Richard Barley has a very depressing column today which begins like this:
Bankers and policy makers agree on the need to revive the securitization market to enable banks to roll over a big chunk of their existing wholesale funding.
Jim Surowiecki has an interesting response to Joe Nocera’s contrarian idea that letting Lehman fail, far from precipitating the worst of the financial crisis, actually enabled the government to bail out AIG and otherwise increase its intervention to something approaching the needed level.
Barack Obama said that he wants to do regulatory reform “in a way that doesn’t stifle innovation and enterprise”. Shame. Given how dangerous financial innovation and enterprise have been over the past decade, one would have hoped that a bit of stifling was a top priority for the Obama administration.
Businessweek.com was charging $25 CPMs in 2006, and selling out 79% of its inventory. This year, its CPMs are down to less than $20, and even then it’s selling only a very weak 38% of its inventory. With CPMs down by a quarter and the sell-through rate down by a half, what has happened to total revenues? Astonishingly, they’re up by about 4.5% over the period in question, and are now running at more than $20 million a year.