Robert Ash

Why I Think Paul Krugman Is Wrong

I don't agree with your forecast, but if you are right, and the bank's reserve prices are not met, doesn't that mean the assets have to be marked down, their lower value having been demonstrated, exposing the banks' insolvency? That's why I think it much more likely that the banks will in their own enlightened self-interest see to it that some assets will be sold at high prices, given the tremendous incest between the various players. I have zero confidence that Treasury's restrictions on the players, intended to address this, will be effective. They will be circumvented like child's play.


On Mar 23 07:02 PM j_remington wrote:

> OPINIONS DON'T MATTER
>
> The banks will sell very few toxic assets if any at all because their
> bid reserves will not be met.
>
> www.portfolio.com/view...

Why I Think Paul Krugman Is Wrong

I'm guessing you disagree with his politics. On economics his reputation seems deserved, as I haven't been able to find serious fault.



On Mar 23 10:17 AM TWOfold wrote:

> When has Krugman *ever* been correct? He wrote an entire book in
> the 1990's about how the U.S. economy would decline during the internet
> boom.
>
> He bashed President Bush for spending too much, and bashed President
> 0bama for spending too little.
>
> Krugman writes political articles...calling him an economist and
> giving him economic prizes is Orwellian.
>
> If Krugman says that the sky is blue...you better go outside to check...because
> with his track record, it's probably not.

SEC's Meagan Chung Pleads Innocent

Does anyone else's nuclear alarm bells go off when they hear the SEC confess "we couldn't have possibly uncovered Madoff's Ponzi scheme", even after having it spoon fed to them by Markopolos? The implications of this confession are enormous. If they couldn't uncover Madoff's $50B, what type of fraud or non-compliance CAN they uncover? Do they just sit at their desks waiting for fraudsters to give them a phone call handing themselves in? The SEC is rotten to the core. Better to start from scratch with something that would have the culture of an attorney general's office; you really can find professionals who know how to use subpoenas if you want. Those of us who want to see competent regulation of the financial system return so capitalism can prosper once again must resist the cries from the free-market ideologues that more regulation can't possibly be the answer since incompetent regulation hasn't worked so well.

Citi's Share Price Problem

Felix,

Enough on C already. I want to hear your take on Chris Whalen's post at BPCafe today, www.ritholtz.com/blog/.../. I've found your comments on all things related to CDS's to be much more informative than the standard fare. Would love to hear your take on his discussion of the "CDS bubble".

Robert Ash