2008 December

The Miracle TARP

From Jacob Sullum at Reason: The Treasury Department has agreed to buy a $5 billion stake in GMAC, General Motors’ former financial subsidiary, to help it become a bank holding company. The money will come from the Troubled Asset Relief Program (TARP), created by the Emergency Economic Stabilization Act. Yet GMAC wants to be a bank .. read more

On December 31st, 2008, posted in: Economy by Tags: , , 1 Comment

More 2009 Predictions

From Matthew Lynn at Bloomberg: One, Britain calls in the International Monetary Fund: In the last few months, the U.K. has been a lesson in how to turn a crisis into a catastrophe. Everyone knew its debt-fuelled, financial-services-dependent economy would need a painful overhaul to develop new industries. Instead, Prime Minister Gordon Brown has embarked .. read more

On December 31st, 2008, posted in: Economy by Tags:

Shouldn’t the Economy be Booming?

For all those who believe that government spending can get us out of this mess, Tad DeHaven has a very good question: But isn’t spending tons of money exactly what government at all levels has been doing in recent years? According to U.S. Bureau of Economic Analysis numbers, combined federal, state, and local expenditures in .. read more

On December 31st, 2008, posted in: Economy by Tags: ,

The Crisis in 10 Points

Robert Stewart gives a very coherent explanation of the financial crisis at Mises.org: In summary, the essence of the subprime crisis is that money was lent (often through the agency of questionable mortgage brokers) at very low interest rates (courtesy of the Fed) to hundreds of thousands of people (all they needed was a credit .. read more

On December 31st, 2008, posted in: Economy by Tags: , ,

Should the Fed Buy Stocks?

Apparently, Roger E. A. Farmer (who seems to have a surplus of names or maybe just initials) thinks so: So where do we go from here? The only actor large enough to restore confidence in the US market is the US government. The current policy of quantitative easing by the Fed is a move in .. read more

2009 Predictions

It’s that time of year again and everyone it seems has a list of things that could/may happen in 2009. Some of them are interesting, some of them are just plain bizarre. Here’s a few I found interesting: Doug Kass 1. The Russian mafia and Russian oligarchs are found to be large investors with Madoff .. read more

On December 30th, 2008, posted in: Economy by Tags:

Redoing Globalization

Sherle Schwenninger’s article in the Nation, Redoing Globalization, blames others for America’s problems: The root cause of this unbalanced world economy was the enormous pool of excess savings generated by China, Japan and, more recently, the petrodollar states of the Persian Gulf. This global savings glut, as Federal Reserve chair Ben Bernanke called it, helped .. read more

Crony Capitalism at GMAC

John Snow may have been a lousy Treasury Secretary, but his lobbying skills are not in doubt. The government threw a little more money GM’s way last night (via WSJ): WASHINGTON — The federal government Monday deepened its involvement in the U.S. automotive industry by committing $6 billion to stabilize GMAC LLC, a financing company .. read more

On December 30th, 2008, posted in: Economy by Tags: , , , 2 Comment