asterisk2a + financialcrisis   54

Robert J. Shiller: "Are We Headed for Another Financial Crisis?" (final edition, as of MAR 8) - YouTube
3rd ed adds bond market. where richard koo explains bond prices are a symptom of the balance sheet recession as is "deflationary." // liquidity trap // predicting turning points is bad business - highlighting fundy skew is easy. // equity bubble BURST? no. bond bubble BURST? no. how abt unreasonable higher interest rates for businesses bc of Taper from Fed long dated bonds into illiquid market. like Koo argues as possibility, which would depress gdp growth further bc of higher capital cost than the economy fundy actually would demand. contributing 2 the secular stagnation. // Other case: Crash of China (too much of a good thing, irrational exuberance) & Western Central Banks have no means 2 ease further & Career Politicians have no guts 2 actually pull out the guns for once 4 intelligent fiscal stimulus w a long-term view (no white elephants & bridges 2 nowhere). // 19:30 status anxiety, Sozialer Abstieg, everyone for himself, austerity, inequality, Software, etc = secular stagnation
Robert  Shiller  financialcrisis  GFC  economic  history  book  recovery  ZIRP  NIRP  QE  credit  bubble  equity  bubble  property  bubble  speculative  bubbles  speculative  speculation  psychology  confidence  irrational  exuberance  animal  spirit  austerity  Fiscal  Pact  Schuldenbremse  ideology  dogma  economic  model  financial  crisis  housing  market  UK  USA  China  Japan  Richard  Koo  deflationary  hunt  for  yield  sustainable  sustainability  Richardkoo  balance  sheet  recession  deflation  secular  stagnation  negative  real  interest  rate  Taper  BOJ  BOE  Fed  ECB  sovereign  debt  crisis  monetary  policy  monetary  system  monetary  stimulus  unconventional  monetary  policy  monetary  transmission  mechanism  monetary  theory  modern  monetary  theory  policy  stimulus  crony  capitalism  mainstreet  Wall  Street  exploitation  uncertainty  deleveraging  savings  rate  business  investment  Sozialer  Abstieg  inequality  income  inequality  tax  code  capital  gains  fairness  Software  Is  Eating  The  World  consumer  confidence  business  confidence  public  investment  productive  investment  personal  investment  underinvestment  infrastructure  investment  socioeconomic  status  status  anxiety  social  status  zombie  consumer  zombie  corporations  zombie  banks  Gesellschaft  solidarity  society  soziologie  sociology  worry  squeezed  middle  class  precariou 
july 2015 by asterisk2a
Staatsverschuldung als Problem der Generationengerechtigkeit | Lars P. Feld | SWR Tele-Akademie - YouTube
henry paulson and tim geithner said they are in a moral hazard. put it the way to either nationalise (aka the end of American Dream, Failure part of capitalism) or bailout (gov loans and co like TARP). Rather the moral hazard was to either put current and future unborn generation in debt servitude they had nothing to do with and keep criminals private with all its benefits. Or really give a warning shot a privatise banks and end the profligacy of crony capitalism and Wall Streets shareholder value creation only and profit maximisation - without consequences. // and Europe looks towards USA and did the same; made banks whole again (because they were really - TBTF - and would pushed some EU countries into Great Depression/Insolvency. especially France & Belgium where bank liabilities were too big for public balance sheet) and took some of the debt onto its public balance sheet (and gave bailout loans) to be served by current & future unborn generation.
Generationengerechtigkeit  austerity  bailout  sovereign  debt  crisis  economic  history  Failure  zombie  banks  toobigtofail  TBTF  too  big  to  jail  Wall  Street  crony  capitalism  capitalism  fiscal  policy  academia  academic  moralhazard  morality  American  Dream  GFC  policy  folly  policy  error  World  Bank  IBS  IMF  liberal  economic  reform  neoliberal  neoliberalism  PIIGSFB  PIGS  Greece  Grexit  UK  fiscal  sovereignty  Pact  Schuldenbremse  Career  Politicians  No  Representation  democracy  banking  crisis  history  henrypaulson  timgeithner  benbernanke  Ben  Bernanke  Makers  lobbyist  lobby  Lobbying  ideology  dogma  populism  fairness  manufactured  consent  propaganda  financialcrisis  FinancialCrisisInquiryCommission  media  conglomerate  corporate  state  European  Union  fiscal  transferunion  European  Eurobond  currency  Agenda  2010  hartz-iv  Stability  and  Growth  Pact  generational  conflict  social  tension  social  cohesion  Verteilungskonflikt 
july 2015 by asterisk2a
BBC News - ECB's Draghi 'ready to act if needed' + "Die Währungshüter hoffen, dass die Finanzbranche das billige Geld in Form von Krediten an Unternehmen und Verbraucher weiterreichen wird." + ... >> After the GFC, banks should have been privatised (creditors to take haircuts) in 2010/11, those who were not banks (ie lending), but mere zombie banks. Europe is doing the same mistake as Japan. >> see Apple example - unintended consequences. Microsoft too.
monetary  policy  financialcrisis  GFC  monetary  theory  modern  monetary  theory  Europe  unintended  consequences  zombie  banks  New  Normal  liquidity-trap  banking  crisis  ECB  monetary  system  political  folly  bank  crisis  lostdecade  greatrecession  policy  folly  QE  debtoverhang  communication  economic  history  financial  repression  Debt  Super  Cycle  NPL  PIGS  bubble  error  creditcrunch  unconventional  monetary  policy  ZIRP  austerity  PIIGS  greatdepression  zombie  consumer  deleveraging  Japan  balance  sheet  recession 
may 2013 by asterisk2a
We're (USA) Not Japan But One Can Always Hope | ZeroHedge
3 Years on ...

