The so called protections, securities, etc... are only for "some" banks/investment houses. Foreign banks, etc.. for example, will be able to avail themselves of the bailout without having to comply with any oversight, or having to allow the US to aquire a stake in what they're bailing out. Nor will they have to comply with restrictions on salaries/golden parachutes. 5 banks in the UK alone are planning on claiming 25% of the proposed 700bn.
I just put that in the title for the derivatives market because it plain freaks me out.
When I saw that sudden just immediate change to stop short selling period, well, what a ridiculous thing to do, changing the rules mid stream. Of course people had limit orders and all sorts of triggers set up, based on the existing rules, so assuredly that messed up many a trader.
How many people have said to reinstate the uptick rule?
Supposedly naked shorts are illegal as well. Why not just enforce that rule?
Ever get the feeling that these people in charge have no clue what they are doing?
It's like anything but undo the very things which enabled this mess in the first place.
I'm glad you wrote this because trying to blame short sellers (hey it's all your fault) ...well, I don't know if the people doing the blaming have ever shorted a stock in their lives.
BELGIUM’s Fortis is this weekend poised to become the first large continental bank to fall victim to the credit crunch, as the global chaos continues with Bradford & Bingley and American savings giant Wachovia both teetering on the brink.
The Belgian central bank and the country’s regulator are paving the way for a bailout of the huge banking and insurance group, which has a £540 billion balance sheet and a market value of £12 billion.
In Britain, the fate of Bradford & Bingley will be decided today. Fren-etic talks between the Bank of England, the Financial Services Authority and the government have been taking place this weekend to save the troubled mortgage bank.
Public Markup.
Someone is putting up draft legislation where people can comment. Now this is very cool because it's only when one gets down to bill language can one find the devil.
By allowing people to comment on bills that gives a much better feedback path!
Bebchuk of Harvard has a very detailed paper proposing an alternative. What I like about this (which many others have mentioned) is the problem in the pricing of toxic assets and when those assets are exposed for their worthlessness, will that cause the institution to be exposed as insolvent?
The Economists View has more but they also mention plain Nationalization of the financial system as a possible solution. That's the first I've heard of that. If anyone knows what Sweden did in 1992 that would be a great discussion.
I listed Roubini's 10 point plan earlier, which also looked promising.
Each candidate in my view completely ignored this "bail out" and a golden opportunity to talk about what needs to really happen and the asset pricing issue.
$20 million dollars and the board approved this when in essence, WaMu just failed and only because they had just large deposits did JPMorgan buy those (only those) out @ $1.9 billion and they are worth much, much more than that.
Yes, short selling on the UpTick is a hedge and a control on wild speculation. It has worked well for over 80 years. Massive short selling on the DownTick, though, can instantly crash the markets, as we have learned for the second time.
SEC apparantly doesn't know the difference. (Yeah, right!)
I just watched on CNBC where the traders were talking about the prices mechanism, transparency and open markets of these troubled assets being the real problem with the Paulson plan.
Who are they talking to up there?
The traders started to describe it but their very own CBO just testified about it!
Where are they listening even to their own Congressional Budget director?
Nancy Pelosi is now claiming the above draft is what will be the deal and Barney Frank is now claiming that their modifications of the Paulson plan is the only thing to get through.
Add to that clause 3.c, which is directly funneling money to some highly questionable and under current investigation 3rd party advocacy groups.....
well, well, well.
and now he's once again trying to blame McCain Presidential candidates for getting in their way. hmmmm, they are Senators.
Even worse, he is saying this insurance idea from Cantor...is an option. Why is that an option when it will not work?
Now futher....we have claims of a stimulus package with zero details on what that means. If it's more of clause 3.c.....that's not to main street.
I'm sorry but these people are completely doing a massive political game and not listening at all to the many experts who have studied this for years and what they are recommending!
Where we know enough about everybody to pick our politicians by computer and pension them off when we're done with them in such a way that we can ban them from ever working in private industry ever again?
Remember how the SEC banned short-selling on financial institutions in order to save them from those nasty bears? Well, once again, they caused more harm than good.
The Securities and Exchange Commission's ban on short selling of financial stocks has effectively shut down much of the convertible-bond market, a crucial area of financing for struggling companies.
Convertible securities are essentially bonds that can be exchanged for stock in the future. It's a relatively small market with less than $400 billion in securities outstanding, according to market participants, a fraction of the total for investment-grade bonds. But in times of stress, struggling companies turn to convertibles in order to raise capital when a share price has fallen.
because if the market did fail without government intervention it might suggest that markets are incapable of self-regulation. And if this is the case, then the government should always be there to step in before the problem balloons as it has now. In short, it invalidates the bout of deregulation that has occurred since the 1970s. And shows the neoliberal ideology to be broken.
Now is the time for new economic populist ideas to capture the loyalty of the public in this time of crisis, and to form the foundation of future economic governance.
We are being "sold" the Paulson plan, just like Iraq, just like Patriot Act. Since when is our elected representatives in the business of selling this bailout? or any other unpopular program for that matter
Whatever happened to representative democracy? Is not the job of our elected representatives to represent the will of the people?
Once again the American people are being sold a bill of goods based on the flimsiest of facts and evidence, with little more than token debate or discussion
This situation has been years in the making - whats the big rush now?
I don't know about you, but my red flags go up the minute some salesperson starts putting the hard sell on me, and I definitely have that feeling about this bailout. "Better hurry, this is the last one!! got five other people interested!" "Act now on this limited time offer!!"
mickwd1
minuteman justice
IT MUST NOT HAPPEN.
