BloggingStocks http://www.bloggingstocks.com BloggingStocks http://www.blogsmithmedia.com/http://www.bloggingstocks.com/media/feedlogo.gif BloggingStocks http://www.bloggingstocks.com en-us Copyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[The Wild, Wild West Days of Finance Are Over]]>http://www.bloggingstocks.com/2010/04/23/the-wild-wild-west-days-of-finance-are-over/http://www.bloggingstocks.com/2010/04/23/the-wild-wild-west-days-of-finance-are-over/http://www.bloggingstocks.com/2010/04/23/the-wild-wild-west-days-of-finance-are-over/#commentsFiled under: ,

That Wall Street and the financial sector have experienced periodic scandals over the generations would not be a revelation to the experienced investor. Further, fraud and scandal can be traced to antiquity: it is not new, and it certainly is not unique to Wall Street.

What is unique now, however, is that fraud is amplified by leverage and interconnected as a result of globalization to financial centers around the world. It now has the capacity to inflict unacceptable and catastrophic damage on the financial system, and by extension, on the economy.

Continue reading The Wild, Wild West Days of Finance Are Over

The Wild, Wild West Days of Finance Are Over originally appeared on BloggingStocks on Fri, 23 Apr 2010 16:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>economyFDICFedrecessionU.S. TreasuryFri, 23 Apr 2010 16:40:00 EST<![CDATA[Geithner Believes Unemployment Will Remain 'Unacceptably High']]>http://www.bloggingstocks.com/2010/04/01/geithner-believes-unemployment-will-remain-unacceptably-high/http://www.bloggingstocks.com/2010/04/01/geithner-believes-unemployment-will-remain-unacceptably-high/http://www.bloggingstocks.com/2010/04/01/geithner-believes-unemployment-will-remain-unacceptably-high/#commentsFiled under: ,

I wish it were some kind of cruel April Fool's joke, but I watched the interview with my own eyes and heard Geithner tell Matt Lauer that the unemployment rate is going to stay high for "a long period of time." Of course, this high rate of unemployment will remain even if the government focused on cutting the country's budget deficit.

Geithner told NBC that "We're just at the point now where the economy's likely to start creating jobs on net. That means incomes are going to grow, businesses are going to invest more going forward. And we'll come out of this." Geithner added that "Right now we need to make sure that we are doing everything we can get to get this economy growing again, and creating jobs."

Continue reading Geithner Believes Unemployment Will Remain 'Unacceptably High'

Geithner Believes Unemployment Will Remain 'Unacceptably High' originally appeared on BloggingStocks on Thu, 01 Apr 2010 10:10:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>featuredGeithnerinthenewsTimothy GeithnerU.S. Treasuryunemploymentunemployment rateThu, 01 Apr 2010 10:10:00 EST<![CDATA[Treasury to Stop Banks from Freezing Social Security Accounts]]>http://www.bloggingstocks.com/2010/02/15/treasury-to-stop-banks-from-freezing-social-security-accounts/http://www.bloggingstocks.com/2010/02/15/treasury-to-stop-banks-from-freezing-social-security-accounts/http://www.bloggingstocks.com/2010/02/15/treasury-to-stop-banks-from-freezing-social-security-accounts/#commentsFiled under: , , ,

Federal law bars creditors from taking Social Security to recover a debt. Other deposits that are exempt include pensions, payments to disabled veterans and survivors' benefits for children.

Banks have been ignoring the law when it comes to garnishment orders. They freeze the accounts, then rip off people by charging them outrageous fees. First the account goes into deficit and there is a fee Then the account goes on hold and the customer cannot get access to his or her money. If the customer tries to use a debit card, it is rejected and another fee is added. Once the account is in deficit, the banks keep adding fees on and on ...