July 31 (Bloomberg) -- In today's "Single Best Chart," Bloomberg's Mike McKee displays how the current U.S. recovery is the slowest since the 1970's and even lags Japan at the same point of their recovery in 1993.

__Measured in Real GDP per capita :

USA post crisis (property and credit bubble + financial crisis followed by credit crunch, deleveraging, debt overhang and non-performing loans [balance sheet recession]) recovery is worse than the recovery of Japan from 1993 (property and equity bubble followed by credit crunch, deleveraging, debt overhang and non-performing loans [balance sheet recession]).


And Tim Geithner once said "the USA is not Japan".
paulkrugman  KennethRogoff  carmenreinhart  financialcrisis  property  bubble  creditcrunch  NPL  debtoverhang  zombie  banks  deleveraging  richardkoo  economic-thought  economic  model  Europe  GFC  greatrecession  economic  history  timgeithner  lostdecade  double-dip  UK  USA  Japan 
august 2012 by asterisk2a
Interactive Visual History Of Financial Crises Since 1810 - Note Where The Fed Arrives | ZeroHedge

"The giant wave in the top section of the graphic depicts the percentage of world GDP by region in crisis during the 200 year period. It includes the four major financial crisis types (sovereign default, banking, currency, and inflation) along with stock market crashes. The bottom section provides a detailed chart of all sovereign defaults by country, region and year. It shows the repeating nature of sovereign default, a central theme of Reinhart and Rogoff's book."

This graphic is based on the New York Times and Wall Street Journal best seller This Time Is Different: Eight Centuries of Financial Folly by Carmen M. Reinhart & Kenneth S. Rogoff. Using data developed by Reinhart and Rogoff, it maps the cyclical history of financial crisis from 1810 to 2010 for sixty-six countries representing 90% of world GDP.
book  KennethRogoff  economic-thought  economic  history  carmenreinhart  infographics  financialcrisis  history 
february 2012 by asterisk2a
Penetrating Insights On Why The Market Feels Like A Colonoscopy | ZeroHedge
In a widely quoted experiment by Nobel Prize winner Daniel Kahneman (with others, published in 2003) over 600 subjects undergoing colonoscopies were given different versions of the same procedure. One set got essentially a short version, where the pain of the process peaked out near the end of the exam. The other group got a longer version, with the last few moments in relatively little discomfort. The second group reported much less pain when asked about the experience than the first.

Kahneman’s colonoscopy is a tailor made, if coarse, analogy to the ongoing sovereign debt woes in Europe. ...

The bottom line is that pain, like beauty, is in the eye of the beholder.
financialmarkets  financialcrisis  richardkoo  economic-thought  economics  balance  sheet  recession  deleveraging  GFC  UK  2012  sovereign  debt  crisis  Europe  pain  psychology  behavioral  finance 
january 2012 by asterisk2a
Sweden Revamps Central Bank Tool Kit on Crisis - Bloomberg
The crisis has demonstrated that central bank models don’t take financial system risks properly into account, Ingves said, adding that it’s necessary to design econometric models that better catch the dynamics of the global economy.

Federal Reserve Chairman Ben S. Bernanke last month signaled he also may be changing his view on the degree to which asset prices should be incorporated in monetary policy, a tool he in 2002 deemed “far too blunt” to prevent bubbles. “The possibility that monetary policy could be used directly to support financial stability goals, at least on the margin, should not be ruled out,” Bernanke said on Oct. 18 in a speech in Boston.
GFC  financialcrisis  financialmarket  centralbanks  lesson  economics  model  academia  academics  monetary  policy  tools  error  folloy  monetarism  leverage  deleveraging  Riksbank  ECB  Fed  balancesheet  QE  reform  history 
november 2011 by asterisk2a
In Aftermath of Financial Crisis, Who\'s Being Held Responsible? - YouTube
As anger over the financial crisis lingers, questions remain as to who has been held accountable for their role in creating the conditions that led to the meltdown ... and who has not. Ray Suarez reports

... there is no law against greed, recklessness, failure, ignorance,
... no solid case could be made so far in that much complex financial world with so much participants, criminal behavior,
... and then there are missing resources on the side of enforcement
... revolving door between private and public sector. and the lobby
GFC  responsibility  accountability  settelment  SEC  investigation  goldmansachs  Mozilo  CountrywideFinancial  FinancialCrisisInquiryCommission  financialcrisis  financialmarket  lobby  banking  prosecution 
november 2011 by asterisk2a
Credit-Default Swap Risk Bomb Is Wired to Explode: Mark Buchanan - Bloomberg
The European nations are linked in a network of debts, as Bill Marsh recently illustrated in the New York Times with a beautiful piece of graphic art. Greece and Italy are prominent; Ireland, Portugal and Spain lurk ominously nearby. France and Germany seem exposed, too, as does the U.S.
The image is like a complex wiring diagram for a ticking debt bomb. Yet what it shows may be less important than what it leaves out: a largely invisible network of ties among institutions around the world, which could ultimately cause global financial chaos.
This hidden network has been created by institutions that buy and sell unregulated credit-default swaps. These are essentially insurance contracts on bonds; in the event of a default on the bond, the seller of the swap promises to pay the buyer the bond’s value.

