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Wall Street Breakfast: Must-Know News

Isn't more government a good sign?

Expect the Treasury Bubble to Continue to Inflate

The increased savings rate by the still employed US consumers will provide the funds for the Treasury to rescue the economy. The financial symbiotic relationship between China and the Treasury will be replaced by US investors buying government bonds. The Fed will have to buy a smaller amount than we thought.

AIG Now Fed's Vehicle for Buying Toxic Assets

Financial complexity piled upon complexity to be administered by an ever expanding bunch of paper pushers in the Federal Reserve Bank and the US Treasury. This can only end....BADLY. Can we say Kronur?

Paulson's Plan Fails to Understand the Problem; Madoff Is a Perfect Example

If banks go down because they are not bailed out but the depositors are made whole with the bail out money, those depositors will take their money to other more properly run banks. Letting banks fail and bailing out depositors will make the economy far better off than with the Paulson program. This is a bottom up solution rather than the top down policies of the Bush administration.

JPMorgan Chase: Poisoned by Bear's 5,000 Counterparties

JPM and BAC are counting on mega billions of customer checking accounts to fund their operations at zero interest. The recession is going to shrink those deposits. Watch out below.

Wall Street Breakfast: Must-Know News

GM can sell 154,877 vehicles in this economic environment? GM dealers must be magicians or the number is bogus. Take your pick.

Why Bailouts Are Not the Answer

Nationalize all failing industries to preserve jobs. Connect a money pipeline between the Treasury and these industries. Engage government employees to manage and run these industries. This is the wave of the future.

Could AIG Kill GM's Chances for a Bailout?

Got to bail out the retired auto workers health care!

The Bailout to End All Bailouts

And what happens when the geniuses who created this dutch auction bailout realize that 700 billion is just the down payment?

Federal Reserve Buys AIG

85 billion of printing press money will not be nearly enough to keep AIG operating..especially at the new Libor rate plus which is 11.5%

US Housing Inventories Reach Record Highs

Just wait until the boomers put their McMansions on the market and the builders finish up their use it (the bank loan) or lose it all right now projects half way to completion. On the supply side we ain't seen nuthin' yet. On the demand side, family formations are in a long term down trend and job growth has turned negative. The only solution that can possibly pull us out of this mess is Izzie Friedman's suggestion that we give all foreigners a green card who will come to the US and buy a house.