note sunday nov 16

November 16, 2008 § Leave a comment

rushing toward thanksgiving and Christmas.

 

Meanwhile Obama seems to be carrying out the Lincoln strategy  from Team of Rivals.get the strongest, and include differences within the inner circle. prevents an us-them polarization,and gets power in the white house

but

the need to bailout the auto companies to get some money to jobs seems to require keeping the management in tact. I once did a series of interviews with M execs and spent time as a kind f anthropologist there (IEEE Spectrum). The lack of seriousness,the contempt toward outsiders, well,it makes it hard to govern and hard to replace.

9:04am  I am amazed at how hard it is to call this a depression, and to fail to notice the impact of the information networks (computing at the core) and its impact on creasing a simultaneous world wide sensitivity network such that every small and large business wants to cut employee costs now,and every consumer is cutting spending now. The result is an infinite array of feedback loops that will bring the system to a halt.

The failure of the G20 to do anything bodes ill for Monday’s markets, and markets are a bad surrogate measure for the real economy.but still suggestive..

9:10 am Notice here that the bank maintains its equity and just finds new ways, including longer tem dmands on the cutomers.The customer takes the hit,not the bank.

Northern Rock … has been roundly criticised for keeping its mortgage rates punishingly high and repossessing a disproportionately large number of homes, is overhauling the way it approaches bad debts.

"We are looking to work through problems with our customers on a case-by-case basis. Where appropriate, we will offer payment holidays, reduced monthly repayments and conversion to interest-only mortgages," said Jemma Rundle, a spokeswoman for Northern Rock.

Pasted from <http://calculatedrisk.blogspot.com/>

 

It is shocking how much the general talk is of "helping banking"stabilizing the financial sector." They got in trouble,panic us to help bialthem out,and we swallow the cost. But everyone is catching on,so now what?

9:28 the nextthree from the Asian Times

THE BEAR’S LAIR
The great bond market
crash of 2009

The stock market downturn has devastated portfolios, and investors’ misery will be compounded next year as the bond markets react to soaring US debt and rising inflation. The result may produce fewer calls for bailouts than the present credit crisis but just as much economic damage. – Martin Hutchinson

Paulson adds to AIG folly
US Treasury Secretary Henry Paulson’s decision to inject another US$27 billion into AIG furthers the impression he is intent merely on helping his Wall Street pals. If the failed insurer can’t make it on the money already received, the Treasury should simply take control and sell off AIG’s solid insurance businesses for what they are worth. – Peter Morici

Debt trap
With Wall Street risk intermediation now out of the equation, the US financial system is down to four principal sources of "money" creation – the Federal Reserve, the Treasury, government-sponsored enterprises and banks. At some point we can expect a crisis of confidence with respect to their debt – and a destabilizing jump in market yields.

9:31am On housing, bailouts of borrowers increases housing costs.fine for those who bought a house.But it makes it harder for those who did not, who will bear increased taxes and face higher ices than if the foreclosure pattern were allowed to continue. There is no easy fair way out of this dicey picture.

10:59 am

Highly recommend juan’sreview of the new Bond movie.This is what a review should be.

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