The researchers showed that too much risk sharing can make it easy for distress to spread like a virus.
CDS  Europe  bomb  debt  bubble  2011  OTC  sovereign  crisis  unknown  toobigtofail  2008  AIG  risk  system  systemicrisk  problems  exposure  Greece  PIIGS  tippingpoint  history  lesson  economics  Financalmeltdown  FinancialCrisisInquiryCommission  financialmarket  financialmarkets  financialcrisis  finance 
november 2011 by asterisk2a
W, V, U or L: How Is the Economic Recovery Shaping Up, Literally? - YouTube
Uploaded by PBSNewsHour on Oct 7, 2011
The latest unemployment figures out Friday reinforce the notion that the U.S. economy remains weak when compared to recoveries of the past. As part of his reporting on Making Sen$e of financial news, Paul Solman visits with economist Simon Johnson for a checkup on what shape the economic recovery is taking.
USA  lostdecade  greatrecession  unemployment  recovery  2011  outlook  employment  GDP  japan  history  financialcrisis  sovereign  debt  crisis  greatdepression 
october 2011 by asterisk2a
Morgan Stanley at Brink Got $107B From Fed - Bloomberg

Hedge Funds pulled money out ... out of banks who facilitate their trades.
Prime brokers facilitate short trades, the sale of borrowed stock in the hope of buying it back later at a lower price. They also make margin loans to finance stock purchases. In exchange, hedge funds usually keep their cash and stock in accounts at the prime-brokerage companies.

“So if clients pulled their money out, the view was that money had not been lent out, so the cash would have been sitting there able to hand over. It turns out that that was not entirely correct.”

In reality, “prime brokers were able to reuse clients’ assets to raise cash for their own activities,” the financial crisis commission wrote in its final report, published in January. Azarchs said that in her years covering Morgan Stanley for S&P she never heard executives discuss the risk that the funding might evaporate.
Fed  meltdown  fiancial  crisis  discountwindow  2008  jpmorgan  morganstanley  interbank  liquidity  freeze  emergency-lending  operation  benbernanke  henrypaulson  hedgefunds  panic  FinancialCrisisInquiryCommission  banking  lehmanbrothers  history  goldmansachs  broker  service  lesson  financialcrisis  PrimaryDealerCreditFacility  lenderoflastresort  PDCF  JimChanos  JohnMack  TermSecuritiesLendingFacility  TSLF  TARP  POMO  counterpartyrisk  toobigtofail 
august 2011 by asterisk2a
Wall Street Aristocracy Got $1.2 Trillion in Secret Fed Loans - Bloomberg
By 2008, the housing market’s collapse forced those companies to take more than six times as much, $669 billion, in emergency loans from the U.S. Federal Reserve. The loans dwarfed the $160 billion in public bailouts the top 10 got from the U.S. Treasury, yet until now the full amounts have remained secret.
Fed  financialcrisis  GFC  bailout  TARP  discountwindow  2008  meltdown  FinancialCrisisInquiryCommission  liquidity  creditcrunch 
august 2011 by asterisk2a
Barofsky Says Fed's Secret Loans Needed More Oversight - YouTube
Neil Barofsky, former special inspector general for the Troubled Asset Relief Program and a Bloomberg Television contributing editor, talks about the Federal Reserve's emergency loans during the financial crisis. Fed Chairman Ben S. Bernanke's effort to keep the economy from plunging into depression included lending banks and other companies as much as $1.2 trillion of public money, according to a Bloomberg News compilation of data obtained through Freedom of Information Act requests, months of litigation and an act of Congress. Barofsky speaks with Erik Schatzker on Bloomberg Television's "InsideTrack."
barofsky  Fed  bailout  discountwindow  monetary  policy  transparency  oversight  TARP  GFC  financialcrisis  meltdown  FinancialCrisisInquiryCommission  centralbanks  2008  dollar 
august 2011 by asterisk2a
Wolfgang Munchau On How The Greek Rollover "Deal" Is A Toxic CDO | zero hedge
"This structure is still not quite so complex as some of the more elaborate CDOs we have encountered in the global financial crisis. If you take some time to work through the arrows and boxes, you see relatively quickly that this complex structure is not a private sector participation at all. Rather it is a private sector bail-out...

The punchline is not surprising, but it is funny:
The rollover agreement represents, from an economic point of view, nothing but a collateralised bond. It subordinates all other bondholders. The rating agencies would normally not hesitate to attach a default rating to Greek government debt.
So the solution is to create a complex structure, and claim that it is technically not a collateralised bond, but something that defies definition.
transparency  financial  finance  financialcrisis  financialmarket  ratingagencies  default  greece  PIIGS  EFSF  ESM  bailout  2011  germany  ECB  angelamerkel  ponzischeme  CDO  SIV  scam  sovereign  debt  crisis 
july 2011 by asterisk2a
How to avoid a lost decade - The Washington Post
Even with the massive 2008-09 policy effort that prevented financial collapse and depression, the United States is now halfway to a lost economic decade. From the first quarter of 2006 to the first quarter of 2011, the U.S. economy’s growth rate averaged less than 1 percent a year, similar to Japan in the period its bubble burst. 

