Following Fed Chairman Ben Bernanke’s “nuclear option” announcement of last week, the action stayed on Capitol Hill with Treasury Secretary Timothy Geithner outlining his Public-Private Investment Program as well as “new rules of the game” for the financial services industry.
Whereas Nouriel Roubini’s reaction to the administration’s new plan to buy toxic assets was surprisingly positive, James Galbraith and Paul Krugman were not impressed. These gentlemen are included in this week’s harvest of video clips, sharing the platform with the likes of Bill Gross, Paul McCulley, John Bogle, Wilbur Ross and Jeremy Siegel.
As stock markets look set for a straight third week of gains, the debate as to the longevity of the nascent rally rages on. The featured video material sees Mark Mobius saying “the next bull market has begun”, Jeff Saut arguing the “odds are pretty good stocks have seen their lows”, but Laslo Birinyi taking a bearish stance and advising to sell stocks that gained in the rally.
The selection starts with a great discussion across the pond on the “future of capitalism” and ends with an educational clip about the ins and outs of quantitative easing.
Financial Times: Future of capitalism – London panel
“Does the financial crisis signal the end of the Reagan-Thatcher model of free markets and globalisation? FT editor Lionel Barber leads a discussion with Howard Davies, director of the London Schoof of Economics, Donald Brydon, incoming chairman of the Royal Mail, and John Studzinski, of US private equity firm Blackstone.”
Source: Financial Times, March 26, 2009.
CNBC: Geithner & toxic assets
“Treasury Secretary Timothy Geithner discusses his plan to deal with financial institutions’ toxic assets, with CNBC’s Erin Burnett.”
Part 1
Part 2
Source: CNBC, March 23, 2009.
Financial Times: Geithner’s toxic asset plan
“The government has given the financial sector what it has wanted for a long time; it will pay investors to take the toxic assets off banks’ balance sheets. But the supercharged political environment could endager the program, says FT’s Francesco Guerrera.”
Click here for the article.
Source: Francesco Guerrera, Financial Times, March 23, 2009.
CNBC: Bill Gross buys in
“Pimco is intrigued by the potential double-digit growth from the toxic asset plan, says William Gross, co-chief investment officer/founder.”
Source: CNBC, March 23, 2009.
CNBC: Market masters wigh in on the Treasury’ plan
“The economy’s performance utimately drives stock prices, with Abby Joseph Cohen, Goldman Sachs, Paul McCulley, PIMCO, John Bogle, The Vanguard Group, and Bob Doll, BlackRock.”
Source: CNBC, March 24, 2009.
PBS News: Toxic asset plan may woo investors, but long-term impact is unclear
“While markets rose Monday on details of the toxic asset plan, critics voiced concern over taxpayer risk and the need for a long-term fix to financial sector troubles. New York Times columnist Paul Krugman and Donald Marron of Lightyear Capital debate the details.”
Click here for the article.
Source: PBS News, March 23, 2009.
Bloomberg: Roubini says Geithner plan won’t stop nationalizations
“Nouriel Roubini, economist and professor at New York University’s Stern School of Business, talks with Bloomberg’s Maithreyi Seetharaman about US Treasury Secretary Timothy Geithner’s plan to remove toxic assets from the books of the nation’s banks. Roubini, speaking in London, also discusses the outlook for the meeting between the Group of 20 leaders in London.”
Source: Bloomberg, March 26, 2009.
Tech Ticker (Yahoo Finance): James Galbraith – Geithner plan “extremely dangerous”, banks “massively corrupted”
“Professor James Galbraith didn’t pull any punches on TechTicker this morning. He hates the Geithner plan, calling it ‘extremely dangerous’. He says the banks may game the plan to bid up the prices for their own crap assets and that getting bad assets off their books won’t get them lending again. Like Paul Krugman, Galbraith thinks the FDIC should just put the banks into receivership and have the banks’ subordinated bondholders pick up some of the cost of restructuring them.
Part 1: Getting crap assets off bank books won’t save economy
Part 2: Massive corruption
Source: Tech Ticker, Yahoo Finance, March 23, 2009.
