Fannie and Freddie’s Future – Reaction to Paulson Speech with Vince Reinhart, Former Fed Official on Monetary Affairs: GSEs as Private Firms with Public Purpose Don’t Work; Paulson Favors Utility-Like Companies to Replace GSEs
January 08, 2009
In any great organization it is far, far safer to be wrong with the majority than to be right alone. —John Kenneth Galbraith
Asian currencies continue to sell off vs the $ on the heels of the news yesterday that South Korea said they will look into hot money inflows stemming from the $ carry trade and the Bank of Indonesia said they are looking into the foreign buying of bills. This follows the news a few weeks ago that Taiwan was limiting foreign deposit holdings and Brazil was taxing foreign inflow transactions. As I mentioned yesterday, we may have reached a short term pain threshold in terms of $ weakness and foreign countries are fighting back as they certainly won't wait for...
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January 8th, 2009 at 3:07 pm
> Paulson Favors Utility-Like Companies to Replace GSEs
Good start – now how about utility-like BANKS, as Taleb promotes, so that banks will do what they are supposed to do, e.g. lend money, facilitate transactions, and NOT do what they aren’t supposed to, not lend money and crash the global economy every 50 years or so.