Unfortunately I was out this weekend and did not post the 5 bank seizures by the FDIC on Friday.  They are below in the links.

China’s banks are an accident waiting to happen to every one of us – Ambrose Pritchard-Evans, Telegraph
"Fitch Ratings has been warning for some time that China’s lenders are wading into dangerous [...]

Bank of NY Mellon sees writedowns, 2009 profit: report – Reuters
This is what I expect many banks to be saying later this quarter.

Is Obama Edging Towards Bush-Like Indefinite Detention? – Michael Scherer, Swampland
This is very disappointing. We now have some serious political compromises on finance, civil liberties, health care, and the war on terror. At [...]

It seems like a long time off, but the Fed is going to eventually have to withdraw all of the excess liquidity it has created when the economy recovers.  However, doing so will prove tricky.  First, we have debt deflationary situation in the United States which could lead to a serious double-dip if a restrictive [...]

Here’s another $25 billion giveaway to AIG.  Notice that AIG gets the upside over $25 billion. Does this ever stop?  Bloomberg reports.
American International Group Inc., the insurer bailed out by the U.S. government, agreed to hand over stakes in two overseas units to the Federal Reserve Bank of New York to reduce its central-bank debt [...]

I am re-posting this February article because it is clear that many of the policy dilemmas Barack Obama is now facing on the economy were wholly predictable. In this post and another from January, I argued that it was better to have zero stimulus than the half-measure proposed by Obama’s economic team. By not adding enough stimulus, Obama has discredited it as a policy tool and made it seem that stimulus is ineffective, something Alan Greenspan argues in an FT op-ed.

Moreover, it was equally obvious in January that California, at a minimum, was going to collapse economically, and cut back on spending, further reducing any positive effects of stimulus. Yet, somehow, California’s request for aid has been rejected, increasing the likelihood of a worst-case economic scenario in that state. Incongruously, big banks have received hundreds of billions of dollars in aid. Why the differential treatment?

If you are looking for change from the status quo, I imagine you might be disappointed at where things are headed. Perhaps the Obama Administration is looking to effect gradual change, but I am of the view that many policy decisions have a way of ossifying and becoming permanent – you get one shot and that is it. Paul Krugman opines that there is not enough audacity in this new administration.

If you want change, you will need to demand it as Robert Reich has suggested. Without a push, Barack Obama’s economic policy team may not deliver the change you want.

Below is the original article. Enjoy.

‘Stoned wallabies make crop circles’ – BBC News
"Australian wallabies are eating opium poppies and creating crop circles as they hop around "as high as a kite", a government official has said."

Is an Ugly Baby Harder to Love? – Time
A small new study suggests we\’re wired to appreciate beautiful babies more than unattractive ones, but does [...]

Love him or hate him, Michael Jackson was an extraordinary performer. His death is as shocking as Elvis’ 32 years ago. Rest in peace. Here are some videos I got via Mashable. Tragically, Farrah Fawcett has also died. Rest in peace.

In case you missed it, Federal Reserve Chairman Ben Bernanke was on Capitol Hill this morning making his case in regards to the Bank of America – Merrill Lynch deal.  The Chairman stated in unequivocal terms that he did not pressure anyone.  Rather, he stated that he cautioned Ken Lewis about the prudence of invoking [...]

Here’s a conspiracy theory for you.  As I am not much of a conspiracy theorist, I ill keep this one pretty simple. Here’s the chain of events.
Back in late September when the world was falling apart, Ben Bernanke, Tim Geithner and Hank Paulson were all desperate to keep things from unravelling.  As a result, they [...]

What I was afraid of – Paul Krugman
As I also predicted, Obama’s stimulus package is now looking inadequate.

Volcker Gets Less Than He Wants in Curbing Wall Street Excesses – Bloomberg
The title says everything, doesn’t it?

Our Crisis of Regulation – Richard Posner
This op-ed is spot on in saying that the Obama reform agenda is premature. We [...]