A Monumental Petro-Wealth Transfer - Stephen Jen -  We are witnessing a monumental transfer of wealth to oil exporters, which may last beyond our generation.  There will be important geopolitical and security implications.  In this note, we highlight some of the economic and financial implications of this wealth transfer.  - Morgan Stanley
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SoCal Home Prices Plunge […]

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Moody’s highlights risks of potential counterparty failure - A new report from Moody’s Investors Service explains that the biggest systemic risk to the $62 trillion credit-derivatives market is not its size and complexity, but the potential failure of a large securities firm or investment bank that is acting as a counterparty. A bank collapse could […]

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From the WSJ Washington Wire Blog today: 
Sen. Barack Obama described the Bush administration’s sweeping changes to financial market regulation as “inadequate” on Saturday.
While noting that he had not yet seen the full proposal, which Treasury Secretary Henry Paulson will unveil on Monday, the Illinois senator said that, based upon news reports, he believed the proposed […]

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To Our Clients, Colleagues and Friends:
· We still like the Washington Mutual 6.875’s of 2011.  They’ve traded down to about 84 for a yield to maturity a bit over 13%. These are great bonds to put in a retirement account. Wamu will (a) be sold to a stronger bank, or (b) will raise new capital […]

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In light on Paulson’s comments on Tuesday The Prince thought he would highlight a post he wrote the day before Paulson’s comments that predicted most of what he talked about with regards to regulating investment banks.  There are many regulatory changes coming and The Prince predicts four implications of the Fed’s moves in the Bear […]

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Cartoon - IOU’S Industry Of United States  -  Total Asset Performance 
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Fannie and Freddie Up Risk-Based Pricing - has links to GSE tables, and examples of risk based pricing - Michael Steinberg - Click Broker 
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28/36- Why House Prices Must Fall - Bob Morris - seeking alpha
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The Last Interest Rate Cut from the FOMC and Bernake -  […]

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