$$$ Mozilo Arrest Watch [HP]
$$$ Morgovia all-ovia [CNBC]
$$$ Women, children, Goldman bonuses first [Bloomberg]
$$$ Paulson Gives Way on C.E.O. Pay [NYT]
$$$ FOR HIRE: 1,000s to Run Printing Presses [craigslist]
Comments
2
Posted by guest, Sep 24, 2008 7:49PM
Bess/ep
What no live blogging of W's speech to the nation tonight?
You two have a life o/s DB?
3
Posted by StupidEquityGuy, Sep 24, 2008 7:52PM
``The $700 billion bill is simply not going to pass, and they recognize that,'' Representative Ray LaHood of Illinois said after Republicans met with Paulson behind closed doors at the U.S. Capitol today. ``Now it is up to Congress.''
``To say that there is a healthy dose of skepticism would be putting it mildly,'' LaTourette said. ``I think the overwhelming sentiment at this moment in time is, what's the rush?''
http://www.bloomberg.com/apps/news?pid=20601087&sid=atiAm2NTIqEQ&refer=home
4
Posted by guest, Sep 24, 2008 8:59PM
@2
W is irrelevent. Can you imagine trying to explain this stuff to him?
6
Posted by guest, Sep 24, 2008 9:33PM
Bush is fucking shameful. Capitalist only under "normal circumstances". What a joke.
7
Posted by guest, Sep 24, 2008 9:51PM
Wait, Bush addressing the nation is supposed to REDUCE the sense of panic?
I'm watching him speak but all I can hear is "an invasion of Iraq will practically pay for itself!"
Idiot.
8
Posted by guest, Sep 24, 2008 9:53PM
Any simple ideas on how to prevent things like AIG from controlling so much of the credit default swap market?
9
Posted by StupidEquityGuy, Sep 24, 2008 9:55PM
The TED Spread is blowing out...
11
Posted by guest, Sep 24, 2008 10:23PM
Change your mind about what? If you're in banking in any form &v passed finance 101 you understand that if this doesn't happen everything fails. Everything.
12
Posted by guest, Sep 24, 2008 10:40PM
There is a serious cry-wolf problem going on here, both with the Bush Administration and the bailout.
Bush doesn't know how to present non-propaganda. As a result, no one believes him and with a ~ 20% approval rating, most people believe he has some alterior motive.
Bailout...there have been too many bailouts in the collective memory of the current American voter, largely in situations where they weren't nearly as warrented as this. Your typical American voter does not understand anything about credit markets. All they see is people who get 7 and 8 figure compensation begging for money to fix a mess that they created.
There's a very strong sentiment out there that just wants to see what's going to happen and if "these clowns" are telling the truth.
13
Posted by guest, Sep 24, 2008 10:54PM
#12 - Yep. Your last two sentences say it all. What is AIG, and how does this fix that, whatever that is? Everything these guys say is indistinguishable from total bullshit. Executive salaries is the only topic that makes sense.
-MT
14
Posted by diablo, Sep 24, 2008 10:55PM
Are the people who have not been paying attention, but now are after listening to Bush, going to withdraw their savings from the banks as fast at they can, cut their spending even further, etc?
Up to tonight Bush has been painting a rosy picture of the economy, even as bad news were spreading. This rosy picture was promoted to prevent a backlash against his policies that brought us to this sad state. McCain was following that script until today.
Repainting that picture with dark clouds is going to confuse a lot of people and many will panic. If not, then they didn't believe one word Bush said tonight. Bush and McCain have gotten themselves into a lose-lose situation.
At this point the Democrats will pass a bailout plan but will have some key concessions from Paulson to Frank. It will be up to Bush to veto it, but he will not. The markets should stabilize quickly, unless tonight's rhetoric causes a run on the bank.
15
Posted by guest, Sep 24, 2008 10:58PM
"Subject: Cynthia McKinney Ready to take McCain’s Podium at Friday’s Debate
*For immediate release
Wednesday, September 24, 2008
*
*Contact: John Judge*,
*Cynthia McKinney Ready to take McCain’s Podium at Friday’s Debate*
/WASHINGTON, DC/ -- Green Party presidential nominee Cynthia McKinney has offered to debate Barack Obama if John McCain’s opts out at this Friday’s presidential debate in Oxford, Mississippi, following the Republican nominee’s announcement that he is seeking a delay of the event.
