Items of Interest:
Fed Commits $800 Billion More to Unfreeze Lending -- The Federal Reserve took two new steps to unfreeze credit for homebuyers, consumers and small businesses, committing up to $800 billion.
The central bank will purchase as much as $600 billion in debt issued or backed by government-chartered housing-finance companies. It will also set up a $200 billion program to support consumer and small-business loans, the Fed said in statements today in Washington.
With today’s announcement, the central bank is starting to use some of the unorthodox policy tools that Chairman Ben S. Bernanke outlined as a Fed governor six years ago. Policy makers are aiming to prevent a financial collapse and stamp out the threat of deflation...
Federal Reserve Board:
Press Release 11/25 -- The Federal Reserve announced on Tuesday that it will initiate a program to purchase the direct obligations of housing-related government-sponsored enterprises (GSEs)--Fannie Mae, Freddie Mac, and the Federal Home Loan Banks--and mortgage-backed securities (MBS) backed by Fannie Mae, Freddie Mac, and Ginnie Mae...
BOUNCE THESE BOZO BANKERS -- RUBIN & CO. ORCHESTRATED THE FALL OF THIS BEHEMOTH
THE Citi Never Sleeps - but, apparently, its directors do. Washington was forced over the weekend to come to the res cue of Citigroup - a once- great bank brought near to ruin by a grossly negligent board of directors.
The cost? A mere $351 billion - that is, only $1,000 for every man, woman and child in America.
Blame abounds, but most of it must accrue to the Citigroup directors - the men and women paid well to make corporate policy, and to oversee its proper execution.
What were they thinking?
Were they thinking?
Some of them are already gone. If those who remain had any sense of decency, they'd simply quit...
Barry Ritholtz / The Big Picture:
Big Bailouts, Bigger Bucks -- If we add in the Citi bailout, the total [bailout] cost now exceeds $4.6165 trillion dollars. People have a hard time conceptualizing very large numbers, so let’s give this some context. The current Credit Crisis bailout is now the largest outlay In American history...
Bloomberg: U.S. Pledges Top $7.7 Trillion to Ease Frozen Credit -- The money that’s been pledged is equivalent to $24,000 for every man, woman and child in the country. It’s nine times what the U.S. has spent so far on wars in Iraq and Afghanistan, according to Congressional Budget Office figures. It could pay off more than half the country’s mortgages....
Citigroup Flop Exposes Folly of Empire Building
Eugene Ludwig / Wall Street Journal:
Thumbs Up for the Citigroup Bailout
Discussion: The Swamp
Discussion: naked capitalism
Discussion: Free exchange
Home prices in record decline -- Case-Shiller survey shows 16.6% annual decline in summer months as housing picture continues to deteriorate...
- S&P/Case-Shiller Home Price Index: 161.56 vs. 163.00 consensus.
- S&P/C-S Composite-20 cities, year-over-year: -17.40% vs. -16.90% consensus.
- S&P/C-S US Home Price Index: 150.04 for 3rd Quarter
- S&P/C-S US Home Price Index, year-over-year: -16.55% vs. -17.05% consensus.
Calculated Risk: Case-Shiller House Prices: Free Falling
Lehman bankruptcy triggers $301M fumble for NFL's Giants -- For all you sports trivia buffs out there, what would cost the National Football League's New York Giants the equivalent of the following, according to the New York Daily News:
- Pay Eli Manning's $10 million salary for 30 years or
- Hire 38 wide receivers at Plaxico Burress' $7.87 million salary or
- Sign 274 running backs at Brandon Jacobs' $1.1 million salary
Time for a change at the Fed
- The Wealth Effect In Reverse - Robert Samuelson, Washington Post
- The Insurgent Spirit & Messy Capitalism - Dane Stangler, RealClearMarkets
- Obama's Change Sustains Failed Bush Policies - William Greider, Nation
- Obama's Pro-Growth Economic Team? - Larry Kudlow, RealClearPolitics
- Does Christina Romer Misread Depression's Causes? - John Judis, TNR
- Geithner Is Unfortunate Paulson Redux - John Berlau, American Spectator
- Big Spending and Long Slumps - Editorial, Investor's Business Daily
- This Is Obama's Market, Good and Bad - John Tamny, RealClearMarkets
- Jobless Benefits Extend Unemployment - David Henderson, Forbes
- Amity Shlaes Responds to Paul Krugman - Amity Shlaes, CFR
- Tracking the $700B Bailout: Do You Know Where Your Money Is? - NYT
- What Tim Geithner Must Prove - Rick Newman, U.S. News
- A Trillion Here...A Trillion There - Kurt Brouwer, Fundmastery Blog
- Why Do We Give to the Banks & Not the Car Companies? - Justin Fox
- Enough with the Fuzzy Math, Citi Edition - Jonathan Weil, Bloomberg
- TARP Wasn't The Bailout To End All Bailouts - D. Weidner, MarketWatch
- Is It Time To Start Nationalizing Ailing Banks? - Colin Barr, Fortune
- The Road To Salvation Runs Through China - Fareed Zakaria, WashPost
- Monster in Closet Is Recession, Not Deflation - John Berry, Bloomberg
- The World’s Central Banks Must Buy Assets - John Muellbauer, Fncl Times
- The Cornerstone of Capitalism Is Present Value - Hussman Funds