Tag Archives: Bailout

Bundesbank Special Ops Group (Deutsche Mark Reappears?)


It makes sense that there is a secret group within the Deutsche Bundesbank working on a plan to resurrect the Deutsche Mark. It would be a gross failure of national risk management if they did not have a plan. Call … Continue reading

Hold On!

Campbell Harvey analyzes the recent economic data and what it means for the U.S. longer term economic growth prospects. Continue reading

The Cult of Bailout

  What single word best characterizes policy responses in this on-going financial crisis? “BAILOUT”. It goes something like this. You take a lot of risk and reap lots of rewards (be it in pay, bonus, or social programs). You get … Continue reading

Moral Hazard Everywhere

Here are my talking points for my Fox Business News interview. Watch my interview. Why should all the bailout money be focused on financial institutions? It is seems a matter of fact but no one has really challenged the logic. … Continue reading

AIG and Faux Transparency

Image courtesy of flickr/John Wardell

AIG disclosed some of the firms that benefited from the government bailout. Essentially, the government money was largely used to pay off other firms. I have a few comments. 1. AIG’s customers were either using AIG for hedging positions or … Continue reading

That Sinking Feeling

Image courtesy of flickr/David Wild

AIG is back to the trough for another $30 billion. We already gave them $150 billion. AIG — supposedly a firm in the insurance business — got into trouble taking an astounding $450B unhedged bet in the Credit Default Swap … Continue reading


You hear the buzz about the nationalization of Citi? What does this mean? The U.S. government has dropped $45 billion of cash on Citi and another $250b in debt backstops (guarantees). There is talk of converting some of the $45b … Continue reading

Here’s an Idea: Let’s Throw Some Good Money at Good

Once upon a time, there were three good banks: Bank of America, JP Morgan, and Citigroup. When the financial crisis started, these banks stepped up and seemingly did some favors for the government. JP Morgan acquired Bear Stearns (with some … Continue reading

My View on the Bailout de Jour

I appeared on Business News Network November 24, 2008 to talk about how the U.S. tax payer got shafted by the deal to save Citigroup. While there is no doubt that federal intervention was necessary, the terms of the deal … Continue reading