Posts filed under “Video”
William Poole, former president of the Federal Reserve Bank of St.
Louis, talks about Standard & Poor’s proposed downgrade of Fannie
Mae and Freddie Mac bonds, June’s durable goods and new homes data
released today, and the outlook for legislation to aid the hobbled
00:00 Possible S&P action on Freddie, Fannie bonds
01:00 Economic indicators of durable goods report
02:28 Housing bill; Fannie, Freddie lobbying
04:15 Need for Fannie, Freddie to be private firms
05:11 Access to Fed discount window; oil prices
06:54 "Balancing act" of Fed on inflation, economy
07:52 Lobbying restrictions; credit rating position
09:44 Market consequence of Fannie, Freddie fall
11:09 Paulson "back-stop" plan "essential"
Running time 12:11
Bloomberg, July 25 2008
Carnegie Mellon Professor Randy Pausch (Oct. 23, 1960 – July 25, 2008) gave his last lecture at the university Sept. 18, 2007, before a packed McConomy Auditorium. In his moving presentation, "Really Achieving Your Childhood Dreams," Pausch talked about his lessons learned and gave advice to students on how to achieve their own career and personal goals.
Randy finally lost his battle to cancer early Friday morning . . .
For more, visit www.cmu.edu/randyslecture.
Randy Pausch, Final Lecture
Randy Pausch Reflects
Investor Marc Faber, publisher of the Gloom, Boom & Doom Report, talks about the future of Fannie Mae and Freddie Mac, the global economy, and the outlook for stocks and commodities. Faber said Freddie Mac and Fannie Mae should close down their business or split into private companies and not get government aid.
00:00 "The world is in recession already."
01:35 Earnings to "decelerate"; technology stocks
02:59 Need to close down or split Fannie, Freddie
05:11 Concerns about technology stocks
05:41 S&P 500 forecast; outlook for interest rates
07:50 "The Fed is totally ineffective."
08:39 Outlook for oil prices, commodity markets
10:35 Credit crunch, impact on economy
11:24 Overseas interest in U.S. assets; China
13:46 U.S. resource companies "attractive" to Asia
14:47 Worst case: "colossal bust with inflation"
Faber Says Fannie, Freddie Should Split Up, Not Get Aid
Bloomberg, July 23, 2008 07:22 EDT
I’m not sure this really explains what happened.
Any night I’ve been out in the city — last night was Porter House, and Monday was Kellari Taverna — Wall Street appeared to be enjoying a hearty supper and a glass of wine, but I didn’t see any evidence of drunken behavior.
Of course, if your entire world view is predicated on the belief that tax cuts cure all ills, and that any sort of regulatory supervision — even of FDIC insured banks by the Federal Reserve — is an evil to be avoided, well, then, it might look like drunkenness to you.
To everyone else, it merely looks like an incompetent administration executing an ill thought out philosophy, and poorly at that.
Good set of interviews with NYU Professor Nouriel Roubini
Bear Market Only Half Over, But It’s Not Armageddon
More Than $1 Trillion Needed to Solve Housing Crisis
‘They’re All Toast’: Roubini Says Brokers, Even Goldman, Can’t Stay Independent
Video Interview on Tech Ticker: Roubini: "Bear Market Only Half Over, But It’s Not Armageddon"
Nouriel Roubini | Jul 22, 2008
I am disheveled looking because it was pouring on the way over, the audio guy had a hard time with mike, my collar was a mess, they got the firm’s name wrong, and oh, I was so late this morning (due to a family issue) that I didn’t have time to shave.
Other than that, it was a good appearance!
Let’s call this a bit of counter programming to all of our negative coverage of Fannie Mae (FNM) and Freddie Mac (FRE):
Bill Gross, who manages the world’s biggest bond fund, said it’s not possible for government sponsored mortgage-finance companies Fannie Mae and Freddie Mac to raise capital without the Treasury Department’s support.
"Let’s be blunt: to the extent the Treasury suggests they’ll never have to use their authority, that’s a sham,” said Gross of Pacific Investment Management Co. "It’s fallacious to suggest that the agencies could issue capital, preferred stock, without the co-participation of the Treasury. I don’t think that’s possible.”
Freddie Mac said on July 18 that it intends to proceed with a $5.5 billion capital-raising plan it announced in May that will include both common and preferred securities. Pimco wouldn’t buy the companies’ stock without the Treasury’s involvement, Gross said, in a Bloomberg Television interview from the firm’s headquarters in Newport Beach, California.
Treasury Secretary Henry Paulson is pushing Congress to authorize the Treasury to purchase equity stakes in Fannie Mae and Freddie Mac and expand government-backed credit lines to them amid concern that they don’t have enough capital to weather the worst housing slump since the Great Depression. Freddie Mac shares have tumbled 74 percent this year and Fannie Mae has dropped 65 percent. The companies make money by guaranteeing mortgage-backed securities they create out of loans bought from lenders and sell to investors worldwide.
Mortgage-backed bonds issued by Fannie Mae and Freddie Mac are “an excellent buy” compared with debt of the agencies, Gross said.
Bill Gross, who manages the world’s biggest bond fund at Pacific
Investment Management Co., talks about Treasury Secretary Henry
Paulson’s plan to rescue Fannie Mae and Freddie Mac, the outlook for
U.S. home prices, Federal Reserve monetary policy and the bond market.
00:00 Passage of GSE rescue plan is "critical."
01:03 Recapitalization of Fannie and Freddie
01:49 Fannie and Freddie mortgages are "excellent."
02:55 Government’s GSE model "has to be amended."
03:54 Outlook for the U.S. housing market, prices
04:58 Capital-raising efforts by Fannie and Freddie
06:00 Rate hikes by Fed would be "wrong approach."
07:17 Treasuries and TIPS; measures of inflation
09:23 Relationship of credit turmoil, home prices
10:36 Investment in bank debt; U.S. dollar value
12:53 "Inappropriately" valued U.S. Treasuries
Pimco’s Gross Says Fannie, Freddie Need Treasury
Kathleen Hays and Sandra Hernandez
Bloomberg, July 21 2008
I saw this last week and nearly fell out of my chair.
Last week, President Bush scheduled a Press conference for 10:20am — the exact same time Bernake’s Congressional testimony
Coincidence? Apparently not:
It’s the Stupid Economy
Daily Show, July 16, 2008
"The political establishment is embracing a time-honored response to the nation’s economic turmoil. It’s going on a witch hunt.Politicians of all stripes worry that improper trading by short sellers has contributed to turmoil in the stock markets. And "excessive" oil traders have replaced oil-company executives — themselves twice keelhauled by congressional committees this year — as the bogeymen behind the run-up in gas prices. For Washington veterans, the sharpened attacks are the incarnation of a standard political trope, one found especially in election years"
Economic Woes Get a Fix: Witch Hunt
WSJ, July 19, 2008; Page A3
Bailout of Mortgage Firms Could Set Risky Precedent (Transcript)
July 18, 2008