Month: July 2008

What Happens Next to Fannie and Freddie?

Insolvency of the Fannie and Freddie Predicted Two Years Ago. What Happens Next? Or How to Avoid the “Mother of All Bailouts”
By Nouriel Roubini

A pretty good article from Nouriel Roubini. A choice quote below, then on to the article.

“Privatizing profits and socializing” losses may dominate the policy outcome. Financial institutions love a system where they gamble recklessly, pocket the profits in good times and let the fisc (taxpayer) pay the bill when their reckless behavior triggers a financial crisis; this is socialism for the rich. That is why you already hear the whole Wall Street Greek chorus moaning for a bailout of the GSEs.


BuzzPal Mentioned in the Media Today

BuzzPal – The World Is Your Party, got it’s first press mention today:

The article is about the new generation of Swedish startups and Seedcamp, which is basically the European version of Ycombinator. BuzzPal may be participating in Seedcamp, coming to it based on the suggestion of Anders Fredriksson, one of last year’s participants. Anders is a friend and contact here in Gothenburg. Thanks, Anders. -Chris


“Must Read” Article And PDF

This essay is a “must read,” which is a phrase I can’t remember the last time I used. It’s 15 pages and I can’t even give it a proper introduction, you simply must read it, IMHO. And then ideally do something. I leave it to you to decide what. Here is the link to an introductory article on the NYT website, where you can find other links. And here is a link to the essay by Erik Camayd-Freixas.

Some excerpts and then on to the article: