Moody's Cuts U.S. Banking System To Negative

[DudleySmith]

Same with Bear Stearns and Lehman Bros causing trouble in 2008

UBS in Europe was the first to fail over the CDO's and mortgage markets. Goldman practilly invented the gimmick of miixng up bad paper with good paper and passing it off on customers; they got nervous earlier than other crooks when they found out they couldn't track where the bad paper was and bailed before everybody else did, and then quit loaning money in the overnight markets, which dominoed to the other large players, of which there weren't many at that level, and liquidity dried up overnight, leaving all kinds of firms with highly leveraged equities that dropped drastically, then the margin calls went out, bankrupting companies left and right. The 'mark to market' rule was a bitch when it kicked in, and nobody had a clue where all the bad paper was, even companies like Thornburg, with nothing but high end loans on their books with near zero default rates went under as the prices of the houses backing those mortgages dropped 30% or more.

 

[DudleySmith]

since we're dealing with EC banking, Europe might be the canary in the coal mine.

It hit Europe first in 2007, at UBS in fact. Then it hit the U.S., except for the insiders like Goldman of course, who began bailing out in 2006 and covering their own asses on all the bad paper they sold customers. UBS loved the big returns while they lasted and the inflated leverage they generated.

 

[multivita-man]

It hit Europe first in 2007, at UBS in fact. Then it hit the U.S., except for the insiders like Goldman of course, who began bailing out in 2006 and covering their own asses on all the bad paper they sold customers. UBS loved the big returns while they lasted and the inflated leverage they generated.

At what point do average people wake up and realize how fucked up this economy is, and how fucked up it has been for the last 30 years?

It's socialism for people who have access to capital and wealth, and it's moral hazard for Joe Homeowner or Jane the student debt serf.

We just bailed out investors. That's it. These people are fucken economic terrorists.

We have some planes unrealized losses. If you don't bail us out we'll crash the plane the economy and kill all the passengers jobs.

 

[georgephillip]

Great stuff from Lenin, you know that guy that was responsible for the murder of millions of people. You should also throw in some quotes from Mao and Stalin if you want anyone to take you seriously. Socialism is great you just have to kill enough people to make it work

No economic system in history kills like capitalism.
You can see its latest effort in Ukraine today.

December 3, 2015 - British Imperialism in India

Homework - Use the source material listed below to answer the questions on the assignment sheet. These sources will be the focus of class d...

modernworldhistory-levelfive.blogspot.com

 

[georgephillip]

If you have a company, you are not forced to merge or sell. Company owners wish to do so because of the money, so they achieved their goal by creating a company and cashing it in. Something you can't do under Socialism, you have to remain poor and share the misery.

Cubans have access to free medical care and education.
Are they more miserable than Americans?

A capitalist company is controlled by a very small number of people who decide what to produce, where to produce it, and, most importantly, how to distribute any profits.

Socialism does away with that small privileged minority making all important business decisions by extending the those decisions to a majority of employees:

Worker Cooperatives and WSDEs

 

[Captain Caveman]

Cubans have access to free medical care and education.
Are they more miserable than Americans?

A capitalist company is controlled by a very small number of people who decide what to produce, where to produce it, and, most importantly, how to distribute any profits.

Socialism does away with that small privileged minority making all important business decisions by extending the those decisions to a majority of employees:

Worker Cooperatives and WSDEs

Healthcare and education are never free, you pay for it via tax.

 

[multivita-man]

Healthcare and education are never free, you pay for it via tax.

That is true, but it can be a good use of our tax dollars, provided the institution gets widespread public support and trust. Taxes aren't inherently bad; it's how they're used that matters, but the solution to incompetent administration - be it schools or policing - isn't to de-fund; it's to keep thinking of ways to find better talent and improve training, morale, culture, etc.

 

[ThunderKiss1965]

Right bu

No economic system in history kills like capitalism.
You can see its latest effort in Ukraine today.

December 3, 2015 - British Imperialism in India

Homework - Use the source material listed below to answer the questions on the assignment sheet. These sources will be the focus of class d...

modernworldhistory-levelfive.blogspot.com

Sorry but socialism makes the British look like pikers. You loons try to minimize that death toll by leaving out the Nazi's but they where socialist and with that murderous socioeconomic philosophy it's usually one person who causes it.

 

[georgephillip]

Healthcare and education are never free, you pay for it via tax.

Health care and education are much closer to free when they're provided as public utilities instead of privatized, for-profit corporations; the same principle holds true for mortgages and credit cards.

