2nd Worst Financial Crisis In History: Who gets credit?

[Dante]

It's as much of a miracle as an arsonist, who shows up to help put out a fire he set, is a hero.

The analogy would hold if we were talking about Bush being in office, but Obama was not in office when the World's Financial Crisis was coming to a head.

Bush and Clinton would be the arsonists here.

get a life and while you're at it, ask for a boxed set of critical thinking skills. I think there is a discount being offered for pseudo-intellectuals with poor personal hygiene. You should qualify.

It's far more complicated than just Clinton, Bush, or Obama.

For decades, multiple interests have conspired and/or acted to plunder the U.S. taxpayer. This crisis is just one reductio ad absurdum of Privatizing Profit and Socializing Risk.

Steve Melanga wrote an excellent piece in 2008 on one of the proximate causes of the current crisis: Slack Lending Standards.

...

RealClearMarkets - Articles - The Long Road to Slack Lending Standards

I better not get sick following the above link.

forewarned

D.

 

[Dante]

Well disaster has not been averted. The market needed to reallocate resources and it hasn't been allowed to do so, which means that our economy is still unsustainable. It's worse than it was when it crashed in September of 08 thanks to the bailouts and stimulus package.

I agree we are not out of the water by any means! ...

But you being a dipshit with the ability to post your nonsense is proof positive the world did not end. You owe Obama.

 

[Dante]

Yeah they ignored it, uh huh. They didn't believe the Fed inflated boom could go on forever. Uh huh.

As for the Austrians, they had an actual explanation as to why the downturn would happen, and then it happened just like they said. They weren't just predicting the sky would fall.

[youtube]2I0QN-e]

 

[mascale]

This was in the Personal Income report, released just today"

"Private wage and salary disbursements increased $16.1 billion in January, compared with an increase of $2.3 billion in December. Goods-producing industries' payrolls increased $5.2 billion, in contrast to a decrease of $3.2 billion; manufacturing payrolls increased $5.0 billion, in contrast to a decrease of $1.5 billion. Services-producing industries' payrolls increased $10.8 billion, compared with an increase of $5.5 billion."

There is likely a job-creation of more than a half-dozen or so, being shown, there.

Down Would Be Said To Becoming Up(?), or something!

"Crow, James Crow: Shaken, Not Stirred!"
(Better in fact to shoot a $10.0 mil. missle, up some camel's asshole; Than to send in U.S, troops, acting on orders from Kabul!)

 

[boedicca]

The analogy would hold if we were talking about Bush being in office, but Obama was not in office when the World's Financial Crisis was coming to a head.

Bush and Clinton would be the arsonists here.

get a life and while you're at it, ask for a boxed set of critical thinking skills. I think there is a discount being offered for pseudo-intellectuals with poor personal hygiene. You should qualify.

It's far more complicated than just Clinton, Bush, or Obama.

For decades, multiple interests have conspired and/or acted to plunder the U.S. taxpayer. This crisis is just one reductio ad absurdum of Privatizing Profit and Socializing Risk.

Steve Melanga wrote an excellent piece in 2008 on one of the proximate causes of the current crisis: Slack Lending Standards.

...

RealClearMarkets - Articles - The Long Road to Slack Lending Standards

I better not get sick following the above link.

forewarned

D.

You'll only get sick if the heights of truthful reality make you dizzy.

 

[KissMy]

What Averted Financial Crisis? What Recovery?
The U.S. government owns 100% of GSEs Fannie & Freddie who first cost US $300 Billion, has now grown to $400 Billion & keeps growing & growing. US taxpayers guarantee GSEs Fannie & Freddie $4.3 trillion mortgage portfolio that is experiencing credit deterioration.

Washington Post - The U.S. government owns nearly 80 percent of AIG after its $182.3 billion rescue. AIG just reported another quarterly loss of $8.9 billion.

Washington Post - January 2010 new-home sales lowest in nearly 50 years.

National Association of Realtors said Friday Feb 26, 2010 that Sales of existing homes unexpectedly fell 7.2 percent.

Hows that stimulus working out for you? How about that jobs summit last month? While Obama is busy throwing lavish White House parties & campaigning for socialism, America lost over 4.1 million jobs in the year of 2009. Obama Presides Over Most Jobs Lost Since 1940.

