Evening links 12-14

December 14, 2009

Substantial bank losses needed to fix housing (Bloomberg) To avoid foreclosures, principal has to be written down. That implies hefty losses, especially for banks that hold lots of home equity loans on their balance sheet. Such loans get wiped out before first mortgages lose a penny. Complicating matters, many big banks service both the first and the second mortgage, which means they are highly conflicted. They don’t want to eat a loss on the second mortgage, even if writing it down would make the first perform much better…

Greece defies Europe as crisis grows deadly serious (Evans Pritchard, Telegraph) Provocative idea: To relieve its debt burden, Ambrose says Greece should devalue its currency. That’s not easy since they use the Euro. He recommends Greece ditch the Euro, “restore its currency, devalue, pass a law switching internal euro debt into drachmas, and “restructure” foreign contracts. This is the ‘kitchen-sink’ option. Such action would allow Greece to break out of its death loop.” Call it the nuclear option… (ht Implode-o-Meter)

Whole Foods Republicans (Petrilli, WSJ) The Republican party is missing an opportunity to reach independent college-educated voters…

Cuts come to New York: Two subway lines may get eliminated, along with subsidized fares for students. In the meantime, Gov. Paterson announced that he will withhold payments to schools and local governments.

Monsanto seed biz role revealed (Leonard, AP) Abusing quasi-monopoly power.

For America’s Santas, it’s hard to be jolly (Woo, WSJ)

The other Lamborghini (Wikipedia)

VIDEO: “I was hot as a pistol” (Google) Oldie but a goodie….autistic high school basketballer scores 20 points in 4 minutes.

View atop the Tower of Babel Burj Dubai…


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Yeah… that’s pretty high up there:


Posted by Jake | Report as abusive

We are Wall St. and Obama is only a president of some country!

Published: December 14, 2009
President Obama didn’t exactly look thrilled as he stared at the Polycom speakerphone in front of him. “Well, I appreciate you guys calling in,” he began the meeting at the White House with Wall Street’s top brass on Monday.

http://www.nytimes.com/2009/12/15/busine ss/15sorkin.html?hp

Posted by jamie kennedy | Report as abusive

We are the Banktas. No we are not your mob, thug, or drug dealer. What we do is simple. We get it from the Government at 00.50% and loan it to you as a credit card at 29.99%. Any questions slaves?

Posted by jpmorgan | Report as abusive

I guess that the Greeks are negotiating with the Germans right now: “If you don’t give us what we want, we’ll do an Ambrose”.

Posted by dearieme | Report as abusive

And the Germans will reply “Evans forbid”.

Posted by dearieme | Report as abusive

Germany may side with a new and devalued drachma. The uncertainity alone should be good for at least a 10% drop in Euro/U$D

Posted by Mark G. | Report as abusive