Comments on: The Two Sides of the Balance Sheet http://baselinescenario.com/2009/06/30/the-two-sides-of-the-balance-sheet/ What happened to the global economy and what we can do about it Sat, 21 Nov 2009 02:32:50 +0000 http://wordpress.com/ hourly 1 By: Siesta000000 http://baselinescenario.com/2009/06/30/the-two-sides-of-the-balance-sheet/#comment-19180 Siesta000000 Fri, 03 Jul 2009 05:28:26 +0000 http://baselinescenario.com/?p=4225#comment-19180 Is anyone watching the Fed's balance sheet? Is anyone watching the Fed’s balance sheet?

]]> By: Top Posts « WordPress.com http://baselinescenario.com/2009/06/30/the-two-sides-of-the-balance-sheet/#comment-19164 Top Posts « WordPress.com Fri, 03 Jul 2009 00:09:07 +0000 http://baselinescenario.com/?p=4225#comment-19164 [...] The Two Sides of the Balance Sheet Noam Scheiber at The New Republic has the inside scoop (hat tip Ezra Klein) on why Treasury is letting the [...] [...] [...] The Two Sides of the Balance Sheet Noam Scheiber at The New Republic has the inside scoop (hat tip Ezra Klein) on why Treasury is letting the [...] [...]

]]> By: c smith http://baselinescenario.com/2009/06/30/the-two-sides-of-the-balance-sheet/#comment-19140 c smith Thu, 02 Jul 2009 14:32:09 +0000 http://baselinescenario.com/?p=4225#comment-19140 How about something worth less than a penny on the dollar? "United Western Bancorp reports sale of mortgaged-backed securities (9.54 +0.09) : United Western Bancorp (UWBK), a Denver-based holding company whose principal subsidiary, United Western Bank (the "Bank"), is a community bank focused on expansion across Colorado's Front Range market and selected mountain communities, announced that the Bank sold mortgage-backed securities with an unpaid principal balance of $47.3 mln of lower tranche mortgage backed securities secured primarily by "option-adjustable-rate" mortgage loans (the "Option ARM Securities") to an unaffiliated third party. Total consideration received for the Option ARM Securities was $378,000." How about something worth less than a penny on the dollar?

“United Western Bancorp reports sale of mortgaged-backed securities (9.54 +0.09) : United Western Bancorp (UWBK), a Denver-based holding company whose principal subsidiary, United Western Bank (the “Bank”), is a community bank focused on expansion across Colorado’s Front Range market and selected mountain communities, announced that the Bank sold mortgage-backed securities with an unpaid principal balance of $47.3 mln of lower tranche mortgage backed securities secured primarily by “option-adjustable-rate” mortgage loans (the “Option ARM Securities”) to an unaffiliated third party. Total consideration received for the Option ARM Securities was $378,000.”

]]> By: Lavrenti Beria http://baselinescenario.com/2009/06/30/the-two-sides-of-the-balance-sheet/#comment-19121 Lavrenti Beria Wed, 01 Jul 2009 21:39:28 +0000 http://baselinescenario.com/?p=4225#comment-19121 From the evidence, nothing persuades more reliably than a period of incarceration behind razor wire followed by a series of public show trials. I'd recommend this course of treatment for the entire political class together with their lobbyist employers, that way they have a chance of offering genuine service. But it would only be after the new constitutional convention that we'd be able to consider the place of the ECO movement. One thing at a time, kindly. From the evidence, nothing persuades more reliably than a period of incarceration behind razor wire followed by a series of public show trials. I’d recommend this course of treatment for the entire political class together with their lobbyist employers, that way they have a chance of offering genuine service. But it would only be after the new constitutional convention that we’d be able to consider the place of the ECO movement. One thing at a time, kindly.

]]> By: Whocares http://baselinescenario.com/2009/06/30/the-two-sides-of-the-balance-sheet/#comment-19120 Whocares Wed, 01 Jul 2009 21:13:08 +0000 http://baselinescenario.com/?p=4225#comment-19120 LOL... Lenin (Vlad not John) couldn't have said it better! So we should take away the right of the Eco movement to try and persuade a politician. OK LOL… Lenin (Vlad not John) couldn’t have said it better! So we should take away the right of the Eco movement to try and persuade a politician. OK

]]> By: Lavrenti Beria http://baselinescenario.com/2009/06/30/the-two-sides-of-the-balance-sheet/#comment-19115 Lavrenti Beria Wed, 01 Jul 2009 19:31:18 +0000 http://baselinescenario.com/?p=4225#comment-19115 To me, the most galling and telling factor in all of this sorry mess is the impotence of the system itself, filetted as it has been by the reptiles that lobby for the banking sector and the whore politicians and administrators that do their bidding. And if it weren't the bank lobbying sector calling the tune, one could point to similar realities in the foreign policy (AIPAC), healthcare and arms sectors as well. There is no such thing as political democracy in this country, what is offered - and it is offered from the top down - is an illusion. Worse yet, it is irreformable. What remains to Americans interested enough and brave enough to seek change are mass demonstrations and the general strike. Anything less is farce. To me, the most galling and telling factor in all of this sorry mess is the impotence of the system itself, filetted as it has been by the reptiles that lobby for the banking sector and the whore politicians and administrators that do their bidding. And if it weren’t the bank lobbying sector calling the tune, one could point to similar realities in the foreign policy (AIPAC), healthcare and arms sectors as well. There is no such thing as political democracy in this country, what is offered – and it is offered from the top down – is an illusion. Worse yet, it is irreformable. What remains to Americans interested enough and brave enough to seek change are mass demonstrations and the general strike. Anything less is farce.

