The Cynic

Fed to Be Systemic Risk Regulator? I Thought That Was Already Their Job

This is laughable, it's a joke and a farce!! This cabal of private bankers regulating the systemic risk posed by the actions of the same private bankers... utterly laughable and farcical!! Just more evidence to demonstrate how completely the US government is under the thumb of private bankers. US democracy like mine (Canadian) and others of the western world is a sham.

The U.S. Banking System's Terrifying Balance Sheet

This situation is so entirely laughable. Now is the time when the Puppet (a.k.a. US Administration) is in a position where it can pull the Puppet-Masters' (a.k.a. the Big Banks') strings. If independence was truly desired, the Administration could do something about it. but is it? No. Why? Because the Puppet-Masters still grease the political machine and thus the politician has no real interest in independence. And what do the People do? Nothing, they keep paying their taxes relatively dutifully. Morons the lot of us; maybe there'll be a day when we don't take it any longer.

We Need to Break the Banks

Do you honestly expect Washington politicians whose activities are likely underwritten by those same big banks to do this??!! The quid pro quo for the banks underwriting the activities of the two main political parties is that the politicians will ride to the rescue of the bankers when they f**k up! So in my view the only way it'll change meaningfully is when Americans decide not to pay their taxes or at least make a credible threat not to pay their taxes.

Restoring the Health of the 'Too-Big-to-Fails' Also Restores Them to Power

Like the author, I've got a darker temperment. His scenario is plausible. The current power structure otherwise known as the status quo won't die without a fight, they've got too much at stake. My theory is that the Jekyll Island deal also included an agreement that the banking sector would underwrite the activities of the two main political parties one way or another. So neither the politician nor the banker has any interest in seeing the structure fail despite any rhetoric to the contrary. In the end, the only way the change will come is when Americans either stop paying their taxes or at least make the credible threat thereof. And this would be a monumental task for someone credible to lead and think of the shit that would be thrown her/his way!

Eric Lemieux: Decline in Gold Price Goes Against Every Theory

EL: The decline in gold prices flies in the face of every theory. The U.S. dollar has been appreciating and the U.S. economy is going through a recession.
Gold should be increasing in value in the face of all this uncertainty. To see the price of gold going down right now is almost unexplainable in my opinion.
It begs the question, is this due to some type of manipulation, either directly or indirectly?

Elliot Wave theory also seems to have predicted the fall of gold prices of late.

Chart of the Day: The Russia-Brazil Spread

Felix, perhaps you could suggest to yor Bloomberg contacts to produce a daily CDX report somethign along the lines of Andrew Wilkinson's daily options report?? Just an idea.

The Bailout to End All Bailouts

Again I ask what brave American will lead the tax revolt that this incredible Wall Street bailout calls for?? Maybe Ron Paul or Warren Buffet?? It will take such a notable person with inherent credibility so people will listen.

AIG and the Derivative Nightmare

Like the FNM/FRE bailout situation, I imagine the AIG loan/bailout/conservat... will constitute a credit event that will trigger its CDS obligations. I'm interested to hear others thoughts about this.

Problematic GSE Bailout

Hmmm..., why protect bondholders and not stockholders?? Perhaps the anser depends on considering who the bondholders are and who the stockholders are. In the calculus of this decision, Paulson probably thought he could live with the possible hurt to the small banks and individual investors who have equity positions. But the large private institutions, central banks and foreign governments who have debt positions, well..., that's another matter.

Paulson Rolls The Dice At Taxpayer Expense

OK OK, with this delay tactic now in place, what American is going to lead the charge for a taxpayer revolt??!! Really showing your lack of confidence in this way is the only way to get the message to your elected representatives. Now that you're in the throws of a presidential and congressional election, seize the day!

Ironies in the Financials

It seems like the US banking sector is in for some longer term pain. I say that because of the whole slowly unravelling story about option ARM mortgages. perhaps WFC is in a better position than most since it didn't get into that line, and hopefully it doesn't own much paper based on such mortgages. But I read a bit the other day that suggests that banks in the Gulf Cooperation Council (GCC) are thriving largely based on petro-dollars. So far it looks like Asian and Middle-Eastern banks are relatively strong, but who knows with the whole unwinding of leverage that'll occur over next years. Perhaps its best to look at the most conservative of banks too, like some Canadian. Or of course just sit out of the whole sector if you're looking at the long side of things. Of course, you can play the down side too, which in this environment could be rather profitable.

Hydroelectric vs. Slow Volcanic Power

I like this article, but it's not a question of hydro versus geothermal. It's a question of harnassing all the sources of energy in the most cost-effective and ecologically sensitive manner. Each has a role to play and, in my view, hydro and geothermal should have a much greater emphasis than nuclear. It aamazes me that nuclear is so often given the "green" tag of approval. Has everyone forgotten about heavy water discharges and spent nuclear fuel rods???

Liquidity (Literally)

The point is valid. The price of gas is artificially low considering the process necessary to produce it. This is even more stark when compared, as you do, with other items. However, to moderate it a bit, one should compare it to the rate of usage. One isn't supposed to consume Nyquil at a comparable rate to gas! The other point made above by another contributer about choices is equally valid. One can choose to drive a hybrid car, or to buy the no name version of Nyquil, Heinz ketchup or whatever else. It's the new frugality! Cheers.

Credit Spreads Continue to Get Worse

How much does the current spread exceed that which existed at the Bear Sterns debacle?

Goldman: Readying Short Position Initiation Sequence

It's true, it's not the easiest short. But when the GS magic wears off and it has to delever its pretty massive leverage, look out below!