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Links: 2009-04-30

Obama has what he needs to restructure Chrysler – Telegraph President Barack Obama has what he needs to restructure Chrysler. With banks holding 70pc of Chrysler’s secured debt agreeing to the US Treasury’s 30 cents on the dollar offer, the reorganisation can move ahead. FT.com – Bank of Japan slashes forecasts The Bank of Japan said on Thursday it expected […]

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Nationwide: U.K. house prices resume their descent

Nationwide: U.K. house prices resume their descent

After a blip in the data last month, Nationwide is reporting that U.K. house prices have resumed their fall.  However, for the second month in a row, the annual price fall has slowed.  In March, the fall was 15.7%. This month we see only 15.0% compared to prices in April 2008. Fionnuala Earley, the Nationwide’s Chief Economist had this to […]

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Chrysler: bulls make money, bears make money, pigs get slaughtered

It looks like Chrysler is going down for the count. A few piggish bondholders decided to play chicken with the Federal Government. They are going to lose this game and, consequently, lots of money too. Chrysler and the Obama Administration did not have a strong hand. Their best alternative to a negotiated agreement (BATNA) was bankruptcy – not a very […]

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Ken Lewis is out as Chairman of Bank of America

This is from BofA’s website: Bank of America Corporation today announced the results of management and shareholder proposals at the company’s 2009 annual meeting… All 18 directors were elected to the board by comfortable margins. In addition, management proposals regarding executive compensation and the retention of PricewaterhouseCoopers LLC as the company’s independent accounting firm were approved. Seven shareholder proposals were […]

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WHO: Swine Flu Pandemic is imminent

This comes from Bloomberg. Unfortunately it is pretty scary stuff: The World Health Organization said the first pandemic since 1968 is imminent after an outbreak of swine flu spread to eight nations and 11 U.S. states. The WHO’s Director-General Margaret Chan raised the agency’s six-phase pandemic alert to 5 from 4, the second jump in three days, at a news […]

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Obama ready to put Chrysler into bankruptcy

This comes from Bloomberg: President Barack Obama plans to announce tomorrow that Chrysler LLC will be placed into Chapter 11 bankruptcy, leading to an alliance with Italian automaker Fiat SpA, people involved in the matter said. Administration officials are still resolving outstanding issues, and the plan is not finished yet, said one of the people, who declined to be named. […]

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Choice blindness: You don’t know what you want

Watch the video below and then read the text and the linked full article. No cheating! As anyone who has ever been in a verbal disagreement can attest, people tend to give elaborate justifications for their decisions, which we have every reason to believe are nothing more than rationalisations after the event. To prove such people wrong, though, or even […]

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GDP: 4th quarter 2008 was worse

The U.S. GDP report for the first quarter of 2009 was pretty awful.  GDP came in much worse than expected at an annualized  -6.1% below Q4.  Here are a few data points (all referencing real GDP data): The numbers were much worse than expectations of  -4.6 to -4.7% The -6.1% comes on the heels of a -6.3%, the worst back-to-back […]

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US GDP Poor, But Europe Still Problematic

The following is a worthy analysis from Marc Chandler of Brown Brothers Harriman regarding the recent GDP numbers released in the U.S. and their significance for currencies (emphasis mine): The initial reading of the US Q1 GDP was worse than expected, though the dramatic fall in inventories and the tax cuts that went into effect April 1 still suggest that […]

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Live-blogging BofA shareholder meeting via Twitter

This individual is live-blogging BofA’s annual shareholder meeting via Twitter.  Hat tip Deal Breaker.

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Highlights from report with Q1 U.S. GDP down 6.1%

Real U.S. GDP declined at an annualized 6.1% in the first quarter (Jan-Mar) of 2009. This almost exactly matches the 6.3% decline in Q4 and is a MUCH larger decline than expected. While I have not crunched all the numbers yet, I am providing snippets of the Bureau of Economic Analysis (BEA) below. I should note that the major difference […]

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