Continue reading Treasury to Stop Banks from Freezing Social Security Accounts

Treasury to Stop Banks from Freezing Social Security Accounts originally appeared on BloggingStocks on Mon, 15 Feb 2010 12:40:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>inthenewsSocial SecurityU.S. TreasuryMon, 15 Feb 2010 12:40:00 EST<![CDATA[Ray of light: U.S. Treasury cuts October quarter borrowing estimate ]]>http://www.bloggingstocks.com/2009/11/03/ray-of-light-u-s-treasury-cuts-october-quarter-borrowing-estim/http://www.bloggingstocks.com/2009/11/03/ray-of-light-u-s-treasury-cuts-october-quarter-borrowing-estim/http://www.bloggingstocks.com/2009/11/03/ray-of-light-u-s-treasury-cuts-october-quarter-borrowing-estim/#commentsFiled under: , ,

One modest ray of light on the fiscal front for the United States: the U.S. Treasury, as expected, announced that total borrowing for the current quarter (October quarter) will be 43% lower, as a result of a reduction in money needed to help the U.S. Federal Reserve manage its balance sheet.

The Treasury said net borrowing will total $276 billion for October through December, compared to the previous estimate of $486 billion. The Treasury also projects a borrowing of $478 billion for the January-March quarter.

Continue reading Ray of light: U.S. Treasury cuts October quarter borrowing estimate

Ray of light: U.S. Treasury cuts October quarter borrowing estimate originally appeared on BloggingStocks on Tue, 03 Nov 2009 17:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>budget deficitfeaturedfederal reserveFederalReserveU.S. TreasuryTue, 03 Nov 2009 17:00:00 EST<![CDATA[Under the radar: U.S. budget picture quickly improves by $109 billion]]>http://www.bloggingstocks.com/2009/08/11/under-the-radar-u-s-budget-picture-quickly-improves-by-109-bi/http://www.bloggingstocks.com/2009/08/11/under-the-radar-u-s-budget-picture-quickly-improves-by-109-bi/http://www.bloggingstocks.com/2009/08/11/under-the-radar-u-s-budget-picture-quickly-improves-by-109-bi/#commentsFiled under: , ,

Some trends are obvious enough and visible to all investors. Others are more subtle, but are just as potent, and these often slip "under the radar."

Case in point: The U.S. Treasury's $109 billion downward revision of its borrowing underscores why investors need to keep budget and economic projections in perspective. Investors should not view projections, particularly those 5, 7 and 10 years out and longer, as ironclad.

Continue reading Under the radar: U.S. budget picture quickly improves by $109 billion

Under the radar: U.S. budget picture quickly improves by $109 billion originally appeared on BloggingStocks on Tue, 11 Aug 2009 13:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>federal budgetU.S. TreasuryTue, 11 Aug 2009 13:30:00 EST<![CDATA[Recession creates first April U.S. budget deficit since 1983]]>http://www.bloggingstocks.com/2009/05/12/recession-creates-first-april-u-s-budget-deficit-since-1983/http://www.bloggingstocks.com/2009/05/12/recession-creates-first-april-u-s-budget-deficit-since-1983/http://www.bloggingstocks.com/2009/05/12/recession-creates-first-april-u-s-budget-deficit-since-1983/#commentsFiled under:

So much for the April federal revenue bulge 'whisper number.' The U.S. government recorded its first budget deficit in April - historically one of the best months, if not the best federal revenue month of the year - since 1983, as the recession dragged down receipts.

The deficit totaled $20.9 billion in April, compared to a surplus of $159 billion April 2008, the U.S. Treasury Department announced Tuesday.

Economists surveyed by Bloomberg News had expected the April deficit to total $28.0 billion.

Continue reading Recession creates first April U.S. budget deficit since 1983

Recession creates first April U.S. budget deficit since 1983 originally appeared on BloggingStocks on Tue, 12 May 2009 17:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>budget deficitinthenewsU.S. governmentU.S. TreasuryTue, 12 May 2009 17:00:00 EST<![CDATA[Socialism by any other name is probably a U.S. government program]]>http://www.bloggingstocks.com/2009/03/02/socialism-by-any-other-name-is-probably-a-u-s-government-progra/http://www.bloggingstocks.com/2009/03/02/socialism-by-any-other-name-is-probably-a-u-s-government-progra/http://www.bloggingstocks.com/2009/03/02/socialism-by-any-other-name-is-probably-a-u-s-government-progra/#commentsFiled under: , ,

Most investors know about the United States' anti-state political culture: in America it's private sector solution first, public sector solution second.

