PDA

View Full Version : Understanding the anatomy of the Financial crisis



cotts135
03-22-2009, 07:02 AM
A recent article in Rolling Stone magazine written by Mike Taibbi, I believe, effectively explains in laymen's terms the financial crisis we are currently in. I know that to are more conservative members Rolling Stone magazine is viewed as a liberal or even a communist publication and not worthy of the paper it is printed on. I would suggest however putting down any bias you might have and read the article with an open mind.
The anger Americans feel about this is justified and this article points out that Wall St. has been run by a bunch of manipulative, greedy and unprincipled bunch of crooks for years and that it needs to change and respond to the interests of the public instead of themselves.

http://www.rollingstone.com/politics/story/26793903/the_big_takeover/

TCFarmer
03-22-2009, 11:28 AM
The anger Americans feel about this is justified and this article points out that Wall St. has been run by a bunch of manipulative, greedy and unprincipled bunch of crooks for years and that it needs to change and respond to the interests of the public instead of themselves.



You realize that these people gave a lot of money to BHO.

http://theprolific.com/2008/08/meet-obamas-corporate-backers/

Actually at this point last year both Hillary and Obama were outpacing McCain in getting Wall Street money.

http://articles.latimes.com/2008/mar/21/nation/na-wallstdems21

cotts135
03-22-2009, 08:36 PM
You realize that these people gave a lot of money to BHO.

http://theprolific.com/2008/08/meet-obamas-corporate-backers/

Actually at this point last year both Hillary and Obama were outpacing McCain in getting Wall Street money.

http://articles.latimes.com/2008/mar/21/nation/na-wallstdems21

At least the bastards bet right on that outcome. As citizens it more important than ever that we educate ourselves on what happened and that we stop acting in the best interests of the tycoons of Wall St. Obama needs to know as does Congress that this cozy relationship with these corporations needs now to be scrutinized, transparent and regulated like it was under a microscope.
Obama's first move should be to get rid of Geithner.

K G
03-22-2009, 08:48 PM
Virtually ANY democrat could've run for President and won...didn't matter who they ran against. They just voted for the one that said what they wanted to hear.

How's that workin' out so far???????????????????????????

kg

Buzz
03-23-2009, 09:21 AM
How's that workin' out so far???????????????????????????

kg

To me it looks like he's following in the footsteps of Clinton and Bush.

Marvin S
03-23-2009, 10:30 AM
Obama's first move should be to get rid of Geithner.

With Geithner's ethical lapses he should not have been confirmed, but it happened. He probably was underqualified to hold his previous positions, but that's his pedigree, & it looks good on a resume.

To make a change at this time would not be a good move, the people that count (meaning the private sector) are getting a read on Geithner & will get the country out of this problem given just a few tools to work with. As for former Treasury Secretary's think Paulsen, Snow, O'Neill & Rubin in recent times, name one of those who really had control of the subject. Any successes they encountered were more dumb luck than part of a cohesive plan. & I'm especially disappointed in Rubin, wealthy beyond imagination because of his actions, what did he create?

Buzz
03-23-2009, 11:29 AM
Any successes they encountered were more dumb luck than part of a cohesive plan. & I'm especially disappointed in Rubin, wealthy beyond imagination because of his actions, what did he create?

Bingo. Especially bingo on the "what did he create?" Hell must be freezing over today Marvin...

Marvin S
03-23-2009, 12:06 PM
Bingo. Especially bingo on the "what did he create?" Hell must be freezing over today Marvin...

The disappointment is/was that I thought Rubin to be the star in the Clinton cabinet. :(

Buzz
03-23-2009, 04:54 PM
Want a better understanding? Read this:

http://www.dailykos.com/story/2009/3/23/712012/-Sigh...-the-biggest-problem-is-not-(toxic)-bank-assets

If you blow it off because of where it's posted, then I'm sorry your ideology won't allow you to read anything that might conflict with your beliefs.

The Obama/Geithner plan is very disappointing...

Marvin S
03-23-2009, 05:25 PM
Before we start - let's have one for the Lady Jackrabbits - 31-2, whopped TCU 90-55 & can't get a mention on ESPN. It's all about TN getting beaten badly by a mid-major.


If you blow it off because of where it's posted, then I'm sorry your ideology won't allow you to read anything that might conflict with your beliefs.

I used to subscribe to the New Yorker - stopped when their love of all things originating in NY got to be more than I could stand. But their cartoons were priceless, have the entire collection. But I do draw the line at reading articles without content, which many liberal/conservative idealogues use to stir up the masses. Article's not bad, how many of your idealogy will understand it? :)

[quote=The Obama/Geithner plan is very disappointing...[/quote]

YOUR GUYS - ;) ;) :) Do you want me to remind you again next week.

sinner
03-23-2009, 05:27 PM
FINANCIAL CRISIS

Heidi is the proprietor of a bar in Berlin . In order to increase sales, she
decides to allow her loyal customers - most of whom are unemployed alcoholics -
to drink now but pay later. She keeps track of the drinks consumed on a
ledger (thereby granting the customers loans).

