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Thursday, February 5, 2009

FT front page roundup

Hope-fucker Barack Obama fulfilled his campaign promise to take all the white people's money and convert it to Islam. Was that so hard?

On a more serious note, it looks as if the Hussein administration is leaning toward an insurance-type program to deal with the white people's worthless assets, giving much less weight to the "bad bank" idea, previously touted. Losses on toxic assets will be capped at some level with the government taking the remaining losses. This strikes me as odd since even with the bad bank the government would at least get something for those assets eventually, even if it was pennies on the dollar. With the insurance plan the government only takes the losses. I'm not seeing where it benefits from the upside of a bank recovery, whenever that happens, other than through recapitalization of banks through share purchases--but both plans would have required more of that.

So the government takes the loss and bank shareholders don't get punished at all. That's the best you losers could come up with? Capping executive pay then seems to be the proverbial air-freshener on the turd, which Tim Geithner will commence burgling.

The US Treasury is revving up its debt machine while yields creep up before we've even passed a stimulus bill. The Fed is concerned about what this means for mortgage rates and may intervene to buy long-dated Treasuries directly, which is the monetary policy equivalent of masturbation.

Consumer goods juggernaut Procter & Gamble is trying to sell off its pharmaceuticals division as people turn to harder drugs to cope with the recession.

And some investment outfit in Iceland, the IMF-protectorate, is totally fucked, which no one saw coming.

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