After bubbles burst there is no pent-up desire to invest. Instead there is a glut of capital caused by overinvestment during the period of confidence — vacant houses, malls without tenants and factories without customers. Meanwhile, consumers discover that they have less wealth than they expected, less collateral to borrow against and are under more pressure than they expected from their creditors. Pressure on private spending is enhanced by structural changes.

ecognizing current economic reality.
lostdecade  japan  USA  greatrecession  recovery  financialcrisis  deleveraging  richardkoo  larrysummers  monetary  fiscal  policy  paulkrugman  stimulus  2011  double-dip 
june 2011 by asterisk2a
A healthy dynamic in job creation: Destruction - The Washington Post
young firms — business startups and a small number of new firms that grow very quickly — have played an outsize role in that process. In job creation, it turns out, it is not size that matters but the age of the firm. Small businesses don’t create all the new jobs — young ones do.
In recent years, however, this entrepreneurial dynamism began to slow. Job creation and job destruction began their decline as far back as the 1990s, and continued right up to the Great Recession, when job destruction fell to its lowest level in 30 years, and job creation even more. The average business became older and larger.

Perhaps you’ve noticed that we are halfway through this column about job creation and I have yet to mention the Federal Reserve’s monetary policy or fiscal stimulus or the deficit or even taxes. The reason is pretty simple: It’s hard to draw a convincing connection between any of them and a decline in entrepreneurial dynamism that began more than a decade ago.
jobmarket  job-creation  unemployment  research  economics  study  Fed  monetary  fiscal  policy  stimulus  conservative  Keynesianism  entrepreneurship  smallbusiness  SMB  microeconomics  capitalism  josephschumpeter  productivity  financialcrisis  greatrecession  recovery 
june 2011 by asterisk2a
The Mistake of 2010 -
some of us warned that it was both too small and too short-lived. In particular, the effects of the stimulus would start fading out in 2010 — and given the fact that financial crises are usually followed by prolonged slumps, it was unlikely that the economy would have a vigorous self-sustaining recovery under way by then.

By the beginning of 2010, it was already obvious that these concerns had been justified. Yet somehow an overwhelming consensus emerged among policy makers and pundits that nothing more should be done to create jobs, that, on the contrary, there should be a turn toward fiscal austerity.the fact is that the policy response to the crisis was and remains vastly inadequate.
Those who refuse to learn from history are condemned to repeat it; we did, and we are. What we’re experiencing may not be a full replay of the Great Depression, but that’s little consolation for the millions of American families suffering from a slump that just goes on and on.
paulkrugman  greatrecession  USA  recovery  double-dip  monetary  fiscal  policy  politics  barackobama  presidency  Fed  benbernanke  error  economics  economy  unemployment  stimulus  financialcrisis 
june 2011 by asterisk2a
YouTube - Burns Says Don't Read Too Much Into Goldman Subpoena
Douglas Burns, a formal federal prosecutor, talks about the Manhattan District Attorney's office subpoena of Goldman Sachs Group Inc. Goldman, the fifth-biggest U.S. bank by assets, is being asked to turnover information on the firm's activities leading into the credit crisis, according to two people familiar with the matter. Burns speaks on Bloomberg Television's "InBusiness with Margaret Brennan." (Source: Bloomberg)
goldmansachs  subpoena  2011  SEC  financialcrisis  investigation  settelment  CDO  Abacus 
june 2011 by asterisk2a
Libya's Investment With Goldman Ends in Losses, Acrimony -
In early 2008, Libya's sovereign-wealth fund controlled by Col. Moammar Gadhafi gave $1.3 billion to Goldman Sachs Group to sink into a currency bet and other complicated trades. The investments lost 98% of their value, internal Goldman documents show.

What happened next may be one of the most peculiar footnotes to the global financial crisis. In an effort to make up for the losses, Goldman offered Libya the chance to become one of its biggest shareholders, according to documents and people familiar with the matter.
Negotiations between Goldman and the Libyan Investment Authority stretched on for months during the summer of 2009. Eventually, the talks fell apart, and nothing more was done about the lost money.
lybia  goldmansachs  2011  financialcrisis 
may 2011 by asterisk2a
World on course for next crisis, warns Gordon Brown - Telegraph
Mr Brown said the "resolve" to act seen immediately after the crisis has been replaced by indecision and vested interest. He urged politicians at the next G20 summit, which takes place in Cannes in November, to take control of a globalised financial system which is still "perilously" unregulated.

They fear "with good cause" that if Greece has to restructure its debt - effectively default - it could unravel a chain of trades based on the problematic debt and lay bare the interconnectedness of institutions around the world, said Stephen Lewis, an analyst at Monument Securities.
gordonbrown  2011  PIIGS  default  restructuring  greece  banking  EMU  lehmanbrothers  finance  financialcrisis  FinancialCrisisInquiryCommission  toobigtofail 
may 2011 by asterisk2a
Schwarmintelligenz: Gemeinsam sind wir dümmer - SPIEGEL ONLINE - Nachrichten - Wissenschaft
Bei fast allen Fragen zeigte sich, dass die zuerst gegebenen Antworten im Durchschnitt die besten waren. Je mehr die Probanden über die Schätzungen der anderen Studienteilnehmer wussten, umso mehr sank die Schwarmintelligenz. Extremwerte verschwanden nach und nach, die Schätzwerten der einzelnen Probanden näherten sich immer mehr an, ohne dass der Mittelwert dem tatsächlichen Wert näher kam.
Das Experiment zeige, dass sozialer Einfluss die Diversität der Antworten verringere, nicht jedoch den kollektiven Fehler, schreiben die Forscher im Wissenschaftsblatt "Proceedings of the National Academie of Sciences". 

"Wenn Menschen sehen, wie andere Menschen denken und entscheiden, konvergieren die Meinungen", sagt Helbing. Dieser Effekt betreffe alle Gremien in Politik und Wirtschaft, überall, wo man zusammensitze und diskutiere. "Ein derartig zustande gekommener Konsens kann eine schlechte Entscheidung sein." 

