With all due respect to the free-market, or moral-hazard types out there, it’s all wonderful in a textbook. But in a real world this would be disastrous.
—Gary Hindes, Managing Director, Deltec Asset Management
Mortgage Modifications
With such broad adoption, this new protocol will be a standard for the industry to quickly move homeowners into long- term sustainable mortgages
—Neel Kashkari, assistant secretary, US Treasury
- Citigroup — 130k proposed, per qualification in their program
- JPMorgan Chase + Wachovia (Golden West) — 400k modifications proposed
- BofA + Countrywide — 400k modifications proposed
- HSBC — 61k mortgages modified YTD
- US Government (Sheila Bair) — 300k expected to qualify for the program
- Evidence of hardship
- Owner-occupied
- 90 day trial period
Very few countries are going to match this stimulus — it’s huge. It’s a very strong step and puts them in a commanding position in setting an example to other economies.
Nicholas Lardy, senior fellow at the Peterson Institute for International Economics in Washington.
The stimulus here was 1 percent of GDP, and there, it’s 16 percent of GDP. It is a big deal and therefore is a note of optimism especially for the global economy. And we’re all hopeful that it will help U.S. stocks as well, especially raw materials.
—Bruce McCain, chief investment strategist at Key Private Bank in Cleveland, which manages $30 billion
We’re going to see a lot of corporate grief. We’ll see companies laying off a lot of people and the market reflecting a lack of confidence in a lot of companies’ values.
—Harvey Pitt, former chairman of the Securities and Exchange Commission
There’s going to be a lot less hedge funds in the industry—anywhere from 30% to 50%—and I tend to err on the 50% side
—Peter Carey, senior investment officer for alternatives at the $153 billion New York State Common Retirement Fund
his father, an avid hunter, reportedly trained his son to shoot prairie dogs
—NYT
Without an increase in oil prices or an improvement in the capital account of the balance of payments, the central bank will eventually have to devalue. [Urals crude of $60 a barrel] would imply a devaluation of the ruble against the bi-currency basket by 25 to 30 percent.
Evgeny Gavrilenkov, Troika Dialog’s Moscow-based chief economist (11/7/9)
This is the year the consumer has been given a holiday gift beyond belief. You can get anything, anywhere, at any price. What’s happening is the retailer is almost saying, ‘Please just come in…We’ll pay you to shop.’
—Marshal Cohen, chief industry analyst for NPD Group
Retailers Report a Sales Collapse
By STEPHANIE ROSENBLOOM
Published: November 7, 2008
Most of the nation’s retailers reported double-digit declines in October sales, underscoring how the financial turmoil has touched all consumers.
Wen Jiabao discusses economic policy in the Communist Party journal Qiushi, or Seeking Truth.
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