Financial Crisis

[midas]

Look at how these figures are going in the same direction as the stock market

"cure rate" applies to those who go delinquent on loans then catch up and become current.

Late payments that don't "cure" tend to get later and later over time, before they eventually default.

[BlackJack]

Some cracks appearing

NEW YORK -- A federal judge on Monday ruled against an effort by the U.S. Federal Reserve to block disclosure of companies that participated in and securities covered by a series of emergency funding programs as the global credit crisis began to intensify.

keep up the pressure Bloombergs

[AlexLah]

And here it is, the money as debt part two. Again excellent animation that explains a lot more.

And to come back on the relatively high cost of health care in the US compared to some other countries it seems not to be so much about demographics. Guess what, the average Japanese elderly people goes three times more to visit a doctor/hospital, yet the yearly costs are half as compared to a US elderly person. Why does an x-ray cost 1500 USD in the US but only 98 in japan?

Have a read and understand what needs to be changed in corporate America http://www.washingtonpost.com/wp-dyn/conte...9082101778.html

[flying]

Some cracks appearing

NEW YORK -- A federal judge on Monday ruled against an effort by the U.S. Federal Reserve to block disclosure of companies that participated in and securities covered by a series of emergency funding programs as the global credit crisis began to intensify.

keep up the pressure Bloombergs

http://www.bloomberg.com/apps/news?pid=206...id=av_bCYnKeIUk

Aug. 24 (Bloomberg) -- The Federal Reserve must make records about emergency lending to financial institutions public within five days because it failed to convince a judge the documents should be exempt from the Freedom of Information Act.

Manhattan Chief U.S. District Judge Loretta Preska rejected the central bank’s argument that the records aren’t covered by the law because their disclosure would harm borrowers’ competitive positions. The collateral lists “are central to understanding and assessing the government’s response to the most cataclysmic financial crisis in America since the Great Depression,” according to the lawsuit that led to the ruling.

The Fed has refused to name the borrowers, the amounts of loans or the assets put up as collateral under 11 programs, saying that doing so might set off a run by depositors and unsettle shareholders. Bloomberg LP, the New York-based company majority-owned by Mayor Michael Bloomberg, sued Nov. 7 on behalf of its Bloomberg News unit.

Edited August 25, 2009 by flying

[12DrinkMore]

The Fed has refused to name the borrowers, the amounts of loans or the assets put up as collateral under 11 programs, saying that doing so might set off a run by depositors and unsettle shareholders. Bloomberg LP, the New York-based company majority-owned by Mayor Michael Bloomberg, sued Nov. 7 on behalf of its Bloomberg News unit

Ah, the good old tried and tested "mushroom management";

keep 'em in the dark and pour shit on 'em.

[Naam]

Why does an x-ray cost 1500 USD in the US but only 98 in japan?

who cares even if it was true? if an x-ray had cost half the price claimed my private german health insurance would be bankrupt.

[AlexLah]

Thing is Naam that the majority of German citizens are under public health insurance and as far what I understand from that system they are non profit organizations and therefore your private health insurer is most likely charged a similar price as the public one. The difference you enjoy from a private insurance is that you as suggested in the article can choose a doctor and can have perhaps a private room and maybe you can choose yourself a date (within limits) to be treated other than be put on a waiting list or can visit a privately run hospital. (please correct if I'm wrong).

A lot of cost in the US system comes from people doing administrative work such as scanning customer/patient files looking for pre existing conditions that could lead to refusal of treatment. As stated about 700.000 people each year go bankrupt because of having to pay for their treatment due to insurance agency's coming up with dodgy links to pre existing conditions or saying that a treatment is experimental so not covered or some other excuse as to not have to provide treatment.

An estimated 60 Billion USD a year are fraudulent claims made by healthcare centers/clinics or whatever they call them. In one docu where they investigated such fraud they found a case where a center had claimed to give some person two artificial legs and arms (which he did not) and the only wheelchair they had as inventory was claimed at least ten times. Long before the checking government agency finds out about this these clinics are closed and the perpetrators long gone.

Do you agree that a public healthcare system as in Germany and many other countries would not be a better solution compared to the system that is now in use in the US? If not please explain why.

[Losangels]

The Fed has refused to name the borrowers, the amounts of loans or the assets put up as collateral under 11 programs, saying that doing so might set off a run by depositors and unsettle shareholders. Bloomberg LP, the New York-based company majority-owned by Mayor Michael Bloomberg, sued Nov. 7 on behalf of its Bloomberg News unit

Ah, the good old tried and tested "mushroom management";

keep 'em in the dark and pour shit on 'em.

Whose best interest is the Feds working for?

Definately not the American tax payers

[midas]

Obama to reappoint Bernanke as Fed chief. In making decision, Obama weighed Fed chairman's actions in recession

this is not right! why didn't O'Bama consult with Thaivisa's resident experts to avoid that kind of wrong decision?

Well actually he did.........But when he asked should I go with Larry Summer or Benny Bernanke I said neither.......Abolish the FED....He hung up....

“Our forecast is for moderate but positive growth going into next year. We think that by the spring, early next year, that as these credit problems resolve and, as we hope, the housing market begins to find a bottom, that the broader resiliency of the economy, which we are seeing in other areas outside of housing, will take control and will help the economy recover to a more reasonable growth pace.”

Ben Bernanke, Federal Reserve Chairman

On Friday, investors took great cheer in an optimistic statement by Ben Bernanke suggesting good prospects for economic growth ahead. We might be inclined to place a sliver of credibility in Chairman Bernanke's assessment – if not for the fact that the quote above wasn't from last week at all, but rather, hails back to November 8, 2007, just before the recent recession began

http://www.hussman.net/wmc/wmc090824.htm

[Naam]

Thing is Naam that the majority of German citizens are under public health insurance and as far what I understand from that system they are non profit organizations and therefore your private health insurer is most likely charged a similar price as the public one. The difference you enjoy from a private insurance is that you as suggested in the article can choose a doctor and can have perhaps a private room and maybe you can choose yourself a date (within limits) to be treated other than be put on a waiting list or can visit a privately run hospital. (please correct if I'm wrong).

that is not correct Alex. in fact private patients, respectively their private health insurances are charged (LEGALLY) by physicians and hospitals a MULTIPLE of the rates the public insurances would cover. as far as the perks are concerned it all depends on what "plan" you select. depending on that plan you are completely free to choose doctors, hospitals no matter where they are located or what they charge. i had my open-heart operation last year in Germany but i could have opted for Singapore, Bangkok, Shanghai or Houston.

german private health insurance (if it is valid worldwide like in the case of my wife and me) has one disadvantage. you pay, you submit your bills and only then you get your refund from the insurance. if you don't have the cash for the advance payment you have to apply with details and wait for the approval from your insurance. funny thing is that in cases (like ours) we pay for a first class service less premiums than we would pay with a government regulated public insurance. there are various reasons for that but i don't think it is of interest to list them.

[Naam]

Do you agree that a public healthcare system as in Germany and many other countries would not be a better solution compared to the system that is now in use in the US? If not please explain why.

of course i agree and i don't understand why our american friends are vehemently against this plan. in fact my opinion is that the lack of health insurance in the Greatest Nation on Earth™ puts them on the level of a third submerging country.

BUT even if O'Bama is successful (which i doubt) the third country level will still exist for decades to come as long as electric/phone/tv-cable connections to buildings are above ground and not underground

[Naam]

A lot of cost in the US system comes from...

the opportunity that any àsshole is free to sue any doctor for malpractice and it will not cost him/her a single penny as dozens of lawyers will jump on any opportunity to serve the plaintiff without charging him any money but then take the lion share of any compensation later. besides fraud this is the main reason why health care cost in the U.S. are skyhigh.

[AlexLah]

Thing is Naam that the majority of German citizens are under public health insurance and as far what I understand from that system they are non profit organizations and therefore your private health insurer is most likely charged a similar price as the public one. The difference you enjoy from a private insurance is that you as suggested in the article can choose a doctor and can have perhaps a private room and maybe you can choose yourself a date (within limits) to be treated other than be put on a waiting list or can visit a privately run hospital. (please correct if I'm wrong).

that is not correct Alex. in fact private patients, respectively their private health insurances are charged (LEGALLY) by physicians and hospitals a MULTIPLE of the rates the public insurances would cover. as far as the perks are concerned it all depends on what "plan" you select. depending on that plan you are completely free to choose doctors, hospitals no matter where they are located or what they charge. i had my open-heart operation last year in Germany but i could have opted for Singapore, Bangkok, Shanghai or Houston.

german private health insurance (if it is valid worldwide like in the case of my wife and me) has one disadvantage. you pay, you submit your bills and only then you get your refund from the insurance. if you don't have the cash for the advance payment you have to apply with details and wait for the approval from your insurance. funny thing is that in cases (like ours) we pay for a first class service less premiums than we would pay with a government regulated public insurance. there are various reasons for that but i don't think it is of interest to list them.