]]> By: Market Talk » Blog Archive » The Banks Solve All Their Problems - Again http://baselinescenario.com/2009/06/30/the-two-sides-of-the-balance-sheet/#comment-19114 Market Talk » Blog Archive » The Banks Solve All Their Problems - Again Wed, 01 Jul 2009 19:23:20 +0000 http://baselinescenario.com/?p=4225#comment-19114 [...] Scenario blogger James Kwak notes that banks’ capital raises have taken a lot of anxiety out of the market lately, but the [...] [...] Scenario blogger James Kwak notes that banks’ capital raises have taken a lot of anxiety out of the market lately, but the [...]

]]> By: Jay http://baselinescenario.com/2009/06/30/the-two-sides-of-the-balance-sheet/#comment-19108 Jay Wed, 01 Jul 2009 18:48:52 +0000 http://baselinescenario.com/?p=4225#comment-19108 More Ezra Klein?? Should we just stop reading Baseline and switch to Ezra... if you're just going to monkey him with every other post you make. This blog is becoming the EzraKleinEchoScenario. I don't get why you are promoting him like this. More Ezra Klein?? Should we just stop reading Baseline and switch to Ezra… if you’re just going to monkey him with every other post you make. This blog is becoming the EzraKleinEchoScenario. I don’t get why you are promoting him like this.

]]> By: c smith http://baselinescenario.com/2009/06/30/the-two-sides-of-the-balance-sheet/#comment-19101 c smith Wed, 01 Jul 2009 16:05:27 +0000 http://baselinescenario.com/?p=4225#comment-19101 Federal (i.e.; taxpayer/printing-press) backstop for any and every piece of bad news coming down the pike has created a tentative sense of stability in the financial markets. Growth (which involves new risk-taking as opposed to simply kicking old risks down the road) will not happen until toxic assets are properly priced and disposed of. Federal (i.e.; taxpayer/printing-press) backstop for any and every piece of bad news coming down the pike has created a tentative sense of stability in the financial markets. Growth (which involves new risk-taking as opposed to simply kicking old risks down the road) will not happen until toxic assets are properly priced and disposed of.

]]> By: NoteMod.org » Blog Archive » Secondary Sources: Bank Balance Sheets, Home Prices, Greenspan http://baselinescenario.com/2009/06/30/the-two-sides-of-the-balance-sheet/#comment-19098 NoteMod.org » Blog Archive » Secondary Sources: Bank Balance Sheets, Home Prices, Greenspan Wed, 01 Jul 2009 15:05:34 +0000 http://baselinescenario.com/?p=4225#comment-19098 [...] The Balance Sheet: On the Baseline Scenario, James Kwak looks at the changing face of Treasury plans. “The initial Paulson Plan last September focused on the left side; the idea was to buy toxic assets off of bank balance sheets. Then in October Treasury did an about-face and switched to the right side, recapitalizing banks by buying preferred stock from them (TARP). In November and January, Treasury and the Fed did combined bailouts of Citigroup and Bank of America, in which they both provided fresh capital and guaranteed certain assets against falls in value. In February and March, Treasury shifted all the way over to the left (asset) side with the PPIP, which was hailed (by its supporters, at least) as a way to cleanse bank balance sheets – something that had not been accomplished by TARP. Now, it seems, we are back to the right side; as long as banks can raise more capital, everything is fine, no matter how many toxic assets they may hold. One key to the financial crisis has been nervousness about toxic assets on bank balance sheets. It’s nice that people aren’t so nervous anymore. But as Raghuram Rajan said to Klein, ‘if we reenter the downturn, and the banks begin to look shakier – we’ll wish we had moved the assets when the market was calm and stable, rather than leaving them to create uncertainty and volatility at the center of the banking system.’” [...] [...] The Balance Sheet: On the Baseline Scenario, James Kwak looks at the changing face of Treasury plans. “The initial Paulson Plan last September focused on the left side; the idea was to buy toxic assets off of bank balance sheets. Then in October Treasury did an about-face and switched to the right side, recapitalizing banks by buying preferred stock from them (TARP). In November and January, Treasury and the Fed did combined bailouts of Citigroup and Bank of America, in which they both provided fresh capital and guaranteed certain assets against falls in value. In February and March, Treasury shifted all the way over to the left (asset) side with the PPIP, which was hailed (by its supporters, at least) as a way to cleanse bank balance sheets – something that had not been accomplished by TARP. Now, it seems, we are back to the right side; as long as banks can raise more capital, everything is fine, no matter how many toxic assets they may hold. One key to the financial crisis has been nervousness about toxic assets on bank balance sheets. It’s nice that people aren’t so nervous anymore. But as Raghuram Rajan said to Klein, ‘if we reenter the downturn, and the banks begin to look shakier – we’ll wish we had moved the assets when the market was calm and stable, rather than leaving them to create uncertainty and volatility at the center of the banking system.’” [...]

