financial collapse

ON FDL: Bad Bank or Nationalization: What will CDSs Cost Us?

On FDL, masaccio peers into the financial statements of Citi and Bank of America, to determine Bad Bank or Nationalization: What will CDSs Cost Us?masaccio. Suffice it to say that if the credit default swaps are honored, it's going to cost A LOT of money. Cram down, anyone? I think the answer is discussed in Institutional Risk Analytic's interview, The Big Banks vs. America: A Roundtable with David Kotok and Josh Rosner.

There is one notable quote from masacci, which is actually pulled from a Financial Times article:

If you havn't read Institutional Risk Analyst yet, you need to NOW

Last week ago, Institutional Risk Analytics interviewed Josh Rosner of Graham Fisher & Co and David Kotok of Cumberland Advisors, and the discussion is one of the most direct and revealing of the true political nature of the financial collapse I have yet seen. As I have written before, using reports from the Fed, FDIC, and Comptroller of the Currency, the financial problems are very tightly concentrated in a handful of the largest banks, with over 8,000 plus smaller and regional banks having declined to participate in Wall Street’s derivatives madness.

Henry C K Liu: Monetarism enters bankruptcy

Last week, Dick Cheney gave an interview in which he pronounced the Bush regime's economic policy to have done a decent job, and asserted that the financial. banking, and economic crises had only begun in the middle of 2008. In his latest article, Henry C K Liu demolishes Cheney's spin, discussing in detail the onset of the crises in July 2007.



Madoff WAS the system, not an error or bad apple

Madoff’s Crookedness Was a Feature, Not a Bug

By: Ian Welsh Wednesday December 31, 2008 12:42 pm

Ian Walsh nails it with a short and sweet indictment of Bernie Madoff being representative of the past few decades:

Okay, let's point out the obvious: the fact that Bernie Madoff was a crook was known to every competent financial professional. If they didn't know that, it was because they weren't competent or they didn't want to know and if they didn't want to know, they weren't competent. It is impossible to make 1% a month, every month. Impossible. . . .