It Figures

PPIF: A Step in the Right Direction - But Not a Cure-All

A possible problem I see is the regulators forcing the banks to accept better but still uneconomic bids for their assets. Using the BNY-Mellon example, suppose they get a bid reflecting a $1 billion discount - above carrying value (-$1.6 bil) but still below the bank's estimate of hold-to maturity economic value(-$535 mil). It is not beyond imagination to see the feds "suggest" they take the bid, thereby enhancing the "optics" of the balance sheet/capital structure but in fact destroying the economics.

Bair mentioned the other day that such desicions would be made "in consultation" with regulators. Being that bank and regulator objectives and motivations differ significantly, and that the regulators hold all the power in the relationship at the moment(via the "stress test"), this could be a bad thing for banks seen to be vulnerable - whether they actually are or not.

2008 Performance of Stocks, Oil, Dollar, Long Bond

Hard to see why above rants should be disappointed when a post titled "2008 Performance of Stocks..." presents data on 2008 performance! It's like the woman complaining about all the pornography on her VCR.

Think before you click.

Five Ways the Global Economy Is Rebounding

I'd quibble a bit with some of your wording, but you make legitimate points. "Rebounding" in the headline is a stretch, and "could be" in the first sentence fits the picture better, in my opinion, than "feels like it may be". The stabilization and rebound you are suggesting is probably just around the corner, based on history, but certainly not yet in view.

But seeing around corners is what this is all about, isn't it? Good observations.

Chart of the Day: Stock-Bond Divergence

...or credit has overshot!