JohnL

Fed Watch: Will TALF Do the Job?

"Ron Paul was real change."

Amen. If we had listened to the man over the last 30 years, we wouldn't be up this creek.

Fed Watch: Will TALF Do the Job?

--“Nobody would buy a 10-year asset with a three-year loan,” she said.--

What is she talking about? The financial industry has been borrowing short and lending long for years. That is part of our problem -- failure to align assets and liabilities, causing liquidity problems and forced selling. Hmm...I wonder why they couldn't get people to loan them that quantity of money for the long-term?

Nationalizing the U.S. Banking Sector: There's No Choice

"The good news is this: most policymakers agree that letting the banks fail is an unacceptable outcome."

You know we've arrived in Wonderland when it's good news that failed capitalists will be made whole, at the expense of their competitors and the taxpayers. It's sad commentary on how dishonest and immoral this "free market" has become.

Will Obama's Solution Finally Save the Banking Sector?

"Unfortunately, the economy and the financial markets have reached a point of fragility where government policy has become paramount."

The banks were always fragile! it is just recently that most investors became aware of the fact. If they were inherently stable, would they be in this mess? The fragility stems from the morally, legally, financially and economically questionable practice of loaning out on-demand deposits. They are playing a confidence game and always subject to a credit contraction and "run on the bank." If you're not familiar with the issue, please research Austrian economics on this question -- particulary von Mises, von Hayek and Rothbard.