Economics Roundtable

In what seems to be a nonstop endeavor, Citigroup is once again raising capital by issuing stock and selling assets. It's hard to keep up now because there seems to be a new deal every week.

On May 7th the announcement was Citi Selling $2 Billion in ...

I remain surprised that GM is still in business. It loses money on cars, on financing, and it is behind the curve on a transition away from SUVs. GM is the walking dead, a true Zombie corporation.

Now I see that GM, Cerberus May Pledge $750 Million ...

I have been talking about the non-stimulus of tax rebate checks for a while. My latest were Stimulus Checks Already Spent and Economic Stimulus Not a Silver Bullet.

Professor Kevin Depew added yet another reason today why there will be no stimulus from stimulus checks. ...

Cities and municipalities have been promising government workers more in salaries and pension benefits than can possibly be met. Unfunded liabilities are mounting and the ticking time bomb finally went off. What had to happen, did. Vallejo California Declared Bankruptcy.

The North Bay city of 117,000 now heads ...

Inquiring minds are checking out the Fannie Mae 2008 Q1 10-Q Investor Summary. There are plenty of charts, graphs and other data to consider.

For example, please consider this graph on page 27.

Cumulative Default Rates Overall Originations from 2000 thru 2007

Inquiring minds are pondering the question "Is the ECB propping up the US dollar?"

Please consider the following email chain over the past five days, all from people whose opinions I respect. The discussion started with an email from Minyan Phillip on May 2nd.

Minyan Phillip:

As energy prices soar, Frustrated owners try to unload their guzzlers.

Americans are turning away from the boxy, four-wheel-drive vehicles that have for years dominated the nation's highways. Sport utility vehicles and pickup trucks - symbols of Americans' obsession with horsepower, size, and status - are falling out ...

In what appears to be an accelerating global trend, New Zealand Announces New Liquidity Measures.

The Reserve Bank today announced that it is adopting measures to ensure there is sufficient liquidity in the banking system in the event of further international financial market turbulence.

Deputy Governor Grant Spencer ...

I have been tracking a particular Washington Mutual (WM) Alt-A mortgage pool for several months. The pool is known as WMALT 2007-0C1.

In Evidence of "Walking Away" In WaMu Mortgage Pool, I wrote about data January.
The February update was WaMu Alt-A Pool Revisited.
The ...

Bloomberg is reporting Bernanke Urges Action to Slow Jump in U.S. Home Foreclosures.

Bernanke, in a speech in New York yesterday, also reiterated his call for lenders to forgive portions of mortgages for some struggling homeowners. He said proposals should be "tightly targeted" at borrowers at greatest ...