RedScare Posted October 14, 2008 Share Posted October 14, 2008 That would be two trillion dollars. Has it been that much already?Yep. $840 Billion for the bailout package, and more than $1 Trillion that the Fed pumped in for something else...purchasing short term paper, perhaps?EDIT: Here ya go. $1.8 Trillion, courtesy of our friends at CNBC. Oh, and that's so far. There are more proposals in the pipeline. This does not include the printing of new money that has also been going on. I have no idea how much that is. Link to comment Share on other sites More sharing options...
TheNiche Posted October 14, 2008 Share Posted October 14, 2008 "May" spin out of control? Good grief, the liabilities the US government has taken on in the last month would be more than enough to pay for two Iraq wars.They've taken on some assets, too. Looking at one side of the balance sheet is pretty meaningless. Moreover, Iraq wasn't a tremendously expensive war.We've got a ways to go before the phrase "spin out of control" means very much in my book. Link to comment Share on other sites More sharing options...
Subdude Posted October 14, 2008 Author Share Posted October 14, 2008 Yep. $840 Billion for the bailout package, and more than $1 Trillion that the Fed pumped in for something else...purchasing short term paper, perhaps?EDIT: Here ya go. $1.8 Trillion, courtesy of our friends at CNBC. Oh, and that's so far. There are more proposals in the pipeline. This does not include the printing of new money that has also been going on. I have no idea how much that is.It was also mentioned in the Economist, and they're the last people that would kid around about that sort of thing. Some of the impact has been direct funding, but others have been indirect like providing loan guarantees and accepting lesser quality collateral for funding than used to be the case. None of this is by necessity a problem, but the implication of course is that America will remain dependent on the kindness of strangers. Link to comment Share on other sites More sharing options...
memebag Posted October 15, 2008 Share Posted October 15, 2008 I was heartened by this article: Financial crisis haunts Milton Friedman's LegacyU.S. economist Milton Friedman, the champion of unfettered markets, is under siege for theories that some blame for unleashing the global financial crisis.As I said in the electric bill thread back in June, I blame Milton Friedman. Someone else is, too! Link to comment Share on other sites More sharing options...
RedScare Posted October 15, 2008 Share Posted October 15, 2008 Market down 733, second biggest drop ever, after the biggest last week. It seems that every time investers hope they have seen the bottom of the credit crisis, they find out it has further to go. Some estimates (more likely guesses) of the amount of leverage in the derivatives market is 40-1 or more. Link to comment Share on other sites More sharing options...
TJones Posted October 16, 2008 Share Posted October 16, 2008 I was trying to be optimistic about the whole thing. Perhaps a gain tomorrow ? Link to comment Share on other sites More sharing options...
crunchtastic Posted October 16, 2008 Share Posted October 16, 2008 I was trying to be optimistic about the whole thing. Perhaps a gain tomorrow ?I wish I could be more optimistic, but I think the bad retail data was at least a 2 day setback. Coming up on Christmas, and everything.I was heartened by this article: Financial crisis haunts Milton Friedman's LegacyAs I said in the electric bill thread back in June, I blame Milton Friedman. Someone else is, too!Read Naomi Klein's Shock Doctrine. It's full of Friedman legacy. Link to comment Share on other sites More sharing options...
BryanS Posted October 16, 2008 Share Posted October 16, 2008 Market down 733, second biggest drop ever, after the biggest last week. It seems that every time investers hope they have seen the bottom of the credit crisis, they find out it has further to go. Some estimates (more likely guesses) of the amount of leverage in the derivatives market is 40-1 or more.That gearing is way too high. I am reading that everyone needs to get down to 12:1 or less. Lehman was at 30:1, and they failed. Link to comment Share on other sites More sharing options...
crunchtastic Posted October 16, 2008 Share Posted October 16, 2008 That gearing is way too high. I am reading that everyone needs to get down to 12:1 or less. Lehman was at 30:1, and they failed.My personal comfort level is 10:1.Do you read Rittholz? The Big Picture. I can't say I always agree with him, but as a source, he's fantastic. Link to comment Share on other sites More sharing options...
RedScare Posted October 16, 2008 Share Posted October 16, 2008 Merrill Lynch reported a $5.1 Billion loss today. In other news, Merrill executives said there is no truth to the rumor that its signature bull came out of the closet last week on National Coming Out Day. Link to comment Share on other sites More sharing options...
sevfiv Posted October 17, 2008 Share Posted October 17, 2008 A way to fight back: http://www.colbertnation.com/the-colbert-r...-lending-menace Link to comment Share on other sites More sharing options...
editor Posted October 17, 2008 Share Posted October 17, 2008 I heard on the radio today that AIG's execs got busted on a THIRD luxury retreat. Seriously, don't these guys get it? No wonder people want to storm their castle. Link to comment Share on other sites More sharing options...
memebag Posted October 17, 2008 Share Posted October 17, 2008 I heard on the radio today that AIG's execs got busted on a THIRD luxury retreat. Seriously, don't these guys get it? No wonder people want to storm their castle. Link to comment Share on other sites More sharing options...
sifuwong Posted October 17, 2008 Share Posted October 17, 2008 I'm surprised no disgruntled employee of AIG has killed an exec. Link to comment Share on other sites More sharing options...
N Judah Posted October 17, 2008 Share Posted October 17, 2008 Well, there's this:http://www.telegraph.co.uk/finance/finance...others-gym.htmlhttp://nymag.com/daily/intel/2008/10/pushe...rulean_bui.htmlA couple of days ago NY Mag had to come out and pretend it didn't happen. Oh, please. If you get smacked down like that, just admit it. Link to comment Share on other sites More sharing options...
editor Posted October 19, 2008 Share Posted October 19, 2008 Ran across this today. Link to comment Share on other sites More sharing options...
RedScare Posted October 19, 2008 Share Posted October 19, 2008 Ran across this today. Sweet! That will look killer on our Olympic uniforms! Link to comment Share on other sites More sharing options...
N Judah Posted October 19, 2008 Share Posted October 19, 2008 More like Goldman Sachs! Link to comment Share on other sites More sharing options...
crunchtastic Posted October 20, 2008 Share Posted October 20, 2008 Live, from Allen Parkway and Waugh, Protesters at AIG building! There are about a half dozen people out in the median at Waugh and the bridge protesting the AIG bailout! I could only read two of the signs, one said "Honk to stop the greed" and another, "$400,000 party!!!"While I waited to turn, I noticed that no one honked. Lots of people are walking past them to the Subway across the street. I wonder if the protesters are hoping they get to mix it up with some actuarial intern trying to buy his $5 lunch...... Link to comment Share on other sites More sharing options...
editor Posted October 20, 2008 Share Posted October 20, 2008 Live, from Allen Parkway and Waugh, Protesters at AIG building! There are about a half dozen people out in the median at Waugh and the bridge protesting the AIG bailout! I could only read two of the signs, one said "Honk to stop the greed" and another, "$400,000 party!!!"While I waited to turn, I noticed that no one honked. Lots of people are walking past them to the Subway across the street. I wonder if the protesters are hoping they get to mix it up with some actuarial intern trying to buy his $5 lunch......Funny. I wonder is someone is paying for them to be there. With KHOU so close, maybe one of its crews will notice. Link to comment Share on other sites More sharing options...
MetroMogul Posted October 23, 2008 Share Posted October 23, 2008 Fast forward to 2:25 seconds and remember the good old days. Link to comment Share on other sites More sharing options...
sevfiv Posted October 23, 2008 Share Posted October 23, 2008 Wow - flashback Link to comment Share on other sites More sharing options...
