Stocks are up 8% from yesterday's lows, 2-yr Treasury yields are up 75 bps, and credit spreads are down sharply. So far the government hasn't done anything except to curb short-selling and announce a plan to socialize the remaining costs of the housing crisis sometime in the future. That tells me that this crisis wasn't fundamental or systemic. There was a relatively easy fix out there, and what it did was to remove the fear of an imminent financial market implosion. We've still got to wait awhile to see the details of the plan, and we've got to wait to see if the economy is getting better or worse. So there will be plenty of time for reversals and surprises. The VIX index is still above 30, so the storm hasn't completely passed. But I think that with time we'll see the economy doing slowly better, and by the time the RTC solution gets put together, it might not even be necessary.
Sep 19, 2008
Mr. Grannis, on the economy:
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Y Bush otra ves no tuvo nada que ver...
ReplyDeleteEs que tiene una mala suerte este tipo mire que es una cosa...
La culpa es de Bush. Y de Menem. Según se trate de EEUU o Argentina.
ReplyDeleteNo creas de Kirchner tambien
ReplyDeleteEn todos los paises hay partidos que estan imbrincados y corrompidos con el sistema establecido y otros partidos que se oponen haciendo lo que puedenellos tienen al Partido Republicano con el sistema Capitalista y enfrente a los democratas que hacen lo que pueden a los ponchazos
Y aca tenemos a los peronchos con su sistema caudillista semi feudal semi facista y los radicales y neo radicales, liberales y socialistas haciendo lo que pueden en la oposicion
El Partido Demócrata y su alegre apoyo a las empresas paraestatales generó esta crisis. Los Republicanos aportaron lo suyo, pero los Demócratas está muy muy lejos de ser la oposición a esto.
ReplyDeleteTom Feeney (R-Fl): "I come today to speak on behalf of the forgotten man, and that includes some 50% of Americans that either own their home, or are renting . . . the 95% of homeowners that are making their payments on time . . . the 99% of Americans that did not behave irresponsibly . . . that ultimately will pay the price for this bill."
ReplyDeleteEn definitiva, todo esto es para que algunos bancos se salven y para que un grupo minoritario de personas no pierdan la casa, algo semejante al 2002 argentino.