Most of us are getting tired of the finger-pointing in Washington and the corridors of Wall St. over who is to blame for the economic mess we're in. As expected – it's almost getting too easy to win the "told you so game" anymore . . . the sabres are…
My friend and colleague at Bank of America, David Meddaugh, sent me the link for a November 12 Audio Webcast with Bank of America Chief Market Strategist, Joe Quinlan. Mr. Quinlan provided insight on the economic issues affecting the nation.
Rising voices in mutual support? Yesterday, I referenced Joe Nocera's column in the NY Times. Today, Gretchen Morenson weighed in with much the same disappointment as she explained why her "hypocrisy meter konked out last week." It's another chronicle of Washington-boggled notions, the SEC's failure to regulate, the rating agencies…
I’ve been saying for weeks, in various conversations, that one reason the “crisis in confidence” has transformed fear into anxiety, is the Fed’s feckless attempts to “cure the economy”. The initial bailout plan stalled as cooler heads insisted on accountability and a clear plan of action, but the tide of uncertainty washed it ashore in some vague $750 billion bailout.
The stated intention was to buy toxic mortgage securities to relieve the liquidity crisis. Many of us were dubious in the ensuing days and weeks because the markets did not react favorably to the bailout. In addition to the history of failed government programs, my skepticism was fueled by the shortsighted decision to let Lehman fall, the fact that AIG burned through its $85 billion in a few weeks and needed $40 billion more and the surprise, at least to many, of the overnight fall of Washington Mutual.
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Gretchen Morgenson's column in yesterday's NY Times offers an interesting summary of the Executive Compensation guidelines that accompany the taxpayer's investment in the capital markets. A government rescue effort looks appealing in broad economic areas where a central bank fuels the capital markets and where individual investments need safeguarding. The…
Anyone care to explain this? Although unemployment is up from one year ago, the jobless rate in EVERY SINGLE COUNTY IN CALIFORNIA dropped this month!Maybe Wall St. and our esteemed policy makers, who are by their actions prompting everyone to think the sky is falling, can explain how BOTH THE…
Finally, a mainstream magazine reminds us of the "Other Economy" that's out there. It's not constructed of toxic mortgages, clogged credit arteries or financial malfeasance. It's middle market companies doing what they do best – staying focused on what's important in building their businesses – and trying to avoid the…
It won't take long to understand the dearth of regulatory results when you look at this graphic in today's New York Times, which traces the web of existing financial market regulators that already exists. Do we really think the federal government will wisely oversee the just-passed $700M mud sandwich (see…
Gretchen Morgenson from the NY Times writes in Sunday’s paper about AIG in “Behind Biggest Insurer’s Crisis, A Blind Eye to a Web of Risk“. There are a lot of lessons here, mostly reminders of lessons you’d think were already learned.
There’s a failure of leadership when you look at the practices of AIG’s London office, which has been tossing around hand grenades for years. There’s a failure of corporate governance that allows the small London office’ to ignite the firestorm that brings AIG to the government’s front steps. There’s a flood of extraordinary compensation for the 400 people in the London office (more…)