Commentaries

Now raising intellectual capital

from Rolfe Winkler:

Lunchtime Links 1-12

China surprises with bank reserve hike (Xin/Rabinovith, Reuters) The Fed could learn something from the PBOC. This sudden move to tighten bank lending maintains the PBOC's reputation for acting without warning. If the Fed had a similar rep, U.S. lenders wouldn't be so cavalier taking interest rate risk.

Special bankruptcy court for banks mulled in Senate (Younglai, Reuters) Interesting proposal for Dodd's Senate financial reform bill. Can't really comment until details are made available.

Citi unit grows -- with Fed's help (Enrich, WSJ) The fact that Citi subsidiary GTS is so important to the global financial system -- and that its failure would be disastrous -- is a good argument that regulators should find a way to wind it down...

Obama weighs tax on banks to cut deficit (Calmes, NYT) No details here either, but I expect whatever is proposed to pass, as the proposal will come not long after banks announce bonuses. Plan would raise as much as $120 billion. Taking money away from the financial sector, including its customers, is a necessary step towards de-leveraging the economy.

from Rolfe Winkler:

Lunchtime Links 1-11

Shoddy tayloring (George Cooper) The author of my favorite book on the financial crisis now has a blog. His first post tears down Bernanke's recent speech absolving his/Greenspan's easy money policies for inflating housing bubble. It's a bit technical, but very good.

Venezuelan devaluation helps Chavez, for others it's unclear (Molinski/Crowe, DJN) Speaking to economist Steve Hanke last month about North Korea's devaluation, he predicted that Venezuela would be next. His thoughts today: "Venezuela is in a death spiral. There will be more bad news."

  •