The Fed says the 19 companies that hold one-half of the loans in the U.S. banking system won't be allowed to fail — even if they fared poorly on the stress tests. The tests are intended to measure whether banks have enough capital to withstand losses on mortgages and other assets if unemployment rises and home prices fall further. Investors had feared the tests would highlight some banks' vulnerability to failure.
[Welcome, Naked Capitalist readers!* If any of you have tips for this series, please feel free to mail me at lambert_strether DOT corrente AT yahoo DOT com. --lambert] Read more about Day 3 of the "Why Won't #Krugman Post On Bill Black?" Watch
In a second day of major bloodshed, two suicide bombers wearing explosive vests blew themselves up at the gates of a Shi'ite Muslim shrine in Baghdad on Friday, killing 60 people, Iraqi police said.
The attack was the deadliest single incident in Iraq since 63 people died in a truck bomb blast in Baghdad on June 17 last year, and came amid growing concerns that a recent drop in violence might turn out to have been just a temporary lull.
It appears the Obama administration is looking to rollback the rights of defendants. Why? Well, basically, because they can:
WASHINGTON — The Obama administration is asking the Supreme Court to overrule longstanding law that stops police from initiating questions unless a defendant’s lawyer is present, another stark example of the White House seeking to limit rather than expand rights.
If Democrats provide cheaper and more accessible health care to Americans, Republicans have promised to publicly turn themselves into the biggest partisan assholes of the last forty years.
Seriously. That is the actual political calculation Senate Democrats face on health care reform right now. It is the most obvious win-win political calculation Democrats have been presented with during my entire lifetime.
The Republicans plan the destabilize the country through a process of legislative sabotage. It would be easy for Harry Reid to expose this, but that depends upon whether he wants to. Read more about Will Harry Reid snatch defeat from the jaws of victory?
They're holding Sibelius up, and confirming her is going to require 60 votes (translation: Filibuster, except it's not a filibuster when Republicans do it, and we have a free press, and up is down). Anyhow, what Reid should do is let 'em filibuster. But the old-fashioned way Read more about Remind me again why we're kowtowing to the forced pregnancy loons?
For a snapshot of what’s wrong with our banking policy, look at the front page of the business section of today’s New York Times. On the left side: “U.S. in Standoff with Banks over Chrysler.” On the right side: “Banks Show Clout on Legislation to Help Consumers.”
Here. The interesting part of the post, though, is the idea of "The Proposition Bet":
The main theme of all these hustles is something called a Propostion Bet. Basically, a proposition bet is a challenge which looks like it only has one outcome...and it does...it always favors the person placing the wager. That's because you know something the other folks don't. You know the 'challenge' is always going to go your way.