Interesting post from Yves at Naked Capitalism about Wall Street in the 1920's just before the Great Crash and Great Depression. Read it here.
Just sayin'... Citigroup's "Massive" Tax Break by CalculatedRisk on 12/15/2009 11:11:00 PM The WaPo has an article about a tax break for Citigroup: U.S. gave up billions in tax money in deal for Citigroup's bailout repayment The Internal Revenue Service on Friday issued an exception to long-standing tax rules for the benefit of Citigroup and … Continue reading Even when banks pay back, they get bailed out.
The stock market's hitting 10,000 again. Politicians and bankers, anxious for recovery (for votes & bonuses), are claiming victory and saying the recovery is on. I say not so fast. Maybe we recover, but we've been credit-aholics. Like a recovering alcoholic, relapse is a very real danger. As Palley points out below, the econometric models … Continue reading A second Great Depression is still possible
In the past I've mentioned Simon Johnson's article on "The Quiet Coup". It's worth another look. The real epidemic that's going to wipe us out isn't swine flu or any other virus. Instead it's a viral idea. An idea that people in positions of power hold in this country. Namely, the idea that they got … Continue reading Forget the Swine flu, the real epidemic is corruption and greed.
Yesterday the Obama admin forced GM CEO Rick Waggoner to resign as a condition of continued support for GM's restructuring. Yet, the administration has not yet demanded any of the banks change management (except AIG & Fannie last Sept), despite the banks using 18-20 times as much bailout money. Several folks have asked me why? … Continue reading Why GM’s CEO is out, but no bank CEO is gone
Ralph Nader has made IMHO an excellent contribution to the discussion of what can be done to prevent future crises on Wall St such as the current one. Here are seven avoidance indicators which outline what Washington is not doing to prevent another round of greed and misdeeds by the Wall Street few against the … Continue reading Nader: Seven Steps the Obama Admin is NOT Taking to Fix the Banking Crash, Why Not?
Market manipulation is alive and well on Wall Street. Calling all suckers: Submitted by Rolfe Winkler, CFA, publisher of OptionARMageddon We're not quite as healthy as we thought we were. Oops. (WSJ) J.P. Morgan Chase Chief Executive James Dimon said...that March was a little tougher than the first two months of the year....Bank of America...CEO … Continue reading Calling All Suckers: Big Banks Pull off the Ultimate Bait & Switch
Excellent but long post by Edward Harrison at Naked Capitalism. This post describes what's happening with the "Geithner Plan" for revised bailout of banks/ dealing with toxic assets in the context of an earlier bailout: the Mexican currency crisis in 1994-95. It''s many of the same folks involved: Summers, Geithner, and a populist sentiment in … Continue reading Change? Looks like same ol’ same ol’ to me.
One of the best articles I've found on how the banking industry & Wall St got so screwed up that they could take down the world's economy. It's very long, but an easy and engaging read - you don't have to be an economist to understand it. Warning to the sensitive: it's from Rolling Stone, … Continue reading How did banking get so screwed up?
Courtesy of Paul Krugman. He's starting to get at the core issues. I'll discuss more in future posts, but for now ponder: The Madoff Economy, by Paul Krugman, Commentary, NY Times: The revelation that Bernard Madoff — brilliant investor (or so almost everyone thought), philanthropist, pillar of the community — was a phony has shocked … Continue reading The Madoff Economy..