Right or wrong, Bush will be remembered as the worst President since ... America started
Posted on 03/15/2008 2:54:45 AM PDT by TigerLikesRooster
It doesn’t sound too bad until you realize that 3% fewer people then have to shoulder a 300% increase in risk. For the market, an increase from 1% to 4% loan defaulters is tremendous; it undermines fundamental calculations about the business.
Right or wrong, Bush will be remembered as the worst President since ... America started
You should really read up on derivitaves and how much they make up the “assets” of America’s financial entities. Your right foot is only about 5% of your total body. Cut it off and see what happens.
I read on another story that large amounts of cash are being removed from US banks, noting it as one of the causes of Fridays debacle.
Is this foreign money bailing out, or US money being transferred to US Treasury notes???.
I distinctly remember about 20 years ago some economic forecaster predicting future problems with the banking industry
His reason
“The new checks with scenery etc imprinted on them “
His rational
“Bankers are typically very conservative and staid when it comes to financial dealings etc “
The new type checks was an indication that that attitude was changing
Not a good sign in his opinion
Well it took 20 years but he was 100% right
ping
At this rate, we can just destroy our currency and pay off all our debts on our now worthless money. Brilliant!!
What good are low interest rates if you are paying substantially more for food, energy, and other commodities? And while interest rates are “low”, credit has tightened to the point where few, if any, can get these wonderful loans. Prices are spiking but wages are staying the same. And, of course, the official inflation numbers way understate the problem. The American people will be bled dry to pay for the excesses of a few.
Bernake is called Helicopter Ben because he said the would throw $$ out of a helicopter to prevent a recession. That was an idiotic comment if I ever heard one—so of course, our current problems should be no surprise.
Stock markets and dollar plunge again on fears over bank crisis(facing a financial black hole)...
racist headline...don’t call it a “black” hole....that’s racist!!!!
it is a diverse multi-color hole!!!!
Congressional oversight anybody? Let’s especially remember, Representative Barney Fwank, Chairman House Committee on Financial Services and of course let’s not forget Senator Chrissie Dodd, Chairman Senate Committee on Banking, Housing, and Urban Affairs. Over 400 days have passed with nothing but specious and annoying oversight.
Not apocalyptic at all. This is only the second time in its existence that the Fed has directly bailed out a Wall Street firm. The last time was in the 1960's according to other stories.
And by the time it's all said and done, we'll have almost as much trouble remembering how many firms the Fed bails out as we do keeping track of the subprime-fallout odometer. (I believe it's ticked past $200B.)
Not apocalyptic at all. This is only the second time in its existence that the Fed has directly bailed out a Wall Street firm. The last time was in the 1960's according to other stories.
And by the time it's all said and done, we'll have almost as much trouble remembering how many firms the Fed bails out as we do keeping track of the subprime-fallout odometer. (I believe it's ticked past $200B.)
Bingo! As Peter Schiff wrote yesterday, "will the Fed really return these ticking time bombs to their true owners in 28 days, inciting the very collapse its actions were originally designed to postpone? Why does the Fed believe that the mortgages will be marketable next month; or the month after that?"
But at some point you're throwing good money after bad. Here's an article on the guy who bought part of Citibank in September for 425M pounds. That's worth 55M pounds now if I am reading the article correctly.
He could buy a WHOLE lot more of it now with another 425M pounds but he isn't.
Travis if you want a “commercial” version of famous last words, the Bear Stearns guy earlier this week would be a great starter.
And who out there really believes that America will elect another Republican for President in ‘08, especially one who has been in the Senate as a proud contributor for the last 25 years. Not to mention, one who is admittedly not very well educated in economic principles?
I think the helicopter thing was to prevent deflation, not a plain vanilla recession.
Why doesn’t anyone ever mention that the loose credit that led to the banking crisis was a direct result of a Clinton executive order to extend credit to poor neighborhoods?
I predicted that the american dollar would start to slip when they redesigned our paper money. Basically using the same logic as this guy with his check scenery.
Well there was that LTCM thingie that would have taken down the banking system of the civilized world if the federal reserve had not made some ledger entries to provide some liquidity to an otherwise sound and solid company that faced a problem that there was a crisis in the credit markets such that it had cash flow problem, although they were not bankrupt.
Citicorpse has been to big to fail despite its lending excesses many many times now.
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