07/11/2009
» FT.com / Markets / On Wall Street - Greenlight Capital founder calls for CDS ban
When one of the world’s most renowned hedge fund investors turns 180 degrees on a key financial instrument that has been centre stage throughout the financial crisis, it is worth paying heed.
Link posted at 20:07
Yves Smith in The Fantasy of the Clearing House Magic Bullet « naked capitalism
Quote posted at 13:02
Productivity increased 9.5 percent in the nonfarm business sector during the third quarter of 2009 as unit labor costs fell 5.2 percent (seasonally adjusted annual rates). In manufacturing, productivity increased 13.6 percent while unit labor costs fell 7.1 percent…
Back in the 1930s there was a Polish Marxist economist, Michel Kalecki, who argued that recessions were functional for the ruling class and for capitalism because they created excess supply of labor, forced workers to work harder to keep their jobs, and so produced a rise in the rate of relative surplus-value.
For thirty years, ever since I got into this business, I have been mocking Michel Kalecki. I have been pointing out that recessions see a much sharper fall in profits than in wages. I have been saying that the pace of work slows in recessions—that employers are more concerned with keeping valuable employees in their value chains than using a temporary high level of unemployment to squeeze greater work effort out of their workers. I don’t think that I can mock Michel Kalecki any more, ever again.
„pitchforks?
(via champagnecandy)
(via robot-heart-politics)
(via continuum)
Quote posted at 11:01
Felix Salmon » Blog Archive » The roots of the coming crash | Blogs | (via nonolet)
Quote posted at 09:01
06/11/2009
» Michael Milken On The Five Biggest Systemic Threats
I applauded QtC for a series of posts that had great content from extremely dubious sources. This is in the same vein. Michael Milken, of certain dubious junk bond endeavors, on systemic risk (I should also point out that Milken has done quite a bit to rebuild his reputation, unlike certain other people).
Link posted at 23:06
Yves Smith in Mirabile Dictu! Goldman Lost Money Only One Day in Last Quarter « naked capitalism
Quote posted at 21:06
Absolute Perfection: Goldman Loses Money On Just One Trading Day In Q3 | zero hedge
Quote posted at 19:06
Absolute Perfection: Goldman Loses Money On Just One Trading Day In Q3 | zero hedge
Quote posted at 17:05
Quote posted at 15:04
AlphaNinja: Goldman’s q3 trading revenue down, hit-rate up (GS)
Quote posted at 13:02
Municipalities dealt with the separation between taxes and expenses by borrowing. In the mid-1990s, states and cities were retiring as much debt as they were incurring. During the 2000s, though, they borrowed about $150 billion per year in aggregate, peaking at $215 billion in 2007 by which time $2.7 trillion in debt was outstanding, more than two years’ worth of tax receipts.
Barring some sort of miraculous boom in the economy and pension fund investment returns, state and local governments are headed for insolvency and default.
„Philip Greenspun’s Weblog » The Coming Collapse of the Municipal Bond Market
Quote posted at 11:02
Dirk Bezemer in FT.com / Comment / Opinion - Lending must support the real economy
Quote posted at 09:02
05/11/2009
The same reckless lending that characterized the subprime mortgage business in residential was also characterizing what went on in commercial real estate in the mid 2000s.
Everything’s going in the wrong direction and I think we’re going to see quite a lot of tragedies in that sector.
„Boom2Bust.com » Blog Archive » Wilbur Ross: Commercial Real Estate Crisis Still Looms
Quote posted at 23:05
Dirk Bezemer in FT.com / Comment / Opinion - Lending must support the real economy
Quote posted at 21:05
Robert J. Samuelson - Robert J. Samuelson on whether America could go broke - washingtonpost.com
Quote posted at 19:05
