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Richard Sachs Cycles

The aftermath …

Perhaps this plan will make Art a little happier … but I’d like to read the actual text of the bill before I make any judgments.

Democrats offer alternative ‘no bailouts act’ – CNN.com

WASHINGTON (CNN) — A small group of Democratic House members put together an alternative to the $700 billion financial bailout measure [...]

At what cost, “NO”?

Without a Bailout Plan, What Will the Cost Be? – TIME

By voting down the proposed $700 billion financial bailout package — and causing a spectacular stock market rout — a majority of members in the House of Representatives made a clear statement that they didn’t want to put taxpayers on the hook for the [...]

What do the candidates propose?

Will candidates’ financial plans work? – CNN.com

(CNN) — In the wake of the country’s financial meltdown, Sens. Barack Obama and John McCain have been telling voters they’ll fix the economy while their opponent would only make it worse.

As the economy dominated voters’ concerns, McCain and Obama stepped up the political blame game and [...]

GS, MS to become banks

This is an interesting twist. Obviously, it means that Morgan Stanley will be subject to more stringent regulation, but I wonder what it fundamentally means for the business model. This will be really interesting to following over the next days/weeks/months.

Goldman Sachs, Morgan Stanley To Be Bank Holding Companies – WSJ.com

The Federal Reserve said [...]

Big Mack Attack

Shorts face big Mack attack- Sep. 17, 2008

The Morgan Stanley chief goes on the offensive after a solid earnings report fails to halt the stock’s collapse.

FORTUNE (New York) — For Morgan Stanley and Goldman Sachs, the two remaining standalone investment banks, the world has become an ugly place.

So ugly, in fact, that [...]

Crisis on the Street

Crisis on Wall Street as Lehman Totters, Merrill Is Sold, AIG Seeks to Raise Cash – WSJ.com

Fed Will Expand Its Lending Arsenal in a Bid to Calm Markets; Moves Cap a Momentous Weekend for American Finance

NEW YORK — The American financial system was shaken to its core on Sunday. Lehman Brothers Holdings Inc. [...]

It’s gonna be carnage

Goldman, Morgan Grasp at Bitter Prize September 15, 2008; Page C1

Goldman Sachs Group and Morgan Stanley look like survivors in Wall Street’s purging of stand-alone investment banks. But the prize will be bitter.

The investment banks report results this week for their fiscal third quarter, which ended in August. Analysts expect a profit from [...]

Historical perspective

The financial system | What went wrong | Economist.com

“A COMPANY for carrying out an undertaking of great advantage, but nobody to know what it is.” This lure for the South Sea Company, published in 1720, has a whiff of the 21st century about it. Modern finance has promised miracles, seduced the brilliant and [...]

Rescue Me

Rescue Me: A Fed Bailout Crosses a Line

WHAT are the consequences of a world in which regulators rescue even the financial institutions whose recklessness and greed helped create the titanic credit mess we are in? Will the consequences be an even weaker currency, rampant inflation, a continuation of the slow bleed that we have [...]

Finally …

… one of the PMs at my office gave notice this week, to move to a similar role at another investment bank, but this time in North Carolina.

… his colleague will be moving into the senior PM role, and a job posting for the junior PM role should be posted early next week.

I [...]