Archive for September, 2008

• Tuesday links: cash crush
  abnormalreturns, September 30th, 2008 at 1:04 pm, Comments: 0

  The U.S. banking system has been re-made in a matter of weeks.  (WSJ.com, TheDeal.com, MarketBeat)
  How the bailout bill might move forward.  (naked capitalism)
  What are the alternatives to the modified Paulson plan?  (Aleph Blog, Mavercon, Interfluidity, Marginal Revolution, ClusterStock.com)
  Paulson’s mistakes recounted.  (Growthology)
  “Congress needs to put up or shut up…”  (Infectious Greed)
  Did you miss Black Monday back [...]

• Monday links: a snowball's chance
  abnormalreturns, September 29th, 2008 at 12:55 pm, Comments: 0

  A closer look inside the bailout deal.  (ClusterStock.com, Curious Capitalist, DealBook)
  The market snubs the proposed deal.  (MarketBeat)
  Mark-to-market accounting goes by the wayside in the bailout deal.  (NakedShorts, Big Picture)
  First the bailout, next up increased regulation.  (NYTimes.com)
  “The Paulson Plan is now the easy out.”  (Interfluidity)
  Can taxpayers actually profit from the bailout plan?  (Economist’s View)
  Wachovia heads into [...]

• Sunday links: pressure points
  abnormalreturns, September 28th, 2008 at 4:09 pm, Comments: 0

  We have a bailout deal…we think.  (WSJ.com, ClusterStock.com also Big Picture)
  Warren Buffett apparently played a role in getting Congress to act.  (CNNMoney.com, Capital Blog, DealBreaker.com)
  What happens if the bailout bill doesn’t pass?  (WSJ.com)
  What are the remaining pressure points in the economy?  (Marginal Revolution)
  The profit opportunity in the bailout.  (EconLog, Brad DeLong)
  Just how much would the [...]

• Friday links: credit crisis continued
  abnormalreturns, September 26th, 2008 at 11:56 am, Comments: 0

  A note to all of our readers.  During the credit crisis the linkfest has been, at best, a fitful attempt to capture what is going on in the econoblogosphere.   For more up-to-the-minute updates we have been spending a fair amount of time on Twitter.  A number of our favorite bloggers are over there and it [...]

• Thursday links: short supplies
  abnormalreturns, September 25th, 2008 at 12:55 pm, Comments: 0

  Short-term treasuries are in short supply.  (WSJ.com also Mish)
  Banks are not lending to each other.  (FT Alphaville, MarketBeat)
  Hedge fund redemptions ramp up.  (MarketBeat)
  Talk about negative yields, hedge funds have fled to cash.  (FT.com)
  Firms are drawing down their rarely tapped revolving credit lines.  (WSJ.com also EconLog)
  The theory behind the rescue plan.  (Mankiw Blog also WSJ.com)
  Good luck [...]

• Wednesday links: synthetic shorting
  abnormalreturns, September 24th, 2008 at 12:33 pm, Comments: 0

  Warren Buffett bolsters confidence and gets a sweet deal to by putting $5 billion into Goldman Sachs (GS).  (WSJ.com, NYTimes.com, ClusterStock.com)
  Some skepticism on the Buffett investment. (Big Picture, Curious Capitalist, 24/7 Wall St.)
  “(H)ow is it that Warren Buffett can cut a better deal with the best-run financial company in America than the U.S. Treasury can [...]

• Tuesday links: barbells and bailouts
  abnormalreturns, September 23rd, 2008 at 11:14 am, Comments: 0

  For Goldman Sachs (GS) and Morgan Stanley (MS) “Investors need to understand that the Fed’s oversight gives very little wiggle room.”  (WSJ.com)
  Don’t think Washington wasn’t in part to blame for the current mess.  (Deal Journal)
  In fact, every one is to blame.  (EconLog also Infectious Greed)
  The Swedish bailout model involves extracting a pound of flesh, i.e. [...]

• Emerging market divergence
  abnormalreturns, September 22nd, 2008 at 2:45 pm, Comments: 0

  We had gotten away from posts that included “charts that need no further explanation.”  This chart shows the relative performance of an emerging market bond ETF (PCY) against an emerging market equity ETF (EEM).  After a nearly year long period of outperformance emerging market bonds underperformed last week in a big way.

  We have no great [...]

• Monday links: a black day for free markets
  abnormalreturns, September 22nd, 2008 at 12:28 pm, Comments: 0

  The last two remaining big investment banks gain bank holding company status.  (WSJ.com, ClusterStock.com, DealBreaker.com)
  A $700 billion pool of assets…let the lobbying begin!  (NYTimes.com)
  If the bailout fund is a good idea, should we let outsiders invest?  (Market Movers)
  “Let the systemic importance of the money market funds not go underestimated.”  (FT Alphaville)
  The blogosphere has turned on [...]

• Sunday links: the Splurge
  abnormalreturns, September 21st, 2008 at 3:17 pm, Comments: 0

  Will the rescue plan work and how much will it cost?  (NYTimes.com)
  Economists back the rescue plan.  No they don’t.  (Real Time Economics, naked capitalism)
  Should there be conditions on those firms that avail themselves of the “Splurge”?  (A VC)
  The consequences of the short-selling ban are far-ranging and univerally hated.  (WSJ.com, MarketBeat, Epicurean Dealmaker)
  “Until the government makes [...]