Category: Credit Crisis Bailouts
The analysis published under this category are as follows.
Saturday, September 27, 2008
Bradford & Bingley Nationalised Another UK Bank Wiped Out by Tulip Backed Securities / Companies / Credit Crisis Bailouts
By: Nadeem_Walayat
Bradford and Bingley's slow 12 month death march towards the same fate as Northern Rock finally looks set to have come to an end with expectations on Sunday that the beleaguered bank will be nationalised with a view to a break of the bank and liquidation of assets so as to cover in part the estimated £20 billion bailout cost that is required to fill the gap between assets and liabilities. The toxic mortgages will probably end up with the government owned Northern Rock bank which will increasingly be seen as the UK Governments Toxic Mortgage Dump where the tulip backed securities of further bank busts and partial bailouts will end up.Read full article... Read full article...
Saturday, September 27, 2008
Socialist Republican Corruption of Capitalist Free Market Mechanisms / Politics / Credit Crisis Bailouts
By: Money_and_Markets
Jack Crooks writes: You can't possibly have hidden yourself from the news of the $700-billion planned bailout that's working through Congress this week. And I won't mince words — I consider it a big slap in the face for the free market system.
Henry Paulson repeated over and over again exactly how agitated, disgusted, annoyed, infuriated, angered, embarrassed, and irritated he felt about asking for this amount of money, or any money at all. Sounds sincere if you stop it right there.
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Saturday, September 27, 2008
End of the Financial World- LIBOR TED Spread Flashes Trouble / Stock-Markets / Credit Crisis Bailouts
By: John_Mauldin
- Who's Afraid of a Big, Bad Bailout?
- It's the End of the World As We Know It
- The TED Spread Flashes Trouble
- The Transmission Mechanism
- Let's Make a Deal
Flying last Tuesday, overnight from Cape Town in South Africa to London, I read in the Financial Times that Republican Congressman Joe Barton of Texas was quoted as saying (this is from memory, so it is not exact) that he had difficulty voting for a bailout plan when none of his constituents could understand the need to bail out Wall Street, didn't understand the problem, and were against spending $700 billion of taxpayer money to solve a crisis for a bunch of (rich) people who took a lot of risk and created the crisis. That is a sentiment that many of the Republican members of the House share.
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Friday, September 26, 2008
Nouriel Roubini: Paulson Bailout Plan is a Disgrace / Politics / Credit Crisis Bailouts
By: Mike_Shedlock
Inquiring minds are interested in Nouriel Roubini's thoughts on the Paulson Plan. Please consider the RGE Conference Call on the Economic and Financial Outlook..and why the Treasury TARP bailout is flawed .
The Treasury plan (even in its current version agreed with Congress) is very poorly conceived and does not contain many of the key elements of a sound and efficient and fair rescue plan. Like in my 10 step HOME plan many other economists and commentators (Charles Calomiris, Raghu Rajan, Kotlikoff and Mehrling, Luigi Zingales, Martin Wolf, Barry Ritholtz, Chris Whalen and twenty others whose views have been featured this week in the RGE Monitor group blogs) have presented ideas that would have minimized the cost to the US taxpayer of a resolution of this financial crisis. It is a disgrace that no professional economist was consulted by Congress or invited to present his/her views at the Congressional hearings on the Treasury rescue plan.
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Friday, September 26, 2008
Dangerous Government Meddling in Free Markets to Stoke Inflation / Politics / Credit Crisis Bailouts
By: Adrian_Ash
"...The dangerous market has been and gone. Only the danger of government meddling remains..."
WE LOVE THIS NUGGET of irony, idiocy or just plain cant so much, we have to repeat it – clutching our sides and doubling-up in laughter, tears streaming down our disbelieving faces:
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Friday, September 26, 2008
Bailout Plan Means Americans Making a Deal with the Devil / Politics / Credit Crisis Bailouts
By: Peter_Schiff
Just yesterday, Henry Paulson's "bailout" bill, with only a few anti-Wall Street, pro-Main Street fig leaves slapped on by Democrats, appeared ready to sail through Congress on a bi-partisan tide. But something funny happened on the way to the printing press. It appears as if some conservative House Republicans are reluctant to sell their souls and ditch any remaining pretense towards American-style capitalism. Read full article... Read full article...
