Archive for September, 2008

It is astonishing that a large core group of Republicans in the House of Representatives could hold the country to ransom. But today they did. Their cause? The hallowed altar of ‘free markets’. They whined that Nancy Pelosi had ‘upset’ them with a partisan, but entirely accurate, assessment of the Bush… »

Here’s Paul Krugman’s take on today’s Republican inspired disaster: OK, we are a banana republic – Paul Krugman – Op-Ed Columnist – New York Times Blog
He’s absolutely right. The bill put forward today was a Bush Administration plan. It was likely from the beginning that a lot of Democrats would not… »

Well here we go.
The House of Representatives has rejected the so-called bailout bill. As a consequence, as of now, the country’s markets are in free fall. Here is the latest from the New York Times:House Rejects Bailout Package, 228-205; Stocks Plunge
This is a moment of great importance. I am not sure… »

The current crisis threatening the economy has been called a financial crisis, it has destroyed the entire investment banking industry, led to the nationalization of several major financial businesses, and is now causing a stolidly Republican administration to organize a safety net for banks that may cost $700 billion. This all seems entirely financial,… »

It’s easy for ‘old timers’ like me to get all reflective at this moment of supreme chaos in the financial system. But allow me to pass on this comment from Irwin Kellner:
Brave new world for financial markets – MarketWatch

I remember Kellner from back in the dull days before deregulation. He makes the comment… »

This evening’s announcement that Goldman Sachs and Morgan Stanley will become bank holding companies and thus cease being investment banks ends the era of banking that dates back to 1933 when the Glass-Steagall act put a wall between the two kinds of banking. As of now there are now large stand alone investment banks…. »

Let me be clear up front: I do not like this bailout.
Having said that something has to be done. We are in the grip of the worst financial crisis since the Great Depression. So action needed to be taken. The problem is that this plan seems so ad hoc and ill conceived… »