My morning reads:

• Bank of America Deathwatch: Moves Risky Derivatives from Holding Company to Taxpayer-Backstopped Depository (Naked Capitalism)
I doubt it: Gloom Grips Consumers, and It May Be Home Prices (NYT)
• Audi-Ford Auto Price Gap Widest Since 1999 (Bloomberg)
• Goldman Loss Offers a Bad Omen for Wall Street (DealBook) see also Goldman Tells a Tale of Two Banks (WSJ)
• Citigroup Closing Proprietary Unit After Equity Trading Rout (Bloomberg)
• A year later everyone is catching on about Fed policy and net interest margins (Credit Writedowns)
• Highest Paying Jobs in the US (Visualizing Economics)
• To renew U.S., rebuild infrastructure (Politico)
• GOP Debate two-fer:
…..-The Five Take Home Lessons From The Las Vegas GOP Debate (TPM)
…..-GOP: ‘Deregulate Wall Street!’ (Washington Post)
• Dropbox: The Inside Story Of Tech’s Hottest Startup (Forbes)

What are you reading?

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Category: Financial Press

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

19 Responses to “Mid-Week AM Reads”

  1. BennyProfane says:

    Just curious: Why do you “doubt” the NYT article about home prices depressing the economy? I think it’s spot on.

  2. mathman says:

    Fed Audit turns up numerous conflicts of interest (no….)
    from Susie Madrak: http://susiemadrak.com/?p=26815

    WASHINGTON, Oct. 19 – A new audit of the Federal Reserve released today detailed widespread conflicts of interest involving directors of its regional banks.

    “The most powerful entity in the United States is riddled with conflicts of interest,” Sen. Bernie Sanders (I-Vt.) said after reviewing the Government Accountability Office report. The study required by a Sanders Amendment to last year’s Wall Street reform law examined Fed practices never before subjected to such independent, expert scrutiny.

    The GAO detailed instance after instance of top executives of corporations and financial institutions using their influence as Federal Reserve directors to financially benefit their firms, and, in at least one instance, themselves. “Clearly it is unacceptable for so few people to wield so much unchecked power,” Sanders said. “Not only do they run the banks, they run the institutions that regulate the banks.”

    via Hullabaloo: Malaria Vaccine Trial Shows Promise http://online.wsj.com/article/SB10001424052970204346104576639211016347824.html

    Oh, this is will turn out well, i’m sure:
    http://dailybail.com/home/holy-bailout-federal-reserve-now-backstopping-75-trillion-of.html

    more later when i have time. Try to smile despite your headache.

  3. Moe says:

    DSS10:

    Please tell me that link is actually from the Onion…

  4. rktbrkr says:

    I watched as much of the R debate as I could last nightThe Rs seemed petty and mean spirited. Cain had his 999 mutiny, we learned that apples are federal sales taxes and oranges are state sales taxes and if you add the two to get the total tax rate then you’re mixing apples and oranges. Herman’s “999 Jive” was a one hit wonder.

    I’m sure Eddie Haskell is really hiding behind the Romney face mask.

    If Obama was a stock I’d be a buyer today.

  5. rktbrkr says:

    I thought Romney’s “for Pete’s sake I’m running for office” was the highlight of the evening, a welcome breath of fresh air.

    Anybody who wants to run for public office and doesn’t want to be pilloried for hiring an illegal better be willing to cut their own grass, watch after their own children and their grannies and be willing to do their own home construction and maintenance.

  6. DSS10 says:

    RE: Moe,

    I thought that might be the case, or that is was the result of some political shenanigans, but I think it real….

    Between this and the 12 monkeys incident in Zanesville OH, this was been a very surreal morning…

  7. Bomber Girl says:

    Agree with BennyProfane’s query – the link between home prices and consumer spending shouldn’t be discounted. Not only for those folks who would like to sell but can’t or who won’t spend until they do sell, but for people, even those not in the market, to have some sense of a bottom and potential future value of their “investment”.

  8. Moe says:

    DSS10

    lol – feel the need to shower after that link…

  9. rktbrkr says:

    Two takeaways from the wild animal rampage in Ohio.
    1) there is no such thing as a “routine feeding” of a wild animal with big teeths

    2) there were two “pretty unique” guys in this article if you count a guy found dead, tied and gagged on a waterbed, to be “pretty unique”. Zanesville is aptly named!

    http://www.huffingtonpost.ca/2011/10/19/wild-animals-loose-in-ohio-zanesvile_n_1019226.html

  10. Greg0658 says:

    rktbrkr your last post & wtf .. folks: the zookeeper was in the yard with live animals until the containment began (purportedly) .. 2nd item pass
    ~~
    on that 999 plan – I’m curious what folks think about the 9% sales tax on only NEW stuff and what it will do for Goodwill, SAtruck, USagain and resell stores, garage sales, auctions? and naturally the flipside for the bigboxes and transportation? oh and that trade deficit and landfills?

  11. Lookout Ranch says:

    Re: Home Equity as the Cause of Poor Consumer Sentiment

    I doubt it, too. Sure, home equity is part of it, but it really has more to do with the sense that there is nothing on the horizon that will restore general prosperity.

    Rather, it seems to most people that the U.S. faces a prolonged period of deleveraging and austerity with accompanying diminished expectations.

    Adding to the angst is the sense that our politics isn’t up to the task of managing the situation in an optimal way.

  12. Irwin Fletcher says:

    rktbrkr:
    I want to support Obama.
    Yesterday he said: “Republicans want dirty air, dirty water, and less people to have health care”.
    Really? With civil discourse like this, I would had to see hateful speech!

  13. BennyProfane says:

    @Lookout Ranch

    “I doubt it, too. Sure, home equity is part of it, but it really has more to do with the sense that there is nothing on the horizon that will restore general prosperity.”

    It’s simple. Most jobs were created by small business before the crash – haven’t seen figures since then. Most small businesses were funded by HELOCS. I’ll bet that fellow in the article who built his granite countertop biz used a HELOC once or twice for his. So, no inflated RE values, no small businesses, no jobs. Back to the world before MacMansions were our fake economy. Whoops, all the manufacturing jobs are gone. Whoops, the county and state are laying off workers………….

  14. rktbrkr says:

    Yesterday he (Obama) said: “Republicans want dirty air, dirty water, and less people to have health care”.
    Really? With civil discourse like this, I would had to see hateful speech!

    OK, Republicans are opposed to regulations that reduce air and water pollution and opposed to government expansion of health care for the poor and uninsured to say it nicey-nice and not ruffle any feathers here. But whether you describe the glass as half empty or full the facts are the facts and the Repubs are the “drill, baby drill” party!

  15. DeDude says:

    This piece from the “Naked Capitalism” link bear repeating:

    “Remember the effect of the 2005 bankruptcy law revisions: derivatives counterparties are first in line, they get to grab assets first and leave everyone else to scramble for crumbs. So this move amounts to a direct transfer from derivatives counterparties of Merrill to the taxpayer, via the FDIC”

    So when the GOPsters in 2005 decided that regular people should not be able to dispose of their debt the way rich people and corporations can, they also decided that when a bank goes down all the Wall Street gamblers need to be covered first leaving the bill with the taxpayers. The outrage is not that Bank of America is late to covering its derivatives counterpart but that the other banksters already have done so and our financial reforms did not fit this obvious giveaway of taxpayer money to the top 1%.