Andrew Ross Sorkin has been digging around in the FDIC’s charter, and has discovered that it is barred from incurring any obligation greater than $30 billion. Which is a bit inconvenient, seeing as how it’s about to guarantee as much as $1 trillion as part of the PPIP bank bailout program.
First, there was the G20 communique:
The agreements we have reached today, to treble resources available to the IMF to $750 billion, to support a new SDR allocation of $250 billion, to support at least $100 billion of additional lending by the MDBs, to ensure $250 billion of support for trade finance, and to use the additional resources from agreed IMF gold sales for concessional finance for the poorest countries, constitute an additional $1.1 trillion programme of support to restore credit, growth and jobs in the world economy.
Megan McArdle is unhappy with the state of green consumption:
When I look back at almost every “environmentally friendly” alternative product I’ve seen being widely touted as a cost-free way to lower our footprint, held back only by the indecent vermin at “industry” who don’t care about the environment, I notice a common theme: the replacement good has really really sucked compared to the old, inefficient version.
Allen Stanford has given an interview to ABC news, and it makes for compelling viewing. He’s tearful, he’s aggressive, he’s delusional, he’s hilarious: he seems entirely convinced that he wasn’t running a Ponzi scheme, even as he complains about being “forced to fly on a commercial plane for the first time in almost two decades”. My favorite bit:
One of the handier concepts to have come out of a foreign dictionary during this crisis is that of Anstaltslast, the German idea that if the state owns a company, then there’s an implicit government guarantee on that company’s liabilities. Essentially, it means that once a bank is nationalized, you can lend to it as much as you like, safe in the knowledge that you’ll get all your money back in full and on time.