The Smart Asset

This A.M.: Don't Tread on Me, U.S. Says to China; Press Observes Lehman Anniversary With Moment of Chatter

By Harkavy in Bailouts, China, Featured, Health-care costs, Obama Drama, Press, Regulation, Traders

Monday, Sep. 14 2009 @ 8:13AM

Trade war escalates after U.S. puts sanctions on importation of cheapo Chinese tires. Deflating news for U.S. consumers, because the cheapos are "the bulk" of the 46 million Chinese tires that annually invade America and make up 17 percent of all tires sold here.

Trial and Error Helped Stem Panic (WSJ)

"... debate continues on which of interventions made the biggest difference."

The Hard Truth About Financial Regulation (Forbes, Liz Moyer)

Lots of "talk and hand wringing," but "little real progress on how, or if."

Police Eye Mysterious Death of Financier (WSJ)

Facing fraud charges after the WSJ uncovered what looks like a huge Ponzi, Danny Pang — Taiwan's version of Bernie Madoff, but he denies it — may have committed suicide. More tragically, body of missing Yale bride-to-be Annie Le is reportedly found. Original WSJ investigative piece on Danny Pang here.

Fevers rise over paid-sick-day bill (NY Post)

"Convincing infected workers to stay home is key to controlling the spread of swine flu. But it can be a tough sell for those who don't get paid sick days -- an estimated 1 million city workers."

Top economist: Things are worse (NY Post)

Not just your average schmo, this is Joseph Stiglitz talking. He "echoes" what Paul Volcker (marginalized by Barack Obama) has said. Stiglitz pissed that Obama crew is wary of challenging financial industry: "It's an outrage. ... The administration seems very reluctant to do what is necessary." Obama's coming to Wall Street today to supposedly "try to breathe new life into efforts to overhaul the financial regulatory system," the Washington Post says. But with pals of Wall Street like Tim Geithner and Larry Summers in his top crew, don't count on anything beyond show.

MORE HEADLINES FOLLOW

Get Real on Health Care (WashPost, Roger Cohen)

Speaking from personal experience on differences between French and U.S. health care, cutting through the ideological crap and various myths:

So beyond all the hectoring, the main French-American difference on health care is not ideological but a question of efficiency. Both countries use a mixture of public and private. France is at a very far remove from "socialism." The United States has already "socialized" a significant portion of its medicine. (Nothing illustrates right-wing ideological madness in the United States better than calls from some to "keep the government out of my Medicare!")

The real difference is that the French state mandates health coverage for everyone, picks up the tab where necessary (as for the unemployed), holds down costs through a national fee system, and uses mainly nonprofit mutual insurers even for supplemental private coverage. The profit motive is outweighed by the principle of universal health care, with a corresponding effect on doctors' salaries.

Reform Opposition Is High but Easing: More Support if Public Option Dropped (WashPost)

Forget about the "public option," no matter what Obama said on 60 Minutes last night through his de facto press secretary Steve Kroft. Neither of them made this point, but Americans are such sheep when it comes to swallowing ideological nonsense about health care that they might as well have a veterinarian appointed surgeon general.

Cheap dollars are sowing the seeds of the next world crisis (Telegraph U.K.)

Shrewd analysis of the Catch-22 that China is supposedly in so deep because of its huge reserves in dollars that it has to continue "sucking up" U.S. debt. But the Commies are really, really "dismayed" about what this story calls "America's wildly expansionary monetary policy." More from story: "The entire non-Western world rightly sees serious inflationary pressures down the track in the US, UK and other nations where political cowardice has resulted in irresponsible money printing."

Stiglitz Says Bank Problems Bigger Than Pre-Lehman (Bloomberg)

"We're going into an extended period of weak economy, of economic malaise," Stiglitz said. The U.S. will "grow but not enough to offset the increase in the population," he said, adding that "if workers do not have income, it's very hard to see how the U.S. will generate the demand that the world economy needs."

U.S. Economy May See Its Slowest Recovery Since 1945 (Bloomberg)

And that's "even if economists' more optimistic forecasts for expansion turn to be right."

Caution: Plenty of Event Risk on the Horizon (Seeking Alpha)

One chart of stock-price cycle, for instance, "is at a bullish level now but I think time is running out."

The Coming Consequences of Banking Fraud (Seeking Alpha, J.S. Kim)

A few days old, but worthwhile. "The fact that the upleg of the "W" shaped recovery that is occurring now will inevitably crumble in spectacular fashion will not be a result of any free market principle, but rather the direct consequence of a fraudulent scheme executed by an elite global financial oligarchy, otherwise known as Central Banks."

From Lehman's Wreckage, New Lives (WSJ)

Dick Fuld says he's sorry. OK, enough already. It's chickenshit. Publicly, he says he did all he could and he blames the government, this story says, adding: "Privately, however, he apologized for his role in Lehman's collapse in an emotional and previously unreported address in April." Conveniently leaked by his advisers, one would think.

U.S. Is Finding Its Role in Business Hard to Unwind (NYT)

While reading this overview, try not to choke on your coffee: "[O]ne year after the collapse of Lehman Brothers set off a series of federal interventions, the government is the nation's biggest lender, insurer, automaker and guarantor against risk for investors large and small."

Natural Gas Has Spiked 60% Since Labor Day. Why? (Seeking Alpha, Dian L. Chu)

One alternative explanation, from a trader's perspective, is that a large natural gas player saw the opportunity to make a huge profit by blowing out the stops of the large contingent of traders who were short the natgas market. For example, someone like John D. Arnold, the former Enron trader who is one of the large players in the natural gas market. To the point, the move in natural gas form $3.00 to $3.30 during late day trading on Thursday was strictly due to the pre-configured stop orders being hit.

U.S. Stock-Index Futures Decline; Bank of America, Alcoa Fall (Bloomberg)

Rise in commercial real estate vacancy rates leads to meltdown concerns (McClatchy)

Gold investors warned to liquidate after 'buying frenzy' (Telegraph U.K.)