Another day another Ponzi scheme. Now it involves a nursing home operator. Sunwest Management has been charged by the SEC with operating a Ponzi scheme that potentially defrauded investors out of $300 million. The company was involved in the acquisition and operation of over 200 retirement homes. It told investors that they were investing in […]
Archive for March 2nd, 2009
More Concern About The Fed’s Independence
Another Fed President has expressed reservations about the Fed’s role in attempting to right the economic ship. Last week (link), I noted that Philadelphia Fed President, Charles Plosser, was uncomfortable with the status quo and today Richmond Fed President Jeffrey Lacker said he had similar concerns. “Using the Fed’s balance sheet is at times the […]
Details On Your Reworked AIG Investment
Well here are the details of the changes to our investment in AIG. It’s pretty much what we talked about yesterday. Preferred Equity The U.S. Treasury will exchange its existing $40 billion cumulative perpetual preferred shares for new preferred shares with revised terms that more closely resemble common equity and thus improve the quality of […]
We’re Saving More And That Ticks Off Krugman
Here’s some good news for a change. Americans’ personal savings increased from 3.9% in December to 5% in January. From the BEA: Personal saving — DPI less personal outlays — was $545.5 billion in January, compared with $416.8 billion in December. Personal saving as a percentage of disposable personal income was 5.0 percent in January, […]