The New Republic

Here's a great moment in the history of the Pakistan's infamous intelligence service, known for its endless double-dealing with the Taliban and other Islamic radicals. It seems the ISI has READ MORE >>

The NYT reports this morning that Jon Corzine, the New Jersey governor and former Goldman Sachs chief executive, is no longer wealthy enough to pay for his own political campaigns. Mr. Corzine, 62, famously spent $60 million of his own money on a record-shattering Senate race in 2000, then $43 million more laying siege to Trenton four years ago. READ MORE >>

In early February I suggested there was a showdown underway between the US Treasury and the country's largest banks.  Treasury (with the Fed and other regulators) is responsible for the safety and soundness of the financial system, the banks are mostly looking out for their own executives, and the tension between these goals is - by now - quite evident. READ MORE >>

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Being Treasury secretary is usually not a job that calls for great political skills. But with a banking crisis crippling the economy and threatening to turn a recession into a depression, Tim Geithner has been plunged into the center of politics--as both the person responsible for what the administration should do, and as the main exponent of that policy. But he has faltered in crafting an effective policy and failed miserably in putting it forward. READ MORE >>

Today's daily economic report from Goldman Sachs performs a fascinating exercise: It tries to measure the power of the Fed's so-called "unconventional easing." To review: The Fed normally stimulates the economy by lowering short-term interest rates. (Actually, by lowering its "target" for short-term rates, but let's not complicate this.) But, in December, the Fed basically lowered short-term rates as far as they'll go--i.e., zero--and so there's no more juice to squeeze there. (Nominal interest rates, that is. But, again, not worth getting into...) READ MORE >>

Earlier today I noticed that the silver lining from the Fed's beige book looked more like a copper-nickel alloy. But tonight's Goldman Sachs economic report has some genuinely (if modestly) encouraging news. In general, Goldman sees the consumer-spending cliff-dive stabilizing a bit in January and February, and believes the worst may be behind us on that front: READ MORE >>

Two quick AIG thoughts, both of them relating to who it is we're bailing out by propping up AIG. READ MORE >>

In his first inauguration speech, President Franklin D. Roosevelt observed that the titans of Wall Street “have fled from their high seats in the temple of our civilization”--an apt description for the lashing of Wall Street leaders this month in front of the House Financial Services Committee. Chairman Barney Frank and the members of his committee were less eloquent than FDR in their criticisms of the current Wall Street CEOs, but the point was the same--the public has lost faith in the leadership of our financial community. How have we come full circle over 75 years after FDR? READ MORE >>