Nearly 20 percent of the U.S. workforce lacked adequate employment in January and struggled to make ends meet with reduced resources and bleak job prospects, according to a Gallup poll released on Tuesday Feb 22, 2010.

Washington Times - Without record levels of welfare, unemployment and other government benefits as well as tax cuts last year, the income of U.S. households would have plunged by an astonishing $723 billion — more than four times the record $167 billion drop reported last month by the Commerce Department. Moreover, for the first time since the Great Depression, Americans took more aid from the government than they paid in taxes.

Sounds like a real sustainable recovery to me.

This is the real employment situation. WHERE ARE THE JOBS???

 

[Dante]

It's far more complicated than just Clinton, Bush, or Obama.

For decades, multiple interests have conspired and/or acted to plunder the U.S. taxpayer. This crisis is just one reductio ad absurdum of Privatizing Profit and Socializing Risk.

Steve Melanga wrote an excellent piece in 2008 on one of the proximate causes of the current crisis: Slack Lending Standards.

...

RealClearMarkets - Articles - The Long Road to Slack Lending Standards

I better not get sick following the above link.

forewarned

D.

You'll only get sick if the heights of truthful reality make you dizzy.

looks like nothing new, but I will give it a good read.

I'll be back

 

[boedicca]

Obama's goal is not to increase employment in the private sector - rather, it's to expand the share of government jobs. According to that metric, he's succeeding.

 

[Dante]

So the great ignorati who hang out at USMB and the partisan misfits who only parrot what is fed to them, all think the financial crisis is one of mortgages?

never heard of Over The Counter Derivatives? OTC derivatives? FRONTLINE: the warning: interviews: brooksley born | PBS

 

[Dante]

So the great ignorati who hang out at USMB and the partisan misfits who only parrot what is fed to them, all think the financial crisis is one of mortgages?

never heard of Over The Counter Derivatives? OTC derivatives? FRONTLINE: the warning: interviews: brooksley born | PBS

hmmm, time to take a different approach

 

[boedicca]

There would not have been a market for derivatives without the supply of taxpayer backed mortgages. Derivatives are a symptom, not a cause of the root problem of Crony Capitalism & Big Government Privatized Profit and Socialized Risk.

 

[Dante]

Bush and Paulson bailed out the banks.

They get some of the credit for averting finacial collapse.

They however put vertually no strings on the money they gave the banks.

Obama is trying to do what he can with what they left and the tarp the Bush team started.

Its amazing to me how many righties dont remember Bush standing in front of the media cameras on Sept, 2008 and announcing if we did not bail out the banks we would have finacial collapse.

Bush and team presided over the creation of this mess and did nothing, at least they tried to fix it rather than letting the economy collapse.

Remember the phrase "I guesss we are all kensyens Now".

FRONTLINE: the warning: video timeline | PBS

FRONTLINE: the warning: interviews | PBS

 

[Dante]

There would not have been a market for derivatives without the supply of taxpayer backed mortgages. Derivatives are a symptom, not a cause of the root problem of Crony Capitalism & Big Government Privatized Profit and Socialized Risk.

derivatives existed without mortgages. markets!!!! markets!!!

you are so off the main road here it isn't funny

derivatives: History of derivatives

Long Term Capital Management

 

[boedicca]

derivatives existed without mortgages. markets!!!! markets!!!

you are so off the main road here it isn't funny

derivatives: History of derivatives

Long Term Capital Management

I'm referring to the Credit Default Swap derivatives which cratered the bank balance sheets, leading to TARP. The underlying assets were radio active - that's the problem.

 

[Dante]

an excerpt on LTCM:

Summary of the Nature of LTCM:

Long Term Capital Management (LTCM) was a hedge fund located in Greenwich, Connecticut. The founders included two Nobel Prize-winning economists, Myron Scholes and Robert C. Merton. Scholes and Merton, among other things, developed along with the late Fischer Black, the Black-Scholes formula for option pricing. LTCM also included as guiding spirit John Meriwether, a former vice chairman of Salomon Brothers and famous bond trader. David Mullins, a former vice chairman of the Board of Governors of the Federal Reserve System was also part of the LTCM team. Also several important arbitrage analysts from Salomon Brothers joined LTCM. Eric Rosenfeld left Harvard University to join LTCM. It was a very elite group.

