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Stephen Roach: Downturn in Asia less severe, but recovery later

Morgan Stanley Asia head Stephen Roach believes that Asia will weather the economic storm with a less severe downturn than the West. However, as the economies are predominantly export-led, he also believes that the countries are followers, not leaders. Translation: Asia will recover more slowly. Asia will have a less acute impact from the global financial and economic crisis but […]

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Some tidbits about stimulus, recovery, and the Great Depression

Some tidbits about stimulus, recovery, and the Great Depression

Paul Kasriel of Northern Trust is one of the few economists to have warned about the present economic malaise. So his analysis of present events carries weight. In making recommendations about our future economic path, Kasriel leans heavily on historic precedent regarding periods of deleveraging, one such period being the Great Depression. He draws some interesting conclusions.

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Links: 2009-02-10

Report 44 — The Obama Watch (A new blog that I like) Geithner plan disappoints investors – Telegraph Bad debt leads to big loss at UBS – BBC News Bond market calls Fed’s bluff as world falls apart – Ambrose Pritchard-Evans, Telegraph Slumdogs Unite! – Frank Rich, NY Times The tsunami of populist rage coursing through America is bigger than […]

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Clusterf#@k to the Poor House – The Death of Hope

Jon Stewart makes light of the stimulus debate.

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Cognitive Regulatory Capture

A condition of conflict or anxiety resulting from inconsistency between one’s duty as regulator and one’s actions

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Martin Wolf believes Obama’s bailout package will fail

Martin Wolf of the Financial Times has issued a damning assessment of the Geithner bailout package. His main criticism is that Geithner’s aims are the same narrow set of goals set out by the Bush Administration of working through this without nationalization and bondholder losses. Add in another new constraint of no new funds from Congress and you have disaster in the making. Apparently, the markets agree: stocks and commodities sold off on the news of the package.

Below is the heart of his argument followed by a link to the full article.

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Treasury Secretary Geithner explains the bailout package

I will dispense with the commentary and let you judge for yourself.

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Public anger at Wall Street begins to boil over

Caroline Baum has a good column today at Bloomberg.com regarding public anger in America.  She correctly states that the American public is not just angry at Wall Street, but at what Wall Street represents in terms of special interests, favoritism, privatized profit, and socialized risk. The U.S. Congress should not misread public anger as an opportunity to get on their […]

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A conversation with Bridgewater Associates’ Ray Dalio

Update: 18 Mar 2008. I am reposting this entry from Feb 10th because it is relevant to the need to liquidate insolvent institutions like AIG that are now getting bailouts.

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HBOS and RBS get a right bollocking

I watched the proceedings of the UK Treasury Committee with HBOS and RBS this morning on Bloomberg UK TV and it was a dismal sight. It had the feel of the Nuremburg trials, honestly. The clip below doesn’t do justice to how tense the atmosphere was.

I will say this: these men from HBOS and RBS ran very aggressive organizations, piling in to all manner of risk at the top of the market. While they dissemble and prevaricate, it is plainly obvious that they did not see the risks in their actions, nor did they want to.

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California closed for business

This video from the Wall Street Journal demonstrates what happens when governments go bankrupt.

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Roubini: Even 2010 will feel like a recession

Nouriel Roubini, nicknamed Dr. Doom by the media for his accurate but downbeat calls on the economy, is not presenting a very upbeat scenario here. He says that even if everything goes well, growth in 2010 will be very poor. It will feel like a recession. The Bloomberg journalist interviewing him in this video is skeptical. You can see that […]

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