Items of Interest:
The Great Toxic Asset Giveaway
Jackie Calmes / New York Times:
Rescue Plan, With Some Fine Print, Dazzles Wall Street -- This time President Obama directed some of the stagecraft. This time Treasury Secretary Timothy F. Geithner fleshed out the substance of their long-anticipated program to remove banks’ toxic assets and revive the financial system. And this time the reaction was widely positive, giving the embattled Mr. Geithner a critically needed boost...
discussion:Deborah Solomon / Wall Street Journal: Geithner Banks on Private CashSilla Brush / The Hill: Geithner's stock surges with $1 trillion investmentCaitlin Taylor / The Note: The Note, 3/24/09: Deep Breath — Obama wins a window to reset his agendaKevin G. Hall / Philly.com: Stocks soar on bank planBen Pershing / Washington Post: On Economy, Obama is Salesman in ChiefLos Angeles Times: On economic matters, Obama lacks a secretary of Selling ItSusan Page / USA Today: Poll: Americans want bonuses returned but split on howAndrew Leonard / Salon: Let Geithner fail — You know Treasury Secretary Tim Geithner …Ian Leslie / marbury: heckuva job wallieNoam Scheiber / The New Republic: Choreographing the Geithner RolloutRyan Tate / Gawker: Wall Street's Newspaper Slaves
For Stocks, Treasury Plan ‘May Be a Game-Changer’
discussion:Karen DeCoster / LewRockwell.com Blog: Tea Leaves, Bailouts, Bull Markets, and ThievesJen Chung / Gothamist: NOBEL ECONOMIST STIGLITZ NOT KEEN ON TREASURY PLANRobert Stacy McCain / The Other McCain: And the bad news is . . .Allahpundit / Hot Air: The market's got a fee-vah and the only prescription is more Tim Geithner
- Why Is Geithner Bribing Investors To Take Risk? - Daniel Gross, Slate
- If Geithner's Plan Is So Bad, Why Do Markets Like It? - Editorial, IBD
- Geithner Plan Isn't Money In the Bank - Simon Johnson & James Kwak, LAT
- The New Plan Stokes Old Fears - Peter Wallison, The American
- Fire Geithner, and Hire Spitzer? - Katrina Vanden Heuvel, The Nation
- Tim Geithner's Five Big Misconceptions - Henry Blodget, Clusterstock
- The Real Loser in Geithner's Plan is the Taxpayer - Nemo, Self-Evident
Wall Street Stands To Get Much Richer -- Wall Street stands to get richer off the latest installment of the financial-system rescue. But this time, some individual investors might be offered a piece of the action.
Two of the country’s biggest money managers -- Pimco (Pacific Investment Management Co.) and BlackRock Inc. -- say they may launch funds that would allow individuals to have a stake in some of the bad assets to be purchased from banks...
What a Deal -- Public Private Investment Partnership (PPIP) will do nothing to stop loss of real wealth...
The government's plan, through carry trades, bailouts, and plans within plans, is to buy time by slowly bilk the taxpayer and hand the money over to banks, banks that don't deserve to have their equity worth anything. Bulls are talking about how much free cash reserves banks have, but two things are offsetting that: continued write-down of assets and rising margin requirements. The first is still a black hole the second we can only hope that regulators are serious about "not letting this happen again": it was their continued lowering of margin requirements and looking in the other direction of shadow banking that allowed this situation to happen.
Which brings me to my final point. We hear over and over again how government bailouts always make back the money. Wait long enough and the economy will grow so that the assets can be sold at a higher price. But remember what we have learned about price and the value of the dollar: prices go up when the dollar goes down. So although bailouts like the savings and loan crisis may have earned back all the "nominal" dollars it spent, it received dollars to settle the debts that were worth much less. The value of the dollar has eroded by 95% since 1930. In other words, real wealth was lost...
Jamil Anderlini / Financial Times:
John Pomfret / Washington Post:
The End of Dollar Dominance? -- Are the Chinese just worried about the sagging value of the $1.4 trillion in U.S. Treasuries they hold or are they really on to something? ...James Joyner / The Atlanticist: China: We Need New World CurrencyJustin Gardner / Donklephant: China Pitches New Reserve CurrencyMikkel Fishman / The Moderate Voice: Two Posts That Reveal The Long ViewJoe Weisenthal / Clusterstock: China Wants A New Reserve CurrencyGINA COBB: Barack Has Already Destroyed the BuckYves Smith / naked capitalism: China Calls for New Reserve CurrencyLarry Doyle / NO QUARTER: China Ups the AnteSteve Hynd / Newshoggers.com: A New Reserve Currency? — Could the dollar be sidelined as the world's reserve currency?Doug Mataconis / Below The Beltway: Is China About To Torpedo The Dollar ?Blake Hounshell / FP Passport: Is China dumping the dollar?Gateway Pundit: China Calls For New World Currency to Replace DollarGaius / Blue Crab Boulevard: Dumping Dollars — How badly are Obama's economic policies playing globally?
discussion:Steve Benen / Washington Monthly: THE ADMINISTRATION THINKS AHEAD.... As part of the debate …Maha / The Mahablog: So What's Wrong With Being Sweden?Yves Smith / naked capitalism: Treasury to Seek Power to Seize Non Banks (Trojan Horse Alert)AJStrata / The Strata-Sphere: After Failing To Help Banks, Obama Plans To Take Over Other BusinessesRight Wing News: Obama's Creeping Fascism: Power To Seize Private FirmsRobert Waldmann / Angry Bear: Despair lifting — Defenders of the Geithner plan argue that …Fausta / Fausta's Blog: A contradiction in terms... ...in today's WaPo headline:Kevin Drum / MoJo Blog Posts: Another Mile Down the RoadJosh Marshall / Talking Points Memo: NEXT TIME — According to the Post's A1 story tomorrow …Richard Fernandez / Pajamas Media: The Why of Kabuki — The Washington Post reports that the …
- We Need Honest MTM Accounting - James Chanos, Wall Street Journal
- If GS Returns Aid, Will Others? - Andrew Ross Sorkin, New York Times
- What Did Geithner Know,When Did Paulson Know It? - James Keller, RCM
- The Threat Posed By Booming Fed Reserves - John Taylor, Financial Times
- Don't Forget About Inflation - Brian Wesbury & Robert Stein, Forbes
- Gary Becker Dishes Antidote to Activism - Amity Shlaes, Bloomberg
- EFCA: Insidious Even w/o Card Check - Richard Epstein, Washington Times
- About Great Depressions, David Brooks Isn't Serious - John Tamny, RCM
- Obama Switches Gaze From Street to Detroit - Doug McIntyre, 24/7 Wall
- Why Advertising Is Falling on the Internet - Eric Clemons, TechCrunch
Chris Utah / Nosh at Culture11.com:
Street Fighting Bas Rutten Style -- These moves are handy and can be applied to unruly bar patrons (or unwilling investors)