Credit Writedowns

Irrespective of whether one thinks the stress tests used to test the U.S. banking system is a sham (10% unemployment is not a worst-case scenario), the fact of the matter is these tests MUST show some differentiation in order to be…

Paul McCulley of PIMCO made a few comments back in March which caught my attention.  Given how well banks are doing this earnings season, I thought it relevant to quote him here.  The essence of his remarks was this: Deleveraging is a…

This past Sunday Felix Salmon wrote a post called "10 reasons for the lack of German econobloggers." I found it inaccurate and offensive. Let me tell you why. I was in Germany at the time I read the post and had been there for the…

We are a few weeks into earnings season and it should be abundantly clear that financial institutions are firing on all cylinders.  In fact, financials are leading the broader market for the first time since 1993.  Yet, loan losses have…

I am just back from the Easter Holidays and have had a good two weeks for self-reflection.  In truth, I am feeling a bit exhausted despite the fact that I was supposed to have just had a two weeks' holiday. So, I have decided to make a few…

FT Alphaville - The world’s 50 ’safest’ banks UBS as one of the safest? rubbish. Japan suffers first trade deficit since 1980 - guardian.co.uk Exports fell 16.4% last year to ¥71.1 trillion as makers of consumer electronics and…

BBC NEWS - Detroit's long road to ruinThis is a fairly good look at what Detroit faces for itself, its schools and its citizens. Very sobering. Jesse's Café Américain: Break The Big Banks Up, and Let the Insolvent Parts FailThis will…

Below you can watch a video clip of Congressional Oversight Chairperson Elizabeth Warren's introductory remarks at a hearing today on Capitol Hill. Afterward, Treasury Secretary Tim Geithner responds in a 10-minute open statement.

Simon Johnson, a former IMF Chief Economist, who blogs over at the Baseline Scenario, is testifying before Congress today about 'Too big to fail' financial institutions.  Below is a video in which he tells Bloomberg his thoughts on the…

Apparently the Obama Administration was just bluffing about bankruptcy for the automakers, because when push came to shove, they blinked.  The automakers are to get yet more bailout funds and the dates for restructuring plans hae been…