Financial Crisis

[12DrinkMore]

Anat Admati on the dam_n banks.

Why should banks be buying into sovereign debt?

[midas]

Anat Admati on the dam_n banks.

Why should banks be buying into sovereign debt?

Its a crazy crazy world 12D

we've got adults acting like children ( i.e. extend and pretend )

and children that behave more adult like than those who should know better

I hope this very bright 12 year old gets as far as she possibly can in whatever career she chooses because

she would certainly deserve it

have you seen this

[12DrinkMore]

Anat Admati on the dam_n banks.

Why should banks be buying into sovereign debt?

Its a crazy crazy world 12D

we've got adults acting like children ( i.e. extend and pretend )

and children that behave more adult like than those who should know better

I hope this very bright 12 year old gets as far as she possibly can in whatever career she chooses because

she would certainly deserve it

have you seen this

Yes, saw it a month or two ago. Not sure where the link was posted.

It was very well presented, although I imagine the proud parents had more than a small part in putting it together.

But, in the end, we're all doomed...

And, as we're all much poorer than we thought, maybe the end will come more quickly than we thought?

Something has to give.

Maybe the Indians have already found the solution with their latest technological achievement, now being exported to a place near you?

http://www.bloomberg.com/news/2012-05-07/drug-defying-germs-from-india-speed-post-antibiotic-era.html

[midas]

Something has to give.

Maybe the Indians have already found the solution with their latest technological achievement, now being exported to a place near you?

http://www.bloomberg...biotic-era.html

This is bloody scary!

I remember seeing a movie in 1995 called Outbreak starring Dustin Hoffman in which there was a

fictional outbreak of an Ebola type virus. And then I saw Dustin Hoffman giving a somewhat philosophic

interview about his role in the movie and his thoughts about the subject matter.

In a quite matter-of-fact way he described how these types of incurable diseases such as Ebola are

nature's way of protecting the earth because in his view we ( human beings ) are the earth's virus….

and he said we need to be culled before we do too much more damage. That was back in 1995 and I always think about his words.

Edited May 11, 2012 by midas

[12DrinkMore]

What is the LTRO?

This guy explains it quite well.

[media=]

[/media]

All I am left with is a sense of despair.

The only solution I can see is complete nationalisation of all the bloody commercial banking, and leave the investment banking lot hanging out to dry.

The QE purchases can never be repaid, the LTRO can never be repaid, what, indeed, can be repaid?

Why shouldn't the tax payers take the income stream from all this debt?

Edited May 12, 2012 by 12DrinkMore

[midas]

LMFOA

I hope Jamie you have many many sleepless nights

SEC Tells JP Morgan Enforcement Action Coming over Bear’s Mortgage Backed Securities Violations

" How many billions in damages JP Morgan will have to pay out is not yet determined but inside their Mortgage-Backed Securities and Repurchase Litigation note on the 10-Q the bank tells us “There are currently pending and tolled investor and monoline claims involving approximately $120 billion of such securities.”

http://www.teribuhl.com/2012/05/12/sec-tells-jp-morgan-enforcement-action-coming-over-bears-mortgage-backed-securities-violations/

[Naam]

I hope Jamie you have many many sleepless nights

wholehearted seconded! unfortunately Jamie doesn't care because if he gets fired with a mild slap on the wrist he will add another heap of millions to the existing heap of millions he already owns

[midas]

I hope Jamie you have many many sleepless nights

wholehearted seconded! unfortunately Jamie doesn't care because if he gets fired with a mild slap on the wrist he will add another heap of millions to the existing heap of millions he already owns

i bet he cares about this

Elizabeth Warren Calls for Dimon to Resign From New York Fed

http://www.bloomberg.com/news/2012-05-13/elizabeth-warren-calls-for-dimon-to-resign-from-new-york-fed.html

[12DrinkMore]

Sorry, got doubled up by mouse.

Edited May 13, 2012 by 12DrinkMore

[12DrinkMore]

Yeah, what is that guy doing on the New Your Fed board?

Anyway, over the Atlantic those little green shoots that were almost evident a couple of years ago have been ground away into the dust.

http://www.telegraph...-CEBR-says.html

Five more years of tough job market in most of UK, CEBR says

Unemployment will keep rising over the next five years in every UK region except the South East, East and London, a new report reveals, raising fears of a widening North-South divide.

Well, that is going to boost the housing market and bump up the credit-based economy, isn't it?

I wonder when we are going to move away from "downturns", "recessions", "great recession", "double dip recessions" to outright depression and the collapse of the western lifestyle?

Sorry, just feeling a bit DOWN tonight.

As, indeed, seems to be the economies.

Edited May 13, 2012 by 12DrinkMore

[Naam]

I hope Jamie you have many many sleepless nights

wholehearted seconded! unfortunately Jamie doesn't care because if he gets fired with a mild slap on the wrist he will add another heap of millions to the existing heap of millions he already owns

i bet he cares about this

Elizabeth Warren Calls for Dimon to Resign From New York Fed

http://www.bloomberg...w-york-fed.html

Jamie will only smile. don't forget to "evaluate" his last name.

[12DrinkMore]

How big is that stack of cash?

For a few amusing seconds.

Who loaned cash to the Greeks?

http://demonocracy.info/infographics/eu/debt_greek/debt_greek.html

And how much do the PIGIS have to repay, or maybe not. As there is no way it can ever be repaid.

http://demonocracy.info/infographics/eu/debt_piigs/debt_piigs.html

But it's all insignificant under the mass of derivatives

http://demonocracy.info/infographics/usa/derivatives/bank_exposure.html

That's a load of bills.

"But if you ask for a rise, it's no surprise, they're giving none away"

[Naam]

But it's all insignificant under the mass of derivatives

[midas]

chicken feed

Greek State Funds Fall Below 1.5 Billion Euros, Imerisia Says

The level of funds in Greece’s state coffers has fallen below 1.5 billion euros ($1.9 billion), Imerisia reported, citing “reliable information.”

If the state doesn’t receive predicted revenue for the rest of this month, it will find it difficult to pay for social services, pensions and public-sector wages, the newspaper said.

http://www.businessweek.com/news/2012-05-14/greek-state-funds-fall-below-1-dot-5-billion-euros-imerisia-says

[churchill]

As Hollande roles down the Champs Elysees in an upgraded 2CV , he has said he is going to announce a growth pact for Europe .. Does anyone believe him ..

a welcome change from smug sarkosy who looks as if he has something up his bottom ..

but can a left wing politician lead Europe out of this crisis .. I think not ..

I love France , the countryside , food and wine and wish it to succeed .. but it seems to be living in the past . ..when I worked in Paris many moons ago ...... Paris was paradise ..

I hope it can continue but ...

[12DrinkMore]

As Hollande roles down the Champs Elysees in an upgraded 2CV , he has said he is going to announce a growth pact for Europe .. Does anyone believe him ..

Sure, they're going to make a Euro-Pact to grow the debts.

[midas]

As Hollande roles down the Champs Elysees in an upgraded 2CV , he has said he is going to announce a growth pact for Europe .. Does anyone believe him ..

a welcome change from smug sarkosy who looks as if he has something up his bottom ..

but can a left wing politician lead Europe out of this crisis .. I think not ..

I love France , the countryside , food and wine and wish it to succeed .. but it seems to be living in the past . ..when I worked in Paris many moons ago ...... Paris was paradise ..

I hope it can continue but ...

[waza]

As Hollande roles down the Champs Elysees in an upgraded 2CV , he has said he is going to announce a growth pact for Europe .. Does anyone believe him ..

a welcome change from smug sarkosy who looks as if he has something up his bottom ..

but can a left wing politician lead Europe out of this crisis .. I think not ..

I love France , the countryside , food and wine and wish it to succeed .. but it seems to be living in the past . ..when I worked in Paris many moons ago ...... Paris was paradise ..

I hope it can continue but ...

Wait til the aliens get hungry

[churchill]

https://twitter.com/#!/STRANEUROPA/status/202703755081285632/photo/1

[ace]

The only solution I can see is complete nationalisation of all the bloody commercial banking, and leave the investment banking lot hanging out to dry.

Inevitable i think. The problem isn't actually greece but the european, especially spanish, banks. In 2 months, or 2 years, greece will exit and the uncertainty will cause a run on banks, credit paralysis a la 2008. Spain will default, portugal, ireland probably and the germans will and can not pick up that bill. Bank runs will spread through europe.

This is why creative destruction should have been allowed to effect, now we will not just lose banks but whole countries which will fall.

I expect it will all be ok though, in about 20 years.

[midas]

The only solution I can see is complete nationalisation of all the bloody commercial banking, and leave the investment banking lot hanging out to dry.

Inevitable i think. The problem isn't actually greece but the european, especially spanish, banks. In 2 months, or 2 years, greece will exit and the uncertainty will cause a run on banks, credit paralysis a la 2008. Spain will default, portugal, ireland probably and the germans will and can not pick up that bill. Bank runs will spread through europe.

This is why creative destruction should have been allowed to effect, now we will not just lose banks but whole countries which will fall.

I expect it will all be ok though, in about 20 years.

Why ?

Japan has been sick for 20 years and things are even getting worse there now...

[mccw]

Euro news interviewing some average Germans basically saying let the geeks leave, we work hard here , pay lots of taxes etc etc nobody asked us.

Then the report quotes Charles Damara of the international institute of finance who negotiated the Greek bond swaps said "the damage to the rest of Europe would be somewhere between catastrophic and Armageddon"!

On BBC mervin king is talking about Europe "tearing itself apart"

[midas]

Euro news interviewing some average Germans basically saying let the geeks leave, we work hard here , pay lots of taxes etc etc nobody asked us.

Then the report quotes Charles Damara of the international institute of finance who negotiated the Greek bond swaps said "the damage to the rest of Europe would be somewhere between catastrophic and Armageddon"!

On BBC mervin king is talking about Europe "tearing itself apart"

Chris Martenson writes what i think many on this thread have believed since 2008 - simply because

as this thread grew longer and longer we watched as the dirt was just swept under the mat

Get Ready: We’re About To Have Another 2008-Style Crisis

" The same sorts of signals that we had in 2008 are once again traipsing across my market monitors. Not precisely the same, of course, but with enough similarities that they rhyme loudly. Whereas in 2008 we saw breakdowns in the credit spreads of major financial institutions, this time we are seeing the same dynamic in the sovereign debt of the weaker European nation states."

http://www.chrismart...le-crisis/75466

Edited May 17, 2012 by midas

[12DrinkMore]

The Greeks are covering the US roads with cheese.

It should help with the exports, at least.

http://hosted.ap.org/dynamic/stories/U/US_CRASH_YOGURT_SPILL?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT

[ace]

Japan has been sick for 20 years and things are even getting worse there now...

Japan is entirely different (and actually looking at decent economic growth for 2012), the euro area cannot slowly deflate. They could massively inflate but the Germans wouldn't stand for it. Merkel will already lose the next election for sure (2years).

In 20 years Europe will be sufficiently poor to start growing again, selling cheap goods to rich Asians. And those hot southern european women :-)

[flying]

I have been told by someone that this is a good book & in his opinion a

a good view of what is to come

The Clash of Generations

Publication Date: March 23, 2012

The United States is bankrupt, flat broke. Thanks to accounting that would make Enron blush, America's insolvency goes far beyond what our leaders are disclosing. The United States is a fiscal basket case, in worse shape than the notoriously bailed-out countries of Greece, Ireland, and others. How did this happen? In The Clash of Generations, experts Laurence Kotlikoff and Scott Burns document our six-decade, off-balance-sheet, unsustainable financing scheme. They explain how we have balanced our longer lives on the backs of our (relatively few) children. At the same time, we've been on a consumption spree, saving and investing less than nothing. And that's not to mention the evisceration of the middle class and a financial system that has proven it can't be trusted. Kotlikoff and Burns outline grassroots strategies for saving ourselves--and especially our children--from what could be a truly catastrophic financial collapse. Kotlikoff and Burns sounded the alarm in their widely acclaimed The Coming Generational Storm, but politicians didn't listen. Now the need for action is even more urgent. It's up to us to demand radical reform of our tax system, our healthcare system, and our Social Security system, and to insist on better paths to investment return than those provided by Wall Street (mis)managers. Kotlikoff and Burns's "Purple Plans" (so called because they will appeal to both Republicans and Democrats) have been endorsed by a who's who of economists and offer a new way forward; and their revolutionary investment strategy for individuals replaces the idea of financial capital with "life decision capital." Of course, we won't be doing all this just for ourselves. We need to fix America's fiscal mess before our kids inherit it.

Edited May 17, 2012 by flying

[midas]

Japan has been sick for 20 years and things are even getting worse there now...

Japan is entirely different (and actually looking at decent economic growth for 2012), the euro area cannot slowly deflate. They could massively inflate but the Germans wouldn't stand for it. Merkel will already lose the next election for sure (2years).

In 20 years Europe will be sufficiently poor to start growing again, selling cheap goods to rich Asians. And those hot southern european women :-)

yes quite unique.......

" Japan is on an unsustainable path of a strong yen and deflation.

The transition from a strong to weak yen will likely be abrupt, involving a sudden and big devaluation of

30 to 40 percent. It will be a big shock to Japan's neighbors and its distant competitors like Germany"

http://english.caixi...372177_all.html

Edited May 17, 2012 by midas

[12DrinkMore]

Bit of light relief.

[12DrinkMore]

Well, I perked up at this.

Britain is sending thousands of pigs to China

I thought maybe they had decided to send all the politicians and bankers to China. But unfortunately not.

The Brits are exporting piggies to 'boost the genes' of the Chinese piggies. This could be a once-off as surely after all those piggies are producing even more genetically stronger piggies, the Chinese won't have any need for UK piggies.

http://www.telegraph...xport-push.html

Edited May 17, 2012 by 12DrinkMore

[churchill]

Experts Try to Chart Path for Exit From Currency

http://online.wsj.com/article/SB10001424052702303879604577408464141355748.html?mod=e2tw