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Since when has the Treasury ever pre-announced the exact maturities that they will buy and when?

Since when has the Treasury ever pre-announced the exact maturities that they will buy and when?

It is almost like they are trying to manipulate the market prices on a day to day basis. At best the total $300 billion is probably less than 1/5th of total treasury issuance (not counting TARP, etc, for fiscal 2010). By the way, I calculated that Treasury interest cost has decreased and is running around $250 Billion, down significantly from […]

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Fitch: Prime RMBS loss estimates way too low

This comes from Angus Robertson of Research Recap.  Expect some major writedowns here going forward: A dramatic rise in delinquencies has led Fitch Ratings to raise its average loss estimates for recent vintage jumbo prime mortgage pools to between 3 and 5 times higher than its previous estimate. Fitch’s revised average loss estimates as a percentage of the remaining pool […]

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Bernstein: America is turning Japanese

I do believe the U.S. policy response to this financial crisis is very much like the Japanese response to their crisis in the 1990s. I have a post up at “naked capitalism” making this point. I would add, however, that America is in a worse position due to its lack of exports and manufacturing and it huge current account deficit […]

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Geithner’s Plan: one of the most regressive wealth transfers of all time

Marshall Auerback here. I do not like the Geithner Plan because it is needlessly expensive. Nevertheless, it could well work. My main objection is that it constitutes the most regressive transfer of wealth in history and it’s being done BY A DEMOCRAT ADMINISTRATION!!!! Unbelievable. It has to be done this way in terms of securing funding for the banks because […]

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Credit Suisse and UBS have hands out for more capital

This comes from Swiss daily Le Temps (my translation): Credit Suisse will request the creation of additional conditional capital of 3.98 million at the General Meeting of April 24. The operation is to guarantee to the bank the “strategic flexibility” needed. Conditional capital has already been used almost exclusively for the issuance of mandatory convertible bonds (mandatory convertible notes) last […]

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David Rosenberg and Richard Bernstein to leave BOA

Merrill’s Economic Research team has been top notch for years under the leadership of Richard Bernstein and David Rosenberg. Unfortunately for Bank of Aerica, these two gentlemen are jumping ship now that Merrills has been taen over by BOA. I look forward to hearing more from them in their new roles elsewhere.

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Remittances to Eastern Europe to slow dramatically

The remittanc income from Mexican and Central American immigrants working in the United States bck to their home nations is not the only huge remittance flow in the world. One of significant import is in Europe, where millions of indivuals from the former Eastern Bloc now work in Western Europe. However, as in the U.S. – Mexican connection, these remittances will be nosediving.

Below is an analysis from Morgan Stanley (with my boldng):

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More thoughts on the switch from dollars as reserve currency

This comes from Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman (bolding in original).  Chandler does NOT see an imminent switch to  Euros in the offing, despite the recent musings by Chinese officials  (Neither do I.  However, I do believe the US dollar is a weak currency.  At a minimum, gold and oil should gain as the Fed […]

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Links: 2009-03-24

Here are the main links. Others can be found in the news feed (also available via RSS). Enjoy. The Cultural Costs of Bailout Nation – Baseline Scenario The biggest problem with the Geithner plan – John Hempton The fiscal vacuum at the heart of the Eurosystem and the fiscal abuse by and of the Fed – Willem Buiter China calls for new reserve […]

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Don’t underestimate the power of printing money, part 2

Paul Kasriel thinks the Fed announcement that it is monetizing the U.S. Federal Government’s deficit is very important. He ends his article at Northern Trust with these words: In the coming months, the federal government is going to be increasing its debt issuance to finance its increased spending as a result of the recently-passed fiscal stimulus program. The Congressional Budget […]

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China wants to get rid of the dollar

China wants to get rid of the dollar

This comes via the Financial Times (Hat tip CR): China’s central bank on Monday proposed replacing the US dollar as the international reserve currency with a new global system controlled by the International Monetary Fund. In an essay posted on the People’s Bank of China’s website, Zhou Xiaochuan, the central bank’s governor, said the goal would be to create a […]

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Can Geithner’s public-private partnership get it done?

Barack Obama’s presidency will likely be decided by one single issue – his ability to deal with this financial crisis. With the release of his Treasury Secretary Tim Geithner’s Public Private Partnership Investment Program two months into his administration, we now have a fairly comprehensive view of Obama’s strategic approach. Will it work?

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