Asbytec

AIG vs. America

Agreed. The bonus issue is a red herring and makes a great headline for the average couch potato. It's the CDS mess we are paying that should be getting everyone's goat. It get's mine.

10 Reasons Why We Still Haven't Hit Bottom

The author makes some good points. Quite a few things seem not to be acting the way they should. We should have been inflating or be inflating shortly, yet we may not see inflation in the mid term. Maybe not until next year. The dollar should have tanked, and did only a bit. Such things show we're a long way from being back to normal, much less hit bottom or recovering.

10 Reasons Why We Still Haven't Hit Bottom

The author makes some good points. Quite a few things seem not to be acting the way they should. We should be inflating shortly, yet we may not see inflation in the mid term. The dollar should have tanked, and did only a bit. Such things show we're a long way from being back to normal, much less hit bottom or recovering.

CDS: The Sabotaging Asset

Bigmoney, I guess he did, or implied it. He's been doing it, it's just the guys on the roof have been netting the cash. Us in the street, well...

Yes, we are in a precarious situation with respect to hyperinflation. All that is true. There is no need to argue that belated point.

Truth is, Bernie has been the only person acting (rightly or wrongly) in the last year or so. Bush cobbled together a stimulus plan and the Treasury gave our tax money to AIG. Congress failed to act on the GSE problem 18 months ago when Bernie told them of the storm on the horizon. But, beside that, Bernie has had to run our ship aground to keep it from sinking. I understand this...hate it...but understand it.

So, as a result, the current market correction was allowed to take hold. It hurts, but it's needed. This is about the only thing I can thank Bush and McCain for. But, now that's it's taken hold, someone needs to pull back on the yoke and get the nose up.

Obama might have more of a spending plan that a stimulus plan. But, personally, I am pleased he is putting money toward jobs and not toward saving the house of cards built on the "bad money" everyone is talking about.

Ok, so he is throwing some good money after bad, but nothing like the Bush Treasury...which went entirely after bad money. Unfortunately, saving AIG means saving all the instruments tied up in them, such as a plethora of hedged insurance policies and even many retirement packages...all losing money due to entangled spider web of CDSs.

Bernie and his actions mostly were to free up the financial markets. The stock market rallied, then fell. Obama, we'll, he really doesn't care about the stock market. He's not taking action to cause a two day rally.

In fact, as has been duly noted, stocks are off. So what. Build some bridges, educate some kids, actually produce something, and the market will take care of itself. This is gonna be long term stuff, more sound economic fundamentals...not the quick buck, profit taking based on the value of paper.

The house of cards it tumbling. We need to rebuild a solid foundation before we can see real gains in wealth, again. And, in doing so, the dollar will take care of itself, despite QE and zero interest rates. And we'll probably beat the EU to the punch.

The Risk Biggest Source: Government

Biggest Risk Source: unregulated AIG Financial Products Division. Any questions?

CDS: The Sabotaging Asset

To hear it from Bernanke, CDSs are ground zero for the current crisis...in AIG's financial products division...in London. It made him angry, me too...

I must say, I agree mostly. Gotta pay those out beeatches. Can't loan any, just yet. They're screwed and we're screwed.

So, what do we do, bail them out or help folks keep their (overpriced) homes? I say, the latter.

Great Depression Not Imminent, But Inevitable

Guys, guys, guys! Chris nailed it.

"There is a casino and a factory, only one produces wealth." The other produces a wealth affect...LOL

Someone said earlier, "this will be contained." And implied shortly, I think. Imagine, a simple housing market down turn has brought the world to it's knees. This goes way beyond the sub prime mess, that was simply a catalyst to tumble the financial markets.

It goes to the core of our financial system, so much so folks are screaming, "abolish the Fed!" for crying out loud. It would take pages and pages (already written) to explain to someone who believes "this will be contained" why it is proving extremely difficult to do so.

Great Depression Not Imminent, But Inevitable

Does it seem to you the wealthy have had their noses in the trough and have finally eaten it dry? Then, we tossed in our tax money...

Great Depression Not Imminent, But Inevitable

With write downs and payouts dragging on the banking system, I just don't see any way it can begin functioning normally anytime soon. Banks were not allowed to be in the insurance business for a reason. Want to hedge, go to an insurance company.

The Difference Between TARP and TALF

Can I still get in on a CDS that guarantees me a return if Paulson turns out to be a nice guy? I'd like to bet against it.

If I understand correctly, it sounds like he's trying to short circuit the CDS failures so banks won't have to pay on bets against consumer default? What about paying out on bets they will not default? Is he ensuring someone will still have to pay? This is getting confusing.

My understanding is the banks are weighed down heavily by debt they already owe. The banking system should never engage in insurance functions and gambling. I hope the act of congress approving such activity is repealed and burned.

Man, this is a mess. Maybe another great depression is just what we need to reboot our economy.