Wednesday links: RTC redux

17Sep08

How (and why) the Fed became the globe’s largest vulture investor. (NYTimes.com, WSJ.com)

The U.S. has effectively nationalized AIG (AIG).  (Floyd Norris)

Nationalization doesn’t come cheap.  AIG to pay Libor+850 for its loan.  (Market Movers, ibid)

Under what authority did the Fed act in the case of AIG?  (Mish, Crossing Wall Street, Real Time Economics)

Do we need a new Resolution Trust Company?  (WSJ.com, Real Time Economics)

Just what is the ‘Paulson Doctrine‘?  (Information Arbitrage)

The taxpayer will bear a portion, perhaps a significant portion, of the financial crisis, whether or not the Fed is involved.”  (Economist’s View)

Eventually the government will have to act in coordinated manner, and move away from ad hoc solutions.  (Economist.com)

“You can think of the Fed and Treasury as trying to buy good assets at cheap prices, at a time when private intermediaries have lost the trust of investors… But you want the government to get out of the hedge fund business sooner, rather than later. It’s not a safe business.”  (EconLog also Economist’s View)

A sprawling look at the past, present and future of the investment banking industry.  (Epicurean Dealmaker)

Liquidity costs money, which is why short-sighted managements intent on current earnings scrimp on liquidity.  But liquidity is the lifeblood of business, far more so than earnings.”  (Aleph Blog)

Are we sacrificing the long term health of the financial industry to avoid short term pain?  (NYTimes.com)

You knew this had to happen at some point.  A big money market mutual fund ‘breaks the buck.’ (Money & Co. also Odd Numbers)

Newly minted MBAs will take a hit with fewer opportunities available in investment banking.  (BusinessWeek.com)

“Can Morgan Stanley (MS) turn the tide?”  (MarketBeat)

Take some solace in the fact that things are tough all over the globe.  (Bespoke Investment Group)

An historic reversal in oil prices.  (NakedShorts)

Russia feels the pinch of lower oil prices and their own credit crisis.  (FT Alphaville, Free exchange)

The surge in volume is in, is the price washout near?  (Trader’s Narrative also VIX and More)

The SEC gets “tough” with naked short sellers.  (WSJ.com, DealBreaker.com, Daily Options Report, Floyd Norris)

Nobody really thinks the Fed should have lowered benchmark rates yesterday.  (MarketBeat)

Brillian or stupid?  A biotech IPO looks to come to market.  (Bits)

Technology losers from the fallout on Wall Street.  (Silicon Alley Insider)

The “football sponsorship curse” strikes again.  (Curious Capitalist)

Blame the Chicago Cubs for the market meltdown.  (DealBreaker.com)

What can we learn from the Harvard University endowment fund?  (TheStreet.com)

Daniel Gross talks with David Smick, author of “The World Is Curved: Hidden Dangers to the Global Economy.”  (The Big Money)

Which blogs can you trust in this new investment environment?  (Huffington Post)

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