July 6

By Roosevelt Institute |

daily-digestWhat you need to know to navigate today’s economic debates.

Judge Approves Sale of GM Assets (Reuters)
Judge Robert Gerber says the sale would “prevent the death of the patient on the operating table.”

Securitisation Reinvented to Cut Costs (FT)
Investment banks are inventing schemes to reduce the capital cost of risky assets on banks’ balance sheets, in the latest sign that financial market innovation is far from dead.

Volatile Swings in Price of Oil Stir Fears on Recovery (NYT)
Oil prices have surprised analysts by climbing despite the undertow of a global recession.

Treasury Plans to Limit Voting of Shares in Rescued Companies (BLM)
The Obama administration is set to release a policy on how it will vote the government’s shares in the coming weeks.

Obama Plan Could Trim Back Financial Powerhouses (BW)
Financial regulations proposed by Obama administration would result in leaner and simpler institutions.

Borrower’s Remorse (NR)
John B. Judis argues that fixing the banks will not revive the economy.

Off-Balance-Sheet Federal Liabilities (EconBrowser)
Economist James Hamilton wonders just how much the government has promised to pay.

Earnings Drop Worldwide as Job Losses Hurt Consumers (BLM)
S&P 500 Index member’s profits may narrow to 21 percent from July through September, after declines of 34 percent in the second quarter.

Pig in the Python (BreakView)
Dwight Cass says the tables have turned as junk-rate borrowers have gotten lenders to cut deals that are not always in their interest.

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