Items of Interest:
Wall Street Journal:
U.S. GDP Shrank 6.2% in 4th Quarter -- The U.S. recession deepened a lot more in late 2008 than first reported, as fourth-quarter GDP was revised down to a 6.2% contraction from 3.8%...
related:Catherine Rampell / NY Times:
Calculated Risk / The Money Blogs:
GDP Revision: Q4 GDP Declined at 6.2% — From the WSJ: GDP Shrank 6.2% in 4th Quarter, Deeper Than First Thought The U.S. recession deepened a lot more in late 2008 than first reported, according to government data showing a big revision down because businesses cut supplies to adjust for shriveling demand. ... The sharply lower revision...
Meg Marco / Consumerist
The GDP dropped 6.2% in the fourth quarter, ... — The GDP dropped 6.2% in the fourth quarter, the largest drop since 1982. Reuters says that a month ago the Commerce Department estimated that the economy shrank at a 3.8 percent pace in the October-December quarter. Whoopsies! ...
A 6.2% Drop in GDP: Is the Worst Yet to Come? — New GDP estimates confirm that a broad and deep economic contraction is under way...
Macroeconomic Identity Politics, by Bryan Caplan — I've already faulted Fama for misuse of the macroeconomic identity GDP=C+I+G+NX. Now TheMoneyIllusion takes the War On Misleading Tautology to a new level: When I discuss the effect of monetary stimulus on aggregate demand with other economists, I notice that they often want an explanation couched in terms of the major components of GDP. I find ...
G.D.P. Revision Suggests a Long, Steep Downfall -- The economy shrank at an annual rate of 6.2 percent last quarter, much more than earlier estimates, in a sign of the recession’s depth...
discussion:CrossingWallStreet.com: Q4 GDP RevisedDownard
Shrinking GDP, Citibank Plan Analyzed — The government said Friday the economy shrank at an annual rate of 6.2 percent. Meanwhile, the Treasury Department announced it is converting some preferred shares it owns in Citigroup to common stock, a move that helps stabilize the bank, but increases risks for taxpayers...
Citi to Exchange Preferred Securities for Common, Increasing Tangible Common Equity to as Much as $81 Billion – Citi today announced it will issue common stock in exchange for preferred securities, which will substantially increase its tangible common equity (TCE) without any additional U.S. government investment. The transaction is intended to build Citi's TCE to a level that removes uncertainty and restores investor confidence in the ...
Eric Dash / NY Times:
U.S. Agrees to Raise Its Stake in Citigroup -- The Treasury Department announced on Friday that it would vastly increase its ownership of the struggling company...
Government boosts its stake in Citigroup; dividends ended — Citigroup has struck a deal that allows it to shore up a key financial measure while giving the government a 36% stake in the ...
US increases stake in Citigroup — Citigroup agrees a deal which sees the US government increase its stake in the ailing bank from 8% to 40%.
Shawn Tully / Fortune: Will The Banks Survive?
Rick Newman / Flow Chart: 7 Other Stress Tests We Ought To Run
East Europe banks set for €24.5bn loan -- A group of multilateral lenders has pledged to support crisis-hit eastern Europe with up to €24.5bn in equity, loans and guarantees for the region's troubled banking sector...
Eastern Europe gets €24.5bn — Eastern Europe has received its own special bailout after all. Well, not technically a bailout, it comes as "aid" via the World Bank, European Bank for Reconstruction and Development and the European Investment Bank in a bid support the region through its first technical recession since the breakdown of the communist system....
The Economist: Ex-Communist Economies: The Whiff of Contagion
Jack Ewing / BusinessWeek: How the Crisis Is Hitting Europe
Stonewalling in Style: Bank of America Subpoenaed -- On Thursday, Lewis refused to provide a list of bonus payments to the New York Attorney General, after arriving in New York in his $50 million corporate jet. Earlier this week, President Obama said the days of bank executives flying corporate jets "were over." Not for Bank of America.
- The Coming Blue State Collapse - Rich Karlgaard, Digital Rules
- A Bold Plan Sweeps Away Reagan Ideas - David Leonhardt, New York Times
- Fat Tails, Black Swans, Beige Veggies-and Paul Volcker - Susan Lee, Forbes
- Bank Tests Ignore Black Swans, Rely on Grey Goose - D. Reilly, Bloomberg
- Only One Risky Investment Is Doing Well: Gold - D. Luskin, Smart Money
- Obama's Budget Looks Very, Very Good - Paul Krugman, New York Times
- Failing Upward At the Federal Reserve - Floyd Norris, New York Times
- Take Bankruptcy Over Nationalization - James Keller, RealClearMarkets
- It's Time to Expose Those CDO Values - Gillian Tett, Financial Times
- A Budget Hijacked by Special Interests - Steven Pearlstein, Washington Post
- New Era, But Same Old Budget Story - Editorial, Investor's Business Daily
- The Rand Factor In the Santelli Revolt - Robert Tracinski, RealClearMarkets
- Santelli, and the Decline of the Angry Republican - Jonathan Chait, TNR
- Go Green, and Create Millions of Jobs - Mark Hertsgaard, The Nation
- The Green Jobs Engine That Can't - Max Schulz, City Journal
- Buffett Assumes Role As Lender of Last Resort - David Pauly, Bloomberg
- A Bull Market That Began On November 20 - Mark Hulbert, MarketWatch
- Kill the Quants, Punish the ProBears - Doug Kass, TheStreet.com
- Presumed Innocent? Bernie Madoff? - Dan Abrams, Wall Street Journal
- Will the Republicans Cry Wolf About Taxes Again? - Bruce Bartlett, Forbes
- Dow Jones Industrial Average Member Performance - Bespoke IG
- Tim Geithner, A Lonely Man at the Helm of Treasury - The Deal
- Why Jumbo Mortgages Don't Need a Bailout - Felix Salmon, Market Movers
- The Cap Case for Letting GM Fail - Paul Kedrosky, Infectious Greed
- How 6 Companies Are Thriving During Recession - C. Flavelle, Big Money