A recent post I published on both Credit Writedowns and Naked Capitalism, “Both initial claims and continuing claims now pointing to recovery,” has left the impression that I am a wild-eyed bull – for which I have been duly smacked about the head.  This is far from the case.  A recent post by Nouriel Roubini [...]

Strategic Capital and Morton Community Bank were seized by the FDIC tonight.  Below are the FDIC announcements on the matter. The FDIC estimates a cost to taxpayers of $173 million (nearly 30% of assets) for Strategic Capital and $106 million for Citizens, for a total of $279 million.
Here is the Strategic Capital FDIC e-mail:
Strategic [...]

Kevin Phillips: The New Politics of Inflation: Asian and Monetary
“As of 2009, from Turkey and the Persian Gulf east to Indonesia, China and Siberia, it’s Asia’s turn to make the waves, rock the global financial boat and set a new international course . Think of this upheaval as the Second Price Revolution. The United States [...]

This e-mail came to my inbox from the FDIC last night:
The Federal Deposit Insurance Corporation (FDIC) announced today the approval of GMAC Financial Services to participate in the Temporary Liquidity Guarantee Program (TLGP) allowing the company to issue up to $7.4 billion in new FDIC-guaranteed debt. GMAC will pay a fee to the FDIC for [...]

I was heading to dinner with Marshall Auerback when the news of the BankUnited bust came into my inbox. I see this as fairly big new for what it represents. We are witnessing a sea change in how FDIC seizures are done here with private equity companies ready to get in on the profits. Let [...]

Back on the 16th, I posted a link to a Wall Street Journal article by James Hagerty which detailed how the Federal Home Loan Banks were able to prevent asset writedowns because of guideline changes to mark-to-market accounting.  I think the implications will be significant.  Here is what the article said (emphasis added):
A change in [...]

You have probably seen stocks down today.  The dow is off nearly 200 points and the Nasda is down 50.  But, everything American is getting whacked today. The U.S. dollar, stocks, and bonds.  Look at the chart on Treasurys here – especially the long end.

Something is happening in terms of how investors see the risk [...]

Now at his buy-side Canadian shop Gluskin Sheff, former Merrill Lynch chief North American economist David Rosenberg is sounding as bearish as ever.  He sees the recent market rally as a bear market rally and envisages a re-testing of March 2009 lows.  He also fails to see a recovery.  After all, one can have a [...]

I’m back after a brief hiatus.  I would like to present you with some data on jobless claims, an economic data series that will become increasingly important in the weeks and months ahead.  The data suggest that a recovery is imminent. This should come as no surprise as everyone is jumping on the [...]

I will be out for most of the day, but plan to return for osting by tomorrow.  Here are the links.

The Destructive Implications of the Bailout – Understanding Equilibrium – John Hussman
“One of the features that has enabled the bureaucratic abuse of the public during the past year has been the frantic, if temporary, flight-to-safety [...]