Ok maybe you missed the article that I linked to a few pages back. http://www.howtogermany.com/pages/healthinsurance.html

Germany has a reputation for having one of the best health care systems in the world, providing its residents with comprehensive health insurance coverage. Approximately 85% of the population are mandatory or voluntary members of the public health scheme while the others usually have private health insurance. The health insurance reform of 2007 now requires everyone living in Germany to be insured for at least hospital and out-patient medical treatment. This must also include coverage for pregnancy and for certain medical checkups. There will supposedly be more competition between the various insurance providers but to change between the two systems will be made more difficult than before.

The costs of the German health care system are immense and rising due to demographics as well as long-term unemployment rates. Recent government reforms have attempted to make hospitals more competitive and thereby reduce costs for the state health insurance providers (Gesetzliche Krankenversicherung or GKV). Reduced benefits for dental work, increased out-of-pocket payments for those seeking treatment and an additional 0.9% insurance premium above and beyond the 7.3% of regular income to be borne by the member alone were measures introduced in 2005. Efforts to cut the social security cost for employers and reduce the monthly cost for state health insurance members were controversial and after a very long and drawn out political battle, a further health reform compromise was reached which went into effect in 2007. The latest major change is the introduction of the Gesundheitsfonds which is a monstrous collection and distribution fund for all monies paid into the GKV as of January 1, 2009.

You have three options for health insurance while living in Germany; the government-regulated public health insurance system (GKV), private health insurance from a German or international insurance company (PKV) or a combination of the two.

Sorry to come back on this but I just need to know this. This article says that 85% of Germans signed up for public health care insurance or what some would say government health care. But there is a big difference between "Government" health care where the government has to pay the bill to health clinic corporations and health care clinics where the people employed are payed by the government and these places are not extremely focused on maximizing profits or reducing cost whatever you call it they are two different things.

You mention excessive claims to hospitals but would you not sue when you go in for your heart surgery and when you wake up you miss both of your legs? From memory in my HC incidents happened sometimes but not that often.

I am working on another idea to save the mighty US and surprise surprise it is something that will make a lot of them more healthy and will cut greatly some costs. It just needs a bit of good planning and some adjustments in peoples time schedules.

My other PC is crunching the numbers so have a bit of patience, I expect the results will be in this week.

Edited August 25, 2009 by AlexLah

[AlexLah]

BUT even if O'Bama is successful (which i doubt) the third country level will still exist for decades to come as long as electric/phone/tv-cable connections to buildings are above ground and not underground

Yes another interesting point, why need cables to transport energy when Tesla could transport energy through the air? But there is hope as recently they have been successful with testing such concept.

http://news.bbc.co.uk/2/hi/technology/6725955.stm

I have some classified pictures of a secret facility in some country where tests have been done and they achieved successful results over far greater distances.

[teletiger]

hehe....."classified pictures"....

It's a natural concept.

Ever seen those '90's pictures of neon tubes under high voltage cables? Someone turned it into "Art".

Alex wants to turn it into conspiracy.

Those electro/magnetic waves man.....far out.

Time for bed.......said Zebadee.

Regards.

[12DrinkMore]

Well, are we out of this mess? Probably not, up just popped this report

http://www.bloomberg.com/apps/news?pid=206...id=aNnP_i73Xc.4

Aug. 25 (Bloomberg) -- U.S. home prices fell 6.1 percent in the second quarter from a year earlier as a record number of foreclosures eroded the value of real estate.

So does that mean an annualised 24% drop, although I am never too certain about the phrasing these guys use?

Jeeze, and we are supposed to be on the road to recovery. Surely the house prices are currently considered a LEADING economic indicator as opposed to all the peeps loosing their jobs? And certainly if property prices are still imploding those frauds, namely the banks, are incurring even more so called "impaired" balance sheets, unless, of course, they are marking to fantasy.

