CaptBob

To Avoid Failure, Get Really Big; Everybody Else, Watch Out

Who was it said??--If you steal a million you go to jail, if you steal a Country they crown you king!".
Sounds like W.C. Fields wisdom.
None the less In the Monarchy of Benny and Hank, there'll sure be a lot of Princes running around.

Raise Taxes!--HA--Get ready to scrap the 40hr work week and--Pony Up.

Banks: Doing Deals At Any Price?

let's see if I've got this right??: In order to remove liability for bad debt, you finance it's sale with more debt, that carries with it the insurance that your buyer/borrower can lay the debt right back on you if it proves worse than forecast.
And for this you forgo any possible upside to the original debt evaluation, and assume additional risk from the new borrower/old debt holder. All to merely move the original debt from your books.

And these people --wonder-- why they're in trouble--giving mortgages to people without jobs, or buying same from others who did!!

Well if Big Ben and the American taxpayer's got your back!!--Why not!!

Credit Crisis Review: ARMed for Failure

Gee, I'm sure glad the Fed's done a "Good Job" in 2007-8 and we've got till 2010-12 for the "Bad news". Not for nothing-But!!-if the Fed continues their "good job" we're not making 2010!

It was actually a Triumvirate spawned by the Greenspan era of low interest rates=easy credit.

1.Banks wrote mortgages designed for maximum profits in anticipation of ever increasing home values. And packaged the CDO junk for sale -up the line and overseas. Boy we sure fooled those Chinese with our AAA CDO-Tranches Huh??

2. Those poor dupes who wanted but could never qualify were accommodated anyway. Unemployed room temperature I-Q's stood No Chance against lifetime Real Estate hucksters. Plus as values rose ,they discovered the "Equity Loan" compounding the damage.

3. The true speculator, that believed it would never end and rode the Ponzi scheme to dizzying heights, turning cheap Lead to Gold, till that one big wave and ----Wipeout!!