Maybe it is because we are in “the biz,” but lately it seems that we’ve been hearing a lot of analogies thrown around comparing the credit crunch with Japan’s banking (and general) crisis. There almost is an undertone of smug amusement to the entire thing. Trust the New York Times to press that angle not too long ago:
While European and American financial titans have teetered and collapsed, Japan’s giant banking groups have stood relatively unscathed. The growing global credit crisis, which threatens companies and consumers elsewhere, has yet to appear here, where the problem for years has been that the nation’s banks have too much cash, not too little. And while the United States Federal Reserve seems to be shoring up the entire American financial sector, the last time this central bank intervened in markets, it did so in dollars instead of yen — to help international markets.
Indeed, television news gives the current upheaval, known here as “Lehman Shock,” less coverage than more domestic issues like an approaching typhoon and a scandal over tainted rice. Even in the race for prime minister, the financial crisis has emerged as just one of a dozen issues and usually not the top one.
We prefer the “here’s what we learned” articles on Japan’s crisis, along with the occasional scholarly paper or two.
The Wall Street Journal mentions one, but, in a stroke of journalistic brilliance, doesn’t cite it. That, however, leads us to another from the Federal Reserve Bank of San Francisco (who else?) which has a decent list of sources on the topic.
Conclusions are somewhat predictable: Unlimited insurance, delays in grasping the nettles, political shenanigans all will doom us to decade long stagnation. Congress is well on its way.
1st
Looks, it’s a monster. Eating the economy. Run!
http://www.youtube.com/watch?v=TTW19g-uUTw
Careful 2, they could just as well go bomb pearl harbor again.
Ah yes EP, but it that FRBSF paper does suggest that the regulators were completely out to lunch and insufficiently harsh on the Japanese banks. How does that sit with an deregulation loving arch-conservative such as yourself?
“Posted by guest, Oct 02, 2008 11:16AM
Ah yes EP, but it that FRBSF paper does suggest that the regulators were completely out to lunch and insufficiently harsh on the Japanese banks. How does that sit with an deregulation loving arch-conservative such as yourself?”
You’ve got me confused with someone else.
warren buffett– economic pearl harbor
Big selloff in Brazil on hedge fund liquidations.
CNBS just had a headline “Time to short the short selling ban?”
wtf… is today “plagarige DB day”
http://dealbreaker.com/2008/10/short-the-short-selling-ban.php
CNBC just had a headline “Time to short the short selling ban?”
wtf… is today “plagarige DB day”
http://dealbreaker.com/2008/10/short-the-short-selling-ban.php
CNBC just had a headline “Time to short the short selling ban?”
wtf… is today “plagarize DB day”
http://dealbreaker.com/2008/10/short-the-short-selling-ban.php
Click ‘Post Comment’ once per comment.
careful @3, or else you might get some liquid heat in your jock strap.
“like salad!”
oh mamma i told you there was no way GE should be worth so much with all those shit levered loan deals they bought into. They really shit the bed on this one. But I my friend am now loaded. The market makers aren’t even bidding on some these options of these options … The vol is through the roof.
Long Live the Short Ban!
What about the Sweden crisis comparisons?
Another thread referenced a new WB-C rumor. What’s going on?
Japan To Crisis: “STILL There, Done That”.
http://www.nydailynews.com/gossip/2008/10/02/2008-10-02_larry_flynt_is_hustling_up_an_alaskin_fl.html
The Japanese solution:
http://www.dic.go.jp/english/e_katsudou/e_katsudou2-4.htm
Amusing that the RTC comparisons even entered the discussion. This is much more along the lines of the Scandinavian crisis and the 1920s.
Also – they invented MBS/ABS to get the shit off the books during the RTC issue.
What’re they planning on doing this time — super CDO^5 securities? Who’d buy them? The dumb money (mutuals, pensions) seems to be locked up and losing already.
Know it all at 18,
Who made RTC comparisons?
News reporters, blog commentators, and members of the government, when the bailout was first suggested.