But anyway, then we carry on with the next adjacent bunch of words

The rate of decline slowed from the first quarter’s 7.1 percent drop, according to a report today from the Federal Housing Finance Agency. Measured monthly, prices rose 0.5 percent in June after a 0.6 percent monthly gain in May, the Washington-based agency said.

I am now completely lost. Are prices up or down or what?

So, can somebody please tell me whether I should peel off the next bottle top in celebration of a recovery or to drown my sorrows due to more bad news.

Edited August 25, 2009 by 12DrinkMore

[12DrinkMore]

Really weird article............

http://www.reuters.com/article/marketsNews...413380120090824

Madoff dying of cancer, fellow inmates say-NY Post

Hopefully in that case he will not be a burden on the tax payer much longer.

[AlexLah]

12 you should have a drink while you can. and enjoy life. Do whatever you wanted to in your wildest dreams. Enjoy while you can.

The current financial system will explode some time from now, it is just a matter of time.

The current financial model is unsustainable.

[teletiger]

Another 4 years 'before the mast' for Ben the Bald". 'And in 2 years time we'll review your "I saved the world" speech.

Regards.

[flying]

Really weird article............

http://www.reuters.com/article/marketsNews...413380120090824

Madoff dying of cancer, fellow inmates say-NY Post

Hopefully in that case he will not be a burden on the tax payer much longer.

No kidding

That was a weird article though.

What with the grilled sandwiches etc mixed in?

Maybe he is trying for the release like the Pan Am Bomber...But he is not in Scotland.

So does that mean an annualized 24% drop, although I am never too certain about the phrasing these guys use?

I was just thinking the other day they would be good at writing bibles. It is obvious they phrase in parables

Edited August 25, 2009 by flying

[flying]

The answers to the questions posed to Timothy Geithner

http://www.thaivisa.com/forum/Financial-Cr...49#entry2960849

http://digg.com/dialogg/Timothy_Geithner_1

Are in on a video.

Pretty boring BS

8 min the BS starts heavy

at 9:30 he states how great they are doing & how they made a profit already<sic> on

the 80Biliion returned. But does not say how that 80B was in fact returned to the Tarp slush fund

NOT the general fund like it should have been.

at 12:45 When asked about his tax evasion for 4 years all he said is...Isn't it great that those kind of things are public knowledge & that shows how honest the selection process is.........

[Naam]

Sorry to come back on this but I just need to know this. This article says that 85% of Germans signed up for public health care insurance or what some would say government health care. But there is a big difference between "Government" health care where the government has to pay the bill to health clinic corporations and health care clinics where the people employed are payed by the government and these places are not extremely focused on maximizing profits or reducing cost whatever you call it they are two different things.

Alex, there is no government health care in Germany nor does the government pay any bills except in very rare cases such as tuberculosis and a few other contageous diseases. besides that, the expression "x% signed up" is not applicable. there is no signing up because it is mandatory to have medical coverage.

[midas]

Aug 25, 2009, 12:01 a.m. EST

Dismantle Bernanke's 'Happy Conspiracy' ... now!

6 reasons more power for the Fed will destroy capitalism and democracy

In fact, Bernanke now appears to be America's (and the world's) most dangerous man, far more dangerous than Hank Paulson and the "Goldman Conspiracy" ever was

http://www.marketwatch.com/story/dismantle...-now-2009-08-25

[flying]

Aug 25, 2009, 12:01 a.m. EST

Dismantle Bernanke's 'Happy Conspiracy' ... now!

6 reasons more power for the Fed will destroy capitalism and democracy

In fact, Bernanke now appears to be America's (and the world's) most dangerous man, far more dangerous than Hank Paulson and the "Goldman Conspiracy" ever was

http://www.marketwatch.com/story/dismantle...-now-2009-08-25

I just read that today good article.

Saw this too

http://www.lewrockwell.com/sardi/sardi113.html

If nothing else comes of this crisis ......at least it seems congress has bought a vowel

[flying]

I think the FDIC Q2 Report board meeting tomorrow Aug 26th will be very interesting.

Also available online.............