“If John McCain wants to bow out, I’m willing to step in and take his podium on Friday,” said Cynthia McKinney."
16
Posted by StupidEquityGuy, Sep 24, 2008 11:39PM
HONG KONG (MarketWatch) -- Chinese regulators have asked domestic banks to stop lending to U.S. financial institutions in the interbank money markets to prevent possible losses during the financial crisis, the South China Morning Post reported Thursday. The China Banking Regulatory Commission's ban on interbank lending of all currencies applied to U.S. banks, but not to lenders from other countries, the report added, citing a source. End of Story
17
Posted by guest, Sep 24, 2008 11:39PM
Paulson in particular made huge errors at the hearings this week. Dumbing down vocabulary for the cameras when the underlying concept remains alien just makes him look like he does not know what he is talking about, or that he is trying to get away with something. It sounds like Iraq testimony.
I think we can all agree that Paulson does actually understand the fine points of the problem, at least as much as anyone does. He should be talking like he does, and using the very real language. Stop being fucking vague; the American public does not believe you and they are pressuring the Congress critters to vote down your idea.
And Bush suddenly deciding that the economy is facing a Great Depression would, if it wasn't so serious, be epic lulz.
18
Posted by guest, Sep 25, 2008 12:04AM
12 Good points. But are you saying the typical american, who doesnt understand, also doesnt think theres a need for a bailout? Maybe, but it could also be that the average american is getting a lot of pain from his declining 401k balance and looking for some action to reverse that.
19
Posted by guest, Sep 25, 2008 12:08AM
@ 18
It's not like the average American was also not greedy. I mean, he wanted to live beyond his means and buy a $400k house on a 40k salary.
Well, guess what? Shit hit the fan.
There's a fine line between greed and ambition, and being greedy without understanding the repercussions was bound to come back and bite us in the ass.
Besides, better markets imply better value for their lifetime savings (e.g. 401k) and probably less chances of layoffs etc., all of which could do wonders to the consumer economy.
~m
20
Posted by guest, Sep 25, 2008 12:16AM
The Chinese have stopped lending to the Americans.............I guess they have reached their pain threshold.
I think the problem is that everyone on Wall Street and every bank with holdings in mortgage-backed assets are not telling the truth (we all know that). This is what is causing all the mistrust and nervousness in the market place.
If banks are not willing to take a haircut from selling their mortgage-backed assets to the Treasury, then let them try their luck in the market place. Put them off the shortselling ban list and see how long they'd survive.
Make it crystal clear to the Board of Directors at these troubled banks that they are liable to criminal prosecution for lying, if not blatantly overstating the value of the assets on their books.
But Paulson would never do that to his friends...................Paulson didn't become the Treasury Secretary without the support of his cronies in the banking industry.
Tough love is required!
21
Posted by guest, Sep 25, 2008 12:18AM
#19, so unfair. The poor trusted the suits. They figured that the suits were more savvy and were telling them to do the right thing.
22
Posted by guest, Sep 25, 2008 12:21AM
No. 20, tough love is needed. Right now though, all the Harvard guys are protecting all the other Harvard guys.
23
Posted by guest, Sep 25, 2008 12:28AM
@ 21
Come on, even an idiot could tell that this was a boom, and like any boom, it would eventually go bust.
Now, the sad thing is that the suits (who should have known better) were making so much money off of it that they ended up believing it themselves.
24
Posted by guest, Sep 25, 2008 12:37AM
#23, I'll grant you that. But, it is truly so sad as the "the suits (who should have known better) were making so much money off of it that they ended up believing it themselves." have really screwed up this time, big time and it is the average american who has to pay the bill.
Problem is, even with the prez going on the "idiot box" (my gram's favorite nickname for the big screen) americans still don't want the bailout. What makes this maddening for all of them is that despite all the scare tactics and the threats people are willing to take their chances and not bail them out.
The american people are pretty well educated, they aren't stupid, especially about money. This is terrifying the suits who thought this would be an easy sell. They have tried everything and on a lot of blogs in the comments people are saying "don't believe or trust any of them". One guy said "let's roll the dice and skip the bailout, we are a great country, we'll be fine". This is what they are saying.