Consensus decision-making
psychology  intelligence  sociology  information  decissionmaking  mass  twitter  research  study  financialcrisis  FinancialCrisisInquiryCommission  bubble  democracy  consensus  voting  influence  influencer  decision 
may 2011 by asterisk2a
20 biggest money losers - 1. Freddie Mac (1) - FORTUNE
This Dallas, TX-based electric utility company formally known as TXU Corp. was taken private in 2007 and has since been saddled with debt. The $45 billion leveraged buyout remains the biggest recorded in U.S. history and was one of the last big private equity deals before the financial crisis.
freddiemac  fanniemae  financialcrisis  greatrecession  housing  bubble  USA  LBO  financial  history  BofA 
may 2011 by asterisk2a
In Financial Crisis, No Prosecutions of Top Figures -
[Tim Geithner & Co. their] worry, according to these people, sprang from a desire to calm markets, a goal that could be complicated by a hard-charging attorney general.

Whether prosecutors and regulators have been aggressive enough in pursuing wrongdoing is likely to long be a subject of debate. All say they have done the best they could under difficult circumstances.
But several years after the financial crisis, which was caused in large part by reckless lending and excessive risk taking by major financial institutions, no senior executives have been charged or imprisoned, and a collective government effort has not emerged. This stands in stark contrast to the failure of many savings and loan institutions in the late 1980s. In the wake of that debacle, special government task forces referred 1,100 cases to prosecutors, resulting in more than 800 bank officials going to jail. 

SEC cautious ... taxpayer money in effect being used to pay for settlements.
bailout  fed  timgeithner  andrewcuomo  fraud  misleading  prosecution  SEC  FinancialCrisisInquiryCommission  financialcrisis  2008  2007  settelment  proptrading  ethics  henrypaulson  benbernanke  mortage  analysis  insight  2011 
april 2011 by asterisk2a
Senate report hits Goldman | City A.M.
arl Levin, chairman of the senate permanent subcommittee on investigations, tore into Goldman at a press briefing on his panel’s 639-page report, which is based on a review of tens of millions of documents over two years. Levin accused Goldman of profiting at clients’ expense as the mortgage market crashed in 2007. “In my judgment, Goldman clearly misled their clients and they misled Congress,” he said.
A Goldman Sachs spokesman said: “While we disagree with many of the conclusions of the report, we take seriously the issues explored by the subcommittee.”
The report also criticised Deutsche Bank and credit rating agencies Moody’s and Standard & Poor’s.
“Blame for this mess lies everywhere – from federal regulators who cast a blind eye, Wall Street bankers who let greed run wild, and members of Congress who failed to provide oversight,” said Republican senator and report co-author Tom Coburn.
goldmansachs  FinancialCrisisInquiryCommission  2011  congress  fraud  greed  greatrecession  2008  oversight  foreclosure  deutschebank  moody's  ratingagencies  blamegame  wallstreet  report  financialcrisis  analysis 
april 2011 by asterisk2a
The Real Housewives of Wall Street | Rolling Stone Politics
Christy and her pal Susan launched their investment initiative called Waterfall TALF. [.//] But with an upfront investment of $15 million, they quickly received $220 million in cash from the Fed, most of which they used to purchase student loans and commercial mortgages. The loans were set up so that Christy and Susan would keep 100 percent of any gains on the deals, while the Fed and the Treasury (read: the taxpayer) would eat 90 percent of the losses. Given out as part of a bailout program ostensibly designed to help ordinary people by kick-starting consumer lending, the deals were a classic heads-I-win, tails-you-lose investment.

What started off as a targeted effort to stop the bleeding in a few specific trouble spots became a gigantic feeding frenzy. It was "free money for shit," says Barry Ritholtz, author of Bailout Nation. "It turned into 'Give us your crap that you can't get rid of otherwise.' "
TALF  2011  Fed  wallstreet  hostage  bailout  FinancialCrisisInquiryCommission  TARP  2008  USA  fraud  creditcrunch  financialcrisis  liquidity  insolvent  insolvency 
april 2011 by asterisk2a
Alan Greenspan: The ultimate double agent | ForexLive
My pet Gordon Brown theory was that he was a descendant of Rob Roy or William Wallace and that he was secretly planning to bring down the UK from the inside. Funnily enough this theory never did take hold despite the mountains of evidence in my favour Now come the Greenspan conspiracy theories, like this in the Sydney Morning Herald, which state that Alan is in fact an old closet Libertarian who’s ultimate goal is the demise of the Fiat system. Well it’s more fun than reading some more RBA analysis!
gordonbrown  alangreenspan  conspiracy  greatrecession  financialcrisis  2008 
april 2011 by asterisk2a
YouTube - Barofsky Says U.S. `Hopelessly Naive' on Bank Bailouts
TARP Inspector - Neil Barofsky, special inspector general for the Troubled Asset Relief Program, talks about the performance of and outlook for TARP.- Banks got w TARP major advantage - home owners and business owners and unemployed either let down or in the case of the latter scrutinized- Moral Hazard - TARP was a present from Hank and Ben; had no to very little strings attached in order to guide banking
barofsky  TARP  henrypaulson  benbernanke  2011  fraud  banking  transparency  presidency  barackobama  FinancialCrisisInquiryCommission  finance  financialcrisis  2008  meltdown  abuse  policy 
march 2011 by asterisk2a
Commodities Regulator Gary Gensler Pleads for More Money -
Mr. Gensler, in testimony before a House appropriations subcommittee, called the Commodity Futures Trading Commission “a good investment for the American public, overseeing vast markets with a relatively small staff.” Despite the nation’s budget deficit, Mr. Gensler said his agency needed a budget increase “because, as we saw in 2008, without oversight of the swaps market, billions of taxpayer dollars may be at risk.”
Although the White House agrees with Mr. Gensler, Congressional Republicans are eying severe cuts to the agency’s funding.
CFTC  2011  Dodd-Frank  politics  republicans  reform  regulation  oversight  budget  FinancialCrisisInquiryCommission  financialcrisis 
march 2011 by asterisk2a
Another Inside Job -
That settlement is a “shakedown,” says Senator Richard Shelby of Alabama. The money banks would be required to allot to mortgage modification would be “extorted,” declares The Wall Street Journal. And the bankers themselves warn that any action against them would place economic recovery at risk.
All of which goes to confirm that the rich are different from you and me: when they break the law, it’s the prosecutors who find themselves on trial.

"held hostage"
 the biggest obstacle to recovery isn’t the financial condition of major banks, which were bailed out once and are now profiting from the widespread perception that they’ll be bailed out again if anything goes wrong. It is, instead, the overhang of household debt combined with paralysis in the housing market. Getting banks to clear up mortgage debts — instead of stringing families along to extract a few more dollars — would help, not hurt, the economy.
fraud  2008  BofA  banking  power  money  WallStreet  corruption  FinancialCrisisInquiryCommission  financialcrisis  subprime  settelment  SEC  CFTC  Law  politics  abuse  debtoverhang  debt  public  private 
march 2011 by asterisk2a
Opening Bell: 02.17.11 Dealbreaker: A Wall Street Tabloid Business News Headlines and Financial Gossip
BofA Subpoenaed over Countrywide VIP Home Loans (Reuters)The subpoena is the latest in a two-year probe by U.S. Representative Daniel Issa, chairman of the committee, into Countrywide Financial Corp’s mortgage program that allegedly gave better loan terms and preferential treatment to allies of former Chief Executive Angelo Mozilo. Te program was known informally as the “Friends of Angelo” inside the mortgage lender.
Mozilo  2008  fraud  politics  lobby  CountrywideFinancial  financialcrisis 
february 2011 by asterisk2a
Why Isn't Wall Street in Jail? | Rolling Stone Politics
Rage Against the Money Machine Matt Taibbi is frustrated and angry at the lack of prosecutions stemming from the financial crisis: “The mental stumbling block, for most Americans, is that financial crimes don’t feel real; you don’t see the culprits waving guns in liquor stores or dragging coeds into bushes. But these frauds are worse than common robberies. They’re crimes of intellectual choice, made by people who are already rich and who have every conceivable social advantage, acting on a simple, cynical calculation: Let’s steal whatever we can, then dare the victims to find the juice to reclaim their money through a captive bureaucracy.”
politics  corporatism  corruption  government  fed  fraud  financialcrisis  FinancialCrisisInquiryCommission  law  madoff  2011 
february 2011 by asterisk2a
Goldmans Tourre Shouldnt Face SEC Lawsuit, His Lawyers Say - Bloomberg
The U.S. Securities and Exchange Commission’s lawsuit against Fabrice Tourre should be thrown out, lawyers for the Goldman Sachs Group Inc. trader accused of misleading investors in a product linked to subprime mortgages told a federal judge. Andrew Rhys Davies, Tourre’s lawyer, said yesterday that the SEC is trying to circumvent a U.S. Supreme Court ruling issued in June, Morrison v. National Australia Bank, that limits the reach of civil claims for acts occurring outside the U.S. “The SEC is attempting to do an end run around Morrison,” Rhys Davies told U.S. District Judge Barbara Jones in Manhattan. 


Banking is International, But not Law.
goldmansachs  law  financialcrisis  SEC  CDO  fraud  2011 
february 2011 by asterisk2a
Planet Money's Toxic Asset : NPR
A short film about the life and death of Toxie, Planet Money's toxic asset.
toxicassets  financialcrisis  subprime  2010  Financalmeltdown  bubble  finance  journalism 
february 2011 by asterisk2a
Buffett Tells Crisis Commission It's Powerless to Stop `Too Big to Fail' - Bloomberg
Buffett Tells FCIC It’s Powerless to Stop `Too Big to Fail (Bloomberg)“You will always have institutions that are too big to fail, and sometimes they will fail,” Buffett, 80, told the FCIC in a May 26 interview, according to a recording released by the panel yesterday. “We still have them now. We’ll have them after your commission report.”
bailout  oversight  FinancialCrisisInquiryCommission  financialcrisis  2008  warrenbuffet  Dodd-Frank 
february 2011 by asterisk2a
Thain Says He Should've `Grabbed, Shaken' Paulson to Aid Lehman - Bloomberg
Banking chiefs weren’t “strong enough” during 2008 meetings in insisting that then-Treasury Department Secretary Henry Paulson reverse his opposition to a U.S.-led rescue of Lehman, Thain told the Financial Crisis Inquiry Commission, according to audio files released yesterday.

