TOP STORY
Housing Starts in U.S. Slide More Than Forecast as Credit Ends
Housing starts fell in June to the lowest level in eight months after the expiration of a U.S. government tax incentive caused sales to slump. … Read More.
FEATURED CONTRIBUTORS
Yin/Yang at the Federal Reserve
Several months ago I supported Ben Bernanke when his re-nomination as Chairman of the Fed came under fire. While others such as Simon Johnson called for his removal, I wrote that I instead wanted to see … Read More.
Devil in the Details: Do Banks Really Need $221 Billion of New Capital?
Today's NYT Dealbook headline reads (underlines added for emphasis): Top banks will need an extra $221 billion of capital and see annual profits slump by $110 billion if all proposed regulations to reform … Read More.
Defusing “Financial Weapons of Mass Destruction”
In 2002 Warren Buffett wrote that in his view, credit derivatives were financial weapons of mass destruction ("FWMDs"). He made the comment while explaining to shareholders why he was unwinding a Berkshire … Read More.
Where Elizabeth Warren Got It Wrong
I adore Elizabeth Warren and consider her one of the more courageous policy leaders in Washington today. Her simple, prescient toaster metaphors of 2007 (which I've previously mentioned) were brilliant. However, … Read More.
The Retro-Reacta-Tax: Lamenting Poor Term Sheets
When $23.7 trillion in government programs were variously created to provide direct (and indirect) support to the financial system it seems everyone involved either conveniently forgot or didn't know that … Read More.
An Adversarial Relationship…The Missing Ingredient?
It is neither controversial that mistakes were made leading into the crisis nor that the Fed bears much responsibility. That said, I'm unclear the institution (or Bernanke) deserve such aggression as demonstrated … Read More.
Polifinancial Forecasting
As Mark Thoma notes, when the original 3rd quarter growth was announced, the BEA headline figure of 3.5% GDP was big news because it represented a reasonable growth recovery stage. One direct policy implication … Read More.
Strategic Default vs Corporate Fiduciary Responsibility
Elizabeth Warren has a fondness for exploding toasters that she's been arguing since at least 2007: It is impossible to buy a toaster that has a one-in-five chance of bursting into flames and burning … Read More.
Debating a New Role for the Fed
CFR staff writer Roya Wolverson with a terrific overview of the debate. Debating a New Role for the Fed Author: Roya Wolverson, Staff Writer Introduction The role of the Federal Reserve … Read More.
Predictions for 2010
For anyone interested in risk analytics of the banking system, The Institutional Risk Analyst is a useful resource. Chris Whalen (a regular on my favorite Bloomberg podcasts with Tom Keene) is worth following … Read More.
IN THE NEWS
Obama Mortgage Program Struggles as More Than 40 Percent Drop Out
More than 40 percent of homeowners seeking help from the Obama administration's flagship effort to rescue those at risk of foreclosure have dropped out of the program. The latest report on the program … Read More.
Jobless benefits extension passes Senate test
More than 2.5 million unemployed Americans are one step closer to having their unemployment benefits restored. … Read More.
D.C. Elites and ‘Real Americans’ Are More Similar Than You’d Think
A recent Politico poll has opened up “D.C. elites” to yet another round of criticism. They’re so unlike normal Americans, you see. Forty-nine percent of them think the country is heading in the … Read More.
Why Small Banks Are Big Losers in Bailout
The nation’s small banks, as the conventional wisdom has it, were victims of a financial crisis brought on by greed and excess on Wall Street, but the small bank-TARP recipients that are likely to … Read More.
W.House eyes Elizabeth Warren for New Consumer Watchdog
Elizabeth Warren, an outspoken consumer rights advocate feared by Wall Street, is among top contenders to head a new financial consumer watchdog bureau, sources … Read More.
Do conservatives care about the deficit? Do Democrats?
Matt Yglesias asks the question and assembles some evidence. The two modern conservative presidents, George W. Bush and Ronald Reagan, "both presided over massive increases in both present and projected … Read More.
Goldman Case a Win for SEC
At first blush, the SEC's settlement with Goldman Sachs over fraud charges looked like a victory for the bank … Read More.
What’s in Financial Reform Bill? Most Americans Don’t Know
The broadest overhaul of US financial rules since the Great Depression won final approval in the Senate on Thursday. Yet over 70% of Americans know nothing about the legislation. … Read More.
Grading The Bill: WSJ.com
Economists and other prominent members of the financial community gave the overhaul legislation mixed reviews … Read More.
Goldman Shares Up: SEC To Make ‘Significant Announcement’
Shares of Goldman Sachs Group Inc. (GS) climbed 4% late Thursday after the U.S. Securities and Exchange Commission announced it intends to make a "significant announcement" at 4:45 p.m. EDT. … Read More.
Jason Paez (