[zzz]

drunkle- getting tired of you suggesting that I don’t support trading in the market, shorting, etc or that I even know how to fix this problem. I don’t know, I just point out what happened historically and perhaps why the Fed stepping in isn’t so wrong and why there have been debates on this topic – and why there will be no magic bullet. Its called presenting a point of view, an opinion. I don’t have a magic ball, I have no clue what will happen. I do however understand how the i-banks and commercial banks have interdependencies and valuing derivatives is a complex imperfect arena. Its just not as simple as saying damn those greedy bastards and hope they all suffer from their firms collapsing….

[zzz]

drunkle- getting tired of you suggesting that I don’t support trading in the market, shorting, etc or that I even know how to fix this problem. I don’t know, I just point out what happened historically and perhaps why the Fed stepping in isn’t so wrong and why there have been debates on this topic – and why there will be no magic bullet. Its called presenting a point of view, an opinion. I don’t have a magic ball, I have no clue what will happen. I do however understand how the i-banks and commercial banks have interdependencies and valuing derivatives is a complex imperfect arena. Its just not as simple as saying damn those greedy bastards and hope they all suffer from their firms collapsing….

[zzz]

Ex-SD – to your comment about staying out of private business – this is our entire banking system at risk – not a little private business that sink or swim, won’t have any ripple down effects. Did you read about the trillions of dollars in “counterparty” exposure for Bear – do you know what this means and that this is not limited to Bear?

Sure it sucks now, and sure we’re eating shit in inflation, and let me cry about not wanting to take my $$ to Europe right now – all that will seem like cryin over spilt milk if our banking system fails. I suggest you too read about the Great Depression.

[zzz]

Ex-SD – to your comment about staying out of private business – this is our entire banking system at risk – not a little private business that sink or swim, won’t have any ripple down effects. Did you read about the trillions of dollars in “counterparty” exposure for Bear – do you know what this means and that this is not limited to Bear?

Sure it sucks now, and sure we’re eating shit in inflation, and let me cry about not wanting to take my $$ to Europe right now – all that will seem like cryin over spilt milk if our banking system fails. I suggest you too read about the Great Depression.

[zzz]

Ex-SD – to your comment about staying out of private business – this is our entire banking system at risk – not a little private business that sink or swim, won’t have any ripple down effects. Did you read about the trillions of dollars in “counterparty” exposure for Bear – do you know what this means and that this is not limited to Bear?

Sure it sucks now, and sure we’re eating shit in inflation, and let me cry about not wanting to take my $$ to Europe right now – all that will seem like cryin over spilt milk if our banking system fails. I suggest you too read about the Great Depression.

[zzz]

Ex-SD – to your comment about staying out of private business – this is our entire banking system at risk – not a little private business that sink or swim, won’t have any ripple down effects. Did you read about the trillions of dollars in “counterparty” exposure for Bear – do you know what this means and that this is not limited to Bear?

Sure it sucks now, and sure we’re eating shit in inflation, and let me cry about not wanting to take my $$ to Europe right now – all that will seem like cryin over spilt milk if our banking system fails. I suggest you too read about the Great Depression.

[zzz]

Ex-SD – to your comment about staying out of private business – this is our entire banking system at risk – not a little private business that sink or swim, won’t have any ripple down effects. Did you read about the trillions of dollars in “counterparty” exposure for Bear – do you know what this means and that this is not limited to Bear?

Sure it sucks now, and sure we’re eating shit in inflation, and let me cry about not wanting to take my $$ to Europe right now – all that will seem like cryin over spilt milk if our banking system fails. I suggest you too read about the Great Depression.

[zzz]

JWM in SD – yes you read what I’m saying correctly. The Fed is trying to “limit” the failures to the extent they can, and restore counterparty trading confidence. Solvency is an interesting question – they are liquid to the extent that they have access to credit. Bear up till last week had access to liquidity. Then for whatever reasons- their counterparties started calling in their loans, their prime brokerage clients demanded cash outs as the rumors furthered, other banks started assessing premiums to trades Bear was doing. Maybe these are the same guys who wanted Bear to eat crow since Bear refused to participate in the bailout of LTCM in the late 90s. All the banks are heaviliy leveraged. In the past many years, credit was free flowing – hence all of our issues today. The banks created the monster, and the geniuses themselves bought into the BS (that would be bullshit, not Bear Stearns although a running joke on Wall St)….now they are all trying to call each other on the BS by calling in their loans. They suffer from their own belief in the monster they created, and now from the lack of confidence in it.

I for one have no idea if what the Fed is doing is for better or for worse, but as I posted in the other thread on pros and cons, if we end up in a depression – will the Fed be damned if it sat idly by and did nothing? Truman once said he wished he could find a 1 handed economist – economists are often found saying, on the one hand…., on the other hand…..

[zzz]

JWM in SD – yes you read what I’m saying correctly. The Fed is trying to “limit” the failures to the extent they can, and restore counterparty trading confidence. Solvency is an interesting question – they are liquid to the extent that they have access to credit. Bear up till last week had access to liquidity. Then for whatever reasons- their counterparties started calling in their loans, their prime brokerage clients demanded cash outs as the rumors furthered, other banks started assessing premiums to trades Bear was doing. Maybe these are the same guys who wanted Bear to eat crow since Bear refused to participate in the bailout of LTCM in the late 90s. All the banks are heaviliy leveraged. In the past many years, credit was free flowing – hence all of our issues today. The banks created the monster, and the geniuses themselves bought into the BS (that would be bullshit, not Bear Stearns although a running joke on Wall St)….now they are all trying to call each other on the BS by calling in their loans. They suffer from their own belief in the monster they created, and now from the lack of confidence in it.

I for one have no idea if what the Fed is doing is for better or for worse, but as I posted in the other thread on pros and cons, if we end up in a depression – will the Fed be damned if it sat idly by and did nothing? Truman once said he wished he could find a 1 handed economist – economists are often found saying, on the one hand…., on the other hand…..

[zzz]

JWM in SD – yes you read what I’m saying correctly. The Fed is trying to “limit” the failures to the extent they can, and restore counterparty trading confidence. Solvency is an interesting question – they are liquid to the extent that they have access to credit. Bear up till last week had access to liquidity. Then for whatever reasons- their counterparties started calling in their loans, their prime brokerage clients demanded cash outs as the rumors furthered, other banks started assessing premiums to trades Bear was doing. Maybe these are the same guys who wanted Bear to eat crow since Bear refused to participate in the bailout of LTCM in the late 90s. All the banks are heaviliy leveraged. In the past many years, credit was free flowing – hence all of our issues today. The banks created the monster, and the geniuses themselves bought into the BS (that would be bullshit, not Bear Stearns although a running joke on Wall St)….now they are all trying to call each other on the BS by calling in their loans. They suffer from their own belief in the monster they created, and now from the lack of confidence in it.

I for one have no idea if what the Fed is doing is for better or for worse, but as I posted in the other thread on pros and cons, if we end up in a depression – will the Fed be damned if it sat idly by and did nothing? Truman once said he wished he could find a 1 handed economist – economists are often found saying, on the one hand…., on the other hand…..

[zzz]

JWM in SD – yes you read what I’m saying correctly. The Fed is trying to “limit” the failures to the extent they can, and restore counterparty trading confidence. Solvency is an interesting question – they are liquid to the extent that they have access to credit. Bear up till last week had access to liquidity. Then for whatever reasons- their counterparties started calling in their loans, their prime brokerage clients demanded cash outs as the rumors furthered, other banks started assessing premiums to trades Bear was doing. Maybe these are the same guys who wanted Bear to eat crow since Bear refused to participate in the bailout of LTCM in the late 90s. All the banks are heaviliy leveraged. In the past many years, credit was free flowing – hence all of our issues today. The banks created the monster, and the geniuses themselves bought into the BS (that would be bullshit, not Bear Stearns although a running joke on Wall St)….now they are all trying to call each other on the BS by calling in their loans. They suffer from their own belief in the monster they created, and now from the lack of confidence in it.

