J.M. Hamilton - Blog
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BLOG.JMHAMILTONPUBLISHING.COM: Monthly Archives for September 2010

TARP: Created by Paulson (Bush's Treasury Secretary) to Bailout the Wall Street Aristrocracy, Is An Absolute Failure when One Considers the Current State of the Economy, The Social Costs, and The Lost Decade that Stands Before America and Americans!

Mr. Boehner: “This institution does not function, does not deliberate and seems incapable of acting on the will of the people.”

Esther

"In his latest book, he rails against financial 'insiders' for rendering impotent the financial overhaul passed by Congress earlier this year."

"The revolving door between the Fed and the private financial sector is quite significant."

“You can’t say you want to balance the budget, deal with our deficit, invest in our kids, and have a $700 billion tax cut that affects only 2 percent of the population. You just can’t do it.”

“It’s a seller’s market now.”

Sweet Ride for AIG Shareholders, At Taxpayer Expense....

"Today’s low stock prices, however, open a window for sensible buybacks."

"The landmark Supreme Court ruling in the Citizens United case this year that eased restrictions on corporate political spending has certainly benefited Republicans, but so has the political environment."

"I think Oracle tilts negative [in terms of its insider sentiment] because I do see insiders other than Ellison accelerating their options-related sales into the price jump," Moreland says.

"The risks go beyond trade."

Debt Securitization (CDO's) Could, Ultimately, Delay Clearing of the Housing Market... Dragging out the Real Estate Recession...

Retro Blog: "On Thursday, the influential bond fund manager Bill Gross of Pimco said in an interview on Bloomberg Television that the United States might eventually lose its triple-A credit score."

"Goldman Sachs... is trying to repair a reputation tarnished by the Securities and Exchange Commission’s suit and an April U.S. Senate hearing at which it was accused of betting against the investments sold to clients."

“Republican operatives in the shadows are clearly winning the hidden money game.”

Sovereign Swan Dive...

"A weaker renminbi — estimates of the extent of the undervaluation range as high as 40 percent — makes Chinese exports cheaper and foreign imports more expensive."

"A rapid exit by the government could also lead to a credit downgrade, which would hurt the company’s ability to sell insurance."

"In a series of meetings with the civilian leaders, the army chief, Gen. Ashfaq Parvez Kayani, scolded the president and his prime minister, Yousaf Raza Gilani, for incompetence and corruption in the government."

“Such a huge amount of debt is terrible,” Yu said. “The situation will be worsening day by day. I think we are one step nearer to a U.S.-dollar crisis.”

“He will be a dictator, but merely a rubber-stamping dictator. This is what the people in the positions of power want.”

"The strikes also reflect mounting frustration both in Afghanistan and the United States that Pakistan’s government has not been aggressive enough in dislodging militants from their bases in the country’s western mountains."

"Investors led by the State of Michigan Retirement Systems accused AIG, executives and directors of failing to disclose the risks that AIG had taken on through its portfolio of credit default swaps (CDS) and a securities lending program."

"Bernanke Put".... and INFLATION WANTED!

"They (Dems) estimate the incentives could provide up to $300 billion in new small business credit in the coming years and create 500,000 new jobs."

"The moratorium, which idled 33 rigs, is likely to end before it is set to expire Nov. 30, said William Reilly."

“Oh, by the way, you are not going to kill or capture your way out of an industrial-strength insurgency,” General Petraeus said, underscoring the scale of Taliban activity.

"There have been tensions with members of his party on Capitol Hill over whether Mr. Obama is more interested in advancing his legislative agenda than protecting vulnerable Democrats, though party leaders say the White House has been far more responsive..

“If any one of them would have adopted it,” he testified, “they would have lost market share.”

Internet Privacy...

A Nation of Whiners!

BP and Derivatives...

"Negative ads can be successful, whether or not they are fair and fully accurate, particularly if they lure an opponent into responding or if they define a political newcomer before he can define himself."

