Some Thursday Evening Reading

October 16th, 2008 10:13 pm | by John Jansen |

The FT runs a story about the unintended consequences of the FDIC backing of bank debt: higher mortgage rates.  I wrote earlier evening that an analyst at a substantial dealer and  friend of this blog suggested to me that the Treasury would probably tighten the gurantee of the GSE to level the playing field and reverse this trend.

The FT with another interesting story. This one recounts the trials and tribulations of hedge fund in the time of The Great Deleveraging.

Germany cuts its growth forecast for 2009.

The Alea Blog on the record borrowing  at the Discount Window.

Brad Setser on the Federal Reserve balance sheet and on the TIC data.

Dave Altig of the Atlanta Fed and its Macroblog with an interesting piece on “buy and hold”  in the world of equity investing.

I missed this earlier in the day but the monthly survey of the National Association of Homebuilders was rather dismal.

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  1. 3 Responses to “Some Thursday Evening Reading”

  2. By Don the libertarian Democrat on Oct 16, 2008 | Reply

    I like this story, even though it’s not exactly your thing:

    Citigroup On New Opportunities
    From the FT, what Citigroup plans to do with the money from TARP:

    http://www.ft.com/cms/s/0/d0c71ef8-9b76-11dd-ae76-000077b07658.html

    “As for the government’s infusion of $25bn in capital into Citi – part of the $125bn programme announced this week requiring nine banks to issue preferred shares to the federal government in return for the new capital – Mr Crittenden said Citi had not decided how to deploy the sum.

    “This represents in many ways something we had not counted on, something we hadn’t planned on,” he said. “It does present the possibility of taking advantage of opportunities that might otherwise be closed to us.”

    We, the taxpayers, are so happy to help.

  3. By Constantine on Oct 16, 2008 | Reply

    I think Dave Altig should redo his analysis using inflation adjusted returns. Might be good to do it using the Nikkei index also.

    (And with 10-year treasuries and long bonds for comparison)

  4. By Dr.Dan on Oct 17, 2008 | Reply

    Don,

    Hope you had not forgotten that Democrats were the ones who were “so happy to plunder the tax payers”

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