Articles Written by:    BLACKHEDD     

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At What Price A Domestic Auto Industry?

This week, Congress returns to the question of what to do with the domestic auto industry, Detroit’s humbled Big Three. And the options range from awful to unthinkable. Yesterday we got a reading of auto sales in November. The story was extremely bad. ...

From BLACKHEDD, RedState,  3 Dec 2008
Related Topics: U.S. Congress,  General Motors,  Ford Motor Company,  U.S. Republican Party,  Harry Reid

What Obama Could Do To Calm Financial Markets, Right Now

I think we're all getting a quite vivid sense that President-elect Obama's way of handling tough situations is to set his jaw, furrow his brow, stare purposefully forward, say reassuring things, but on no account to make any clear statements of intent, ...

From BLACKHEDD, RedState,  1 Dec 2008
Related Topics: Barack Obama,  Paul Volcker,  Timothy F. Geithner

Treasury-security Yields Continue Their Sharp Fall [Updated]

The 30-year T bond is priced to yield 3.34% this morning. The 10-year note is at 2.83%. These are extraordinary numbers, and they're still falling fast. Three-and-six month bills are already at or near zero. This is powerful and continuing evidence ...

From BLACKHEDD, RedState,  1 Dec 2008

China Devalues Its Currency

It seems to me that focus has shifted away from China’s economic and financial doings during the acute financial crisis that began last September. The story in China for most of this year and last year has been extremely high inflation (particularly in ...

From BLACKHEDD, RedState,  1 Dec 2008
Related Topics: World Bank,  Freddie Mac,  Fannie Mae

Lots of Action in the Bond Market

This is just a brief note to make you all aware that it's being a very remarkable week in the Land of Fixed-Income and Monetary Policy. I'll post much more on this topic as soon as I can, but the Federal Reserve has qualitatively changed the nature of ...

From BLACKHEDD, RedState,  26 Nov 2008
Related Topics: Federal Reserve,  White House,  U.S. Congress

Blue-Light Special

Last week was Citigroup’s turn. Citi is one of the world’s best-known banking brands, and was once America’s largest bank by market capitalization. Last week, investors knocked 60% off the value of Citi’s stock, in a nerve-rattling selloff that was too ...

From BLACKHEDD, RedState,  24 Nov 2008
Related Topics: Citigroup,  Lehman Brothers,  Fannie Mae,  Freddie Mac,  Federal Reserve

The Week That Was For General Motors

So this week we witnessed the jarring spectacle of three wealthy, well-dressed CEOs flying from Detroit to Washington, DC, each in his individual private jet, to ask for anywhere from 25 to 50 billion dollars of your money. Instead, Congress turned ...

From BLACKHEDD, RedState,  21 Nov 2008
Related Topics: U.S. Republican Party,  General Motors,  Harry Reid,  U.S. Congress,  U.S. Democratic Party

Extraordinary Doings in the Bond Market

To go along with the piece I wrote earlier today (here), the bond market appears to have picked up on the theme of deflation. The 30-year US Treasury bond rocketed upward in price to more than 118 and a half by today’s market close, and much of ...

From BLACKHEDD, RedState,  20 Nov 2008

What Lies Ahead For General Motors

The most urgent piece of economic news and policy over the next several weeks will be the fate of the General Motors Corporation. It will take precedence over the general policy response to the worsening recession. The problems in the auto industry go ...

From BLACKHEDD, RedState,  18 Nov 2008
Related Topics: U.S. Republican Party,  U.S. Senate,  U.S. Democratic Party,  Jennifer Granholm,  George W. Bush

The Bridge Loan From Hell

Have you ever been in a situation where you’re running a company, and you’re lining up a round of financing, but you run short of time? And you need to complete some kind of near-term funding to avoid doing something really painful, like a ...

From BLACKHEDD, RedState,  11 Nov 2008
Related Topics: General Motors,  Ford Motor Company,  Rick Wagoner,  U.S. Congress,  Barack Obama

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