"Mr. Rove has at times warned against insurgent candidates who in his view would reduce Republican chances of winning a seat."

"He (President Obama) has said almost nothing about the other side of the cybereffort, billions of dollars spent on offensive capability, much of it based inside the National Security Agency."

"Again, maybe we're missing something, but a decent recovery without a revival in housing strikes us as a BLT on toast without bacon. It just isn't going to happen."

Paul Ryan (Republican): "Republicans grew soft on spending. We lost our way. We grew big government. We earmarked all over the place. We got fired. We cannot let it happen again."

“These write-offs also indicate that many banks are still experiencing deep losses and are still in serious trouble.”

"...Timothy F. Geithner, agreed to postpone the deadline for the credit union industry to cover the cost of the mortgage-related losses at the wholesale credit unions until June 2021. Previously, they had until 2016."

"GMAC said Mr. Stephan was not available for an interview. The lender said its 'failures' did not 'reflect any disrespect for our courts or the judicial processes.' "

"The high interest rates paid by 'the stricken debtor nations' of Portugal, Ireland, Italy, Greece and Spain 'will force them into defaults,' according to Taylor."

"The hiring probe expanded scrutiny of technology companies by President Barack Obama’s administration."

Goldman should know, Whether or Not Ireland Will Face a Greek-Style Crisis... After all, Goldman facilitated the Greek Crisis, by Selling Greece Derivative Products that Obscured Greek Debt from the E.U.

Citigroup Inc., the bank 18-percent owned by U.S. taxpayers...

"China plans to increase its minimum wage by at least 20 percent annually in the next five years, more than doubling it by 2015..."

"Senate investigators found that GlaxoSmithKline spent years hiding from regulatory authorities clear indications that Avandia increased heart risks."

"Democrats in Congress are threatening to pass legislation before the midterm elections that would slap huge tariffs on Chinese goods to undermine the advantages Beijing has enjoyed from a currency, the renminbi..."

"If the Federal Reserve decides to pump billions more dollars into the U.S. economy to boost a faltering recovery, a possibility it hinted at this week, U.S. yields and the dollar will likely fall further."

Currency: "Most Important Issue"

"China mines 93 percent of the world’s rare earth minerals, and more than 99 percent of the world’s supply of some of the most prized rare earths, which sell for several hundred dollars a pound."

“China’s mercantilist exchange-rate policy places a drag on U.S. economic growth and job creation,” Chairman Sander Levin of Michigan said in the committee statement. “It is a major distortion in the international marketplace.”

"Republicans have battled criticism from Democrats that they have become the "party of no" by rejecting Obama's agenda rather than bringing ideas to the table that would help reach a compromise."

The former Federal Reserve chairman said the mortgage industry is dysfunctional and a "creature of the government" that needs reform.

“Will we be on par with Democrats on money? Probably not, because we don’t control the White House. But will we have enough to get our voters out? I hope so.”

"As Joe Biden put it, don't compare us to the Almighty; compare us to the alternative," he said to laughter.

“Inflation is likely to remain subdued for some time before rising to levels the committee considers consistent with its mandate.”

"Whether it's the inability or unwillingness to pay that's more important, defaults and foreclosures have become so numerous that there's a backlog."

"This is the path that rising economic powers, from Germany to the United States to Japan, have taken before. They start as exporters and then build up a thriving domestic economy. It’s the path China needs to take..."

"I’m looking forward to returning to Harvard to teach and write about the economic fundamentals of job creation and stable finance as well as the integration of rising and developing countries into the global system.”

"The main exception to this trend was employment, which hit its trough six months later, in December 2009."

"I believe she's got a big ax to grind and she's sharpening that ax," said Shelby

"Fisher has argued that regulatory and fiscal uncertainty is hindering the appetite among businesses to expand, putting the ball in the government's court. Clear up those uncertainties, he argues, and animal spirits will flow again."

"A Martian who sifted through the spending data would probably conclude that the Democratic Party is the party of small government, and that it accomplishes this in part by reducing defense spending."

"Twenty eight see the jobless rate rising above last month’s 9.6 percent sometime in the next nine months. That combination would constitute a growth recession."

"Several drilling companies sue the Obama Administration to challenge the deepwater drilling moratorium."

"The challenge, I think, for the Tea Party movement is to identify specifically what would you do. It's not enough just to say 'get control of spending,'" Obama said.

“The fact that Mitt Romney and Sarah Palin would put their name behind a candidate that believes women who serve our country ‘cripple the readiness of our defense’ make them unfit to be commander-in-chief.”

The Plutocracy Paradox and Remember the 70’s, When the Democrats were the Fringe Party?

A Hostile Takeover!

Watch what they do, not what they say!

Retro Blog: "Of that amount, $2.7 trillion is from loans and assets originating in the United States, the fund said."

"President Karzai’s brother Mahmoud, who owns 7.4 percent of the bank, said that the vice president’s brother, Haseen Fahim, had loans of $65 million, not including interest."

"But one year after the flawed and still disputed presidential vote, rampant fraud and low turnout could further undermine the government’s legitimacy."

Tea Party Co-opted by GOP Pros and Billionaires...

"An article of faith among the bulls is that 'everyone is bearish.'"

GOP Argument Doesn't Hold Water: "According to the Joint Committee on Taxation, 97 percent of all businesses owners do not earn enough to be subject to the higher rates..."

"How much does it cost to buy an Afghan vote?"

“The worst absolute projector of a presidential year that’s coming is looking at a midterm result,” Mr. McInturff said.

Flash Crash Proposal by Exchanges: "The (proposal) would also force market makers to quote no more than 8 percent away from the best bid or offer for stocks covered under new circuit breakers."

"Investors have shunned private-equity stocks since Blackstone, the largest buyout firm, sold shares three years ago."

China and Japan, and the U.S., Do Monetary Battle: "It was a forceful statement to the largest reserve manager in the world—'You ain't gonna beggar this neighbor.'"

The Times offers a Wish List for "... a bank-slaying radical."

Repo 105 and 108 (Off Balance Sheet Accounting) To Be Better Disclosed in Financial Statements... But Why Not Outlaw the Practice Altogether?

Debt GDP Ratio with War Timeline...

The Global Race to Devalue Currencies & Export Economic, Demographic, and Political Problems Overseas!

"The renewed effort by Democrats to use their power in Congress to promote their agenda comes as a New York Times/CBS News poll shows voters dissatisfied with Democrats but even more so with Republicans."

"The share of residents in poverty climbed to 14.3 percent in 2009, the highest level recorded since 1994. The rise was steepest for children, with one in five affected, the bureau said."

Billionaire Koch Brothers (Tea Party Underwriters) Seek to Defeat California Emissions Initiative.... But Many Republicans Support Curbs on Emissions!

Long Overdue...

"Ms. Warren was picked by the Senate majority leader... as chairwoman of the Congressional panel that oversees the Troubled Asset Relief Program, the Wall Street bailout effort enacted during the Bush administration."

"Predatory"

Soros: "I called gold the ultimate bubble, which means it may go higher. But it's certainly not safe and it's not going to last forever."

BP Under Fire by the British Government...

"Politics dominates these monetary-policy decisions as never before."

"Reinforcing the Republicans’ message, several dozen business leaders from the U.S. Chamber of Commerce fanned out on Capitol Hill to lobby lawmakers to extend all of the tax rates."

National Review: Christine O'Donnell (Winner of the Dele-weird Primary) Gets, Well, Strange...

The Greater of Two Evils...... The GOP - Hijacked by the Radical Right and Billionaires!

“The discussion on corruption, in essence, is really a discussion about our relationship with Karzai,” said one senior Obama administration official.

“Directors of these financial institutions may or may not have been asleep at the switch, and if they were, they had a lot of company.”

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