"Lunchtime Links 3-12 March 12, 2009 – 12:09 pm
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Madoff pleads guilty, goes to jail (LA Times)
S&P Cuts GE’s Credit Rating (Bloomberg) GE is no longer AAA, but everyone already knew that. AAA credits don’t need huge government guarantees to backstop their debt. Further downgrades would be more painful since that would force the company to post collateral, creating a liquidity crunch at a time when the company is already short of capital.
FDIC collected few insurance fees for a decade (CalculatedRisk) No wonder the Deposit Insurance Fund is short of cash.
Most Americans Hanging by a Thread (HousingWire) Half say they couldn’t survive financially more than a month without their current job.
Banks’ Bondholders May be Next to Share Bailout Pain (Bloomberg) After equity is wiped out, investors higher up the capital structure are exposed to losses. Fact is, the healthiest way to resolve this crisis is to put insolvent banks into receivership and cram-down losses onto bondholders. Better they absorb losses than taxpayers…
FHLB of Seattle short of capital (Seattle Times) Five of the twelve Federal Home Loan Banks are showing signs of distress. The Fannie/Freddie bailout is supposed to protect the FHLB system as well. That bailout is looking far more expensive already than the $400 billion promised.
Fed releases latest Flow of Funds report (pdf—FederalReserve.gov) Lots of juicy data I’ll be blogging about later this afternoon. One headline stat: Americans’ net worth fell 18% last year, erasing four years of gains.
The First 10 T-Shirts to Buy a Newborn (Uncoached.com)"Me: