TIC report for December 2009

The TIC reports has some damning news on Foreigners dumping U.S. Treasuries, especially China.

Firstly, what is the TIC? TIC stands for Treasury International Capital Data and it is a monthly report on who has bought and sold all stocks and bonds coming in and out of the country.

From the FAQ:

The Treasury International Capital (TIC) reporting system collects data for the United States on cross-border portfolio investment flows and positions between U.S. residents (including U.S.-based branches of firms headquartered in other countries) and foreign residents (including offshore branches of U.S. firms)

From this month's press release:

Systemic Risk Insurance? How about don't let banks drive drunk!

In a paper The "Surprising" Origin and Nature of Financial Crisis: A Macro Economic Policy Proposal (obnoxious PDF big brother - be wary of this link, these bastards have this paper loaded with copy protections as well as image beacons, pretty stupid if it's supposedly a public document!)

The paper first identifies one of the main causes of the financial crisis as aggregate risk in systemically important financial institutions. Bloggerspeak translation: Derivatives, all of those asset backed securities, CDOs, and so on, which were put together like a house of cards, designed on faulty models and slapped with AAA credit ratings when they should not have been.