Monthly Archives: September 2008

Back to One-Off Bailouts

The House vote rejecting the Bailout bill leaves us where we were before: the Treasury, FDIC, Fed, and all the quasi-financial arms of the government do one-off bailouts as needed.  That may be better than the proposed  bailout for a number of reasons. For raw reasons of liberty, it is good to keep the government […]

What A Fine Mess You Have Gotten Us Into

One week ago, I posted Oppose The Treasury’s Bailout Plan.  Since then, most criticisms of Henry Paulson’s original proposal supposedly have been incorporated into the new compromise bill, including my criticisms. But my concern at present is whether the bailout will work at all. I think the complexities of the reverse auctions on small illiquid […]

Entering the Endgame for Monetary Policy

x Look at the H.4.1 report.  We may have finally hit the panic phase of monetary policy, where the Fed increases the monetary base dramatically.  They are pumping the “high-powered” money into loans: $20 billion for Primary credit $80 billion for Primary dealer and other broker-dealer credit $70 billion for Asset-backed commercial paper money market […]

On WBAL Radio

I have long admired The Ron Smith Show, which I believe is the most listened-to radio show in Baltimore.  I will be on the show tomorrow starting at 4:05-15 Eastern Time.  You can find the live stream here (look top left).  I find this a real honor, because unlike most radio talk show hosts, Ron […]

2300 Smackers

We’re talking stimulus, right?  And we trust the American People, right?  Why not just send each American household $2,300 for each man, woman, and child there?  Let them decide how the $700 billion stimulus should be used.  What, you say, it should diminsh debt?  But our dear government is doing nothing of the kind.  They […]

Let the Current Bailout Die

I’m starting out tonight’s post with two stories, to try to help illustrate my position on the bailout. Recently I did some consulting for a financial institution that held the single-A tranches of several trust preferred CDOs that had CMBS, REIT debt, and a lot of junior debt from bank, mortgage, and housing related names. […]

Post 700, For Real

From the beginning of this blog, I have posted my thoughts about blogging about every one hundred posts.  That was complicated by WordPress, whiich often skipped numbers in posting for its own reasons.  But now, WordPress counts accurately for me, and though my last post was number 950, this one is close to 700. I […]