And, most also know that what state that does exist is anti-central government: it dates back to our federalist origination. We're even reluctant to call something 'central' for this reason: we have a central bank, but it's called the Federal Reserve, not the Central Reserve. And it's the Internal Revenue Service, not the Central Revenue Service.

Continue reading Socialism by any other name is probably a U.S. government program

Socialism by any other name is probably a U.S. government program originally appeared on BloggingStocks on Mon, 02 Mar 2009 14:35:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>aigbanking sectorbankscffederalismfiscal policyfnmfreinthenewsU.S. economyU.S. GovernmentU.S. TreasuryMon, 02 Mar 2009 14:35:00 EST<![CDATA[Pricing system for toxic assets deemed key to U.S. Treasury bank rescue plan]]>http://www.bloggingstocks.com/2009/02/11/pricing-system-for-toxic-assets-deemed-key-to-u-s-treasury-bank/http://www.bloggingstocks.com/2009/02/11/pricing-system-for-toxic-assets-deemed-key-to-u-s-treasury-bank/http://www.bloggingstocks.com/2009/02/11/pricing-system-for-toxic-assets-deemed-key-to-u-s-treasury-bank/#commentsFiled under: , ,

Investors should not read too much into the Dow's nearly 400-point drop Tuesday. What they should concentrate on, in the view of a pair of economists, is the mechanism the U.S. Treasury uses to price toxic assets.

The above is the most important 'unknown' in the U.S. Treasury's financial stability plan, so says economist David H. Wang -- how toxic assets that are clogging banks' balancing sheets and restricting credit -- will be priced.

"Will the United States government set-up a clearinghouse? Or will they design some type of open outcry, or managed open outcry? These are the key unknowns," Wang said. "Treasury Secretary Geithner and his staff cannot rush this decision, but on the other hand they cannot take two quarters to developed it. They have to announce the structure of the pricing program within a couple of weeks. I cannot underscore enough the importance of this pricing methodology. It will be the biggest factor in whether the credit system recovers, or something much worse occurs."

Continue reading Pricing system for toxic assets deemed key to U.S. Treasury bank rescue plan

Pricing system for toxic assets deemed key to U.S. Treasury bank rescue plan originally appeared on BloggingStocks on Wed, 11 Feb 2009 12:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bank bailoutbank rescuebanking sectorcredit marketsfeaturedGeithnermortgage backed securitiesnationalizationtoxic assetsU.S. TreasuryWed, 11 Feb 2009 12:00:00 EST<![CDATA[U.S. adds up to $2 trillion in debt... and the dollar rallies]]>http://www.bloggingstocks.com/2009/02/10/u-s-adds-up-to-2-trillion-in-debt-and-the-dollar-rallies/http://www.bloggingstocks.com/2009/02/10/u-s-adds-up-to-2-trillion-in-debt-and-the-dollar-rallies/http://www.bloggingstocks.com/2009/02/10/u-s-adds-up-to-2-trillion-in-debt-and-the-dollar-rallies/#commentsFiled under: , ,

On a day when the United States committed up to $2 trillion more in government financing and programs to unlock credit markets -- probably the federal government's largest, one-day implied commitment in history -- the dollar rose against the euro and British pound.

The dollar strengthened 1.2 cents to $1.3821 and a gargantuan 4 cents to $1.4488 versus the British pound. The dollar also rose about one-half cent to $1.1584 versus the Swiss franc.

Now, in theory, increasing dollar commitments by the U.S. government means more dollars in circulation, which means every dollar is worth less -- a sequence that should cause the dollar to fall against the world's other major currencies. Not Tuesday, and really, when you review it, not since the financial crisis took hold in October 2008, so says economist David H. Wang. And the reason is basic: the dollar's status as a reserve currency, and as a safe haven.