25
Posted by guest, Sep 25, 2008 12:39AM
Frankly, I'm sort of interested in what Great Depression II will look like.
I waited for hours to watch W's speech. I zoned out twice during the thing. He's talking about stock market and savings collapse and all I hear is blah blah blah.
What in this new plan fixes the credit default swap problem? Who knows? Who knows what AIG even did? Even Lehman .. fuck I've never done business with Lehman or E.F. Hutton. Okay, so China will never do business with ME again. And?!
-MT
26
Posted by Lowly Assistant, Sep 25, 2008 12:44AM
Change the channel.
27
Posted by Lowly Assistant, Sep 25, 2008 12:49AM
The month of September is seriously killing my fucking mind. Wake me up when it's over.
28
Posted by guest, Sep 25, 2008 12:49AM
Yegods. "the suits", "cronies in the banking industry"? "Harvard guys"? This place is going to hell. TGFD is vaguely coherent and informed in his nitwit populism, but these guys are muppets.
If you must rant and you don't know enough specifics about the financial world to speculate feverishly about Paulson favoring Goldman, rather than "Harvard guys", begone to Yahoo Finance or Indymedia or wherever else you hail from.
29
Posted by guest, Sep 25, 2008 1:11AM
What is not understandable is this:
Why can't wall street and the market solve this problem on its own?
30
Posted by RamblinWreck, Sep 25, 2008 1:16AM
Here's why:
Toxic Assets:Banks::Street Vendor Food:Assholes
Once inside, they inevitably lead to a blowout...sometimes several.
31
Posted by Lowly Assistant, Sep 25, 2008 1:17AM
29,
That would be rational and consistent. Who the fuck are you? More importantly, who the fuck do you think you are?
32
Posted by guest, Sep 25, 2008 1:32AM
@ 24
Like I said, the suits, like the rest of the idiots in this country, believed the lies themselves and ended up in this mess.
However, the one thing to keep in mind is that not doing the bailout will probably hurt more in the long run, both the common man and folks on Wall St.
Banks are already taking a beating for their lousy investments, and Dodd's proposal makes it worse by requiring them to provide the government shares in the company equal in value to what the government pays for the security. If the security doesn't work, all they need to do is sell the shares and recoup the difference.
Also, this is merely a way to unfreeze the credit market, especially for banks with huge exposure to the money markets.
I mean, you could listen to your pet parrot and not do anything, and let everything go to dogs. Sure, the market will fix itself, but it will be a lot more painful and a lot more ugly.
This is just a quick intervention to help the market get there anyway - just with a lot less pain. But hey, what do I know...
~m
33
Posted by guest, Sep 25, 2008 1:40AM
31.
I'm your average garden variety American citizen. When you invited the Congress into your world you also invited the citizenry. This is the question being asked on the plebeian blogs populated by the citizenry. When you asked them for their money, you meaning Wall Street, you are going to have to at least ponder their questions.
34
Posted by guest, Sep 25, 2008 1:46AM
M,
Do you want a phlegmatic cough-up, or 3 months of sniffles? Totally agree that things need to be "righted," but how much longer should we wait for the heavy stationary with an actual number? We're basically trying to prevent the former by using the latter (or ladder on this site) by slowly selling off these assets via you, me, and the other. I certainly hope that credit doesn't fully seize over trauma, but I also remember playing little league in the early 90's. Back then, there was certainly a winner and a loser. Now, there's a celebration between both teams on "doing well." My father (a stoic repub) always said Clinton made a wrong in setting examples for our youth (irresponsibility and dishonesty). I wonder what he'd say about the redaction of "loser" in this whole situation.
35
Posted by guest, Sep 25, 2008 1:50AM
If interested in timing market tops and bottoms, read note below.
http://financialtraders.blogspot.com/2008/09/ndx-nq-qqqq-qid-trading-bottom-area.html
36
Posted by guest, Sep 25, 2008 1:50AM
What other ways are there to unfreeze the credit markets other than spending $700 billion? The explanation of all this bullshit has been completely inadequate at every level. Bring on Great Depression II I say.
