Daily Reading: December 22, 2008

Re-default rates on modified mortgages are rising. Reuters.

Some background on Ponzi schemes from the NY Times.

John Meriwether's new hedge fund is experiencing major problems. WSJ. Coincidentally, Meriwether's last hedge fund, Long-Term Capital Management, collapsed almost exactly 10 years ago. As the old saying goes, "Insanity is doing the same thing over and over again and expecting different results." --John Dryden (I think???)

A key member of Congress is in support of releasing the second half of TARP before January 20th. AP.

Daily Reading: December 6, 2008

It is quite possible that we are already in the worst recession since WWII. Bloomberg.

Does anyone believe this article? The auto CEO's claim that bankruptcy would cost the American economy more than their proposed bailout. It seems like scare tactics to me. Should Detroit sell out to Japan? Perhaps Wagoner et. al. have forgotten everything they learned about the economic theory of specialization. Japan is better at producing cars than Americans, so let's allow them to produce our cars. We can spend our time and resources on something more productive, like creating a better NFL team in Detroit. The Lions are just embarrassing. Bloomberg.

Quack quack quack. Lame ducks at work. For once, I agree with the populist Republican Dick Shelby. Congress and the White House agree, in principal, on auto company bailout. Bloomberg.

Combine Paulson's plan for lower mortgage rates with my proposal to stabilize home prices and we'll really be in business.

Daily Reading: December 1, 2008

Spend, baby, spend!!! Reuters report of Pelosi's proposed stimulus package.

The Treasury might bailout homeowners in trouble while those of us that didn't buy a house we couldn't afford foot the bill. Rewarding improper behavior seems to be a theme in Washington. Bloomberg.