I will be on Powerlunch from 1 to 2, discussing the bailout/rescue plan, recent mergers, and all things finacial crisis related.
1. It looks as if this plan will squeak through the house, thanks to the sweeteners — and a healthy dollop of fear;
2. The thinking seems to be that a poorly thought out plan is better than no plan at all;
3. M&A activity is a function of certain financials being down 90% — not an improvement in credit or the economy. The Wells Fargo buy of Wachovia is still a fire sale, albeit at better prices than the Citibank;
4. The raising of FDIC to $250k is a good start; I think we may have to go unlimited gurantees for 6 months, and start closing down the bad banks, recapitalize the good ones.
5. I have yet to see anything that convinces me that eliminating Mark-to-Market is a good idea;
Should be fun . . .
UPDATE: October 3, 2008 2:15pm
Well, that was weird — I got into a shouting match Charlie Gasparino over CRA, FRE, FNM.
I’d love to debate him on Air, (if they have the nerve)