The idea behind LTCM was quite simple to articulate but not necessarily that easy to implement. LTCM was to look for arbitrage opportunities in markets using computers, massive databases and the insights of top level theorists. These opportunities arose when markets deviated from normal patterns and was likely to re-adjust to the normal patterns. By creating hedged portfolios the risks could be reduced to low levels. According to the model developed by Merton the risk could be reduced to zero, but in practice some of the crucial assumptions of Merton's model did not hold so the risk of the hedged portfolios was not really zero, as subsequent events proved.

Myron Scholes stated the objective of LTCM in a striking image. He said LTCM would function like a giant vacuum cleaner sucking up nickles that everyone else had overlooked.
The History

Long-Term Capital Management (LTCM) was the management arm of a hedge fund that operated from its founding in 1993 to its liquidation in early 2000. It went through a period of spectacular success from 1994 to early 1998. In August of 1998 Russia defaulted on its debt and the financial markets came unraveled. Historical regularities that had prevailed failed to hold and LTCM which had bet on those regularities nearly went bankrupt. It was saved only by the Federal Reserve Bank of New York sponsoring a bailout of LTCM by its creditor banks. The Fed justified its intervention on the basis of the potential of the failure of LTCM precipitating a financial crisis and the creditor banks were enticed into extending credit to LTCM because their financial losses in a general financial crisis could well be more than what they stood to lose if LTCM defaulted on its loans. As it happened LTCM survived long enough to pay off its indebtedness but by early 2000 it was liquidated.

LTCM had its origins in an Arbitrage Group put together by John Meriwether at Salomon Brothers of Wall Street. Meriwether was a successful bond market trader that parlayed his early successes into a position of prestige and influence within the firm. Although he was an astute trader he was even better at choosing and managing talented people.

Meriwether recruited Eric Rosenfeld and William Lasker from the faculty at Harvard. He also hired Victor Haghani, an Iranian American whose father was an international trader from a Sephardic Jewish family in Iran. Haghani trained in finance the London School of Economics. Haghani was one of Meriwether's star traders. Another was Lawrence Hilibrand who was trained in finance at M.I.T. Another Ph.D. in finance from M.I.T. secured by Meriwether for his group was Gregory Hawkins.

Meriwether's Arbitrage Group was so successful at earning profits for Salomon that they were able to demand a change in the way they were compensated. Meriwether negotiated a 15 percent share of the profit for his traders on their trades. This led to Hilibrand in 1989 receiving $23 million in pay. This arrangement created envy and resentment among the other groups at Salomon.

-Long Term Capital Management

 

[Dante]

derivatives existed without mortgages. markets!!!! markets!!!

you are so off the main road here it isn't funny

derivatives: History of derivatives

Long Term Capital Management

I'm referring to the Credit Default Swap derivatives which cratered the bank balance sheets, leading to TARP. The underlying assets were radio active - that's the problem.

The financial crisis the world faced was much, much bigger than some partisan argument about CDS.

That aside, there is no doubt...Obama temporarily saved the day.

 

[boedicca]

The financial crisis the world faced was much, much bigger than some partisan argument about CDS.

That aside, there is no doubt...Obama temporarily saved the day.

I doubt you'll find anything I've posted which claimed the crisis was limited to the CDS; they were just the final straw.

And Obama has made the situation worse, not better.

 

[Dante]

I wonder who disagrees with this Financial crisis of 2007?2010 - Wikipedia, the free encyclopedia and what they disagree with and why.

 

[Dante]

The financial crisis the world faced was much, much bigger than some partisan argument about CDS.

That aside, there is no doubt...Obama temporarily saved the day.

I doubt you'll find anything I've posted which claimed the crisis was limited to the CDS; they were just the final straw.

And Obama has made the situation worse, not better.

worse? we are better off than we were a year ago. where we are headed is open to interpretation. those are facts.

 

[boedicca]

I wonder who believes that Wikipedia is the source of all objective knowledge.