Items of Interest:
General Motors Advertisement / AutoChannel:
GM'S COMMITMENT TO THE AMERICAN PEOPLE --
We deeply appreciate the Congress considering General Motors' request to borrow up to $18 billion from the United States. We want to be sure the American people know why we need it, what we'll do with it and how it will make GM viable for the long term.
For a century, we have been serving your personal mobility needs, providing American jobs and serving local communities. We have been the U.S. sales leader for 76 consecutive years. Of the 250 million cars and trucks on U.S. roads today, more than 66 million are GM brands - nearly 44 million more than Toyota brands. Our goal is to continue to fulfill your aspirations and exceed your expectations...
In summary, our plan is designed to provide a secure return on your investment in GM's future. We accept the conditions of your loan, the commitments of our plan, and the results needed to transform our business for long-term success. We will contribute to strengthening U.S. energy and environmental security. We will contribute to America's technical and manufacturing know-how and create high quality jobs for the "new economy." And, we will continue to deliver personal mobility freedom to Americans using the most advanced transportation solutions. We are proud of our century of contribution to U.S. prosperity and look forward to making an equally meaningful contribution during our next 100 years.
GM Still Finding Innovative Ways To Beg
CBS News:Poll: Americans Split On Automaker Bailout — CBS News Poll: Most Believe That If Taxpayers Do Help Big Three, Government Should Have Say In Companies' Management — (CBS) While a majority of Americans believe that bankruptcy for U.S. automakers would have a major impact on the economy …Michael O'Brien / The Hill:discussion: TIME.comFrank predicts second auto bailout in March — Rep. Barney Frank said Monday that the incoming Obama administration will likely explore a second, long-term bailout of automakers next March while saying an agreement on the first is nearly complete. — The chairman of the House Financial Services Committee …
Half of rescued borrowers default anyway -- Top federal regulator says many mortgages that are modified end up in default within 6 months.
More than half of delinquent homeowners whose mortgages were modified earlier this year ended up redefaulting within six months, a top bank regulator said Monday.
Some 53% of borrowers with loans modified in the first three months of 2008 and 51% of those with loans modified in the second quarter could not keep up with payments within six months, according to U.S. Comptroller John Dugan, who spoke at a housing conference...
Diana Olick / CNBC:
Re-Defaults Prove It: We're Just Making Housing Problem Worse
Editor and Publisher:
Discussion: Open Left
Tribune Files for Bankruptcy
Bystanders To This Financial Crime Were Many - A crime has been committed. Yes, we insist, a crime. There is a victim (the helpless retirees, taxpayers funding losses, perhaps even capitalism and free society). There were plenty of bystanders. And there was a robbery (overcompensated bankers who got fat bonuses hiding risks; overpaid quantitative risk managers selling patently bogus methods).
Let us start with the bystander. Almost everyone in risk management knew that quantitative methods – like those used to measure and forecast exposures, value complex derivatives and assign credit ratings – did not work and could provide undue comfort by hiding risks. Few people would agree that the illusion of knowledge is a good thing. Almost everyone would accept that the failure in 1998 of Long Term Capital Management discredited the quantitative methods of the Nobel economists involved with it (Robert Merton and Myron Scholes) and their school of thought called “modern finance”. LTCM was just one in hundreds of such episodes...
Paul Krugman's depression economics -- The words "depression economics" don't necessarily mean that we are in a depression or inevitably headed toward one. A more accurate definition would be that we are witnessing economic problems reminiscent of the Great Depression, long after many economists concluded that the question of how to avoid depressions had been permanently solved. Not true, says Krugman. If we don't watch out, we could steer the current recession right into depression territory.
The Asian financial crisis was a dress rehearsal for the massive financial crisis now shaking the global economy, Krugman writes...
- Deflation’s Arrival Will Mean Savings & Profits - John Wasik, Bloomberg
- Want Real Stimulus? Try Universal Healthcare - C. Farrell, BusinessWeek
- A Leading Bear Turns Bullish, Sort of - Robin Goldwyn Blumenthal, Barron's
- What Cuomo Wants from Wall St. - James Bandler & Doris Burke, Fortune
- How To Do Public Works Right - Nicole Gelinas, Wall Street Journal
- A Conservative Investment: Infrastructure - Emil Henry Jr., Wash Post
- James Chanos Is the 'Catastrophe Capitalist' - Gabriel Sherman, New York
- Hedge Fund Roach Motels Might Be a Blessing - Kevin Hassett, Bloomberg
- As the World Economy Sinks, So Does Global Shipping - Jeff Israely, Time
- Macroeconomics Is Complete Bunkum - Bill Frezza, RealClearMarkets
- Taking Stock of Rupert Murdoch - Tunku Varadarajan, Forbes
- It'll Hurt If Paul Volcker Has His Way - Paul Vartabedian, Los Angeles Times
- Debt Deflation Is Tightening Its Global Grip - A.E. Pritchard, Telegraph
- Ben Bernanke's Daring Experiment - Robert Samuelson, Washington Post
- In Private Equity, the Limits of Apollo's Power - Julie Creswell, NY Times
- Choosing Our Economic Future Wisely - Locke Smith, RealClearMarkets
- What Exactly Is the Federal Rescue Plan Achieving? - John Tamny, Forbes
- Power to Those Challenging Industry Dinosaurs - Irwin Stelzer, FT
- A Tale of Two Credit Markets - David Gaffen, MarketBeat
- The Job Market for College Graduates - Alan Krueger, Economix
- Prepare To See More Dismal Numbers in '09 - Mish's Global Econ. Analysis
- Lost Decade? Or Memorable Hangover? - David Warsh, Economic Principals
- A Few Thoughts on Failling Oil Prices - Calculated Risk
- So Long, 'Great Moderation' - Brad Setser, Follow the Money
- Investing Moderately Is the Correct Path - John Hussman, Hussman Funds