairman Sheila Bair said she supports such a winding-down process for financial institutions other than banks. But she does have reservations with a proposal now before the House, which would cover the costs for the government of dissolving troubled companies with fees charged to businesses after the firms' meltdown occurred. Bair says that fund should be... AP http://www.freerepublic.com/focus/f-news/2382486/posts#comment Mon, 9 Nov 2009 22:54:10 GMT http://www.freerepublic.com/focus/f-news/2376505/posts It's time to finally lay to rest claims stretching back as far as 2007 that Goldman Sachs was peddling securities backed by risky home mortgages while it was secretly betting that the US housing market was in trouble. Far from being "secretly" down on the US housing market, very early on Goldman was publicly and privately warning that home prices would decline and that this decline would have an impact on mortgage backed securities. The complaints about Goldman being on both sides of the mortgage trade stretch at least as far back as December, 2007. Ben Stein wrote a column... Business Insider http://www.freerepublic.com/focus/f-news/2376505/posts#comment Mon, 2 Nov 2009 14:46:44 GMT http://www.freerepublic.com/focus/f-chat/2376300/posts [Excerpt] "Sometimes our technology, in creating these securities, outpaces our ability to cope with them." That's what Larry Fink told the New York Times in May 1987 when asked about Howie Rubin's trading disaster. In the past, Fink would have made that statement to a reporter and then celebrated with his team the fact that one of his competitors, particularly one like Merrill Lynch, which he saw as a pesky upstart in the field he aimed to dominate, was now being nailed with massive losses. But Fink wasn't celebrating, because, much like Howie Rubin, he had just gotten his first... Forbes http://www.freerepublic.com/focus/f-chat/2376300/posts#comment Mon, 2 Nov 2009 05:46:34 GMT http://www.freerepublic.com/focus/f-bloggers/2372920/posts There is no easy way to say this, but the country that some of us love is broke. Not broke in the whimsical sense or even shock value sense, but really broke. To illustrate the example clearly, let's say you have a decent job and are making about 80k/year. Not bad right? Even living on the east coast you can achieve a comfortable living for yourself. Go buy a a new Mercedes - you deserved it! But wait, you have promised certain people that you will take care of their retirement and medical needs and they depend you, after all... Right Condition http://www.freerepublic.com/focus/f-bloggers/2372920/posts#comment Wed, 28 Oct 2009 16:10:44 GMT http://www.freerepublic.com/focus/f-rlc/2371625/posts Last week a new bill was introduced in the Senate to audit the Federal Reserve. Some backers of my bill HR1207 and the existing Senate companion bill S.604 were a little miffed at this, but depending on how you think about it, this new legislation poses no great threat to our efforts. With the economy in shambles, people are looking for answers - not just because of lost savings on Wall Street, but because of lost houses on Main Street. Because of the many problems we face, the Federal Reserve and its powers over the economy have come under scrutiny.... U.S. Rep. Ron Paul, R-Texas, 14th District http://www.freerepublic.com/focus/f-rlc/2371625/posts#comment Tue, 27 Oct 2009 03:09:25 GMT http://www.freerepublic.com/focus/f-news/2369997/posts WASHINGTON (AP) — It's a big number that only tells part of the story. The number of banks that have failed so far this year topped 100 on Friday — hitting 106 by the end of the day — the most in nearly two decades. But the trouble in the banking system from bad loans and the recession goes even deeper. Dozens, perhaps hundreds, of other banks remain open even though they are as weak as many that have been shuttered. Regulators are seizing banks slowly and selectively — partly to avoid inciting panic and partly because buyers for bad... AP http://www.freerepublic.com/focus/f-news/2369997/posts#comment Sat, 24 Oct 2009 15:44:58 GMT