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baselinescenario.com - 11/26/2008
Bank Recapitalization Options and Recommendation (After Citigroup Bailout)
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By Peter Boone, Simon Johnson, and James Kwak ( pdf version is here ) Summary 1. Debt and equity prices for U.S. banks at the close on Friday, November 21, indicated that the market is testing the resolve of the government to support the banking system. Allowing major banks to fail ...

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Economist's View:  links for 2008-11-27

bloomberg.com - 11/26/2008
Dividends Cut Fastest Since 1950s as Citigroup Conserves Cash
— bloomberg.com — Nov. 26 (Bloomberg) -- Stock dividends are disappearing at the fastest rate in 50 years as the worsening recession forces U.S. companies to conserve cash. Citigroup Inc. , Genworth Financial Inc. and New York Times Co. are leading 91 companies listed ... (more) Dividends Cut Fastest Since 1950s as Citigroup Conserves ...

Comments vote down naked capitalism found this 11/26/2008found this
Citigroup’s ‘Capital’ Was All Casing, No Meat: Jonathan Weil
bloomberg.com - 11/24/2008
Citigroup’s ‘Capital’ Was All Casing, No Meat: Jonathan Weil
— bloomberg.com — Commentary by Jonathan Weil Nov. 24 (Bloomberg) -- Over and over, as its stock price plunged last week, Citigroup Inc. repeated the same tired line. Citigroup has “very strong capital,” the bank kept saying. Its capital was so strong that the New ... (more) Citigroup’s ‘Capital’ Was All Casing, No Meat: Jonathan ...

Comments vote down Manhattan Institute Articles found this 11/24/2008found this
portfolio.com - 11/24/2008
Why Citigroup Imploded
— portfolio.com — Brad DeLong and Prince Alwaleed both have theories on why Citigroup imploded as it did. Brad thinks its a combination of factors -- bad modelling of tail risks; bad modelling on the subject of house prices; an unprecedented spike in risk premiums -- ... (more) Why Citigroup Imploded

Comments vote down EconLog: Library of Economics and Liberty found this 11/24/2008found this
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links for 2008-11-27
Economist's View — Synchronized Recession, Synchronized Stimulus? - Econbrowser The Fed is confusing me - Paul Krugman Bank Recapitalization Options and Recommendation - The Baseline Scenario Government by Contractor Is a Disgrace - WSJ.com Menu design tricks to get you to spend more - Nudges All Fall Down - Friedman - NYTimes.com Resurrection Science - Olivia Judson Procrastinating Again? How to Kick the Habit - Scientific American ...

Related: why bank recapitalization bailout
"How to Design a Bank Bailout that Works" — Economist's View
Johm Hempton disagrees with me and others that the problem in financial markets is fundamentally one of solvency, i.e. lack of adequate bank capital. He says it is a matter of trust, trust that was destroyed by lies and deceptive practices. If he is right, bank recapitalization alone will ...