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The End of the Financial World as We Know It
NYT ^
| 01/04/09
| MICHAEL LEWIS and DAVID EINHORN
Posted on 01/05/2009 12:19:40 AM PST by TigerLikesRooster
click here to read article
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To: TigerLikesRooster; PAR35; bamahead; AndyJackson; Thane_Banquo; nicksaunt; MadLibDisease; ...
2
posted on
01/05/2009 12:20:04 AM PST
by
TigerLikesRooster
(kim jong-il, chia head, ppogri, In Grim Reaper we trust)
To: TigerLikesRooster
It is the end for the NYT big time.
3
posted on
01/05/2009 12:22:00 AM PST
by
Fred
(Obama Happens!!!!)
To: TigerLikesRooster
4
posted on
01/05/2009 12:24:16 AM PST
by
Fred
(Obama Happens!!!!)
To: Fred
Still over 5 bucks? That is unacceptable.
5
posted on
01/05/2009 12:26:46 AM PST
by
TigerLikesRooster
(kim jong-il, chia head, ppogri, In Grim Reaper we trust)
To: TigerLikesRooster
Do we not put Barf Alerts any more ?
6
posted on
01/05/2009 12:32:11 AM PST
by
libh8er
To: TigerLikesRooster
What is the NYT? An internet game?
7
posted on
01/05/2009 1:08:12 AM PST
by
Dallas59
(Not My President)
To: TigerLikesRooster
A well written and clear analysis of the debacle. I agree with many, though certainly not all, of the authors' recommended solutions.
It is well worth people's time here to read all five pages of this op-ed. Don't be put off too much by the fact it was printed by the NYT. If someone wants to slam the piece, he should at least read it first.
8
posted on
01/05/2009 1:10:54 AM PST
by
Jeff F
(austinaero; Phoenix11; WaterBoard)
To: TigerLikesRooster
9
posted on
01/05/2009 3:06:42 AM PST
by
glide625
To: Jeff F
The NY Times has been publishing some good pieces on the Wall St machine that lead us to this debacle. This one is co written by Michael Lewis who wrote “Liar’s Poker” 20 years ago about his wild days working for Salmon Brothers
Those excesses were nothing compared to what Wall St did since 9-11-2001 ....... The gates were thrown open and easy money flooded out. We had an asset inflation in real estate, commodities and stocks and Wall St figured out how to make themselves billions in bonuses by making selling derivatives based on eternally rising asset values. Equity buyout firms like scummy Cerberus thrived on easy money
The Fed’s easy money policy did not show up much in consumer prices except in energy. Cheap imports from China etc tamped down consumer inflation
10
posted on
01/05/2009 3:34:39 AM PST
by
dennisw
(On the 31st floor a gold plated door won't keep out the Lord's burning rage ---FBB)
To: dennisw
Lewis and Einhorn also do a good job describing just how broken are all the various checks against Wall Street excesses such as the SEC, and the rating agencies. The very agencies which are suppose to protect the investor instead have been effectively perverted to advance the interests of the financial firms and their senior employees against those of the investors. Driving much of this the direct career paths from regulating entities to the financial firms, and the hugely corrupting level of salaries and particularly bonuses at the financial firms.
The authors make a good case that a handful of common sense changes could go a long way to clean up the current mess and avoid the future calamities. Unfortunately I do not see these changes being discussed widely outside of the occasional opinion piece such as this one.
11
posted on
01/05/2009 6:11:34 AM PST
by
Jeff F
(austinaero; Phoenix11; WaterBoard)
To: TigerLikesRooster
Finance bump for later............
12
posted on
01/05/2009 7:17:20 AM PST
by
indthkr
To: Jeff F
Lewis and Einhorn also do a good job describing just how broken are all the various checks against Wall Street excesses such as the SEC, and the rating agencies. The very agencies which are suppose to protect the investor instead have been effectively perverted to advance the interests of the financial firms and their senior employees against those of the investors. Driving much of this the direct career paths from regulating entities to the financial firms, and the hugely corrupting level of salaries and particularly bonuses at the financial firms.Lewis and Einhorn also do a good job describing just how broken are all the various checks against Wall Street excesses such as the SEC, and the rating agencies. Many Freepers want zero regulation everywhere. So laughable and childish. But the Bush administration sure behaved this way. 100% hands off the markets
It's like telling thieves that robbery is now legal
What we need is intelligent and honest regulation of Wall St financiers
They will run wild without it and the credit default swap mess is proof
13
posted on
01/05/2009 12:42:04 PM PST
by
dennisw
(On the 31st floor a gold plated door won't keep out the Lord's burning rage ---FBB)
To: Jeff F
I’d love to read it, but they’ve got a sign up page - and I don’t want to sign up for the NYTs even if it’s free. Sad, because from what I can tell - this one is worth reading. My resistance is weakening...
14
posted on
01/05/2009 1:49:13 PM PST
by
GOPJ
(GM's market value is a third of Bed, Bath and Beyond. Why is GM "too big to fail"? Steyn)
To: dennisw
In the case of Credit Default Swaps - if it looks, walks, and acts like an insurance instrument, then by gosh treat it as one. Simply adding a capital reserve requirement for CDS transactions would prevent an awful lot of mischief.
It is fairly simple to devise good ways to remedy the problems that led to the current debacle. On the other hand, it is very hard politically to have these solutions correctly identified and implemented. The current public policy fixes will only make matters worse.
15
posted on
01/05/2009 1:52:42 PM PST
by
Jeff F
(austinaero; Phoenix11; WaterBoard)
To: GOPJ
Id love to read it, but theyve got a sign up page - and I dont want to sign up for the NYTs even if its free. Sad, because from what I can tell - this one is worth reading. My resistance is weakening... I gave in just to read this article. It was worth it, I guess. Got to admit that I do feel dirty now.
16
posted on
01/05/2009 1:56:29 PM PST
by
Jeff F
(austinaero; Phoenix11; WaterBoard)
To: GOPJ
17
posted on
01/05/2009 3:20:12 PM PST
by
dennisw
(On the 31st floor a gold plated door won't keep out the Lord's burning rage ---FBB)
To: dennisw
Great article, gracias para el linko.
18
posted on
01/05/2009 5:37:35 PM PST
by
Travis McGee
(www.EnemiesForeignAndDomestic.com)
To: Jeff F
In the case of Credit Default Swaps - if it looks, walks, and acts like an insurance instrument, then by gosh treat it as one. Simply adding a capital reserve requirement for CDS transactions would prevent an awful lot of mischief.Yaeh but the whole point of credit default swaps was to get rid of those reserve requirements and free up that money to make money!!!!! And bigger year end bonuses!!!!!!
They were dreamed up by some JP Morgan boys in 1997 to free up those reserves and put them to work.
Credit default swap - Wikipedia, the free encyclopedia
Credit Default Swaps were invented in
1997 by a team working for
JPMorgan Chase [7] [8] [9]. They were designed to shift the risk of
default to a
...en.wikipedia.org/wiki/Credit_default_swap - 121k - Cached - Similar pages
19
posted on
01/05/2009 5:55:05 PM PST
by
dennisw
(On the 31st floor a gold plated door won't keep out the Lord's burning rage ---FBB)
To: Travis McGee
NY Times has been publishing some very good “what went wrong” articles
20
posted on
01/05/2009 5:56:02 PM PST
by
dennisw
(On the 31st floor a gold plated door won't keep out the Lord's burning rage ---FBB)
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