]]> By: BlackSwan http://baselinescenario.com/2009/06/30/the-two-sides-of-the-balance-sheet/#comment-19095 BlackSwan Wed, 01 Jul 2009 14:53:41 +0000 http://baselinescenario.com/?p=4225#comment-19095 Felix Salmon's take on that article can be found here: http://blogs.reuters.com/felix-salmon/2009/06/24/matt-taibbi-vs-goldman-sachs/ Felix Salmon’s take on that article can be found here:

http://blogs.reuters.com/felix-salmon/2009/06/24/matt-taibbi-vs-goldman-sachs/

]]> By: MortgageMods.org » Blog Archive » Secondary Sources: Bank Balance Sheets, Home Prices, Greenspan http://baselinescenario.com/2009/06/30/the-two-sides-of-the-balance-sheet/#comment-19094 MortgageMods.org » Blog Archive » Secondary Sources: Bank Balance Sheets, Home Prices, Greenspan Wed, 01 Jul 2009 14:37:07 +0000 http://baselinescenario.com/?p=4225#comment-19094 [...] The Balance Sheet: On the Baseline Scenario, James Kwak looks at the changing face of Treasury plans. “The initial Paulson Plan last September focused on the left side; the idea was to buy toxic assets off of bank balance sheets. Then in October Treasury did an about-face and switched to the right side, recapitalizing banks by buying preferred stock from them (TARP). In November and January, Treasury and the Fed did combined bailouts of Citigroup and Bank of America, in which they both provided fresh capital and guaranteed certain assets against falls in value. In February and March, Treasury shifted all the way over to the left (asset) side with the PPIP, which was hailed (by its supporters, at least) as a way to cleanse bank balance sheets – something that had not been accomplished by TARP. Now, it seems, we are back to the right side; as long as banks can raise more capital, everything is fine, no matter how many toxic assets they may hold. One key to the financial crisis has been nervousness about toxic assets on bank balance sheets. It’s nice that people aren’t so nervous anymore. But as Raghuram Rajan said to Klein, ‘if we reenter the downturn, and the banks begin to look shakier – we’ll wish we had moved the assets when the market was calm and stable, rather than leaving them to create uncertainty and volatility at the center of the banking system.’” [...] [...] The Balance Sheet: On the Baseline Scenario, James Kwak looks at the changing face of Treasury plans. “The initial Paulson Plan last September focused on the left side; the idea was to buy toxic assets off of bank balance sheets. Then in October Treasury did an about-face and switched to the right side, recapitalizing banks by buying preferred stock from them (TARP). In November and January, Treasury and the Fed did combined bailouts of Citigroup and Bank of America, in which they both provided fresh capital and guaranteed certain assets against falls in value. In February and March, Treasury shifted all the way over to the left (asset) side with the PPIP, which was hailed (by its supporters, at least) as a way to cleanse bank balance sheets – something that had not been accomplished by TARP. Now, it seems, we are back to the right side; as long as banks can raise more capital, everything is fine, no matter how many toxic assets they may hold. One key to the financial crisis has been nervousness about toxic assets on bank balance sheets. It’s nice that people aren’t so nervous anymore. But as Raghuram Rajan said to Klein, ‘if we reenter the downturn, and the banks begin to look shakier – we’ll wish we had moved the assets when the market was calm and stable, rather than leaving them to create uncertainty and volatility at the center of the banking system.’” [...]

]]> By: Secondary Sources: Bank Balance Sheets, Home Prices, Greenspan - Real Time Economics - WSJ http://baselinescenario.com/2009/06/30/the-two-sides-of-the-balance-sheet/#comment-19091 Secondary Sources: Bank Balance Sheets, Home Prices, Greenspan - Real Time Economics - WSJ Wed, 01 Jul 2009 13:53:14 +0000 http://baselinescenario.com/?p=4225#comment-19091 [...] [...] [...] [...]

]]> By: Sid http://baselinescenario.com/2009/06/30/the-two-sides-of-the-balance-sheet/#comment-19089 Sid Wed, 01 Jul 2009 13:38:04 +0000 http://baselinescenario.com/?p=4225#comment-19089 Now THAT is communism! Now THAT is communism!

]]> By: Links: 2009-07-01 - Credit Writedowns http://baselinescenario.com/2009/06/30/the-two-sides-of-the-balance-sheet/#comment-19079 Links: 2009-07-01 - Credit Writedowns Wed, 01 Jul 2009 10:25:54 +0000 http://baselinescenario.com/?p=4225#comment-19079 [...] This is a nice little house 40 minutes from ReykjavikThe Two Sides of the Balance Sheet – James Kwak [...] [...] This is a nice little house 40 minutes from ReykjavikThe Two Sides of the Balance Sheet – James Kwak [...]

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