PLEASE, EVERYONE FLOOD CONGRESS WITH DISSENT AND DEMANDS TO REFUSE BAILOUT.
The so called protections, securities, etc... are only for "some" banks/investment houses. Foreign banks, etc.. for example, will be able to avail themselves of the bailout without having to comply with any oversight, or having to allow the US to aquire a stake in what they're bailing out. Nor will they have to comply with restrictions on salaries/golden parachutes. 5 banks in the UK alone are planning on claiming 25% of the proposed 700bn.
I find this interesting and I wonder if it's true. Honestly DeFazio has been so right on so many issues, he probably knows something we don't.
Tax on each transaction, well how many are there per day? (stock transactions).
I just put that in the title for the derivatives market because it plain freaks me out.
When I saw that sudden just immediate change to stop short selling period, well, what a ridiculous thing to do, changing the rules mid stream. Of course people had limit orders and all sorts of triggers set up, based on the existing rules, so assuredly that messed up many a trader.
How many people have said to reinstate the uptick rule?
Supposedly naked shorts are illegal as well. Why not just enforce that rule?
Ever get the feeling that these people in charge have no clue what they are doing?
It's like anything but undo the very things which enabled this mess in the first place.
I'm glad you wrote this because trying to blame short sellers (hey it's all your fault) ...well, I don't know if the people doing the blaming have ever shorted a stock in their lives.
The credit crisis goes global
WaMu files bankruptcy but it appears that triggered billions in CDOs which now must be paid.
Public Markup.
Someone is putting up draft legislation where people can comment. Now this is very cool because it's only when one gets down to bill language can one find the devil.
By allowing people to comment on bills that gives a much better feedback path!
Bebchuk of Harvard has a very detailed paper proposing an alternative. What I like about this (which many others have mentioned) is the problem in the pricing of toxic assets and when those assets are exposed for their worthlessness, will that cause the institution to be exposed as insolvent?
The Economists View has more but they also mention plain Nationalization of the financial system as a possible solution. That's the first I've heard of that. If anyone knows what Sweden did in 1992 that would be a great discussion.
I listed Roubini's 10 point plan earlier, which also looked promising.
Each candidate in my view completely ignored this "bail out" and a golden opportunity to talk about what needs to really happen and the asset pricing issue.
$20 million dollars and the board approved this when in essence, WaMu just failed and only because they had just large deposits did JPMorgan buy those (only those) out @ $1.9 billion and they are worth much, much more than that.
Yes, short selling on the UpTick is a hedge and a control on wild speculation. It has worked well for over 80 years. Massive short selling on the DownTick, though, can instantly crash the markets, as we have learned for the second time.
SEC apparantly doesn't know the difference. (Yeah, right!)
Globalization is a LIE!
I just watched on CNBC where the traders were talking about the prices mechanism, transparency and open markets of these troubled assets being the real problem with the Paulson plan.
Who are they talking to up there?
The traders started to describe it but their very own CBO just testified about it!
Where are they listening even to their own Congressional Budget director?
Nancy Pelosi is now claiming the above draft is what will be the deal and Barney Frank is now claiming that their modifications of the Paulson plan is the only thing to get through.
Add to that clause 3.c, which is directly funneling money to some highly questionable and under current investigation 3rd party advocacy groups.....
well, well, well.
and now he's once again trying to blame
McCainPresidential candidates for getting in their way. hmmmm, they are Senators.Even worse, he is saying this insurance idea from Cantor...is an option. Why is that an option when it will not work?
Now futher....we have claims of a stimulus package with zero details on what that means. If it's more of clause 3.c.....that's not to main street.
I'm sorry but these people are completely doing a massive political game and not listening at all to the many experts who have studied this for years and what they are recommending!
Sure sounds better than many that we have! It's the Political lottery! Your numbers comes up you go to DC and get a pension for life!
I'll buy a ticket on that one.
Where we know enough about everybody to pick our politicians by computer and pension them off when we're done with them in such a way that we can ban them from ever working in private industry ever again?
Remember how the SEC banned short-selling on financial institutions in order to save them from those nasty bears? Well, once again, they caused more harm than good.
one thing is certain this plan to buy up these toxic assets is being slammed and hammered by almost anyone with some financial knowledge.
I have a hard time believing this house of cards won't collapse, regardless.
There is only so long one can rape the middle class and not have it come back and bite the perpetrator(s).
because if the market did fail without government intervention it might suggest that markets are incapable of self-regulation. And if this is the case, then the government should always be there to step in before the problem balloons as it has now. In short, it invalidates the bout of deregulation that has occurred since the 1970s. And shows the neoliberal ideology to be broken.
Now is the time for new economic populist ideas to capture the loyalty of the public in this time of crisis, and to form the foundation of future economic governance.
We are being "sold" the Paulson plan, just like Iraq, just like Patriot Act. Since when is our elected representatives in the business of selling this bailout? or any other unpopular program for that matter
Whatever happened to representative democracy? Is not the job of our elected representatives to represent the will of the people?
Once again the American people are being sold a bill of goods based on the flimsiest of facts and evidence, with little more than token debate or discussion
This situation has been years in the making - whats the big rush now?
I don't know about you, but my red flags go up the minute some salesperson starts putting the hard sell on me, and I definitely have that feeling about this bailout. "Better hurry, this is the last one!! got five other people interested!" "Act now on this limited time offer!!"
I read some of his posts during the primary and it was....well, just completely unprofessional in my view.
But, I am picking up not just on him but a whole series of economists who are now saying Armageddon probably will not happen.
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