I know there are plenty of folks (somewhere) who think that throwing $700 Billion down a deep debt hole was going to fix things. Let me help you out. Consider the graph below from Credit Suisse What this shows is that the first rate resets for the Subprime loans has mostly passed. So people who […]
So it seems that the biggest boondoggle of them all is in the pipeline to become law. Crooked high dollar investors are about to be forgiven of all they owe from bad debts, with the cost transfered to the common taxpayer. This is often referred to in economic circles as a “Moral Hazard“. Wikipedia puts […]
Sadly, there is no surprise that the current government is stalking it’s way towards the largest block grant to the wealthy ever. Word from the press that the congress has come up with a $700B plan to save the bank accounts of people who make more money in a day than many folks will see […]
When I first saw this graph in the sidebar of an article over at CNN Money, I kept looking for the United States and couldn’t find it. Then I looked a few inches above the rest of the countries. Ouch. Here’s what the article has to say: The dangers of leverage in a market where […]
OK, I really don’t care about the political preferences of the people how made this — it’s just brilliantly done: And where’d they get the high-quality capture of The Dark Knight? Hat tip to 2008 Central. ..bruce w..
With all the high-level talks going on in Washington right now about the great economic crisis and the planned bailout, I found that the following passage from The Lord of the Rings came to mind: So great was the power that Saruman exerted in this last effort that none that stood within hearing were unmoved. […]
I think it’s hard to imagine the scope of what is being considered. The total cost so far of the bailout, if they throw in the other $700B will be 1.2 TRILLION dollars. You have to wonder, what else could we do with that money…. Lets have a look! You could give every person in […]
Word comes today that we have the start of another bank run. This one is hitting the Hong Kong based “Bank of East Asia”. According to the BBC: The Bank of East Asia has denied rumours that it is in financial trouble, after thousands of customers queued to withdraw their savings. After weeks of global […]
Sort of: This stick-figure presentation at Google Docs (warning: explicit language) — which we linked to some months back — still remains the best (simple) explanation of just what went wrong in the global (not just US) financial markets. Think Lehman Brothers, Merril Lynch and Bear Stearns (not to mention Fannie Mae and Freddie Mac!) […]
The Gods of the Copybook Headings
Jerry Pournelle over at his blog has linked to the Rudyard Kipling classic. Written nearly 90 years ago, it is remarkably apt right now, as our financial system threatens to melt down over human greed and stupidity: As I pass through my incarnations in every age and race, I make my proper prostrations to the […]
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