Mark F. Barnes Posted October 23, 2008 Share Posted October 23, 2008 Let the finger pointing begin!!!!!!!!!!!!!!!!!!!!$700 Billion Blame GameOctober 21, 2008Congressional candidates twist facts to pin the financial crisis on opponents.http://www.factcheck.org/elections-2008/70...blame_game.html Link to comment Share on other sites More sharing options...
Subdude Posted October 23, 2008 Author Share Posted October 23, 2008 Stop the presses! Greenspan Concedes to `Flaw' in His Market Ideology (Update2)By Scott Lanman and Steve Matthews Oct. 23 (Bloomberg) -- Former Federal Reserve Chairman Alan Greenspan said a ``once-in-a-century credit tsunami'' has engulfed financial markets and conceded that his free-market ideology shunning regulation was flawed. ``Yes, I found a flaw,'' Greenspan said in response to grilling from the House Committee on Oversight and Government Reform. ``That is precisely the reason I was shocked because I'd been going for 40 years or more with very considerable evidence that it was working exceptionally well.'' ... Greenspan reiterated his ``shocked disbelief'' that financial companies failed to execute sufficient ``surveillance'' on their trading counterparties to prevent surging losses. Captain Greenspan is shocked, Shocked! to find out that gambling is going on here! You couldn't make this stuff up. Link Link to comment Share on other sites More sharing options...
BryanS Posted October 23, 2008 Share Posted October 23, 2008 Stop the presses!Captain Greenspan is shocked, Shocked! to find out that gambling is going on here! You couldn't make this stuff up. Saw that too. Reminds of that really smart, "book smart" person... who doesn't have enough sense to look where he's going and runs right into a pole. What did you think would happen, Greenspan? You honestly thought that banks/investment banks were looking after their own self interests and thereby protecting their customers/shareholders? Of course not. They engaged in dangerous and unsustainable investment practices, driven by their greed, and a failed unregulated free market ideology that ultimately lead to their demise. History will not be treating you kindly, sir. And McCain says he would prop you up like "Weekend at Bernie's" if he had to... do the nation a favor and get off the stage. Link to comment Share on other sites More sharing options...
N Judah Posted October 23, 2008 Share Posted October 23, 2008 Well to a certain extent our whole capitalist system is based upon mutual trust. If people can't look after the guarantors of billions of dollars of their own money, then what hope is there? Link to comment Share on other sites More sharing options...
memebag Posted October 24, 2008 Share Posted October 24, 2008 Well to a certain extent our whole capitalist system is based upon mutual trust. If people can't look after the guarantors of billions of dollars of their own money, then what hope is there?Capitalism is supposed to exploit mutual distrust. Everyone tries to maximize their own profit and guard against everyone else (who can safely be assumed to be maximizing their own profit). That falls apart when people start to believe the legal fiction that corporations are people. Greenspan imagined that corporations were self-serving instead of the individual people working for those corporations. Game theory shows that putting the corporation's profit ahead of your own isn't an evolutionarily stable strategy.The phrase "shocked disbelief" indicates he doesn't really believe that capitalism failed us. Bouchedag. Link to comment Share on other sites More sharing options...
N Judah Posted October 24, 2008 Share Posted October 24, 2008 The phrase "shocked disbelief" indicates he doesn't really believe that capitalism failed us. Bouchedag.Well to his credit he did warn about the widespread underpricing of risk in 2004. I think that was a large part of the problem. Link to comment Share on other sites More sharing options...
memebag Posted October 24, 2008 Share Posted October 24, 2008 Well to his credit he did warn about the widespread underpricing of risk in 2004. I think that was a large part of the problem.And the impact of that warning was ... what, exactly? Link to comment Share on other sites More sharing options...
crunchtastic Posted October 24, 2008 Share Posted October 24, 2008 The phrase "shocked disbelief" indicates he doesn't really believe that capitalism failed us. Bouchedag.It didn't fail him personally, and that's all that matters. Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.