There is a long and glorious history of transatlantic cross-fertilization when it comes to television programs and other forms of entertainment. Staples of the US television landscape such as
Sanford and Son (Steptoe and Son), American Idol (Pop Idol), and
The Office (The Office) all started life on the British airwaves.
It appears as if US policymakers have seized on the idea, re-incarnating the popular UK radio show
I'm Sorry, I Haven't a Clue.
How else are
we to interpret Hank Paulson's admission that the TARP will not be used to purchase dodgy mortgage assets, the rationale for its passage way back in....last month?
Macro Man couldn't see any way to interpret this other than as an admission that they're making this up as they go along- not exactly a reassuring methodology for policymaking.
Meanwhile, it looks like we're about to embark on the unedifying spectacle of a land-grab for the remainder of the TARP cash. OK, the Treasury will spend some of the money on asset-backed turds (as opposed to mortgage-backed turds)....but
yesterday's post looks to be sadly accurate.
Strangely absent from the photo above is the president-elect and his new Treasury Secretary....the latter, of course, because he does not currently exist. Mr. Obama seems content to allow the current administration to bury itself until he takes office on January 20. Politically astute, of course, but not exactly an act of leadership. Obama will be
conspicuous by his absence from the weekend G20 meeting, which is ostensibly set to discuss a coordinated response to the crisis and the framework for a new global financial architecture. Again, politically expedient.....but it sort of renders any near-term attempts at a policy prescription irrelevant.
Macro Man's moles in the media industry suggest that the BBC is in negotiations to license
I'm Sorry... elsewhere in Europe as well. In Germany, for example...where the ECB is located. This morning it was confirmed that Germany has entered the popular definition of a recession, as Q3 GDP growth came in at -0.5% q/q, considerably worse than expected.
The ECB, of course, hiked rates at the start of Q3, despite a severe downturn in leading indicators, evidence of significant financial distress, and a complete absence of domestically-generated inflation pressures in Europe.
