Comments on: Some Economic Posts http://fragments.awedge.net/?p=949 Sun, 09 May 2010 10:32:08 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: rogerr http://fragments.awedge.net/?p=949&cpage=1#comment-28138 rogerr Thu, 03 Sep 2009 03:04:53 +0000 http://fragments.awedge.net/?p=949#comment-28138 I don't think the value here is so directly connected to the stock market - because the stock market has not really been out of range of what it was in June. You should refer to the last reasonable assessment - and you should certainly ask, if your source at the Fed pushes numbers on you, well, this is just part of the portfolio. What does that fascinating 160 billion dollar investment in AIG look like? And how about the toxic auction - seemingly, since June in fact, there seems to be little action for it at all. Why do you think that is? And among those toxic assets, are there, perhaps, loans on commercial properties? So one would think a reporter would ask. I don’t think the value here is so directly connected to the stock market - because the stock market has not really been out of range of what it was in June. You should refer to the last reasonable assessment - and you should certainly ask, if your source at the Fed pushes numbers on you, well, this is just part of the portfolio. What does that fascinating 160 billion dollar investment in AIG look like? And how about the toxic auction - seemingly, since June in fact, there seems to be little action for it at all. Why do you think that is? And among those toxic assets, are there, perhaps, loans on commercial properties?

So one would think a reporter would ask.

]]> By: JCD http://fragments.awedge.net/?p=949&cpage=1#comment-28125 JCD Wed, 02 Sep 2009 14:03:11 +0000 http://fragments.awedge.net/?p=949#comment-28125 The stop in coverage is probably tied to the media's broader turning away of attention from the TARP. The news-cycle seems to act as a great pressure release valve: there is a moment, that lasts for as long as necessary, of violent outpouring of sentiment, which is channeled, and then something else gradually replaces it. I am sure that info on the TARP's market value is available, however. Perhaps not. The stop in coverage is probably tied to the media’s broader turning away of attention from the TARP. The news-cycle seems to act as a great pressure release valve: there is a moment, that lasts for as long as necessary, of violent outpouring of sentiment, which is channeled, and then something else gradually replaces it.

I am sure that info on the TARP’s market value is available, however. Perhaps not.

]]> By: Bruce Webb http://fragments.awedge.net/?p=949&cpage=1#comment-28109 Bruce Webb Tue, 01 Sep 2009 20:17:03 +0000 http://fragments.awedge.net/?p=949#comment-28109 Well I find it interesting that the Ethisphere TARP Index referenced has not been updated since Jun 19th even while it was updated somewhat regularly prior to that. It is a funny kind of 'Index' that takes a snapshot in time and leaves it at that. I don't believe in taking the Rebecca of Sunnybrook Farms approach of thinking everything is shiny and bright, but then I don't think we should be Henny Penny either. Really I don't see what June 19th data tells us given the change in stock values in the two and a half months since. And yes I know the Dow is volatile, but it was on June 19th as well, you calculate with the data you have. What is the value of the Ethisphere TARP Index today? You don't know because they are not reporting it. Which is a little curious, the whole point of an index is to track change over time. Well I find it interesting that the Ethisphere TARP Index referenced has not been updated since Jun 19th even while it was updated somewhat regularly prior to that. It is a funny kind of ‘Index’ that takes a snapshot in time and leaves it at that.

I don’t believe in taking the Rebecca of Sunnybrook Farms approach of thinking everything is shiny and bright, but then I don’t think we should be Henny Penny either. Really I don’t see what June 19th data tells us given the change in stock values in the two and a half months since. And yes I know the Dow is volatile, but it was on June 19th as well, you calculate with the data you have.

What is the value of the Ethisphere TARP Index today? You don’t know because they are not reporting it. Which is a little curious, the whole point of an index is to track change over time.

]]> By: JCD http://fragments.awedge.net/?p=949&cpage=1#comment-28108 JCD Tue, 01 Sep 2009 17:29:45 +0000 http://fragments.awedge.net/?p=949#comment-28108 Thanks for the tip roger; that's a good piece too. In my next life maybe I will be a moneylender. Thanks for the tip roger; that’s a good piece too.

In my next life maybe I will be a moneylender.

]]> By: rogerr http://fragments.awedge.net/?p=949&cpage=1#comment-28107 rogerr Tue, 01 Sep 2009 15:20:44 +0000 http://fragments.awedge.net/?p=949#comment-28107 Read, also, Dean Baker's piece in the Guardian. http://www.guardian.co.uk/commentisfree/cifamerica/2009/aug/31/banking-profits-us-economy He presses on a point I've been making over and over again myself, which is that the Fed is playing a game by loaning banks money at such a low rate of interest that they can double the money by loaning it back to the U.S. - buying treasuries - at twice the interest. It is simply welfare for the wealthiest. Read, also, Dean Baker’s piece in the Guardian. http://www.guardian.co.uk/commentisfree/cifamerica/2009/aug/31/banking-profits-us-economy He presses on a point I’ve been making over and over again myself, which is that the Fed is playing a game by loaning banks money at such a low rate of interest that they can double the money by loaning it back to the U.S.- buying treasuries - at twice the interest. It is simply welfare for the wealthiest.

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