 

[Thunk]

Reports coming in that UBS is trying to back out of the credit suisse deal.

This could be a black swan folks...where a TBTF bank...fails.

Lets hope this deal does not fall apart!

 

[multivita-man]

Reports coming in that UBS is trying to back out of the credit suisse deal.

This could be a black swan folks...where a TBTF bank...fails.

Lets hope this deal does not fall apart!

The government won't let them; it's a done deal. The government may have to spend more than it imagined to cover lawsuits from bond investors. Switzerland can cover Swiss-based assets, but there's nothing stopping an American investor from suing UBS in an American bank.

 

[Thunk]

The government won't let them; it's a done deal.

I hope you're right...it sounds like major negotiations are ongoing right now.

 

[multivita-man]

I hope you're right...it sounds like major negotiations are ongoing right now.

That being said, that doesn't mean there won't be problems. The bond wipeout is already a problem, but it's the best turd sandwich on the menu as far as the Swiss central bank is concerned.

 

[georgephillip]

Right bu

Sorry but socialism makes the British look like pikers. You loons try to minimize that death toll by leaving out the Nazi's but they where socialist and with that murderous socioeconomic philosophy it's usually one person who causes it.

"THE NAZI ECONOMIC SYSTEM

"In the six years between the Fascist victory in Germany and the outbreak of war, Nazism erected a system of production, distribution and consumption that defies classification in any of the usual categories.

"It was not capitalism in the traditional sense: the autonomous market mechanism so characteristic of capitalism during the last two centuries had all but disappeared.

"It was not State capitalism: the government disclaimed any desire to own the means of production, and in fact took steps to denationalize them.

"It was not socialism or communism: private property and private profit still existed."

https://www.nber.org/system/files/chapters/c9476/c9476.pdf

 

[westwall]

I am glad I do not have more than 250 grand in any one bank

You haven't got 200,000 in ANY bank.

 

[Harpy Eagle]

You haven't got 200,000 in ANY bank.

Prove it.

 

[multivita-man]

You haven't got 200,000 in ANY bank.

Maybe not, but he owns you, now get back to work, slave!

 

[ThunderKiss1965]

"THE NAZI ECONOMIC SYSTEM

"In the six years between the Fascist victory in Germany and the outbreak of war, Nazism erected a system of production, distribution and consumption that defies classification in any of the usual categories.

"It was not capitalism in the traditional sense: the autonomous market mechanism so characteristic of capitalism during the last two centuries had all but disappeared.

"It was not State capitalism: the government disclaimed any desire to own the means of production, and in fact took steps to denationalize them.

"It was not socialism or communism: private property and private profit still existed."

https://www.nber.org/system/files/chapters/c9476/c9476.pdf

"We are socialists. We are enemies, deadly enemies, of today’s capitalist economic system with its exploitation of the economically weak, its unfair wage system, its immoral way of judging the worth of human beings in terms of their wealth and their money, instead of their responsibility and their performance, and we are determined to destroy this system whatever happens!" Gregor Strasser early prominent German Nazi official and politician

 

[georgephillip]

"We are socialists. We are enemies, deadly enemies, of today’s capitalist economic system with its exploitation of the economically weak, its unfair wage system, its immoral way of judging the worth of human beings in terms of their wealth and their money, instead of their responsibility and their performance, and we are determined to destroy this system whatever happens!" Gregor Strasser early prominent German Nazi official and politician

Thanks.
I had never heard of Gregor Strasser before your post.
Apparently Strasser was an early convert to the Nazi cause.
It's worth pointing out how he ended:

Gregor Strasser - Wikipedia

"Gregor Strasser (also German: Straßer, see ß; 31 May 1892 – 30 June 1934) was an early prominent German Nazi official and politician who was murdered during the Night of the Long Knives in 1934.

"Born in 1892 in Bavaria, Strasser served in World War I in an artillery regiment, rising to the rank of first lieutenant. He joined the Nazi Party (NSDAP) in 1920 and quickly became an influential and important figure."

In 1920 socialism was sweeping the planet.
Oklahoma was the US state with the most self-described socialists sitting in its legislature.
Some futurists were predicting a ten hour work week by 2000.
Nazis knew this and they also knew their party would never reach critical political mass without the word "socialist" in its title.
In reality, Hitler killed German communists and gave a medal to Henry Ford.
In WWII German capitalists competed against British and US capitalists for the spoils of empire and between 70 million and 85 million people died.
Capitalism can NOT exist without war and debt.
Socialism can.

 

[badger2]

"US only has military power left."