Lockstep Investing

AIG Becomes the Fed’s Vehicle to Buy Toxic Assets

Very interesting perspective. It makes sense. The whole idea of a FRE and FNM wind down in the middle of the real estate meltdown seemed like another voluntary self-inflicted wound imho. Also, AIG is holding the key to tremendous amounts of Tier 1 capital in Europe, so it is also a "can't fail" entity that must be propped up in the interest of "National Security".

It will be interesting to see how Geithner spins role of the Treasury in this next term.

Calling a Bottom: It's Time To Party

I disagree and I don't understand your logic. Housing has not bottomed = No bottom in credit crunch, it is that simple. Don't get excited about noise.

Fannie, Freddie: Beyond the Balance Sheets

The US government is never intended to be represented as God. The analogy is between authority figures. This reference happens to be from the Bible.

In retrospect, I put too much faith in the government to enforce confidence in the economy and government serving institutions by supporting the shareholders who invested in it.

There will not be press releases for the $32B in preferred equity that has been wiped out on bank and investor balance sheets in mark to market losses. But it will definitely show up in other places and I am sure there will be much more caution in putting faith in companies chartered by the government in the future.

Foreigners Don't Own That Much Subprime. Maybe.

Everybody expects Russia to be unreliable after 65 years of disfunctional Communism. But they do not expect the richest nation in the world to "walk away" on their debt. Calm down and think.

As UBS Shows, It Pays To Be Conservative in Banking

What do you say about your post now? Apparently there was more exposure than you anticipated.