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  • What Obama Needs to Know about Tim Geithner, the AIG Fiasco and Citigroup [View article]
    Pls correct to: The US government may absorb its debts, but that only protects its creditors who made a bad bet in the first place.
    Nov 27 13:19 pm |Rating: 0 0 |Link to Comment
  • What Obama Needs to Know about Tim Geithner, the AIG Fiasco and Citigroup [View article]
    Actually, a nice dialogue here, getting to the critical issue, which is US net indebtedness. It is US industrial weakness we are looking at. Thus the puzzle of the flight to US financial markets as savior, and yet the source of the crisis. In the long run, however, good credits will get financing, and bad credits will not. AIG is a bad credit. The US government may absorb its debts, but that only protects its debtors who made a bad bet in the first place. The US taxpayer is bailing out speculators. There is no way around that. Rich speculators are being paid off to go speculate another day. Which they will.


    On Nov 26 10:04 AM Steve Pluvia wrote:

    > You, lost me early in this overly-long soap-box stint.
    >
    > Are you *seriously* suggesting the U.S. let AIG blow-up?
    >
    > So let me see if I get your point...
    >
    > Let AIG fail; All foreign held debt insured by AIG blows up...
    >
    > -- US treasury and corporate debt immediately has zero credibility;
    >
    > -- US corporations and have zero borrowing power for short term trade
    > and expansion.
    > -- Trade grinds to a halt as foreign partners no longer honor purchase
    > orders from US corporations.
    > -- Run on all banks;
    > -- The dollar gets crushed; and,
    > -- The US have very little ability to jump start the US economy with
    > spending
    >
    > Oy freakin vey. Your idea is ridiculous. Clearly you don't understand
    > the implications of what you propose.
    >
    Nov 27 13:15 pm |Rating: +1 0 |Link to Comment
  • There Are Still Many Shoes Left to Drop [View article]
    Other items of concern. The Russian credit and equity markets and peril therein. Auto leases (I don't even know how to describe these, or what credit instruments are backing them -- are these car sales ? No. Are they rentals ? If so, who is financing the owners ? Who are the current owners ? )

    Thanks for your nice article.
    Nov 23 18:10 pm |Rating: 0 0 |Link to Comment
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