“We collectively, the group of us, we should have just grabbed them and shaken them and said, ‘Look, you guys cannot do this,’” Thain told FCIC interviewers in a Sept. 17, 2010, interview. “Allowing Lehman to go bankrupt was the single biggest mistake of the financial crisis.”
lehmanbrothers  henrypaulson  2008  FinancialCrisisInquiryCommission  financialcrisis 
february 2011 by asterisk2a
Gary Gensler, a Gung-Ho Derivatives Regulator -
How would you describe the response you’ve received from industry lobbyists?
A.It’s professional. It’s active. We’ve had about 475 meetings in five months. And since the lobbyists haven’t found us on the weekends (usually), you can do the arithmetic. It’s quite a bit.
I will say this: In America, large institutions have a great deal more resources than the investor advocates. If you looked at those 475 meetings — and we’re posting every one of them on our Web site — 90-plus percent are probably larger institutions or corporations.
Q.Can your staff handle the load?
A.This agency, just this past year, got back to the size it was in 1999. We think we need about 400 more people — even though we’re taking on markets that are seven times the size of what we currently regulate and far more complicated. So we’re going to continue to make the case. Even though our great nation has a very large deficit, this is the best investment for taxpayer money.
financialcrisis  regulation  regulators  2011  reform  Dodd-Frank  funding  CFTC  lobby  lobbyist  Lobbying  SEC  oversight 
february 2011 by asterisk2a
When Irish Eyes Are Crying | Business | Vanity Fair
September 29, 2008, that Morgan Kelly became the startled object of popular interest. The stocks of the three main Irish banks, Anglo Irish, A.I.B., and Bank of Ireland, had fallen by between a fifth and a half in a single trading session, and a run on Irish bank deposits had started. The Irish government was about to guarantee all the obligations of the six biggest Irish banks. The most plausible explanation for all of this was Morgan Kelly’s narrative: the Irish economy had become a giant Ponzi scheme and the country was effectively bankrupt. But it was so starkly at odds with the story peddled by Irish government officials and senior Irish bankers—that the banks merely had a “liquidity” problem and that Anglo Irish was “fundamentally sound”—that the two could not be reconciled. The government had a report thrown together by Merrill Lynch, which declared that “all of the Irish banks are profitable and well capitalised.” ...
financialcrisis  Ireland  2008  bubble  AIB  AngloIrish  Financalmeltdown  bankrun 
february 2011 by asterisk2a
Fed Lending Benefited Banks Far and Wide -
The Fed data showed that the biggest recipient of taxpayer assistance was, naturally, Citigroup. It was followed closely by Morgan Stanley, Merrill Lynch and Bank of America. Goldman Sachs was also a large beneficiary during the darkest moments of 2008.
Remember that the Wall Street firms were imperiled by their excessive use of borrowed money, which generated huge paydays when the cost of those funds was cheap and the values of the assets they were buying were rising at a steady clip. After the bubble burst and financing evaporated, the firms were able to tap into a lending program created by the Fed in mid-March 2008 after Bear Stearns collapsed. It was called the Primary Dealer Credit Facility.
The program allowed firms to borrow at low interest rates — ranging from 3.25 percent when the program began to 0.5 percent when the last loan was made in May 2009. The firms had to post various securities as collateral when they borrowed, and some of those securities were risky indeed.
fed  benbernanke  balancesheet  interbank  report  financialcrisis  FinancialCrisisInquiryCommission  2008  2009  bearstearns  citigroup  goldmansachs  shadowbanking  fanniemae  freddiemac  aig  lending  overnight 
december 2010 by asterisk2a
Forecaster Ian Shepherdson Sees an End to Economic Gloom -
HERE are the data that have caught his eye. At this time last year, the total stock of commercial and industrial bank credit was $1.32 trillion; it was contracting at a blistering pace — about $7 billion a week. Indeed, between the peak of such lending in October 2008 and the trough in June of this year, total commercial and industrial bank credit fell by one-quarter.

Now, this contraction has stopped. The data have recently turned positive and should continue climbing, albeit slowly. “Getting to zero is not bullish at the moment,” Mr. Shepherdson said. “I would want to see commercial and industrial credit growing reasonably strongly to an outright positive four, five or six billion dollars a week. The story is really that the credit contraction seems to be coming to an end.”
USA  creditcrunch  history  financialcrisis  lesson  Sweden  2010  2011  outlook  recovery  QE-2.0  Fed  FinancialCrisisInquiryCommission 
november 2010 by asterisk2a
Op-Ed Columnist - The Mortgage Morass -
Lawrence Summers, then the Treasury secretary, declared that the keys to avoiding financial crisis were “well-capitalized and supervised banks, effective corporate governance and bankruptcy codes, and credible means of contract enforcement.” By implication, these were things the Asians lacked but we had.

The accounting scandals at Enron and WorldCom dispelled the myth of effective corporate governance. These days, the idea that our banks were well capitalized and supervised sounds like a sick joke. And now the mortgage mess is making nonsense of claims that we have effective contract enforcement — in fact, the question is whether our economy is governed by any kind of rule of law.

Horror stories have been proliferating, like the case of the Florida man whose home was taken even though he had no mortgage.
larrysummers  history  financialcrisis  USA  lessons  foreclosure  2010  BofA  rule-of-law  fraud  Enron  WorldCom  law  WSJ  wallstreet  wallstreetjournal  paulkrugman 
october 2010 by asterisk2a
Ex-Time Warner boss apologises for 'worst deal of the century' - Americas, World - The Independent
Ex-Time Warner boss apologises for 'worst deal of the century'
Jerry Levin encourages banking chiefs to follow his lead after admitting AOL blunder

"I'm really very sorry about the pain and suffering and loss caused," Mr Levin told CNBC television.

"I take responsibility. It wasn't the board. It wasn't my colleagues at Time Warner. It wasn't the bankers or the lawyers – and there were a lot of them... I am not going to blame any predecessors or successors. I helped pick them and I have great respect for them," he said. "I presided over the worst deal of the century, apparently, and it is time for those involved in companies to stand up and say, 'You know what, I am solely responsible for it, I was the CEO, I was in charge'."

who turned Citigroup into the largest US bank and then left in 2006, just before losses from sub-prime mortgage

an angry Mr Weill had defended his record and said one of his biggest mistakes had been "recommending Chuck Prince" to be his successor.
aol  timewarner  dotcom  history  bubble  financial  financialcrisis  citigroup 
may 2010 by asterisk2a

related tags

Abacus  Abstieg  abuse  academia  academic  academics  accountability  accounting  Agenda  AIB  aig  alangreenspan  American  analysis  and  andrewcuomo  angelamerkel  AngloIrish  animal  anxiety  aol  austerity  bailin  bailout  balance  balancesheet  bank  banking  bankrun  banks  barackobama  barofsky  bearstearns  behavioral  Ben  benbernanke  Bernanke  big  blamegame  BOE  BofA  BOJ  bomb  book  broker  bubble  bubbles  budget  business  capital  capitalism  Career  carmenreinhart  CDO  CDS  centralbanks  CFTC  China  citigroup  class  code  cohesion  communication  complexity  confidence  conflict  conglomerate  congress  consensus  consent  consequences  conservative  conspiracy  consumer  corporate  corporations  corporatism  corruption  counterpartyrisk  CountrywideFinancial  credit  creditcrunch  crisis  crony  currency  Cycle  davidcameron  debt  debtoverhang  decision  decissionmaking  default  deflation  deflationary  deleveraging  democracy  deutschebank  discountwindow  documentary  documentation  Dodd-Frank  dogma  dollar  dotcom  double-dip  Dream  easing  Eating  ECB  economic  economic-thought  economics  economy  EFSF  emergency  emergency-lending  employment  EMU  Enron  entrepreneurship  equity  error  ESM  ethics  Eurobond  Europe  European  example  expectation  exploitation  exposure  exuberance  Failure  fairness  fanniemae  fed  fiancial  Financalmeltdown  finance  financial  financialcrisis  FinancialCrisisInquiryCommission  financialmarket  financialmarkets  fiscal  folloy  folly  for  foreclosure  fraud  freddiemac  freeze  funding  future  gains  GDP  generational  Generationengerechtigkeit  GeorgeOsborne  germany  Gesellschaft  GFC  Glass-Steagall  goldmansachs  gordonbrown  government  greatdepression  greatrecession  greece  greed  Grexit  Growth  hartz-iv  hedgefunds  henrypaulson  history  hostage  housing  hunt  IBS  ideology  IMF  income  incomplete  inequality  inflation  influence  influencer  infographics  information  infrastructure  insidejob  insight  insolvency  insolvent  intelligence  interbank  interest  investigation  investment  Ireland  irrational  Is  jail  japan  JimChanos  jimrogers  job-creation  jobmarket  JohnMack  josephschumpeter  journalism  jpmorgan  KennethRogoff  Keynesianism  Koo  larrysummers  law  LBO  lehmanbrothers  lenderoflastresort  lending  lesson  lessons  leverage  liberal  libor  liquidity  liquidity-trap  loan  lobby  Lobbying  lobbyist  lostdecade  lybia  madoff  mainstreet  Makers  manufactured  market  mass  mechanism  media  meltdown  microeconomics  middle  misleading  model  modern  monetarism  monetary  money  moody's  moralhazard  morality  morganstanley  mortage  movie  Mozilo  negative  neoliberal  neoliberalism  New  NIRP  No  Normal  NPL  operation  OTC  outlook  overnight  oversight  Pact  pain  panic  paulkrugman  PDCF  personal  PIGS  PIIGS  PIIGSFB  policy  political  Politicians  politics  POMO  ponzischeme  poor  populism  power  precarious  presidency  PrimaryDealerCreditFacility  private  problems  productive  productivity  propaganda  property  proptrading  prosecution  psychology  public  QE  QE-2.0  QE2  QE3  quantitative  quantitative-easing  rate  ratingagencies  real  recession  recovery  reform  regulation  regulators  repo  report  Representation  repression  republicans  research  responsibility  restructuring  Richard  richardkoo  Riksbank  risk  Robert  rule-of-law  savings  scam  Schuldenbremse  SEC  secular  service  settelment  shadowbanking  sheet  Shiller  SIV  smallbusiness  SMB  social  society  socioeconomic  sociology  Software  solidarity  sovereign  sovereignty  Sozialer  soziologie  speculation  speculative  spirit  squeezed  Stability  stagnation  state  status  stimulus  Street  study  subpoena  subprime  Super  sustainability  sustainable  Sweden  system  systemicrisk  TALF  Taper  TARP  tax  TBTF  tension  TermSecuritiesLendingFacility  The  theory  timewarner  timgeithner  tippingpoint  to  too  toobigtofail  tools  toxicassets  transferunion  transmission  transparency  trap  TSLF  twitter  UK  uncertainty  unconventional  underinvestment  unemployment  unintended  Union  unknown  USA  Verteilungskonflikt  volatility  voting  Wall  wallstreet  wallstreetjournal  wamu  warrenbuffet  work  working  World  WorldCom  worry  WSJ  yield  ZIRP  zombie 

Copy this bookmark: