Thursday Morning Links
"Give me your money, or your economy gets wacked!" That's been the theme for the past week as the fed, the gov't, and the administration seeks a $700 Billion that amounts to the handout of the century. Everyone claims some unthinkable calamity if we don't just hand it over. However, nobody is specific. If our president had a shred of credibility left (think yellow cake in Africa), people would be running on the banks this morning after his ultra-gloomy, anti-reassuring sales pitch last night. It's a good thing that nobody believes him.
I have been thinking all week of who or what the bogeyman is that Paulson and Bernanke must be whispering in the ears of congress to sell such a plan. And, I think I've got it. The most significant player that could crush our economy in an instant, the Chinese. Just a theory, but perhaps the Chinese, tired of buying our paper (that keeps turning into toilet paper) signalled that we either clean up our act quick, or Treasuries would hit the market en masse. Now that would cause a true calamity.
Deal Close On Mother Of All Bailouts (AP)
Bernanke Close To Another Rate Cut (Bloomberg)
Hunters Point, Willets Point Projects Move To City Council (Curbed)
Gowanus Bldg Updates Anti-Corporate, Anti-Wall St. Tags (Curbed)
A-Rod's Pad On The Market For $14Mil., Looks For A Double (Observer)
Wind Farm Considered For Queens Coast (Queens Crap)
UES: Eli's Gourmet Shop Now Adding 1.8% Energy Surcharge (NY Times)
I have been thinking all week of who or what the bogeyman is that Paulson and Bernanke must be whispering in the ears of congress to sell such a plan. And, I think I've got it. The most significant player that could crush our economy in an instant, the Chinese. Just a theory, but perhaps the Chinese, tired of buying our paper (that keeps turning into toilet paper) signalled that we either clean up our act quick, or Treasuries would hit the market en masse. Now that would cause a true calamity.
Deal Close On Mother Of All Bailouts (AP)
Bernanke Close To Another Rate Cut (Bloomberg)
Hunters Point, Willets Point Projects Move To City Council (Curbed)
Gowanus Bldg Updates Anti-Corporate, Anti-Wall St. Tags (Curbed)
A-Rod's Pad On The Market For $14Mil., Looks For A Double (Observer)
Wind Farm Considered For Queens Coast (Queens Crap)
UES: Eli's Gourmet Shop Now Adding 1.8% Energy Surcharge (NY Times)
The chinese could bring us to our knees in a heartbeat, for whatever reason. Of course, our economies are intertwined more than ever. Jack Welch said it best when he said that globalization and linked economies was the best chance for world peace.
ReplyDeleteYou make a good point. Just found this which won't help:
ReplyDelete"China banks told to halt lending to US banks-SCMP"
http://www.reuters.com/article/marketsNews/idUSPEK16693720080925
"There are a lot of people with little or no equity in their homes, who owe more on their mortgage than what the house is worth--for example, people who paid $300,000 on a house that's now worth $250,000," said Baker, co-director of the Center for Economic and Policy Research.Baker pointed to a report by the National Association of Realtors showing that in 2006, more than 40 percent of homebuyers financed the entire purchase of their homes--that is, paid no down-payment.Now, of course, house prices are falling--a drop of 8.4 percent in November over the same period a year ago, according to the S&P Case/Schiller housing price index. In some localities, the drop is much more severe. As Baker pointed out in a recent article, home prices in San Diego are dropping at a 27 percent annual rate. In Los Angeles, the rate of decline is 24.7 percent, and in San Francisco, 22.2 percent.
ReplyDelete---------------------------
francis
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