Well Wall Street Carnage

[Tris]

Lehman = dead, ML = going to Bank of America (I wonder if you can now open a brokerage account without a social security number, or if that's only for BoA loan customers:P).

I saw too that NY state is trying to bail out AIG. I wonder if AIG executives will the similar bonuses to FM and FM's executive compensation packages on buyout by the federal government. Ain't it great to see "performance" based compensation for executives? Run your business into the toilet, then get millions of dollars in bonus compensation just to get rid of you. Damn, I knew I should have gotten an MBA ... nothing like getting paid megabucks to fail. I wish I could get that kind of deal:) I make a mistake in the application process I'm summarily dropped from consideration. If I were a C-level exec on the other hand, running the corporation into oblivion is the ticket to fast wealth without ever having to set foot in the workplace again.

My real question is this. When are some of these execs who have lied, cheated, stolen, etc. going to actually spend time in jail like the common criminals they are? Answer, um, er, uh, never. As a bumper sticker said : "Invest in America, buy a congressman."

BTW... anybody feel like buying some securitized housing debt?:P

[Occhidiangela]

Lehman = dead, ML = going to Bank of America (I wonder if you can now open a brokerage account without a social security number, or if that's only for BoA loan customers:P).

I saw too that NY state is trying to bail out AIG. I wonder if AIG executives will the similar bonuses to FM and FM's executive compensation packages on buyout by the federal government. Ain't it great to see "performance" based compensation for executives? Run your business into the toilet, then get millions of dollars in bonus compensation just to get rid of you. Damn, I knew I should have gotten an MBA ... nothing like getting paid megabucks to fail. I wish I could get that kind of deal:) I make a mistake in the application process I'm summarily dropped from consideration. If I were a C-level exec on the other hand, running the corporation into oblivion is the ticket to fast wealth without ever having to set foot in the workplace again.

My real question is this. When are some of these execs who have lied, cheated, stolen, etc. going to actually spend time in jail like the common criminals they are? Answer, um, er, uh, never. As a bumper sticker said : "Invest in America, buy a congressman."

BTW... anybody feel like buying some securitized housing debt?:P

Where were you in October of 1987?

Where were you when Michael Milliken got convicted after reigning as the junk bond king?

None of this is news.

Occhi

[kandrathe]

Where were you in October of 1987?

Where were you when Michael Milliken got convicted after reigning as the junk bond king?

None of this is news.

Occhi

Somehow I feel that Randolph just handed Mortimer 1 dollar for winning a bet.

[Occhidiangela]

Somehow I feel that Randolph just handed Mortimer 1 dollar for winning a bet.

Precisely. :P

[LavCat]

Where were you in October of 1987?

Laid off.

[eppie]

Where were you in October of 1987?

Where were you when Michael Milliken got convicted after reigning as the junk bond king?

None of this is news.

Occhi

You still stand by this statement?

[kandrathe]

You still stand by this statement?

Are you poking at the bear with a sharp stick? If laws were broken or bent, then it's guaranteed that heads will roll. If not, and even if, it is Congress's fault for not putting in place enough protections to prevent financial chaos.

[eppie]

Are you poking at the bear with a sharp stick? If laws were broken or bent, then it's guaranteed that heads will roll. If not, and even if, it is Congress's fault for not putting in place enough protections to prevent financial chaos.

I was talking about the scale of the crisis. it wasn't very clear you are right).
I think it is something new.

[kandrathe]

I was talking about the scale of the crisis. it wasn't very clear you are right). I think it is something new.

I don't think so. My view of this crisis is that freedom sometimes has consequences. Banks and companies have the freedom to fail. What is unfortunate is that at some point, failure at the very largest of companies will bring down the entire house of cards. This article in the Washington Post high lights more of the technical aspects of what caused this crisis. Something I hadn't realized was how much China and it's monetary policy has affected the global economy. In this case the false illusion of rapid growth with low inflation due to China's under priced currency and goods. The Greenspanian policy of allowing asset "bubbles" (e.g. Tech Stock, Mortgages) to occur, and then correct after popping may not be as sage as once thought.

[Taem]

-EDIT-

[--Pete]

The second of two wrongs -- apologies to all.

[Taem]

Dude, take your propaganda elsewhere. You are the only poster that has been consistently starting political threads with an agenda.

No, your right. I just found it interesting, but you called me out. I knew I shouldn't have posted it when I hit the Add Reply button and got that sinking feeling in the bottom of my stomach. No apologies, I'll just delete my post.

[--Pete]

Hi,

My apologies. Thank you for deleting that post, but you really were in your rights to post it, and I should have actually rebutted it if I disagreed with it. I am the one who would have done better to have counted to ten before hitting the 'post' button.

Sorry.

--Pete

[Taem]

Hi,

My apologies. Thank you for deleting that post, but you really were in your rights to post it, and I should have actually rebutted it if I disagreed with it. I am the one who would have done better to have counted to ten before hitting the 'post' button.

Sorry.

--Pete

Please, no need to apologize, really; even I felt the video crossed the line. There was information in there to be gleamed to be sure, but it was EXTREEMLY one-sided, whereas I try and be more discerning. It's hard to find any real content out there in the mainstream not tainted by one agenda or another nowadays. I feel better deleting it anyways :D.

[kandrathe]

No, your right. I just found it interesting, but you called me out. I knew I shouldn't have posted it when I hit the Add Reply button and got that sinking feeling in the bottom of my stomach. No apologies, I'll just delete my post.

It was one sided, but also interesting. The part that was poorly explained was the bit in the middle regarding the "wedge" between normal inflation rate and the inflation of prices in the housing market. That part is better understood in the context of the article I posted on China's affect on Western markets. One big factor in this mess is China's currency manipulation and its subsequent effect on US (World) Trade. After the tech stock bubble burst, the Fed lowered interest rates to historic lows, and kept them low for over a year. The US treasury trying to keep up with the deficit, also capped 30 year bonds, and started pressing people into 20 year and shorter Treasury bonds. Then China, in it's attempt to fix the yuan to the dollar, bought billions in US treasury bonds. These combined issues made many bond investments seem either too risky or too low yielding, so tons of money flowed into GSE's.

The source of all this mess is ultimately unwise investments, and bad government, but also the US's unwillingness to rock the boat and call China to task for it's unfair currency manipulation throughout the past two decades. Bad government in this case was forcing banks to make sub prime loans, and unwillingness to reform Fannie and Freddie when they (Congress) knew it was a problem for a decade.