It's Official: A Recession (Really?)
Teams of experts comb through every wince and spasm, coast to coast. You may think you're hurting--you may be convinced--but until you hear it from the folks here, it's only speculation.
Teams of experts comb through every wince and spasm, coast to coast. You may think you're hurting--you may be convinced--but until you hear it from the folks here, it's only speculation.
Obama presented his economic team -- all protégés of Robert Rubin -- just as the Treasury was pumping out billions to rescue Citibank -- which featured Rubin as chair of its executive committee. Is this the change we need?
The current lesson for the commercial banks is that if they want to survive, they should not do any of the things -- such as increase lending -- that the Treasury is trying to get them to do.
Now that they have our attention, the Detroit Three, in plans submitted to Congress Tuesday, increased their appeals for federal loans from $25 billion to $34 billion.
Do you think Paulson wanted an enforcement mechanism in the bill? Not if the banks wanted liquidity more than they wanted to lend.
We have watched one bailout unfold, and we have not been impressed. We heeded the Wise Men, and now we feel violated. But how do we now hold failing auto companies to a higher standard?
Financial markets have given Hank Paulson a vote of no confidence. His inaction has triggered a chain reaction. Unfortunately, it's the rest of us who will pay the price.
Paulson spent the past two weeks playing a game of chicken with firms like Lehman Brothers and AIG. Now he is playing even higher-stakes chicken with Congress and the economy.
Mr. Paulson now stands to gain lasting notoriety as the person who destroyed the domestic U.S. auto industry, and the economies of the Michigan, Ohio, and Indiana along with them.
The first thing Obama should do to get the economy back on track is publicize the financial record of the Bush Administration. Every business knows that "if you can't measure it, you can't manage it."
Given the last decade's malignant transformation of U.S. finance, providing federal transfusions without needed corrective surgery is not medicine but unwise favoritism and cosseting.
Last week a mix of water and sanitation experts gathered for World Water Week in Stockholm, Sweden to mull over the world's biggest public health crisis. The problem is that not enough people paid attention.
In the battle over the proper role of government, the high priests of the church of the Free Market -- including Bush, Paulson, and the Masters of Wall Street -- have suffered a monumental defeat. So why are we allowing them to dictate the terms of their surrender?
When a consumer uses a new credit card to pay off astounding debt from an old credit card, in many cases, it is illegal. Apparently when the government does it, it's billed as Serious Public Policy.
Lehman's demise was driven by timing. Its fiscal quarter ended on August 31, so it was compelled to report $7 billion in losses on mortgage backed securities sooner than other banks.
The policies that Paulson and Bernanke did implement at such staggering cost have only begun to do their full long-term damage, which will probably come in a round of even more serious inflation.
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