Items of Interest:
---New York Times:
Back on Capitol Hill, Auto Executives Still Find Skeptics --As the Senate banking committee debated a potential rescue package for American automakers, the committee chairman, Senator Christopher J. Dodd of Connecticut, suggested that it would be difficult for lawmakers to approve a financial lifeline for the three companies.
Mr. Dodd used his initial round of questioning to stress that the Bush administration or the Federal Reserve could act unilaterally to aid the auto industry. The chief executives of the Big Three — Alan R. Mulally of Ford, Rick Wagoner of General Motors and Robert L. Nardelli of Chrysler — were before Mr. Dodd’s committee on Capitol Hill asking for $34 billion in assistance...
Discussion: Commentary, Hot Air, The Crypt's Blogs, Capital Gains and Games and A Blog For All
Chastened U.S. auto CEOs beg for billions -- Having grounded their luxury jets and agreed to work for $1 a year, the heads of the "Big Three" U.S. automakers dropped arrogance for humility on Thursday in a new plea for federal help to survive.
"We're here today because we made mistakes, which we are learning from," General Motors Corp Chairman and CEO Rick Wagoner testified at a hearing of the U.S. Senate Banking Committee....
----Wall Street Journal:
Harvard Hit by Loss as Crisis Spreads to Colleges -- Harvard University's endowment suffered investment losses of at least 22% in the first four months of the school's fiscal year, the latest evidence of the financial woes facing higher education.
The Harvard endowment, the biggest of any university, stood at $36.9 billion as of June 30, meaning the loss amounts to about $8 billion. That's more than the entire endowments of all but six colleges, according to the latest official tally.
Harvard said the actual loss could be even higher, once it factors in declines in hard-to-value assets such as real estate and private equity -- investments that have become increasingly popular among colleges. The university is planning for a 30% decline for the fiscal year ending in June 2009...
Real balance effects (wonkish) -- I’m continuing to indulge myself over Depression economics. So here’s a reply to people wondering why I dismissed the real balance effect — the fact that a fall in the price level raises the real value of the money supply (or more strictly the monetary base) and hence makes people wealthier, possibly raising aggregate demand even if interest rates are stuck at zero...
Discussion: Open Left
----Glenn Thrush / The Crypt's Blogs:
Hold on TARP watchdog lifted, Schumer says -- The anonymous hold on Neil Barofsky, the Bush administration's TARP special IG, was lifted late Wednesday, according to Chuck Schumer. That clears the way for a quick voice vote on his nomination.
On Tuesday, the Government Accountability Office, blasted Treasury for lack of oversight on the $700 billion bank rescue plan...
Discussion: TPMMuckraker, The Project … and Sunlight Foundation
- Desperate Times, Desperate Policies - Nouriel Roubini, Forbes
- The Latest Song of Detroit - Paul Ingrassia, Wall Street Journal
- There You Go Again, Detroit - Daniel Gross, Newsweek
- Carmakers Suffer a Socialist Business Model - David Asman, Fox Business
- In Defense of American Cars - Daniel Snow, Forbes
- Sure, But I've Read GM's Recovery Plan... - Dan Calabrese, RealClearMarkets
- Bernanke Should Buy Buicks, Not Bonds - Caroline Baum, Bloomberg
- Congress Musn't Throw Stones in a Glass House - Robert Bixby, Wash Post
- Healthcare Reform Can Jump-Start The Economy - Jonathan Gruber, NYT
- Financial Darwinists Applaud Debt-Cost Jump - Mark Gilbert, Bloomberg
- Building a Case for a Short-Term Rally - Michael Kahn, Barron's
- The 'End-of-Capitalism' Talk Is Bunk - Sebastian Mallaby, Washington Post
- We Must Regain Our Risky Spirit - Daniel Henninger, Wall Street Journal
- Capitalists Must Get Up Off Their Knees - Iain Martin, Daily Telegraph
- Top CEOs Weigh In On the Recession - John Byrne, Business Week
- Watch the Market, Not NBER Stats - Editorial, Investor's Business Daily
- Ways for Rubin to Atone at Citigroup - John Gapper, Financial Times
- Fortress, the Hedge Fund, Is Crumbling- Michael De La Merced, NY Times
- Dramatic Rate Cuts Are Needed - Anatole Kaletsky, Times of London
- The Fallacious Notion of 'Money Supply' - John Tamny, RealClearMarkets
- We Have Dow 5,000 Redux - William Gross, Pimco Asset Management
- Seven Essential Goals Of a Housing Fix - Jed Graham, RGE Monitor
- The S&P 500's 'Average Value' - Prieur du Plessis, Postcards from Cape Town
- Central Banks Open Floodgates - Gary Dorsch, Sir Charts-a-Lot
- Why I'm Bearish on the U.S. Dollar - Ed Harrison, Credit Writedowns
- Thoughts on AIG, Private Equity & Venture Capital - Info Arbitrage