Coffee Production

Taken from The Economist: Coffee King

The Olden Day

I miss the time when cynicism was still running wild and Mortgage Pig was cute.

Update:
Calculated Risk: Congress keeps hammering on the Paulson's plan, no CEO knee capping yet.
Calculated Risk: Meanwhile WAMU is picked up by JPMorgan.

I need to start keeping tab of market cap of JPMorgan, Citi and BOA.

Congress Goes Dark On Bailout Plan

No wonder I didn't hear much today, it is still the same rant. Looks like Paulson might buckle, since the constituents are flooding their reps with rage.

OTOH: papa bear comes out with a speech that similar to his Iraq war sales pitch. FUD no substance. Remember guys: it was just a matter of emphasis.

Link:
Calculated Risk: videos.
NY Times: Paulson Works the Hill, Trying to Close the Deal.
NY Times: Lawmakers’ Constituents Make Their Bailout Views Loud and Clear.
NPR: Lawmakers Hear From Voters Angry About Bailout.
CNBC: Paulson Agrees to CEO Pay Limits in Bailout Plan. <- more good stuff in here besides the pay limit. Pointed out by Calculated Risk.

Mr Paulson and Mr Bernanke Testify Before Senate Banking Committee

Apparently the blackmail doesn't work. What do you expect from a plan that doesn't have accountability? Not to mention 'moral hazard'.

Links:
NY Times: Buyout Plan for Wall Street Is a Hard Sell on Capitol Hill.
The blogs are a blazed with outrage Krugman, CR, Freakonomics, even Tyler is cynical with hanky-panky.

Two Largest iBanks Go cBanks

Two largest investment banks (GS and MS), the last of the big 5 ibanks (GS, MS, LEH, MER, BSC), decided to restructure it selves into commercial banks. Need liquidity.

Link:
Market Place: Last 2 investment banks throw in towel
NY Times: Starting a New Era at Goldman and Morgan

Looks like we are alone.

Relevant news:
NY Times: Europe and Japan Balk at U.S. Request on Bank Aid
Russia (Putin) won't deal with lame ducks.
The middle-easterners were burned when they bought the shares of banks last March.
It is all quiet at China's front.

Paulson Bailout Plan

Pointed by Krugman.

I, as non economist, don't like this:

Sec. 8. Review. Decisions by the Secretary pursuant to the authority
of this Act are non-reviewable and committed to agency discretion, and
may not be reviewed by any court of law or any administrative agency.

Great, now I want to be the Secretary of Treasury.

Link:
NY Times: Text of Draft Proposal for Bailout Plan

Update: comment by boing2: Hank Paulson's bailout 419 letter
Update: relabeled as 'hanky-panky'

Short List

It's amusing to watch the Free Market warriors are turning to the government to 'regulate' or bluntly: halt the shorting of financial stocks, yet it is LMAO, reading other companies (such as: General Electric Co., American Express, Capital One) are fighting their way into the list.

The free market rules are being rewritten nowadays.

Links:
NPR: SEC Bans Short Selling Financial Stocks
Calculated Risk: Non-Short List Companies: Me Too! Me Too!

The Economist Redefines Recession

From the economist.com:

To the average person, a large rise in unemployment means a recession. By contrast, the economists’ rule that a recession is defined by two consecutive quarters of falling GDP is silly. If an economy grows by 2% in one quarter and then contracts by 0.5% in each of the next two quarters, it is deemed to be in recession. But if GDP contracts by 2% in one quarter, rises by 0.5% in the next, then falls by 2% in the third, it escapes, even though the economy is obviously weaker. In fact, America’s GDP did not decline for two consecutive quarters during the 2001 recession.

However, it is not just the “two-quarter” rule that is flawed; GDP figures themselves can be misleading.

Thus:

This suggests that it makes more sense to define a recession as a period when growth falls significantly below its potential rate.

I really don't like "potential rate" slapped at the end, I believe I like "expected rate", in which tightly coupled with population growth and "realistic" prevailing wages.

Related link:
Bernancke Refuses To Say R....

Globalisation And Health Care

Taken from The Economist: Operating Profit

Average Robot Prices Relative to Labour Compensation

From The Economist:

Bernancke Refuses To Say R....

From The Economist: