molson_golden2002 Posted September 15, 2008 Share Posted September 15, 2008 How long will all this drag on? Amazing job so far of containing the damage http://news.yahoo.com/s/ap/financial_meltdown NEW YORK - A failed plan to rescue Lehman Brothers was followed Sunday by more seismic shocks from Wall Street, including an apparent government-brokered takeover of Merrill Lynch by the Bank of America. ADVERTISEMENT A forced restructuring of the world's largest insurance company, American International Group Inc., also weighed heavily on global markets as the effects of the 14-month-old credit crisis intensified. A global consortium of banks, working with government officials in New York, announced late Sunday a $70 billion pool of funds to lend to troubled financial companies. The aim, according to participants who spoke to The Associated Press, was to prevent a worldwide panic on stock and other financial exchanges. Ten banks — Bank of America, Barclays, Citibank, Credit Suisse, Deutsche Bank, Goldman Sachs, JP Morgan, Merrill Lynch, Morgan Stanley and UBS — each agreed to provide $7 billion "to help enhance liquidity and mitigate the unprecedented volatility and other challenges affecting global equity and debt markets." The Federal Reserve also chipped in with more largesse in its emergency lending program for investment banks. The central bank announced late Sunday that it was broadening the types of collateral that financial institutions can use to obtain loans from the Fed. Link to comment Share on other sites More sharing options...
UConn James Posted September 15, 2008 Share Posted September 15, 2008 The Federal Reserve also chipped in with more largesse in its emergency lending program for investment banks. The central bank announced late Sunday that it was broadening the types of collateral that financial institutions can use to obtain loans from the Fed. "Hey, wait a minute, this watch says, 'Polex!'" Link to comment Share on other sites More sharing options...
meazza Posted September 15, 2008 Share Posted September 15, 2008 How long will all this drag on? Amazing job so far of containing the damage http://news.yahoo.com/s/ap/financial_meltdown Who knows? Eventually things will get back to normal, but what will it look like on the other side? Link to comment Share on other sites More sharing options...
RLflutie7 Posted September 15, 2008 Share Posted September 15, 2008 How long will all this drag on? Amazing job so far of containing the damage http://news.yahoo.com/s/ap/financial_meltdown It can only get worse as the housing market continues to decline. Wall Street was behind the run up in housing and gas prices, so it's hard to feel sorry when bad news comes from Wall Street. And I don't want the losses to be contained, because people never learn their lesson. I think it's time that more "investor class" people learn a tough lesson. Link to comment Share on other sites More sharing options...
StupidNation Posted September 15, 2008 Share Posted September 15, 2008 Just more proof that when the gov't steps in to guarantee bad debt investors will invest without impunity to the detriment of others. People consider this the free-market proving itself to be unreliable when in fact it's proof that subsidizing an industry always brings about mal-investment. Link to comment Share on other sites More sharing options...
molson_golden2002 Posted September 15, 2008 Author Share Posted September 15, 2008 Wow, the sh-- has hit the fan! http://news.yahoo.com/s/ap/20080915/ap_on_...e/world_markets Link to comment Share on other sites More sharing options...
Typical TBD Guy Posted September 15, 2008 Share Posted September 15, 2008 Just more proof that when the gov't steps in to guarantee bad debt investors will invest without impunity to the detriment of others. People consider this the free-market proving itself to be unreliable when in fact it's proof that subsidizing an industry always brings about mal-investment. Thank you . Your post is an oasis of competence in the PPP desert of molson/blzrul/justnzane/steely economic stupidity. Link to comment Share on other sites More sharing options...
TPS Posted September 15, 2008 Share Posted September 15, 2008 Just more proof that when the gov't steps in to guarantee bad debt investors will invest without impunity to the detriment of others. People consider this the free-market proving itself to be unreliable when in fact it's proof that subsidizing an industry always brings about mal-investment. Historically speculation and "mal-investment" have occured with or without government subsidies. Ending government loan guarantees will not end financial crises. Regulation is necessary to temper the inherent riskiness of finance which is built on leverage. Regulation will never end crises either, but it can help reduce their severity--as opposed to the black hole we now face... Link to comment Share on other sites More sharing options...
YellowLinesandArmadillos Posted September 15, 2008 Share Posted September 15, 2008 Historically speculation and "mal-investment" have occured with or without government subsidies. Ending government loan guarantees will not end financial crises. Regulation is necessary to temper the inherent riskiness of finance which is built on leverage. Regulation will never end crises either, but it can help reduce their severity--as opposed to the black hole we now face... Agreed, the problem is and was that the government should have stepped in 4-8 years ago on these loans. Now is too late. Greed from the financial sector and uncontrolled growth from a political point of view allowed this to happen. No one had enough #@$%@#$% to step up when things appeared to good to be true and put their foot down. This starts at the top and I begin with the Bush admin, but there is plenty of blame to go around. Link to comment Share on other sites More sharing options...
TPS Posted September 15, 2008 Share Posted September 15, 2008 Agreed, the problem is and was that the government should have stepped in 4-8 years ago on these loans. Now is too late. Greed from the financial sector and uncontrolled growth from a political point of view allowed this to happen. No one had enough #@$%@#$% to step up when things appeared to good to be true and put their foot down. This starts at the top and I begin with the Bush admin, but there is plenty of blame to go around. The democrats are in the pockets of financial sector lobbyists as well. Link to comment Share on other sites More sharing options...
molson_golden2002 Posted September 15, 2008 Author Share Posted September 15, 2008 So how, I get the feeling McCain won't be bringing up privitizing Social Security Link to comment Share on other sites More sharing options...
DC Tom Posted September 15, 2008 Share Posted September 15, 2008 Wow, the sh-- has hit the fan! http://news.yahoo.com/s/ap/20080915/ap_on_...e/world_markets Things are never as bad nor as good as they seem. However, given the many "This has to be bottoming out, no WAY it can get worse than this" statements I've been hearing and reading all morning, it's probably going to get worse. Never thought I'd see the day when Merril Lynch and Lehman ceased to exist, with AIG and WaMu soon to follow. Anyone want to take bets on who's next? Link to comment Share on other sites More sharing options...
ExiledInIllinois Posted September 15, 2008 Share Posted September 15, 2008 Just more proof that when the gov't steps in to guarantee bad debt investors will invest without impunity to the detriment of others. People consider this the free-market proving itself to be unreliable when in fact it's proof that subsidizing an industry always brings about mal-investment. Ya... Like this is a new thing in the United States. Link to comment Share on other sites More sharing options...
Dwight Drane Posted September 15, 2008 Share Posted September 15, 2008 Things are never as bad nor as good as they seem. However, given the many "This has to be bottoming out, no WAY it can get worse than this" statements I've been hearing and reading all morning, it's probably going to get worse. Never thought I'd see the day when Merril Lynch and Lehman ceased to exist, with AIG and WaMu soon to follow. Anyone want to take bets on who's next? I would chime in, but I'm too busy causing panic by overdramatising the situation and hyperventilating into a paper bag. Link to comment Share on other sites More sharing options...
ExiledInIllinois Posted September 15, 2008 Share Posted September 15, 2008 Historically speculation and "mal-investment" have occured with or without government subsidies. Ending government loan guarantees will not end financial crises. Regulation is necessary to temper the inherent riskiness of finance which is built on leverage. Regulation will never end crises either, but it can help reduce their severity--as opposed to the black hole we now face... Thank you . Your post is an oasis of competence in the PPP desert of McKinley'sCurse/StupidNation economic stupidity. Link to comment Share on other sites More sharing options...
molson_golden2002 Posted September 15, 2008 Author Share Posted September 15, 2008 Things are never as bad nor as good as they seem. However, given the many "This has to be bottoming out, no WAY it can get worse than this" statements I've been hearing and reading all morning, it's probably going to get worse. Never thought I'd see the day when Merril Lynch and Lehman ceased to exist, with AIG and WaMu soon to follow. Anyone want to take bets on who's next? And look on the bright side! All the cheap stock out there for sale! Link to comment Share on other sites More sharing options...
molson_golden2002 Posted September 15, 2008 Author Share Posted September 15, 2008 Thank you . Your post is an oasis of competence in the PPP desert of McKinley'sCurse/StupidNation economic stupidity. Your the best! Have a beer, its so hot here in the desert! Link to comment Share on other sites More sharing options...
Chef Jim Posted September 15, 2008 Share Posted September 15, 2008 So how, I get the feeling McCain won't be bringing up privitizing Social Security Why not? This is a blip in most people's retirement planning. Link to comment Share on other sites More sharing options...
molson_golden2002 Posted September 15, 2008 Author Share Posted September 15, 2008 Why not? This is a bip in most people's retirement planning. If Bush couldn't get this when the stock market was sailing along on cruise control, there is no way in hell it would have even the 40% of support it did back then. Obama would have a field day bashing this Note, I'm just looking at the politics of this Link to comment Share on other sites More sharing options...
meazza Posted September 15, 2008 Share Posted September 15, 2008 Things are never as bad nor as good as they seem. However, given the many "This has to be bottoming out, no WAY it can get worse than this" statements I've been hearing and reading all morning, it's probably going to get worse. Never thought I'd see the day when Merril Lynch and Lehman ceased to exist, with AIG and WaMu soon to follow. Anyone want to take bets on who's next? Goldman? Citi? UBS? Who knows... Link to comment Share on other sites More sharing options...
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