Bloomberg reports that Treasury Secretary Geithner had seen stronger than expected economic recovery signs. Substantiation inside the text of the news item simply refers to normalisation of financial conditions. I am not sure that is ’stronger than expected’ economic recovery. Separately, finance ministers of G-7 called for a ’strong dollar’, again, according to Bloomberg:
Oct. 3 [...]
Wr iting in New York Times, Joe Nocera concludes his piece as follows:
Late this week, I asked the Treasury secretary, Timothy Geithner, what he thought the banks owed the country. In responding, he made a point that often gets lost in all the anger. We did get something in return for all that bailout money, [...]
Some have chosen to focus on the fact that some students in the University where Mr. Geithner made a presentation chose to laugh when he said that America would maintain the value of the dollar. See here for example.
The real issues are covered by Simon Johnson at Baseline Scenario. See his posts here and here.
This push by [...]
The Fed’s loose policy from 2003 to 2005 created the commodity and credit bubbles that made these countries flush with dollars. Given their low domestic propensity to consume, these countries then recycled those dollars back into dollar-denominated assets, such as Treasurys and real-estate-related assets such as Fannie Mae securities. The Fed itself had created the [...]
Received from a friend:
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March 24, 2009
The Editor
Financial Times
Sir: Structured investment vehicles to invest in tranched mortgage-backed securities with plenty of leverage have been duly condemned for the huge problems and losses they caused. So to solve the problems the United States Treasury now brings us structured investment vehicles to invest in tranched mortgage-backed [...]
Emanuel Derman, former head of Quantitative Finance in Goldman Sachs and theoretical physicist now teaches both Industrial Engineering and Quantitative Finance in Colombia University. His blogs are short, crisp and both thoughtful and thought-provoking.
Here are two samples:
http://www.wilmott.com/blogs/eman/index.cfm/2009/2/19/Do-Keynesians-Laugh-When-They-Tickle-Themselves (and)
http://www.wilmott.com/blogs/eman/index.cfm/2009/2/12/Shocks-to-the-System
Bare Talk at Mint
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