-- MT
37
Posted by guest, Sep 25, 2008 1:53AM
Bess, ever since Carney left, the idiot regular joe American citizenry seems to have camped out here.
What next, Ron Paul fans?
Gee.
38
Posted by guest, Sep 25, 2008 1:53AM
34,
For purposes of wanting to kill me/talk shit, I was too lazy to sign back in.
Lowly Assistant
39
Posted by guest, Sep 25, 2008 1:55AM
#36: there is a solution: allow people to buy back their mortgages from the market (even at higher price).They said they are 20 to 30 cents on the dollar, but I called my lender to say that I am ready to pay double that amount.
Read the idea. solutions and the truths why mortage and credit crise explanation is a hoax to take your and my money moeny.
http://financialtraders.blogspot.com/2008/09/how-can-i-you-buy-back-my-your-mortgage.html
40
Posted by guest, Sep 25, 2008 1:58AM
POST SOME SARAH PALIN JOKES PLS....
Financial news reporter:
How do you explain the widening spreads
Sarah:
Its a sign of medical advancements.
41
Posted by guest, Sep 25, 2008 2:27AM
We have some new commenters on the site. All of a sudden, people in Wall Street are referred to as "suits." The last time I heard that expression was from the lips of Madonna a zillion years ago.
I think where Paulson went wrong was when he came forward last weekend with a three page bill that would have given him absolute authority over the expenditure of $700B from the Treasury to buy up subprime debt at unspecified prices. There was a widespread consensus to go forward with the bail-out until the actual bill became public. People became appalled about what could happen without oversight or judicial review, and Paulson's credibility went down the drain. Frankly, I think Bernanke's reputation has also been badly hurt, and I think he has been unwise to insert himself so deeply into what has become a messy political debate. Someone should have told him that becoming associated with a piece of legislation that would give an appointed cabinet member vast, unchecked power was probably going to be a bad idea.
And what is this odd decision of McCain to suspend his presidential campaign? How does his refusal to broadcast campaign ads or to debate Obama until the crisis is resolved advance Congressional consensus? My God, we were in the midst of the Civil War when the presidential election of 1864 was held, on the eve of the First World War in 1916, watching Europe fend off fascism in 1940, in the midst of the Second World War in 1944, and in the middle of the Vietnam War and the worst national upheavals since the Civil War when the election of 1968 was held. Part of the tradition of American democracy is that elections are held regardless of exigent national circumstances.
I think Bush went where no one has dared to go before. We'll see tomorrow if his prediction of panic is a match to the dry bush.
42
Posted by guest, Sep 25, 2008 2:46AM
#41. I think Charlie Gasparino mentioned this site on CNBC. I read a lot of different sites and I have been surprised to see quotes from this site, from the comments, in a lot of odd places in the context of discussing this entire matter.
43
Posted by SlashAndBurn, Sep 25, 2008 3:10AM
Where it began:
http://query.nytimes.com/gst/fullpage.html?res=9C0DE7DB153EF933A0575AC0A96F958260
The New York Times
September 30, 1999
Fannie Mae Eases Credit To Aid Mortgage Lending
By STEVEN A. HOLMES
In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders.
The action, which will begin as a pilot program involving 24 banks in 15 markets -- including the New York metropolitan region -- will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough to qualify for conventional loans.
Fannie Mae, the nation's biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits.
...
In July, the Department of Housing and Urban Development proposed that by the year 2001, 50 percent of Fannie Mae's and Freddie Mac's portfolio be made up of loans to low and moderate-income borrowers. Last year, 44 percent of the loans Fannie Mae purchased were from these groups.
44
Posted by SlashAndBurn, Sep 25, 2008 3:17AM
@17 writes "Stop being fucking vague; the American public does not believe you and they are pressuring the Congress critters to vote down your idea."
Probably why GWB introduced the dark clouds in tonight's speech.
45
Posted by SlashAndBurn, Sep 25, 2008 3:24AM
@40 -- Can't do that, watching Biden talk about "President FDR" delivering a talk on television about the 1929 market crash.
Neat how FDR did that years before elected, and before TV was available to the American public.
