tag:blogger.com,1999:blog-4102429195693595750.post5815020351668478996..comments2024-03-22T05:15:17.042+02:00Comments on Sudden Debt: Injections of Futility or, Bail and FailHellasioushttp://www.blogger.com/profile/03564511281240682625noreply@blogger.comBlogger14125tag:blogger.com,1999:blog-4102429195693595750.post-54428966657770722422007-08-14T13:02:00.000+03:002007-08-14T13:02:00.000+03:00Travolti da un insolito destino nell'azzurro mare ...Travolti da un insolito destino nell'azzurro mare d'agosto<BR/>well... I remember another rather old film, from the seventies maybe, that may better suit the case, but I do remember neither the title nor the director...<BR/>rich people on a sailboat in the mediterranean sea: they all jump off for a bath but nobody remembers to drop the stair to come back on board.<BR/>The last sequence shows the boat alone in the open sea, and nothing afloat.<BR/>La morte è 'na livella... ;)Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-31471472564607848842007-08-14T09:03:00.000+03:002007-08-14T09:03:00.000+03:00Penultimate anon,Yes.-----Miju,Perhaps technically...Penultimate anon,<BR/><BR/>Yes.<BR/>-----<BR/>Miju,<BR/><BR/>Perhaps technically not a 'bailout' but can you tell me a bit about those MBS, e.g. Agency or 'synthetic Agency' created via use of <BR/>Agency CDS to provide the required guarantee..<BR/><BR/>But then that has little to do with a global financial system that's become too complex, too big to bail but, as it persists in running into its own internal contradictions and real economy limits, must deflate.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-74503304817070977972007-08-14T07:34:00.000+03:002007-08-14T07:34:00.000+03:00Well written article. There certainly is a major c...Well written article. There certainly is a major crisis, and the stats that you included regarding the amount of debt that major investment banks are carrying is very telling.<BR/><BR/>Aaron<BR/>GrowYourFunds.comGrow Your Fundshttps://www.blogger.com/profile/01190413912890996621noreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-74367535279256508572007-08-14T07:03:00.000+03:002007-08-14T07:03:00.000+03:00"Swept away by an unusual destiny in the blue sea ..."Swept away by an unusual destiny in the blue sea of August." Oh what a delicious quote you found. Just perfect. Great film too ;)Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-86720939252046504872007-08-13T21:45:00.000+03:002007-08-13T21:45:00.000+03:00"It is the cause, it is the cause, my soul..."http..."It is the cause, it is the cause, my soul..."<BR/><BR/>http://immobilienblasen.blogspot.com/Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-23127723787354106322007-08-13T21:34:00.000+03:002007-08-13T21:34:00.000+03:00The responsible answer to funding speculative beha...The responsible answer to funding speculative behaviour involving huge maturity mismatches and large illiquidity risk is to allow the price of the risk in that funding to be dsicovered. If that involves a spike in overnight rates and others so be it. Those that need such funding to cover their funding of speculative positions should pay the price for their behaviour and,or deal with the positions that are causing it. Those that do not can hold off or raise funds temporarily elsewhere. <BR/><BR/>It appears that the intervention has introduced a backstop for the backers of risky behaviour to avoid and or delay the direct consequences of that behaviour. This is the Trichet, Bernanke et Alia. We will see how long it lasts but since markets are future discounting mechanisms clearly they believe the fix is in.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-91738915965410730552007-08-13T20:36:00.000+03:002007-08-13T20:36:00.000+03:00You are wrong. CBs, especially the FED,are not pa...You are wrong. CBs, especially the FED,<BR/>are not part of the government. This is the mistake you make. They are owned largely by the banks that own the funds that need to be bailed out. Thus, the vicious circle jerk of inflation, with joe sixpack taking it in the rear.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-34820939117450952542007-08-13T18:35:00.000+03:002007-08-13T18:35:00.000+03:00Re: investing believing "in ten years it would gro...Re: investing believing "in ten years it would grow to 5 million!"<BR/><BR/>Rule of 72 implies his CPA thinks he can get at least 7% compounded on 2 1/2 Million. However, taking taxes into consideration, he probably needs something north of 12% compounded. If he starting with 1 1/4 million, we are talking 24%! Please...what is the CPA recommending to get this high return? I may want some, too.