News round-up: 21 Sep 2008

Everyone and his brother is talking about the bailout plan from US Treasury Secretary Hank Paulson. I am not going to add my voice to the cacophony just yet, except to remind readers that the executive branch and the Federal Reserve are taking a leadership role that constitutionally belongs with the US Congress.

Time and again, Congress has failed to take a leadership role and has fallen in lockstep behind a powerful executive branch. The checks and balances of the US system of government are clearly not working.

Below are a few links to some interesting thoughts on the current news that you may not have seen. Nader, Barr & Paul: ‘Told you so’ – Politico This is no time for politics of the playground – Clive Crook, FT The shadow banking system is unravelling – Nouriel Roubini, FT Banking bonus outrage – UK Bubble (Lehman staff get huge retention bonuses to stay with Barclays. I understand and support the motives. The optics are bad.) British politics: Who killed New Labour? – Economist (Blair must be aughing that he escaped this mess) AIG’s rescue: Size matters – Economist (No cute little puns from the peanut gallery) Accounting: All’s fair – Economist (Marking to market has been a bit of a problem. Read this to find out why) The financial crisis and the election: The politics of despair – Economist The Pain of Deleveraging Will Be Deep and Wide – Barrons Bank of Ireland shares rocket on takeover rumours – Irish Independent (This beleaguered European bank rose a massive 65% on rumours alone. Nice) Banken: Wackelt jetzt der Commerzbank-Dresdner-Deal? – FAZ (in German: Commerzbank – Dresdner deal in trouble?) Meriwether Risks Another Collapse – WSJ (This guy busted LTCM 10 years ago. The fact that he’s doing it again says something is wrong with our financial system) Paulson’s Line in the Sand Washed Away by Tides – Caroline Baum (The great Caroline Baum with another insightful commentary) Forget short-sellers, Pollyanna creep could be the culprit – Times Online (If you think government stats are bogs, you must read this) The Count: Users Are Tossing Their Landlines Overboard – NYTimes (my wife and I just did. A bit scary at first)


Originally published at Credit Writedowns and reproduced here with the author’s permssion.

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