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2008-09-26 Home Front Economy

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Posted by 3dc 2008-09-26 00:37|| || Front Page|| [10326 views ] Top

#1 Mark Twain had things to say about those who would gamble on anything, even which raindrop would reach the bottom of the window first.

/No, I'm not being helpful, but my impulse is to cut Gorgon's knot.

Posted by trailing wife ">trailing wife 2008-09-26 05:13|| 2008-09-26 05:13|| Front Page Top

#2 Anyone who thinks a Great Depression was or could be stopped in a single day, or over any period of time, using New Deal methods is an economic ignoramus who has been thoroughly brainwashed by the socialist totalitarians running the public schools.

Posted by Nimble Spemble 2008-09-26 07:04|| 2008-09-26 07:04|| Front Page Top

#3 Gorgon? I thought it was the Gordion?

Posted by Broadhead6 2008-09-26 08:22|| 2008-09-26 08:22|| Front Page Top

#4 Nah, it's that messy snake hair. Ever trying getting a knot out of one of those. The bad hair day that bites back. Perseus' styling technique was remarkably similar to Alexander's approach to the problem. Classical.

Posted by Procopius2k 2008-09-26 08:31|| 2008-09-26 08:31|| Front Page Top

#5 3dc: Your third link goes to Alex Jones' website.

Posted by Abdominal Snowman 2008-09-26 11:00|| 2008-09-26 11:00|| Front Page Top

#6 Ttttthhhhhhhp. I deserve the mockery for that one. Carry on.

Posted by trailing wife ">trailing wife 2008-09-26 11:13|| 2008-09-26 11:13|| Front Page Top

#7 > While initially linked to the temperature of several US cities,

You can bet on GLOBAL warming, but look at the temperatures in the middle of heat islands?

Posted by Bright Pebbles 2008-09-26 11:53|| 2008-09-26 11:53|| Front Page Top

#8 AS.. I know it does. I said it was a scaremongering piece. That doesn't make it without merit.

Posted by 3dc 2008-09-26 11:57|| 2008-09-26 11:57|| Front Page Top

#9 Here are the world's top counterparty CDO players - the ultimate risk takers prior to the current crisis.

1. Morgan Stanley.
2. Goldman Sachs.
3. JP Morgan Chase.
4. Deutsche Bank.
5. ABN Amro.
6. Barclays.
7. Lehman Brothers.
8. UBS.
9. Bear Stearns.
10. Merryl Lynch.
11. Credit Suisse.
12. Bank of America.
13. Dresdner.
14. BNP Paribas.
15. Citigroup.
16. Societe Generale.
17. Royal Bank of Scotland.
18. Calyon.
19. HVB.
20. AIG.

Posted by 3dc 2008-09-26 12:27|| 2008-09-26 12:27|| Front Page Top

#10 a blog on CDS (Credit Default Swaps)

a UK site that has been discussing the whole issue for a long time.... note: "Most of the posters there hate the US so read when calm".

Posted by 3dc 2008-09-26 13:03|| 2008-09-26 13:03|| Front Page Top

#11 The explanations by ~~Rummy~~ Paulson, ~~Cheney~~ Bernake and Bush are too simplex and likely complete fabrications to get us to agree to this for some reason likely unrelated to the ~~The War on Terror~~ mortgages.

I read a lot of comments like that when we were going to Iraq.

RDS.

Posted by Mike N. 2008-09-26 15:55|| 2008-09-26 15:55|| Front Page Top

#12 Giving $700 billion to the same people who got us into this problem is a big mistake.

Posted by JohnQC 2008-09-26 15:55|| 2008-09-26 15:55|| Front Page Top

#13 3dc. What does the term "counterparty" refer to with regards to the list?

Posted by JohnQC 2008-09-26 16:07|| 2008-09-26 16:07|| Front Page Top

#14 Counterparty risk assumption was what brought Bear Stearns down and was starting to work in Morgan and Goldman. Basically, it is default risk. One party to a contract (Derivatives are contracts) is assumed to not be able to live up to its risk assumption and so someone else has to come in to take the risk (i.e. the government).

Posted by Jack is Back!">Jack is Back! 2008-09-26 16:48|| 2008-09-26 16:48|| Front Page Top

#15 3DC, This list is the "Dead Pool"!

1. Morgan Stanley (MPD).
2. Goldman Sachs (MPD).
3. JP Morgan Chase.
4. Deutsche Bank (Life Support Feeding directly from Central bank only).
5. ABN Amro (Suicide + poisoning Fortis).
6. Barclays (Alive).
7. Lehman Brothers (KIA).
8. UBS (Purple Debt Heart).
9. Bear Stearns (KIA).
10. Merryl Lynch (KIA).
11. Credit Suisse.
12. Bank of America (Civic Medal for adopting wayward youth Cuntywide).
13. Dresdner.
14. BNP Paribas (Wounds).
15. Citigroup.
16. Societe Generale (Recovering from trader cancer).
17. Royal Bank of Scotland.
18. Calyon.
19. HVB.
20. AIG (Feeding directly from Central bank only).

Posted by Bright Pebbles 2008-09-26 17:52|| 2008-09-26 17:52|| Front Page Top

#16 Think I can make any $$$ shorting the Global Warming Index?

Posted by bigjim-ky 2008-09-26 21:56|| 2008-09-26 21:56|| Front Page Top

#17 The media could do a much better job of describing what is at stake. What follows is an example of what one local company is going through:
10 Sept 2008 --Money market fund Reserve Primary Fund (RPF) has $62.6 billion assets, of which $0.8 million are in Lehman Bros bonds.
15 Sept 2008 -- Lehman Bros files for bankruptcy.
16 Sept 2008 -- RPF marks Lehman bonds down to $0, prompting a flood of withdrawals from RPF. Not everyone can get out in time. The SEC freezes RPF assets.
25 Sept 2008 -- Goodyear Tire & Rubber Co. announces $360 million of its funds are frozen in RPF. Goodyear said it will draw $600 million from a line of credit for normal business uses while it waits for its share of RPF to be paid out at some unknown time in the future.
--- Shelly Lombard, credit analyst with New York-based investment research firm Gimme Credit, said Goodyear "basically lost access to $300 million. Luckily, Goodyear is not in a liquidity crisis." But smaller companies in a similar situation with cash frozen in an account might not be so lucky if they are unable to tap a line of credit, Lombard said.
"That [money] stands between a company and bankruptcy. You can't pay your bills, you can't meet payroll, you go into bankruptcy," Lombard said.
I know money market funds aren't derivatives, this is simply to show the cascading effect of business failures on other businesses. Note that Goodyear had nothing to do with mortgages.

Posted by Anguper Hupomosing9418 2008-09-26 22:15|| 2008-09-26 22:15|| Front Page Top

23:59 McCain weilds cane
23:52 badanov
23:41 JohnQC
23:18 Mullah Richard
23:01 JosephMendiola
22:55 RD
22:43 RD
22:37 Almostout
22:36 Almostout
22:32 Flitch the Imposter aka Broadhead6
22:18 bigjim-ky
22:15 Anguper Hupomosing9418
22:05 AlmostAnonymous5839
21:56 Seafarious
21:56 bigjim-ky
21:52 Skidmark
21:47 bigjim-ky
21:45 bigjim-ky
21:40 Bright Pebbles
21:38 Mike N.
21:31 DarthVader
21:26 DarthVader
21:15 General_Comment
21:14 General_Comment