Continue reading U.S. adds up to $2 trillion in debt... and the dollar rallies

U.S. adds up to $2 trillion in debt... and the dollar rallies originally appeared on BloggingStocks on Tue, 10 Feb 2009 18:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>banking sectorBritish pounddollareuroFedGeithnernational debtU.S. TreasuryyenTue, 10 Feb 2009 18:00:00 EST<![CDATA[Don't look for both justice and success in the bank bailout plan]]>http://www.bloggingstocks.com/2009/02/10/dont-look-for-both-justice-and-success-in-the-bank-bailout-plan/http://www.bloggingstocks.com/2009/02/10/dont-look-for-both-justice-and-success-in-the-bank-bailout-plan/http://www.bloggingstocks.com/2009/02/10/dont-look-for-both-justice-and-success-in-the-bank-bailout-plan/#commentsFiled under: , ,

Every once in awhile during a crisis or an event, you run across a quote or an observation that sort of summarizes events on the ground, in a nutshell.

New York Times (NYSE: NYT) business journalist Floyd Norris articulated one such observation during a roundtable discussion with other Times journalists on "The Charlie Rose Show" on PBS Monday night.

Regarding the bank bailout plan, Norris said, "This is a case where justice and success don't come together."

Continue reading Don't look for both justice and success in the bank bailout plan

Don't look for both justice and success in the bank bailout plan originally appeared on BloggingStocks on Tue, 10 Feb 2009 10:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bank bailoutbank rescuebanking sectorCharlie RoseFloyd NorrisGeithnerinthenewsPBSU.S. TreasuryTue, 10 Feb 2009 10:40:00 EST<![CDATA[TARP I, if nothing else, bought time for TARP II]]>http://www.bloggingstocks.com/2009/02/03/tarp-i-if-nothing-else-bought-time-for-tarp-ii/http://www.bloggingstocks.com/2009/02/03/tarp-i-if-nothing-else-bought-time-for-tarp-ii/http://www.bloggingstocks.com/2009/02/03/tarp-i-if-nothing-else-bought-time-for-tarp-ii/#commentsFiled under: ,

It's a Washington, D.C. adage -- one that can help investors understand the public policy process -- and House Financial Services Chairman U.S. Rep. Barney Frank, D-Massachusetts, among others, have said it a dozen times, if not more:

"Congress doesn't get credit for not doing something or for avoiding something," Frank has said.

Case in point: TARP I, the initial $350 billion allocation in Troubled Asset Relief Program funds. The initial allocation has been widely criticized as ill-conceived. Some of the money has apparently enabled certain banks to approve large bonuses, allowed others to complete acquisitions or position themselves for the same, or pay-down debt, while not resulting in what Congress intended the allocation to accomplish -- increase lending to businesses and consumers.

Continue reading TARP I, if nothing else, bought time for TARP II

TARP I, if nothing else, bought time for TARP II originally appeared on BloggingStocks on Tue, 03 Feb 2009 18:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bank bailoutbank rescuebanking sectorCongressTARPTARP ITARP IIU.S. TreasuryTue, 03 Feb 2009 18:30:00 EST<![CDATA[Washington Post's Pearlstein: 4-part financial crisis requires 4-part solution]]>http://www.bloggingstocks.com/2009/01/25/washington-posts-pearlstein-4-part-financial-crisis-requires-4/http://www.bloggingstocks.com/2009/01/25/washington-posts-pearlstein-4-part-financial-crisis-requires-4/http://www.bloggingstocks.com/2009/01/25/washington-posts-pearlstein-4-part-financial-crisis-requires-4/#commentsFiled under: ,

Washington Post business columnist and Pulitzer Prize-winner Steven Pearlstein reminds investors that a complex financial crisis will not be solved by a simple solution.

Hence, Pearlstein's offered a four-part solution that he believes will get the United States back on the road to financial health.

The first involves a limited guarantee against default by the federal government for packaged loans that circulate in the "shadow" banking system, such as the way Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE) do with conventional mortgage-backed securities. The FDIC is working on plan to do the above, he said, funded by either bank fees or via a modest contribution from the $700 billion TARP.

Second, the FDIC, via a new program that covers $1,000 in refinance closing costs, should be able to encourage more banks to renegotiate at-risk mortgages, greatly reducing the number of home foreclosures that are at the root of the bad bond/toxic asset pipeline.