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-48567957849581275502007-08-13T17:49:00.000+03:002007-08-13T17:49:00.000+03:00This guy has another solution which I found intere...This guy has another solution which I found interesting:<BR/>http://maverecon.blogspot.com/2007<BR/>/08/if-theres-credit-crunch-leave-fed-funds.htmlUnknownhttps://www.blogger.com/profile/02284266609097036974noreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-66502899183284542652007-08-13T17:26:00.000+03:002007-08-13T17:26:00.000+03:00Should or shouldn't? Wow, never thought to ask my...Should or shouldn't? Wow, never thought to ask myself that question. It's almost like.... like.... we're living in a democracy or something. Wow.<BR/><BR/>Long term growth in SOMA at no more than the growth in productivity! Quit stealing middle class savings!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-15529633448976649662007-08-13T17:15:00.000+03:002007-08-13T17:15:00.000+03:00Ahhh, a bailout is the exactly correct term. Notic...Ahhh, a bailout is the exactly correct term. Notice I did not say the CB's solved the problem. They just paid the bail (injected "futility") and got the crooks out of jail for the time being. <BR/><BR/>But bail must be repaid and the crooks must appear before a judge, to be tried and - if sentenced - serve time in jail. And then there is no bail...heh.Hellasioushttps://www.blogger.com/profile/03564511281240682625noreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-71021379387795031092007-08-13T16:41:00.000+03:002007-08-13T16:41:00.000+03:00I agree with Miju, However I too belive it is futi...I agree with Miju, However I too belive it is futile.... Something's gotta give....<BR/><BR/>I anticipated this, and anticipate more futile efforts once this fails.... I remain faithfully short the dollar.<BR/><BR/>You see, FAITH, will carry me through this crisis.<BR/><BR/>Alleluja! Is that how it's spelled...?<BR/><BR/>Good luck to all,<BR/><BR/>EconoliciousAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-64315375047102197532007-08-13T16:22:00.000+03:002007-08-13T16:22:00.000+03:00Dear Hellasious,I repeat, it is not because our sc...Dear Hellasious,<BR/>I repeat, it is not because our scenario seems to develop as assumed that we have now to reinforce it (bullish become more bullish in uptrend and bearish do the same in the downtrend..)Being contrarian with yourself sometimes brings serenity...may be. On the bail out : no bail out at all. The Fed and the ECB lend money at repo rate because banks could not refinance at these rates. But banks which have borrowed must give back the loans in a few days. the fed and the ECB have not bought the collateral brought by the banks; these asset will not go in the FEd ECB balance sheet. For the moment...so it is not a bail out, it is a responsible answer to a abnormalr credti crunch.<BR/>regards<BR/>MijuAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-81640703639264443712007-08-13T14:27:00.000+03:002007-08-13T14:27:00.000+03:00Sorry have not seen the film. I do see on Bloomber...Sorry have not seen the film. I do see on Bloomberg that stocks are rising this mourning due to <BR/><BR/>"Stocks rallied worldwide and U.S. index futures advanced after analysts recommended buying equities and central banks moved to ease a credit crunch following losses in higher risk mortgages."<BR/><BR/> Seems if you drink the Koolaid it can change your perspective.<BR/><BR/>Out here in rural land a guy I know is pulling the plug. He has put his place and equipment up for sale even though he acknowledges sales have been dropping and foreclosures rising on property along with equipment piling up in dealers yards. His accountant told him if he invested the money from his sale, I believe it was in ten years it would grow to 5 million!<BR/><BR/>The theme here in the dirt is that denial is everywhere and your<BR/> <BR/>"(c) Individual human thought may leap, but society's habits change only gradually and then only after the proof hits them hard over the head. Witness global climate change, for example."<BR/><BR/>rings true. He may admit that his "assets" may be priced a little high but he believes that he will sell for a profit and be able to invest and have it grow into an ever bigger sum and not have to work. <BR/>I did try to tell him if he does sell all his "means of production" which is paid for that in the 70's the banks would gladly lend you a thousand at double digits if you had 10,000 in CD's on deposit. The point of tight credit and future deflation was lost on him.<BR/><BR/>GeoffAnonymousnoreply@blogger.com