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Word of the Week
In his written testimony to the House financial services committee yesterday, Timothy Geithner discussed how the government plans to prevent, or at least deal with, the failure of big financial institutions in the future.
Wonk Watch 10.27.09
Following his bullish streak, Barry Ritholtz says, “I am now starting to pull my horns in a bit, as this rally looks to be getting a little tired and showing signs of technical deterioration.” He predicts a 5 percent to 15 percent correction over the next 60 days. Ritholtz lists five indicators that inform his renewed caution:
Wonk Watch 10.26.09
All the way from Quito, Ecuador, Paul Krugman, says the dollar is gold. This is to say that the dollar is weighing down the Ecuadorian economy and policy options the same way that gold did to protectionist countries in the 1930s. These countries used import restrictions to peg the value of their currency to gold.
Word of the Week
This week, Kenneth Feinberg, the government’s special master for executive compensation, said that the seven largest companies that haven't yet paid back their government bailout funds have to slash their top executives' compensation.
Memo to Blodget: Most Journalism is Local
Henry Blodget has written another one of those "journalism isn't really dying" things. People need, he says, to stop "whining" about it. Newspapers might be dying, he says, but that doesn't mean journalism is.
Wonk Watch 10.20.09
Felix Salmon discusses a “stunning” selection from Andrew Sorkin’s new book, Too Big to Fail, which was released today.
Wonk Watch 10.19.09
Last week, the House financial services committee passed an amendment to a bill that would influence the regulation of banks and credit unions. Today, Felix Salmon weighed in. The legislation proposes the creation of the Consumer Financial Protection Agency, which would keep an eye on everything from home loans to credit cards and payday loans.
Wonk Watch 10.16.09
Obama’s pay czar, Kenneth Feinberg, made a less-than-bold move today, says Felix Salmon. Feinberg requested that former Bank of America (BAC) CEO and Chairman Ken Lewis not receive his $1.5 million salary for 2009. Lewis will, however, still walk out with $125 million—$53 million in pension and $72 million in accrued and deferred stock compensation.
Teach for America Responds
The following is a letter to the editor in response to Chadwick Matlin's piece, "Teach for America Gets a Timeout":
To the Editor,
Word of the Week
For the first time since 1975, Social Security recipients won’t be getting a cost-of-living adjustment—also called a COLA—next year. In other words, more than 57 million Americans who draw Social Security checks won’t see an increase in their monthly payments. What gives? Cost of living adjustments are tied to inflation, as measured by the Consumer Price Index. Up until this year, inflation had risen annually and, as an offset, social security payments were increased annually as well.
Forget the Dow—and Sweat the Dole
For the past few months, the media has been watching the Dow Jones Industrial Average the way a hypochondriac checks his thermometer. And the higher the Dow's temperature goes, the more we need to sweat.
Bloomberg Got a Bargain
Press reports of Bloomberg’s purchase of Business Week seem largely to miss the point. The Wall Street Journal story this morning, for example, sees McGraw-Hill’s desire to shed the title as part of a pattern of publishers "closing print titles and slashing investments in traditional publications, a sign they don't expect these businesses to return to strong health as the economy recovers."
Wonk Watch 10.13.09
Felix Salmon responds to Andrew Ross Sorkin’s column today, in which Sorkin makes the claim that Americans—after wishing that the government save the banks from their nosedive—want Goldman Sachs (GS) and the other big Wall Street banks to “fall flat again.” As Goldman readies to release its third quarter results on Thursday, which are expected
TBM Readers Respond: Bank-Borrower Breakups
Relationships are tough. Breakups are even tougher.
Last week, Mark Gimein stood up for the increasing numbers of Americans who have walked out on their mortgages; it’s within their legal rights, he says. And the laws are meant to keep banks responsible and honest.
But there’s always another side of the story. And many of our readers have commented, arguing for both positions.
Wonk Watch 10.12.09
After a few months off, Wonk Watch is back! To the quick hits:
What’s Your Question About Offshoring Services?
Later this month, TBM editor James Ledbetter will conduct an exclusive one-on-one video interview with Robert E. Kennedy of the University of Michigan’s Ross School of Business, and coauthor of The Services Shift: Seizing the Ultimate Offshore Opportunity.
Word of the Week
U.S. currency fell to a 14-month low relative to its rivals this week. We know this thanks to the Dollar Index, which measures the value of the U.S. dollar against a basket of other world currencies. The dollar is sized up relative to the euro, the Japanese yen, the Canadian dollar, the British pound, the Swedish krona, and the Swiss franc.
More Bad Lessons from Board Games
Back in June, TBM took a look at the terrible financial lessons we’ve learned from our favorite board games. Most of the games we mentioned were classics—like Monopoly or the Game of Life. Now, there’s a newly-released game to give a whole new generation of kids some more timely—but still not-so-great—financial advice. It’s called Bailout!
Michael Moore's 15 Clicks of Fame Are Up
Writers, readers, comrades:
It's Wednesday, which means we've been talking about Michael Moore for seven days. Surely we can agree this situation is untenable for all parties (except Mr. Moore). And so I write to put an end to our festivities here. It's been a nice ride, and my only regret is that we couldn't find anybody to muster a fawning defense of the film. Maybe for the sequel ...
Michael Moore: God-Loving Socialist
Folks,
What does Moore think of bailouts? Chad, you asked the question first. He's obviously upset at having government bail out companies, but he also seems to be against companies cutting costs or in any way reducing their work force.
Michael Moore: Dishonest Comrade of the Revolution
Comrades,
Michael Moore: A Fan of Blue Bails?
Folks,
Despite your well-reasoned appeals that Capitalism: A Love Story wasn’t actually as bad as I thought, I still found myself warning people away this weekend. The movie’s message has not fermented well in the two weeks since I’ve seen it, and I think it’s because of something Jim said last week:
Word of the Week
Last Friday, the G20 leaders endorsed a statement recommending new controls on banker pay. The stricter rules—which include forbidding guaranteed bonuses and deferral of payment over time—are meant to deter the kind of risk-taking that led to the financial collapse. Also included is a provision for the “clawback” of compensation previously earned.
Recent The Sausage Posts
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Chadwick MatlinNovember 20, 2009
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Matthew McKnightNovember 20, 2009
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Caitlin McDevittNovember 20, 2009
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TBM StaffNovember 19, 2009
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Chadwick MatlinNovember 18, 2009