Comment: The view from here argues that had the FDIC under chairwoman Sheila Bair been allowed to implement a version of the above program a year ago, the U.S. would have been that much closer to reducing foreclosure rates. The previous presidential administration did not act swiftly on Bair's proposal -- an unmitigated policy error that the current administration inherited. Hopefully, the Obama administration will correct it.

Continue reading Washington Post's Pearlstein: 4-part financial crisis requires 4-part solution

Washington Post's Pearlstein: 4-part financial crisis requires 4-part solution originally appeared on BloggingStocks on Sun, 25 Jan 2009 13:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>banking sectorFDICinthenewsmortgage backed securitiesmortgagesSteven PearlsteinTARPtoxic assetsU.S. TreasurySun, 25 Jan 2009 13:40:00 EST<![CDATA[You'll never guess what some banks are using the TARP money for]]>http://www.bloggingstocks.com/2009/01/19/youll-never-guess-what-some-banks-are-using-the-tarp-money-for/http://www.bloggingstocks.com/2009/01/19/youll-never-guess-what-some-banks-are-using-the-tarp-money-for/http://www.bloggingstocks.com/2009/01/19/youll-never-guess-what-some-banks-are-using-the-tarp-money-for/#commentsFiled under: , , ,

Outgoing U.S. Treasury Secretary Henry Paulson stated goal was to have banks "deploy not hoard" TARP money as a part of process to loosen constrained credit markets.

In advocating such, the outgoing Bush administration hoped that banks would work with homeowners at risk of losing their homes to foreclosure.

Some banks have worked with struggling homeowners, offering alternate payment plans, loan forbearances, or even lowering the interest rate to help get these mortgages back in the non-delinquent category. Still, the practice has by no means been universal.

Many banks have not participated in mortgage modifications -- even those banks that received TARP funds. For example, a Palm Beach conference sponsored by Sandler, O'Neill & Partners revealed how many banks are using their TARP money, The New York Times reported.

Continue reading You'll never guess what some banks are using the TARP money for

You'll never guess what some banks are using the TARP money for originally appeared on BloggingStocks on Mon, 19 Jan 2009 12:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bank bailoutbank rescuebank sectorfeaturedTARPU.S. TreasuryMon, 19 Jan 2009 12:00:00 EST<![CDATA[Fed, Treasury's Bank of America bailout suggests they know more than we know]]>http://www.bloggingstocks.com/2009/01/16/fed-treasurys-bank-of-america-bailout-suggests-they-know-more/http://www.bloggingstocks.com/2009/01/16/fed-treasurys-bank-of-america-bailout-suggests-they-know-more/http://www.bloggingstocks.com/2009/01/16/fed-treasurys-bank-of-america-bailout-suggests-they-know-more/#commentsFiled under: , , , , ,

The U.S. Treasury, U.S. Federal Reserve, FDIC's joint decision Friday to inject $20 billion into the Bank of America (NYSE: BAC) and guarantee $118 billion in assets provides another case study. Bank of America's shares fell 80 cents to $7.52 in Friday afternoon trading.

[ Earlier, my BloggingStocks colleague Peter Cohan provided an analysis of the bail-out's cost to taxpayers. ]

Economists and other public policy wonks love the theoretical and they love 'taking the other side' in arguments.

Hey, they can't help it: it's the stuff they were trained to do - - the stuff they love. And, after all, it's frequently a major source of their income.

And my economist and policy wonk colleagues and friends are no different.

Now, on the surface, it looks like yet-another taxpayer bailout of bad decisions by bankers, mortgage lenders, and borrowers. In other words, another "profits - - the bankers win, losses - - the U.S. taxpayer foots the bill." Further, because it occurs on the heels of the Bank of America's buy-out of Merrill Lynch, it looks like, in some sense, U.S. taxpayers are subsidizing a financial institution merger.

Continue reading Fed, Treasury's Bank of America bailout suggests they know more than we know

Fed, Treasury's Bank of America bailout suggests they know more than we know originally appeared on BloggingStocks on Fri, 16 Jan 2009 14:27:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bank bailoutbank rescuebank sectorFDICinthenewsMerrill LynchU.S. Federal ReserveU.S. TreasuryFri, 16 Jan 2009 14:27:00 EST<![CDATA[U.S. budget deficit soars to record in $485.2 billion in first quarter]]>http://www.bloggingstocks.com/2009/01/14/u-s-budget-deficit-soars-to-record-in-485-2-billion-in-first-q/http://www.bloggingstocks.com/2009/01/14/u-s-budget-deficit-soars-to-record-in-485-2-billion-in-first-q/http://www.bloggingstocks.com/2009/01/14/u-s-budget-deficit-soars-to-record-in-485-2-billion-in-first-q/#commentsFiled under: , , , ,

It's not as bad or as large as it looks is how one economist put it, but try convincing U.S. taxpayers of that.

The U.S. budget deficit soared to a record $485.2 billion in the federal government's fiscal first quarter, (October-December 2008), the U.S. Treasury Department announced, as the government implemented its financial system stabilization plan.

The December 2008 budget also increased to $83.6 billion from $48.3 billion a year ago.

Further, the deficit is on-track to total more than $1 trillion this year, fiscal 2009. The Congressional Budget Office (pdf) is projecting a $1.2 trillion deficit for the current fiscal year.

In addition, the $485.2 budget record for fiscal Q1 already exceeds last year's budget deficit for the full year of $454.8 billion.

Continue reading U.S. budget deficit soars to record in $485.2 billion in first quarter

U.S. budget deficit soars to record in $485.2 billion in first quarter originally appeared on BloggingStocks on Wed, 14 Jan 2009 09:26:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>budget deficitBush Administrationfinancial crisisfiscal policygdpinthenewsU.S. economyU.S. TreasuryU.s.EconomyWed, 14 Jan 2009 09:26:00 EST<![CDATA[Yogi is right: 'When you come to the (economic) fork in the road, take it']]>http://www.bloggingstocks.com/2008/12/11/yogi-is-right-when-you-come-to-the-economic-fork-in-the-road/http://www.bloggingstocks.com/2008/12/11/yogi-is-right-when-you-come-to-the-economic-fork-in-the-road/http://www.bloggingstocks.com/2008/12/11/yogi-is-right-when-you-come-to-the-economic-fork-in-the-road/#commentsFiled under: , , , ,

These days, investors large and not so large are following the financial markets more closely than they have perhaps in decades. Is the U.S. recession worsening? Are there any more problematic banks? Is the market bottoming? There's a lot to assess, particularly if you have a 401K.

In times like these investors/readers turn to the likes of Warren Buffett or George Soros to analyze the financial and economic state of things.

However, today we turn to another trusted source, for time-tested counsel, advice, and wisdom: Lawrence Peter 'Yogi' Berra, retired Hall of Fame catcher for the New York Yankees, owner of 10 World Series championship rings and author of 'yogiisms' - - incisive malapropisms that reveal eternal truths.

Those who know Yogi know that his northern New Jersey home is accessible via two different routes, starting from a fork in the road. Hence, when Yogi gives directions to his house he says, "When you come to the fork in the road, take it."

Yogi's adage applies to economics, as well. When you come to the (economic) fork in the road, take it.

The United States is coming to an economic fork in the road, of sorts: it can get to its destination - - economic recovery - - by one of two paths.

The first would involve primarily using the Federal Reserve and quantitative easing. The Fed has already said it will purchase more than $600 billion of private debt, including commercial paper, mortgage-backed securities, and other asset-baked securities. (In order to cover potential losses associated with the Fed's purchases, the U.S. Treasury has set aside $20 billion in TARP funds authorized by Congress.) However, while additional quantitative easing in the aforementioned commercial segments (especially mortgage-backed securities) may trigger an increase in economic activity, such as an increase in mortgaged-based home purchases, it may not represent the segment where the Fed wants the extra growth to be.

Continue reading Yogi is right: 'When you come to the (economic) fork in the road, take it'

Yogi is right: 'When you come to the (economic) fork in the road, take it' originally appeared on BloggingStocks on Thu, 11 Dec 2008 14:38:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>banking systembanksCongressFedfiscal policyfiscal stimulusgdpinthenewsmonetary policyObamaObama Administrationquantitative easingTARPU.S. economyU.S. Federal ReserveU.S. TreasuryThu, 11 Dec 2008 14:38:00 EST<![CDATA[Americans say bailed-out banks should cancel all bonuses]]>http://www.bloggingstocks.com/2008/12/11/americans-say-bailed-out-banks-should-cancel-all-bonuses/http://www.bloggingstocks.com/2008/12/11/americans-say-bailed-out-banks-should-cancel-all-bonuses/http://www.bloggingstocks.com/2008/12/11/americans-say-bailed-out-banks-should-cancel-all-bonuses/#commentsFiled under: , , ,

The typical American's tolerance for federally rescued banks and other institutions that continue to award bonuses? Very little.

Three-quarters of Americans say Goldman Sachs (NYSE: GS), Citigroup (NYSE: C) and other bailed-out and taxpayer-assisted companies should cancel all bonuses this year, a new Bloomberg News / Los Angeles Times poll shows.

Further, a majority of respondents also said the U.S. government should have a voice in how these companies are managed, while two-thirds favor tighter financial sector regulation. The poll was conducted December 6-8.

Economist Richard Felson said it's understandable that Americans would express concern about bonuses in financial institutions that accepted federal assistance.

"Awarding bonuses does send the wrong signal. It's also arrogant in the view of many citizens. In our nation, hundreds of thousands of taxpayers are being laid-off with no federal assistance to cushion their loss of income, and down the street a bank executive of a bank who received federal bailout money could be collecting a $300,000 bonus. It gives the appearance of the federal government paying for these bonuses . . . paying for large compensation despite these business flops," Felson said. "It's an arrogant and incorrect policy."

Continue reading Americans say bailed-out banks should cancel all bonuses

Americans say bailed-out banks should cancel all bonuses originally appeared on BloggingStocks on Thu, 11 Dec 2008 12:57:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>bank bailoutbanking sectorbanksbonusescCongressexecutive compensationfeaturedFedgsTARPU.S. Federal ReserveU.S. TreasuryThu, 11 Dec 2008 12:57:00 EST<![CDATA[Treasury says TARP is working, banks obligated to lend; so why aren't they?]]>http://www.bloggingstocks.com/2008/12/05/treasury-says-tarp-is-working-banks-obligated-to-lend-so-why-a/http://www.bloggingstocks.com/2008/12/05/treasury-says-tarp-is-working-banks-obligated-to-lend-so-why-a/http://www.bloggingstocks.com/2008/12/05/treasury-says-tarp-is-working-banks-obligated-to-lend-so-why-a/#commentsFiled under: , , ,

A cardinal rule of Washington is don't tick-off anyone chairing a committee essential to your operations.

Well, it looks like this U.S. Treasury Department has done just that.

U.S. Sen. Chris Dodd and U.S. Rep. Barney Frank have just about had it with the U.S. Treasury Department and its implementation of the Troubled Asset Relief Program (TARP).

Dodd, D-Connecticut and Chairman of the Senate Banking Committee, and Frank, D-Massachusetts and Chairman of the House Financial Services Committee, said this administration's Treasury department may not get the second half of the $700 billion TARP financial rescue fund, as they are upset at how the program is being run, Bloomberg News reported.

"I would be a very hard person to convince that this crowd deserves...the next $350 billion," Sen. Dodd told Bloomberg News.

Further, Rep. Frank said Treasury has ignored "clear Congressional intent," and that at the very least he wants to see that some of the new money was going to used for home mortgage foreclosure relief, Bloomberg News reported.

Continue reading Treasury says TARP is working, banks obligated to lend; so why aren't they?

Treasury says TARP is working, banks obligated to lend; so why aren't they? originally appeared on BloggingStocks on Fri, 05 Dec 2008 12:46:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>banking sectorbanksBarney FrankChris DoddCongressforeclosuresinthenewsmortgagesObama AdministrationPaulsonrefinancingsTARPtoxic assetsToxicAssetsU.S. TreasuryFri, 05 Dec 2008 12:46:00 EST<![CDATA[GAO says Fed, Treasury have authority to rescue Big 3 ]]>http://www.bloggingstocks.com/2008/12/04/gao-says-fed-treasury-have-authority-to-rescue-big-3/http://www.bloggingstocks.com/2008/12/04/gao-says-fed-treasury-have-authority-to-rescue-big-3/http://www.bloggingstocks.com/2008/12/04/gao-says-fed-treasury-have-authority-to-rescue-big-3/#commentsFiled under: , , , ,

The Government Accountability Office, Congress' investigative arm and watchdog, said the U.S. Federal Reserve and the U.S. Treasury have the authority to bail-out the Big Three automakers, marketwatch.com reported Thursday.

Gene Dodaro, acting head of the GAO, said the Fed and Treasury could provide loans to the struggling U.S. automakers under an emergency loan designation.

The above ruling conflicts with the view of U.S. Treasury Secretary Henry Paulson, who has said that the $700 billion in TARP funds administered by the Treasury Department can only be used for financial companies.

However, Dodaro said the TARP legislation "is worded broadly enough" to allow Treasury to lend money to General Motors, Ford, and Chrysler, marketwatch.com reported.

Shares of GM (NYSE: GM) fell 33 cents to $4.57 while Ford (NYSE: F) fell 4 cents to $2.81 on Thursday at mid-day.

Continue reading GAO says Fed, Treasury have authority to rescue Big 3

GAO says Fed, Treasury have authority to rescue Big 3 originally appeared on BloggingStocks on Thu, 04 Dec 2008 14:17:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>auto sectorChryslerCongresscredit crunchDemocratsFFedfiscal policyFordGAOGeneral MotorsGMGovernment Accountability OfficeinthenewsRepublicansTARPU.S. TreasuryThu, 04 Dec 2008 14:17:00 EST<![CDATA[Dollar falls, then firms, as Fed commits $800 billion more to ease credit crunch ]]>http://www.bloggingstocks.com/2008/11/25/dollar-falls-then-firms-as-fed-commits-800-billion-more-to-ea/http://www.bloggingstocks.com/2008/11/25/dollar-falls-then-firms-as-fed-commits-800-billion-more-to-ea/http://www.bloggingstocks.com/2008/11/25/dollar-falls-then-firms-as-fed-commits-800-billion-more-to-ea/#commentsFiled under: , ,

The dollar fell, then firmed, against most of the world's other major currencies Tuesday at mid-day, on word of yet another U.S. government intervention to ease the financial crisis. (For full currency data, click here.)

Still, the more important theme, many economists and analysts agree, is how well the dollar has fared given the remarkable increase in debt by the United States and the supply of dollars globally.

The dollar weakened about one cent to $1.3040 versus the euro and about half a cent to $1.5160 versus the British pound on Tuesday at mid-day, after the U.S. Federal Reserve announced it would buy up to $600 billion in mortgage and mortgage servicer-related debt and up to $200 billion in consumer and small business-backed loans, to free up credit in these sectors. The dollar also fell about one cent to 95.53 versus Japan's yen, and about half a cent to $1.1881 versus the Swiss franc.

Under the new programs announced Tuesday, the U.S. Treasury will provide about $20 billion in credit protection to the U.S. Federal Reserve, using money from the $700 billion Troubled Asset Recovery Program (TARP).

In September, the Fed's balance sheet totaled $924 billion, when the first wave of the financial crisis began to freeze credit markets and decimate stock markets around the world. However, if all loan guarantees are accessed, and if all of the remaining $780 billion debt is added to the Fed's balance sheet, that balance sheet would increase to about $3 trillion.

Continue reading Dollar falls, then firms, as Fed commits $800 billion more to ease credit crunch

Dollar falls, then firms, as Fed commits $800 billion more to ease credit crunch originally appeared on BloggingStocks on Tue, 25 Nov 2008 14:10:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>auto loansconsumer loansdollareuroFedinthenewsloansmonetary policyMonetaryPolicystudent loansTARPterm auction facilityU.S. TreasuryyenTue, 25 Nov 2008 14:10:00 EST