46
Posted by guest, Sep 25, 2008 4:03AM
fucking poor people.
please sir, may i have an interest only loan for a piece of shit house that i can't afford on my blue collar salary? i'll just refinance when the house doubles in value next year. kewl!!! I'm a homeowner now!!! take the kids to benigan's honey (aka cousin), we celebratin now.
48
Posted by guest, Sep 25, 2008 5:15AM
Bess (and anyone else who's interested), Count Vikula's on campus at Wharton today, ostensibly for something called a Fireside Chat (held in a building that doesn't have a single fireplace and is currently colder than a witch's tits). Anyone know if he speaks like he writes those memos? Hope not. If I want to hear someone say nothing for 90 minutes, I'll go to my management class.
-Wharton dickwad
49
Posted by guest, Sep 25, 2008 6:33AM
no fcukn fun here...
no sarah palin jokes.. ppl are gonna migrate to www.michellemalkin.com
50
Posted by guest, Sep 25, 2008 7:14AM
Bring on the depression, the suits, regulare american people are smart especially with their money? Big deal china's banks will not lend to the USA?
You guys scare me more than the incompetence of GWB.
I am not saying that Paulsons plan does not have issues becaue it does. But the level of discourse on this thread clearly displays a level of ignorance that makes me beleive we are doomed no matter what.
51
Posted by guest, Sep 25, 2008 8:45AM
OK - we get into this mess because too many fucktards got loans they shouldn't have gotten, and now the debt is toxic.
So Uncle Sugar has to come in and take the sfacim' POS shit bag debt off the bankers hands.
And he neds to do this PRONTO so that the bankers can resume making loans.
Isn't the definition of insanity doing the same thing over and over and expecting a different result?
-- Just a clueless regulator
52
Posted by guest, Sep 25, 2008 8:45AM
OK - we get into this mess because too many fucktards got loans they shouldn't have gotten, and now the debt is toxic.
So Uncle Sugar has to come in and take the sfacim' POS shit bag debt off the bankers hands.
And he needs to do this PRONTO so that the bankers can resume making loans.
Isn't the definition of insanity doing the same thing over and over and expecting a different result?
-- Just a clueless regulator
53
Posted by guest, Sep 25, 2008 8:48AM
No. 41. Well that's good. I'm glad you can isolate a "level of ignorance that makes me believe we are doomed no matter what" because the very people you despise for their so called "ignorance" see a level of arrogance among you and your peers that speaks to why we are in the position to begin with and why over half of the American populace doesn't want o give you even another penny.
Sir/madam what is becoming clear to almost everyone reading this board is that the very arrogance we see here is the same arrogance that has put out great country at risk. It seems today that an ivy league business education does not equip one with two major elements for success, common sense and humility.
54
Posted by guest, Sep 25, 2008 9:05AM
I think the reason discourse has fallen off on this post is that we're just frustrated that people who know enough to know why this is scary and why it should scare the average American are using dumbass neutral political jargon instead of spelling out what's wrong.
Look, give up the pay cut and the equity points. This should be last resort, not an excuse for Paulson to buy out Goldman's trash at near-face (if necessary, exclude Goldman from the plan just so people drop this conflict-of-interest stuff). If that limits participation, so be it. I don't think you need total participation to put a floor under prices.
The best model for our trashed credit markets is probably the AIG solution - a controlled unwind. Even if this works, it isn't going to save everybody. Focus on limiting the cascade.
55
Posted by guest, Sep 25, 2008 9:06AM
Wall Street executives now limited to $400,000 a year TOTAL compensation cap.
169% OWNED!!
Thanks Dubya.
56
Posted by guest, Sep 25, 2008 9:38AM
@54
I think you missed the point. Read the Lewis piece on Bloomberg. It may be written with a sarcastic tone but he is pointing out what everyone knows to be true. The bailout is about doing what is good for Goldman.
57
Posted by guest, Sep 25, 2008 1:39PM
With respect to the comments below, a new message has just been issued. It is now time to take the profits. Time is 1:03PM on September 25. Details on scrolling message on the blog:
http://financialtraders.blogspot.com
Previous message is:
If interested in timing market tops and bottoms, read note below.
http://financialtraders.blogspot.com/2008/09/ndx-nq-qqqq-qid-trading-bottom-area.html
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