Jim Rogers on CNBC: ABOLISH THE FEDERAL RESERVE and Bernanke -  Youtube

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Jim Rogers on the Bear Stearns bailout -  has summary of comments and link to Bloomberg video -  Bloomberg tracked down Jim Rogers somewhere in Asia and he was none too pleased with the way the U.S. government has been throwing its money around. - themessthatgreensapnmade

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Hedges in the warehouse: The banks get trimmed - When banks “warehouse” loans, that is, hold them temporarily

before selling them through securitizations, how do they protect themselves against credit risk? This article examines the effectiveness of hedging strategies in the context of the recent heavy losses in financial markets. (PDF,56KB) - thanks Ira Artman - Chicago Fed

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High Yield Spreads Defying Gravity -  BIG 

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Not a bailout - … According to Bear Stearns 2007 10-K, the notional value of all Bear’s derivative contracts as of November 2007 came to $13.40 trillion. That’s trillion, with a “t”. As in, about the same number as total 2007 U.S. GDP. … James Hamilton  - Econbrowser
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OFHEO, FANNIE MAE AND FREDDIE MAC ANNOUNCE INITIATIVE TO INCREASE MORTGAGE MARKET LIQUIDITY - OFHEO

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UBS Chairman Ospel’s Pay Cut by 90% After Record Loss (Update5) -  Bloomberg

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Democrats Draft Plans for Distressed Homeowners -  Washington Post

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Sub-prime and banking crisis: Who caused this nightmare? The blame spreads - Times UK

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Reverse mortgage bails out seniors facing foreclosure  - For those with second homes, strategy can help keep property in the family - Inman

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Beware the housing bottom-callers - … the Commerce Department reported(.pdf) on new home construction during February - don’t let that little red squiggle in the lower right fool you. -   themessthatgreenspanmade

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Reflexivity Driving Risk and Reality - How does the market for a floating rate note with virtually no risk of default turn into an illiquid roach motel of a bond virtually overnight? Why did Bear Stearns (BSC) claim to have no liquidity problem and then less than 36 hours later need a bailout from JP Morgan (JPM) and the New York Fed? …  E. Jardine - seeking alpha

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On the insolvencies of non-bank financial institutions - Written by Reggie Middleton - … Many major players in our financial system are simply insolvent. Plain and simple. The liquidity issues that you see are simply a result of that insolvency, not a cause. … - Boom Bust Blog

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Housing: US vs Japan - What an odd OpEd in today’s NYT.  -  Barry Ritholz  - The Big Picture

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Fed Finally Showing Rate Cuts Aren’t Everything -  I know they cut 75 basis points at today’s meeting, but the 400+ point gain in the Dow probably isn’t in reaction to more rate cuts …   I would not be surprised to see them take another step and start buying mortgage backed securities from the likes of Fannie Mae (FNM) to ensure orderly markets for bonds backed by the U.S. government. … - Peridot Capitalist

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Rescue for Bear or Bailout for JP Morgan? - I know, I know, not another Bear Stearns article, right? I don’t know about you, but my eyeballs have gone crazy lately scanning headline after headline and reading article after article about the Bear belly flop and the JP Morgan bargain basement acquisition. … thanks Henry Salomon -   Robert Salomon NYU 

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has 2 interesting graphs - Bank Intangible Assets -  The number of analysts predicting major further price declines for banks and related companies is increasing by the day.  To work within that perspective we have begun to look at statistics that may begin to show excess valuation or over-leveraging that may be squeezed out in coming market sessions. - QVM Group 

posted by Bill Coppedge