Haircuts for BondHolders, Barry Ritholtz, The Big Picture.
But are they buying it? James Kwak, The Baseline Scenario.
Stuffing bondholders. Edward Harrison, Credit Writedowns.Reinvesting When Terrified, Jeremy Grantham, GMO, via the Big Picture.
Graham Shows S&P 500 Still Too High, Bloomberg.
Geithner to shortsellers: take your profits and go home. Edward Harrison, Credit Writedowns.
Don't fall for Citigroup's fantasy. Motley Fool.
key point:
The gist of Pandit's memo was that operating profit was going gangbusters -- as if operating profit has been the problem all along. The problem is not a bank's ability to generate current income, but its ability to absorb losses on legacy assets that are worth a fraction of their purchase price -- using absurd amounts of leverage to boot.
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