phil from Edmond

Wall Street Breakfast: Must-Know News

Further to the proposed sale of tax credits. Why would Treasury approve the sale? Effectively, they would approve Fannie Mae to accept $0.80 (or whatever) for $1 dollar of tax credits. Since Treasury is funding Fannie Mae, through the conservatorship, where is the advantage to the Treasury in this transaction. Treasury reduces its contribution to Fannie Mae by $0.80 and loses $1 dollar from tax receipts.

U.S Now Land of Two Economies - U.S Bank Titans and the Rest of US

Anyone wishing a good read might find FDR's first inaugural address interesting. I like "Practices of the unscrupulous money changers stand indicted in the court of public opinion, rejected by the hearts and minds of men."

"True they have tried (to restore business activity), but their efforts have been cast in the pattern of an out-worn tradition. Faced by a failure of credit they have proposed only the lending of more money. Stripped of the lure of profit by which to induce our people to follow their false leadership, they have resorted to exhortations, pleading tearfully to restore confidence. They know only the rules of a generation of self-seekers. They have no vision, and when there is no vision the people perish."

What Obama Needs to Know about Tim Geithner, the AIG Fiasco and Citigroup

Maybe we will get to bankruptcy with AIG but it will be after foreign banks are paid off. The footnotes to AIG indicated that foreign banks were holders of a large amount of CDS and were using them to meet Tier 1 requirements. At 12/31/07, AIG expected these positions to be extinguished in 18 months.