September 15, 2008.
The first day which truly marks a turning point no one wants to see. All caused by the people we elect, and the people we pay to manage our money and economy. In the end, they will be the only ones to prosper, with your tax dollars.
Major news is missing the boat, as they have for the last twenty years. The financial storm that is coming has been building in plain sight for decades. Many we trust to give us good information actually lied, or were too stupid to see the truth. There is no other way to describe their behavior.
As long as they were on television, they were "experts." The journalists assigned to present the stories gave us fiction, a point that will be salient soon enough.
Our politicians have taken bribes to get their jobs, which come with benefits average people do not get. In return, they gave a wink and a nod and a few bills introduced to pay back the bribes, so they could get more bribes.
Back to events of the day.
From itulip;
FIRE Economy D-Day: Greenspan's Black Swan
Following this economic and financial market crisis, the cycle of global recession will not have the same impact on the US in 2008 as it did in the previous case in 1930. The US in 1930 was a net creditor but is today a net debtor, with its dual trade and fiscal deficits funded by massive daily capital flows from foreign private investors and central banks – mostly the latter.
3 comments:
What other banks are in line to go under? How does UBS stand? Janis
Thanks for responding "Janis".
WM has no way to break even on its portfolio of Option ARM's, let alone additional derivatives it owns. The CDS, or wrap. written to protect losses has a good chance of never being paid, if it truly was ever designed to. Many insurers, such as AIG and AGO are now saying the only payments they received were only to cover the security to get the AAA rating. So, the CDS purchased by many banks and brokers was a charade, never intended to cover tens of billions in losses on one security.
Many insurers, and all the reinsurers (such as ABK and MBIA) will merge or go under. See "Insurers in Trouble".
Many regional banks will vanish. Find the ones with 400%, 500% and more in exposure to commercial real estate, and you have the most likely to fail. There are hundreds of them.
Janis, It is now easy to see that UBS, along with Citi, are in big, and I mean big, trouble. Made good money yesterday on puts with Citi. Hope you get this.
Post a Comment