Radio Free Wall Street 3/19/2008

Lee Adler, Aaron Krowne, and Russ Winter talk about the latest developments in the financial markets and analyze the potential implications of this and other actions. Topics include crony black box capitalism, the latest actions of the Fed, and whether the end of the line is here for inflation plays.
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5 comments for “Radio Free Wall Street 3/19/2008

  1. March 19, 2008 at 8:11 pm

    Thank-you. That was a great podcast.

    I think the lootor/lootee concept was good and, Lee, your concept of the Fed capping money and we are now moving spaghetti around the plate is great.

    But more thought needed to probe how these two ideas connect to Fannie/Freddie capital, which is now unconstrained by 30%.

    How can it be used as a looting scenario? Specifically, is there a way to loot the Chinese, Japanese and Middle Eastern holders? Clearly it is not going to expand mortgage lending since house demand is plunging.
    Reversing the house price downtrend is maybe not the objective. It is something related to looting somebody.

    I am not sure how, because agency bonds are not very useful compared to how the Fed treasuries were used. Agency treasury spreads are broken and hurting primary dealers. Issuing more agency paper is going to hurt somebody more.

  2. March 19, 2008 at 9:53 pm

    DEFBEAR,

    It is related to looting the American taxpayer. The Chinese and Arabs are wise to our little scam, so it will be impossible to raise meaningful amounts of additional capital from them. But it’s always easy to pull one over on J6P.

    Hell, most of the Depression-era laws that allow virtually any sort of financial intervention are still on the books. Just look at what the Fed did with regards to Bear Stearns. Look at all the “creative facilities”.

    The Federal government will ultimately be expected to prop up all these garbage heaps; Fannie, Freddie, the FHLB’s, the FHA, GNMA, the Fed — and it won’t even have to come up for a vote in front of an elected representative.

  3. stevieo
    March 19, 2008 at 10:32 pm

    Interesting podcast
    that poses many questions
    without clear answers.

    Nice lively debate
    to stimulate those gray cells.
    Keep up the good work.

  4. March 20, 2008 at 5:40 pm

    There is an undercurrent of talk from gold bulls that the next looting target is gold and commodity funds.

    Let’s deleverage them next?

  5. KUFan
    March 21, 2008 at 1:03 pm

    Interesting / scary podcast.

    Off to the bank to get my maximum withdrawal (again)

Comments are closed.