This Board meeting will be Webcast live via the Internet and subsequently made available on-demand approximately one week after the event. Visit http://www.vodium.com/goto/fdic/boardmeetings.asp to view the event

http://www.americanbankingnews.com/2009/08...profit-in-2010/

FDIC’s Deposit Fund May Need 25% of U.S. Banking Profit in 2010

August 23rd, 2009 • Related • Filed Under • by mitch

With the 80th bank failure occurring in just the first eight months of 2009, the U.S. banking industry’s fee burden from the FDIC is continuing to be pressured as the Deposit Insurance Fund shrinks. Richard Bove, an analyst with Rochdale Securities, told Reuters in a report that the FDIC’s Insurance Fund may need to collect an amount that would equate to about 25 percent of U.S. bank industry pretax income in 2010 to stay afloat.

In the report Bove predicted another 150 to 200 additional U.S. banks failures before the current banking crisis ends. The FDIC will likely use special assessments against banks in order to raise the extra funds needed to secure the Deposit Insurance Fund’s integrity. Bove believes special assessments in 2010 could reach $11 billion in addition to the regular fees banks already pay.

The FDIC last levied a special assessment in the second quarter of five basis points on each FDIC-insured bank’s assets. The assessment is scheduled for collection on September 30.

When the FDIC released its final statement detailed the second quarter assessment it projected that the Deposit Insurance Fund would remain low, but positive through 2009 and begin to rise in 2010. However, FDIC Chairman Blair Sheila Blair said in that same statement an additional assessment may be required as early as the fourth quarter of 2009.

The Deposit Insurance Fund ended the first quarter of the year with a balance of roughly $13 billion. Since that time the FDIC has had to digest several large bank failures, such as Colonial BancGroup, which cost the fund about $4 billion.

The Deposit Insurance Fund holds a fraction of the $52 billion it had just a year ago, raising the odds of an upcoming special assessment to near certainty.

As seen recently on americanbankingnews.com, the FDIC is exploring its options for brining in investors to buy-up failed banks, thus easing the burden on the insurance fund. Investment from private equity firms has been the showcased proposal so far. The FDIC is set to vote August 26 on a relaxed set of guidelines that would entice private equity firms to invest in failed banks

[Datsun240Z]

You can see the people act like what they hear. Now the news here says, that the economy is "recovering" from it's downfall. And the people tend to believe that.

When they said we are in a worse crisis, everybody holds a hand on his wallet....

[badge]

Andy Xie, previously of MS, puts things into perspective quite nicely here I think.

http://english.caijing.com.cn/2009-08-20/110227359.html

[Abrak]

Well however badly you are doing there is always someone doing worse.

http://mediamatters.org/blog/200908250009

49million homes and 21,000 viewers.

I remember when I was involved in the media business this sort of figure was considered so low that people had only switched to the channel while surfing by mistake.

[flying]

Well who would have thought?

Didn't Someone post that Mr O & Mr G had saved the world already?

http://www.cnbc.com/id/32551478/

Economy In Much Worse Shape Than Expected: White House

Moreover, the figures show the public debt doubling by 2019 and reaching three-quarters the size of the entire national economy. Romer predicted unemployment could reach 10 percent this year and begin a slow decline next year.

Still, she said, the average unemployment will be 9.3 in 2009 and 9.8 percent in 2010.

What's more, the high unemployment could last well into the congressional election campaign next year, turning the contests into a referendum on Obama's economic policies.

Edited August 26, 2009 by flying

[flying]

Well however badly you are doing there is always someone doing worse.

http://mediamatters.org/blog/200908250009

49million homes and 21,000 viewers.

I remember when I was involved in the media business this sort of figure was considered so low that people had only switched to the channel while surfing by mistake.

You know that station Fox really sucks.............

Then again they all do now. CNN is ok at times

Then CNBC International Financial at night is good. But the day show is a big pump with idiots like Jim Cramer & Dennis Kneale telling us buy buy buy...recession is over baby.

But for the most part Stations like Fox & MSNBC have become no better than a news stand tabloid. They are so silly & basically battle each other with mis-information. It makes me sick if I happen to pause on those channels.

Recently the wife & I have been thinking of just canceling cable all together.

Even the movie channels just play the same things over & over. Their newest tactic is what they call encore performance. Laymen term repeat ......They play the exact same movie right after it finishes.

But mainly I buy cable for the news & as I said that has gone so down hill it is not funny. When Michael Jackson died they flooded the air waves for days. Today it is Ted Kennedy. They never report the actual news....It is obvious they are not allowed to report on certain subjects it seems. After all MJ's death is more important that what is going on in Iraq/Afghanistan or the economical crisis.

Edited August 26, 2009 by flying