"This policy is just inadequate," said Chris Whalen, a managing director at financial research provider Institutional Risk Analytics. "The first quarter is just going to be grotesque for the banks - and then we're going to have to have this discussion all over again."
http://money.cnn.com/2009/02/10/news/geithner.questions.fortune/index.htm?postversion=2009021015
More Tonka Trucks please.
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And then there's the second wave.
ReplyDeletehttp://www.bloomberg.com/apps/news?pid=20601087&sid=anA4PQ48RFhI&refer=home
The second largest down day since,,, anyway the markets didn`t like it at all. I read an extensive number of analysis.
ReplyDeletePolitics which are really all over the map to how much and what kind.
Financial from wrong to not enough to catastrophic results.
lol, ignoring the politicians I`d say none of the groups were pleased starting with the smallest, catastrophe results, any deficit is a bad deficit. Not enough thinks it should be in the trillions.
Wrong hasn`t seen a lot of change, especially to Financial institutions so none of them got a piece of the flop.
I think it`ll take a little news on what happens after we take the $800B tourniquet off to cheer up that glum crowd.
Roubini and Taleb are right about bank nationalization. Taleb made some good points during the cnbc interview.
ReplyDeleteI couldn't believe they were asked for stock tips. When I heard that it was WTF??
http://www.cnbc.com/id/15840232?video=1027496846&play=1
Taleb is the author of 'The Black Swan' that I recommended a while back on Mr. Garth's site. He used to be considered a freak as was Roubini. Since both these guys called it bang on they are gaining in popularity.
Roubini's site.
http://www.rgemonitor.com/
Did you catch Rae letter in the NP? ;)
Stock tips, heh. Interesting that the markets seem to be jumping at penny and dollar stocks a great deal lately. One went up 142% the other day and led in volume. The mindset continues me thinks. Raes letter, did you mean the one where he refers to Harper holidays?
ReplyDeleteNationalizing the banks makes me a bit nervous. If they go that way, someone is going to have to keep a really close eye on what they are doing, and be very careful who is really in charge. A further ballooning of suits is a real danger there.
Hello Comrades, so much to do and read; so little time! Keep well, ok. Still working on my email...I wrote you Comrade One, it's lost in my computer somewhere:) I'm wary of those who are so confident,(Carny?) and I believe those who admit they don't know what they're doing as we're in uncharted waters.
ReplyDeleteWhat do you say when offered 800 Billion more?
ReplyDelete"Please, sir, can I have some more?"
from Charles Dickens Oliver Twist
Dee,
ReplyDeleteNationalizing banks might come after the toxic assets are dealt with. The plan so far is to buy up the toxic assets. Roughly every $100B is purchased with $60B in tax dollars. The assets are then sold back to the private investors for $20B who now reown the assets plus realize the $40B in initially lost paper profits, plus reown the assets. Oh well, Cdns love to pay taxes to keep funding all these scams.
The wave of the future or the final throws of a nation?
BC had laws that protect tax payers such as referendum voting in Vancouver on city hall borrowing. It got in the way so government ditched it. Today the province is going to do away with legislation that makes deficits illegal, another law that got in the way of government using deficit spending as a slush fund to prop up failing government policies.
Yes Anon, that was my thought too. I can even visualize the little beggars holding their hats out.
ReplyDeleteComrade and Poppavox?
ReplyDeleteI think Roubini/Taber are right for these reasons:
Nationalization will prevent merges of the banks already left standing. If some of them are allowed merge the system will become weaker in the long run and the next time something like this happens it may lead to complete collapse of the system. No one knows how much toxic debt there holding, they haven't been forthcoming with the numbers. Would also stop all those bonuses from being paid out. Fire some of the CEOs and the rest of the top heavy members. What a bunch of silicon heads. Finally, it would send a loud and clear message. Confidence and stability would return to the markets and the trust ratio may be go up a notch. I'd also like to see some of the G/S mafia returned to whatever sewers they crawled out of.
Comrade? Yeah, the NP letter. I had a good chuckle. Did you catch the deficit numbers? Yikes.
ReplyDeleteSorry forgot to mention in my last post.
Hi Dee
ReplyDelete"Nationalization will prevent merges of the banks already left standing."
Wouldn`t nationalization be a merger under the one roof of government?
"No one knows how much toxic debt there holding, they haven't been forthcoming with the numbers. Would also stop all those bonuses from being paid out. Fire some of the CEOs and the rest of the top heavy members. What a bunch of silicon heads."
They all dove head first into derivative financing with only a little more understanding than derivative investors they were selling to. Human factor, human error.
The concept of global derivative financing and investment simply wasn`t understood past the person that created it. The concept in my opinion is absolutely brilliant in the simplicity of spreading both risk and reward globally. The problem was not in the concept but the administration by too many with too little understanding of the results to create adequate oversight.
My opinion of this crash include greed, corruption, politics but as many have said of this current situation, " this is precedent setting". Well so was creating global derivatives which now, fully understood, can be formatted in confidence.
lol, reads like the silver lining
"fully understood, can be formatted in confidence."
ReplyDeleteTongue in cheek Watson?
'Wouldn`t nationalization be a merger under the one roof of government?'
ReplyDeleteYes and no. They would be able to keep the entities separate, clean up the books and go to market.
Not only derivatives but all the other products that were packaged and sold off as investments. Wall St knew exactly what they were doing just as S&P and Moody's when they tripled A the products. What amazes me is how long they were able to get away with it. You're right about derivative trading and it can be done honestly. The question you have to ask yourself is how reliable are the numbers you're getting from corps and Wall Street? Even our own Stats Can has problems collecting accurate data and number crunching.
Did you guys see this?
http://zerohedge.blogspot.com/2009/02/how-world-almost-came-to-end-at-2pm-on.html
I heard a couple of analysts allude to it on BNN but wouldn't go into further detail or weren't questioned about it. I get the impression that the monies was transferred to one country.
I'm beginning to wonder if this whole 'economy' thing is a penile size or ejaculation projectile competition. Smoke and mirrors.
"Tongue in cheek Watson?"
ReplyDeletelol, I can see how your suspicions are duly founded comrade but I was only trying to sooth the bankers pain of removing committee boots from their arses.
Dee
ReplyDelete"Did you guys see this?'
Way ahead of last fall, I was saying cash is good fall of 2007.
"The question you have to ask yourself is how reliable are the numbers you're getting from corps and Wall Street?"
Government has full responsibility of oversight to insure transparency which is where the failure occurred. We have criminal law to deal with corporate corruption. How good it works is again governments full responsibility.
Perhaps the question should be how can we trust government.
"I'm beginning to wonder if this whole 'economy' thing is a penile size or ejaculation projectile competition. Smoke and mirrors."
ReplyDeleteWelcome to Oz Dee.
There's something happening here
What it is ain't exactly clear
There's a man with a gun over there
Telling me I got to beware (Buffalo Sprinfield)
http://www.huffingtonpost.com/arianna-huffington/why-is-obama-reluctant-to_b_166572.html
ReplyDelete"Perhaps the question should be how can we trust government."
If they cater to Wall street and/or tell their citizens everything is fine and it's a perfect opportunity to buy stocks then we can't trust government can we?
Something has to be done. Everyone knows it but they don't have the guts to do it. Mortgage defaults were up by 250% this month. Wait until the commercials start defaulting......