The politicians aren't talking about this "major crisis" exactly because so far it has been contained to Wall Street, and hasn't significantly impacted Main Street.
The GOP talks about "drill, drill" because $4/gallon gas impacts Main Street. The Dems are talking about a "second stimulus package" because inflation in the face of stagnating wages impacts Main Street.
If every single Wall Street investment house went belly up by tomorrow (which actually might not be that much of a hyperbole, come to think of it ...), would Main Street care? So long as their IRAs and mutual funds were safe, probably not.
There is no reason for Sears or JCPenney or Pep Boys or Starbucks or Apple to crash. Remember my diary from a couple of months ago entitled "Neutron Bomb over Wall Street"? Well, that neutron bomb just exploded.
Has anyone noticed of such a major crisis that during this entire general election season, it's all barely been mentioned? Isn't that pathetic? We might hear a few token phrases, that's about it.
Credit slips (see middle column) has jumped on something I thought was funky also, a hastily Fed issued interim rule:
Professor Anna Gelpern at Rutgers-Newark notes a scary change in Federal Reserve policy: the Fed just adopted an interim final rule (was there a notice and comment period?) that allows "all insured depository institutions to provide liquidity to their affiliates for assets typically funded in the tri-party repo market."
To put it in less abstruse language, the Fed is allowing insured banks to take equities (supposedly investment grade, as if that had meaning now) as collateral. So insured banks now take on their affiliates junk equity holdings as collateral and if things go badly...the FDIC insurance fund (and ultimately the taxpayers) are on the hook. I'm guessing that this means all of the bum MBS floating around insured banks' affiliates are going to go into the collateral pile. Not every bailout has to make the front page of the Times, but that's what this temporary Fed rule is...a contingent bailout
FUBAR is a new mathematical model, based on vector calculus and non-linear differential equations, along with vector spaces as in way out of the stratosphere....which shows very clearly one can blow smoke and still have their head up their ass.
I just heard that these asshats created new mathematical models where they had 40 dollars in loan for 1 dollar in deposits, claiming this was going from history.
Now I'm good at math. I'm sure I can come up with a mathematical model which will show you the laws of supply and demand will simply diverge and I can surely create a mathematical model which shows one can create fictional money, not a problem, and be fine.
An extremely rare Sunday afternoon Wall Street trading session, held with the intention of reducing systemic risk posed by a potential bankruptcy by Lehman brothers, descended into chaos, said one participant.
Organized by ISDA, the International Swaps and Derivatives Association, the session was done via a massive conference call involving dozens of firms from all over the world. "Yelling and screaming," occurred in the session, said one participant, with many participants unaware of the rules. More importantly, what little pricing did occur in the session shows a dramatic increase in the concerns about the health of Wall Street.
My question is how long can they all hide all of this bad debt? Looks like they are moving it around, dumping it on the taxpayer, hiding it through acquisitions.....
Bank of America is in advanced talks to buy Merrill Lynch for at least $38.25 billion in stock, people briefed on the negotiations said on Sunday, as a means to preserve that investment bank while Lehman Brothers looks likely to collapse.
The move suggests a desperate effort at triage on Wall Street, as Bank of America works to shore up the likely next victim of the credit crunch. A deal, valued at between $25 a share to $30 a share, could be announced as soon as Sunday night, these people said. Merrill shares closed at $17.05 on Friday.
Washington Mutual Inc., the country's biggest savings and loan, may cost taxpayers as much as $24 billion in the event of a U.S. government bailout, according to Richard Bove, an analyst at Ladenburg Thalmann & Co
While I'd claim one of the most major economic disasters is potentially unfolding before our eyes.....the press is all about Palin and bogus talking head opinions as well as Hurricane Ike aftermath. Not a word on what's happening on TV.
Supposedly Lehman is now preparing for Bankruptcy by midnight.
And....Greenspan is now calling this the worst financial crisis in 100 years. Right, I think he's just trying to cover his ass since he most assisted in making this mess.
How about expiring commodity-based money, based on something completely renewable and expandable like killowatt/hours?
The politicians aren't talking about this "major crisis" exactly because so far it has been contained to Wall Street, and hasn't significantly impacted Main Street.
The GOP talks about "drill, drill" because $4/gallon gas impacts Main Street. The Dems are talking about a "second stimulus package" because inflation in the face of stagnating wages impacts Main Street.
If every single Wall Street investment house went belly up by tomorrow (which actually might not be that much of a hyperbole, come to think of it ...), would Main Street care? So long as their IRAs and mutual funds were safe, probably not.
Although the financial sector may get vaporized.
There is no reason for Sears or JCPenney or Pep Boys or Starbucks or Apple to crash. Remember my diary from a couple of months ago entitled "Neutron Bomb over Wall Street"? Well, that neutron bomb just exploded.
You're right. Hillary took it on and was viciously attacked, but I found that impressive that she did talk about it.
The candidates are going to ignore it as long as possible. The first one that proposes anything will be attacked.
Has anyone noticed of such a major crisis that during this entire general election season, it's all barely been mentioned? Isn't that pathetic? We might hear a few token phrases, that's about it.
Credit slips (see middle column) has jumped on something I thought was funky also, a hastily Fed issued interim rule:
But the title says we must read it and review it.
Bailout Nation! How Easy Money Corrupted Wall Street and Shook the World Economy.
The dollar is tanking too.
Yahoo finance, their front page looks like spin city. Oh, they have come up with a plan to reassure the markets.
FUBAR is a new mathematical model, based on vector calculus and non-linear differential equations, along with vector spaces as in way out of the stratosphere....which shows very clearly one can blow smoke and still have their head up their ass.
is talking about a run on investment firms. I think we may see the biggest one day stock market drop in history.
I just heard that these asshats created new mathematical models where they had 40 dollars in loan for 1 dollar in deposits, claiming this was going from history.
Now I'm good at math. I'm sure I can come up with a mathematical model which will show you the laws of supply and demand will simply diverge and I can surely create a mathematical model which shows one can create fictional money, not a problem, and be fine.
n/t
Special Session breaks down
CNBC has a live camera on the building and all sorts of people are going in with boxes and walking out with their arms full.
Finally, CNBC is going on air 8PM EST to cover Lehman and latest developments.
Who here is disgusted with cable news and their phony pundits with their phony issues filling up hours and hours of air time?
My question is how long can they all hide all of this bad debt? Looks like they are moving it around, dumping it on the taxpayer, hiding it through acquisitions.....
One less bailout?
Boy the hits just keep on coming, Bloomberg:
While I'd claim one of the most major economic disasters is potentially unfolding before our eyes.....the press is all about Palin and bogus talking head opinions as well as Hurricane Ike aftermath. Not a word on what's happening on TV.
Supposedly Lehman is now preparing for Bankruptcy by midnight.
And....Greenspan is now calling this the worst financial crisis in 100 years. Right, I think he's just trying to cover his ass since he most assisted in making this mess.
Lehman had foreign investors walk away earlier so this might explain why he is against it.
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