Goldman needs to retire its FDIC-backed debt

July 17, 2009

If Goldman Sachs wants to go back to the future and keep setting aside record sums of money for compensation and year-end bonuses, it should first retire all of its oustanding FDIC-backed debt.

Piech firmly behind the wheel at VW and Porsche

July 17, 2009

However the Volkswagen-Porsche stand-off resolves itself, it looks as if Ferdinand Piech holds all the cards. That should worry VW <VOWG.DE> investors.

The debt nightmare is still with us

July 15, 2009

Pouring trillions of dollars into the global financial system has done more than pull the world away from the abyss.

The government owns the MBS market

July 6, 2009

OK, it’s not a majority owner, but the government has an impressive stake in the $4.5 trillion agency mortgage-backed securities market.  Barclays Capital’s last count, as of July 3, puts Federal Reserve purchases at $621.6 billion since it launched the program in January.  Separately, the Treasury Department has picked up more than $145 billion since the government put Fannie Mae and Freddie Mac in receivership in September. The Treasury data is through the end of May.

The negative feedback loop

July 2, 2009

Another month, another dismal jobs report from the U.S. Labor Department. It’s hard not to gulp when you see another 467K jobs lost this month. And an unemployment rate of 9.5% isn’t exactly heartwarming.