Word gets around and as a result increasing numbers of customers flood into Heidi's bar.
Taking advantage of her customers' freedom from immediate payment
constraints, Heidi increases her prices for wine and beer, the most-onsumed beverages. Her sales volume increases massively.
A young and dynamic customer service consultant at the local bank recognizes these customer debts as valuable future assets and increases Heidi's borrowing limit.
He sees no reason for undue concern since he has the debts of the alcoholics as collateral. At the bank's corporate headquarters, expert bankers transform these customer assets into DRINKBONDS, ALKBONDS and PUKEBONDS. These securities are then traded on markets worldwide. No one really understands what these abbreviations mean and how the securities are guaranteed. Nevertheless, as their prices continuously climb, the securities become top-selling items.
One day, although the prices are still climbing, a risk manager (subsequently of course fired due his negativity) of the bank decides that slowly the time has come to demand payment of the debts incurred by the drinkers at Heidi's bar.
However they cannot pay back the debts.
Heidi cannot fulfill her loan obligations and claims bankruptcy.
DRINKBOND and ALKBOND drop in price by 95 %. PUKEBOND performs better, stabilizing in price after dropping by 80 %.
The suppliers of Heidi's bar, having granted her generous payment due dates
and having invested in the securities are faced with a new situation. Her wine supplier claims bankruptcy, her beer supplier is taken over by a competitor. The bank is saved by the Government following dramatic round-the-clock consultations by leaders from the governing political parties. The funds required for this purpose are obtained by a tax levied on the non-drinkers.

Finally an explanation I understand ....

Buzz
03-23-2009, 08:06 PM
Before we start - let's have one for the Lady Jackrabbits - 31-2, whopped TCU 90-55 & can't get a mention on ESPN. It's all about TN getting beaten badly by a mid-major.



. Article's not bad, how many of your idealogy will understand it? :)



YOUR GUYS - ;) ;) :) Do you want me to remind you again next week.

Marvin, as you can imagine, women's basketball is BIG here in Brookings right now. All the nay sayers that didn't want SDSU going division 1 are eating crow about now.

You ask how many of my ideology will understand it? I wonder how many people period will understand it. If you were to go back and look at my posts late last summer and fall, this is what I was talking about. The gooberment or private individuals can buy up these toxic assets, but the sellers of these CDS's will still be on the hook for what they owe to those who they sold this "insurance" to. Scary...

And by the way, don't remind me.

cotts135
03-24-2009, 07:06 AM
With Geithner's ethical lapses he should not have been confirmed, but it happened. He probably was underqualified to hold his previous positions, but that's his pedigree, & it looks good on a resume.

To make a change at this time would not be a good move, the people that count (meaning the private sector) are getting a read on Geithner & will get the country out of this problem given just a few tools to work with. As for former Treasury Secretary's think Paulsen, Snow, O'Neill & Rubin in recent times, name one of those who really had control of the subject. Any successes they encountered were more dumb luck than part of a cohesive plan. & I'm especially disappointed in Rubin, wealthy beyond imagination because of his actions, what did he create?

My main gripe with Geithner is that he is a Wall St insider. I have no doubt that he is brilliant and understands the problems we now face but he comes from inside the bubble that is insulated from the real world. On a daily basis it is demonstrated that these executives really don't get what is going on. How else do you explain this culture where they believe there is no problem receiving these gigantic bonuses even while driving there company along with the rest of America into the ground. Where else in America is that happening? Then I read today in an article in the Wall St. Journal that the bankers are complaining to the Obama administration about the legislation taxing these bonuses and that if they are not going to take care of that problem, well, we are not going to help you with yours. Sounds like extortion to me. What ever happened that we all have to sacrifice a little in these difficult times?
It is this whole mindset that is poisoning the well. I am sure there is someone who is not from Wall St. that understands the problem as well as Geithner and see's it for what it is: A problem of American confidence,political incompetence and Wall St. culture .

zeus3925
03-24-2009, 07:52 AM
At least the bastards bet right on that outcome. As citizens it more important than ever that we educate ourselves on what happened and that we stop acting in the best interests of the tycoons of Wall St. Obama needs to know as does Congress that this cozy relationship with these corporations needs now to be scrutinized, transparent and regulated like it was under a microscope.
Obama's first move should be to get rid of Geithner.

In the same vein, these guys will shed cash on anyone that appears to be a winner. They follow the ideology of their wallets.