I for one have no idea if what the Fed is doing is for better or for worse, but as I posted in the other thread on pros and cons, if we end up in a depression – will the Fed be damned if it sat idly by and did nothing? Truman once said he wished he could find a 1 handed economist – economists are often found saying, on the one hand…., on the other hand…..

[zzz]

JWM in SD – yes you read what I’m saying correctly. The Fed is trying to “limit” the failures to the extent they can, and restore counterparty trading confidence. Solvency is an interesting question – they are liquid to the extent that they have access to credit. Bear up till last week had access to liquidity. Then for whatever reasons- their counterparties started calling in their loans, their prime brokerage clients demanded cash outs as the rumors furthered, other banks started assessing premiums to trades Bear was doing. Maybe these are the same guys who wanted Bear to eat crow since Bear refused to participate in the bailout of LTCM in the late 90s. All the banks are heaviliy leveraged. In the past many years, credit was free flowing – hence all of our issues today. The banks created the monster, and the geniuses themselves bought into the BS (that would be bullshit, not Bear Stearns although a running joke on Wall St)….now they are all trying to call each other on the BS by calling in their loans. They suffer from their own belief in the monster they created, and now from the lack of confidence in it.

I for one have no idea if what the Fed is doing is for better or for worse, but as I posted in the other thread on pros and cons, if we end up in a depression – will the Fed be damned if it sat idly by and did nothing? Truman once said he wished he could find a 1 handed economist – economists are often found saying, on the one hand…., on the other hand…..

[zzz]

donaldduckmoore – you should Google Great Depression and read about how many of those same issues facing that period of time, debt, contraction of money, are facing our economy and the Fed now. If the Fed did nothing and a massive banking failure occurred, resulting in our own Great Depression, would we blame the Fed? I’m not advocating Fed involvement or simply allowing the “free market” to exist as is. I have no debt so personally didn’t contribute to this nightmare, but since this mess was created – and it must be unwound, I’d prefer it happen without bringing the banking system to its knees.

I think its a naive to believe that only the rich bastards will suffer if Bear and the rest of Wall st, mortgage brokers etc eat shit if a bank fails. We too will be eating shit along with them. Shit rolls downhill.

[zzz]

donaldduckmoore – you should Google Great Depression and read about how many of those same issues facing that period of time, debt, contraction of money, are facing our economy and the Fed now. If the Fed did nothing and a massive banking failure occurred, resulting in our own Great Depression, would we blame the Fed? I’m not advocating Fed involvement or simply allowing the “free market” to exist as is. I have no debt so personally didn’t contribute to this nightmare, but since this mess was created – and it must be unwound, I’d prefer it happen without bringing the banking system to its knees.

I think its a naive to believe that only the rich bastards will suffer if Bear and the rest of Wall st, mortgage brokers etc eat shit if a bank fails. We too will be eating shit along with them. Shit rolls downhill.

[zzz]

donaldduckmoore – you should Google Great Depression and read about how many of those same issues facing that period of time, debt, contraction of money, are facing our economy and the Fed now. If the Fed did nothing and a massive banking failure occurred, resulting in our own Great Depression, would we blame the Fed? I’m not advocating Fed involvement or simply allowing the “free market” to exist as is. I have no debt so personally didn’t contribute to this nightmare, but since this mess was created – and it must be unwound, I’d prefer it happen without bringing the banking system to its knees.

I think its a naive to believe that only the rich bastards will suffer if Bear and the rest of Wall st, mortgage brokers etc eat shit if a bank fails. We too will be eating shit along with them. Shit rolls downhill.

[Author]

Posts