We’ve said before that Gretchen Morgenson of the NY Times is perhaps the only major journalist covering credit default swaps with any level of detail. She’s been covering this issue and this weekend, she continues with a large piece on how AIG got so wound up in the derivatives mess. Worth a read. For some
AIG
The $700b government bailout package for the financial sector has taken center stage, but it was only two weeks ago that AIG was hogging headlines as they were poised to topple. The Fed’s $85b subprime-like loan to AIG saved them…or at least bought them time to raise money. The big talk two weeks ago was
On Friday afternoon, Treasury Secretary Henry Paulson briefly outlined his proposal for helping banks move through the credit crisis that began in summer 2007 and flared up significantly in the last 60 days. The proposal says that all Americans are at risk: The financial security of all Americans – their retirement savings, their home values,
Here’s a more detailed version of the Fed’s AIG bailout to follow up our previous post. Quick review: On Monday it was thought that AIG, the world’s largest insurer, needed about $40 billion to meet a wave of claims on credit default swaps and other obligations. The logic went that this would be a bridge
I was lying awake the other night, worrying about all of the debt on my credit card. The jet ski, mink socks, the ATV, my new plasma TV, ruby encrusted dog food bowl, surround-sound stereo – they are great, but darn they cost a lot. And then it dawned on me: it wasn’t my fault!
The US Consumer Price Index was down 0.1% in August and up 5.4% year over year through August versus being up 0.8% in July and up 5.6% year-over-year through July. Like last month, this was the largest YOY spike since 1991, and is due mostly to the oil price spike we had during early summer.
Never seems to go too long before republican presidential hopeful John McCain provides another completely valid reason for us to continue with our series on his economic policy meandering. Here’s what McCain said today … The fundamentals of our economy are strong. McCain said this today … one day after Alan Greenspan said this is
Consider this list of news for the week (even though it’s only Monday): Best Buy Co. agreed to buy Napster (digital downloading of music) for $121 million. Reddy Ice Holdings (the largest US manufacturer of packaged ice) suspended its quarterly cash dividend indefinitely and said it was undertaking a strategic review of its business. 5,000
What is in the news today besides Brett Favre being traded to the NY Jets and actor Morgan Freeman getting divorced after 24 years of marriage? The Olympics! “Staying afloat in a sea of drowning mortgage employees” is not an Olympic sport this time around. But if you’re interested, here’s the schedule of sports. VINTAGE