Warm_Paw

Goldman, CIT and the Modest Return of Capitalism

It's ugly.
Maybe Obama didn't know Paulson was setting him up handing him this tarp idea. He just hit the scene and was relying on the existing financial gurus.
The big question is, how much toxic asset does Goldman still hold and have they honestly marked it to market?
Could be a farce to get sideline money poring in so these banks can really unwind.
Credit Suisse selling some mortgage securities is the beginning of the sales pitch.
I know I wouldn't touch them with a ten foot pole.
Like buying Bre X!

Counterparty Risk Subsides: Is the Worst Over for Financials?

Notice on the chart how overall baseline risk continues to increase upward to 2009.
Notice how the more serious risk spikes while CDS' come due.
This chart says things are getting worse and that no one knows what the next spike will bring.
We have to ride it out until the next bundle of CDS' come due to find out how much of the next wave of maturities are toxic, worthless and AIG must then reimburse a bank with money it doesn't have.
AIG reports in August, they may not even be around for the next spike. That would put the toxic assets solely on the banks.
Goldman will have paid itself handsomely just in time to get egg on their face. We're only half way, we're not out of the woods yet.
Probably why Goldman's in a hurry for their bonus!

Wall Street Breakfast: Must-Know News

Bank earnings aren't being reported as they used to be.
Earnings are over positive to hype the economy.
Notice this crisis centers around toxic assets on bank balance sheets yet no one discusses the percentage of toxic assets unwound for each bank, or the amount of these assets left on bank balance sheets.
We have at least two more death spirals dealing with the unwinding of these assets. The public's obviously not to know that.
The public's to take the hit buying bank stocks so they can dump these mortgage backed securities.
The very idea citi or Goldman want to give larger pay to bank execs has me wonder why the tax payer should be on the hook to bail them out.
Let them fail. Greedy pigs should get slaughtered. As for throwing the economy into a tail spin, it's inevitable.
These banks need to go the way of the car companies.
The real challenge is bringing manufacturing back to America.
Jobless people don't pay taxes.
The few working people won't be able to shoulder the burden.
Of course we could raise the tax rates on bankers and right the countries woes.

Credit Bubble: Who Lent to the Hedge Funds?

Ratings agencies share blame in allowing banks to bundle these asset backed securities with AAA ratings. Where was the SEC?

Did AIG see itself the benefactor of free Credit Default Swap premiums without ever wondering what would happen if their 32 trillion dollar notional value was called?
Barack and Geithner have to replace these managers to insure they do the right thing and make sure return money goes to the tax payer and is not funneled out of AIG.

How do we find out WHO exactly made all of the money writing these CDS's?

Now when you ask where was the Federal Reserve?
Greenspan was promoting Adjustable Rate Mortgages like he was the broker himself. Which is pretty strange for a Fed Chief who has Wall St. hang off his every word.
It's also strange that Greenspan would endorse Adjustable instead of fixed due to their lack of stability.

Now what if this whole scenario is preorchestrated to bring about the govt being the beneficiaries of a large bounce back in the share price of banks so they can fund universal healthcare and make up the shortfall in future pensions?

Another decade of Clinton like surplus under Barack.

It's good to hide the money when a Bush is president.