Friday, September 26, 2008
Wall Street Bailout, Congressional Cover-up, or Sarbanes-Oxley? / Politics / Credit Crisis Bailouts
By: Steve_Selengut
Every new controversy demands a look at similar situations of the past. Just what is a bailout anyway? In the early 80's, Lee Iacocca arranged a government loan and tax concessions to bring Chrysler Corporation back from the brink of bankruptcy--- during the Carter Administration, to save you a Google. Read full article... Read full article...
Friday, September 26, 2008
Washington Credit Crisis Bailout Plan Compromise Chaos / Politics / Credit Crisis Bailouts
By: Money_Morning
Jason Simpkins, Jennifer Yousfi write: Congressional negotiators late yesterday (Thursday) reached a tentative agreement on a credit-crisis compromise that gives the Bush administration about a third of the $700 billion it has requested up front, but made sure half that outlay was subject to a congressional veto, published reports state. Read full article... Read full article...
Friday, September 26, 2008
US Budgetary Consequences Of The Financial Crisis Bailouts / Economics / Credit Crisis Bailouts
By: Joseph_Brusuelas
The consequences of the troubled asset relief program (TARP) will be felt for a number of years. The death of the investment-banking model, the transformation of the domestic system of finance and the coming wave of regulation of what is left of Wall Street will have far-reaching consequences. This, however, will take much time to absorb and assess. What is of immediate concern, is how the proposed $700 billion TARP will impact the budget outlook for fiscal year 2009. Read full article... Read full article...
Friday, September 26, 2008
Take Back America from Wall Street / Politics / Credit Crisis Bailouts
By: Mike_Shedlock
It is time to take back America from Wall Street and return it to Main Street USA. Treasury Secretary Paulson is attempting to ram down the throats of US taxpayers, a $700 billion bailout of Goldman Sachs (GS), JPMorgan (JPM), Citigroup (C), Morgan Stanley (MS) and other many other banks that participated in questionable if not fraudulent mortgage lending schemes.
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Thursday, September 25, 2008
Bailout Plan Talks Collapse Overnight as Congress Rebels / Politics / Credit Crisis Bailouts
By: Nadeem_Walayat
Hank Paulson, the ex-CEO of Goldman Sachs investment bank, eager to bailout his Wall Street buddies to the tune of an initial down payment of $700 billion as well as protecting his own estimated portfolio of $600 million aided by his good buddy at the US Fed Ben Bernanke has hit a major hitch as bailout talks disintegrate late Thursday.Read full article... Read full article...
Thursday, September 25, 2008
US Financial Crisis Bailout Crashes to $250 billion / Politics / Credit Crisis Bailouts
By: Mike_Shedlock
The Wall Street Journal is reporting Agreement Reached on Bailout Ahead of High-Level Meeting . Top House and Senate Democratic and Republican lawmakers have reached a tentative agreement on a $700 billion plan to bail out U.S. financial markets, with some predicting the measure would pass both chambers of Congress.
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Thursday, September 25, 2008
Bailout Crisis - What Happens Next / Politics / Credit Crisis Bailouts
By: Justice_Litle
Without further ado, here's a quick tour of the five things you should know...
1) The bailout is one of staggeringly massive proportions.
As I write to you in the wee hours of Monday morning, prior to my transatlantic flight, the number being bandied about for the size of the bailout is $700 billion. Keep in mind, too, that this is an opening number. It doesn't necessarily include relief for upside-down homeowners, strapped consumers, foreign banks or many other potential “extras” that could be added to the tally.
And yet, all by itself, $700 billion is a breathtaking number. How breathtaking, you ask?
Thursday, September 25, 2008
House Speaker Nancy Pelosi Sells Out on Bailout Plan / Politics / Credit Crisis Bailouts
By: Mike_Shedlock
MarketWatch is reporting House Speaker Pelosi reassures market on rescue plan .
Speaker of the House Nancy Pelosi said Thursday that financial markets can rest assured that Congress will act on the White House plan to buy up to $700 billion in toxic debt. Pelosi said the exact timing of the House vote would depend on the outcome of closed-door meetings currently underway on Capitol Hill. House Speaker Nancy Pelosi reassured financial markets that a rescue plan would come to the House floor soon. "Please be assured that we will have a package that will speak to the issue in a very substantial way to send a message to the markets of our seriousness," Pelosi said at a press conference. The plan of throwing $700 billion at a problem cannot possibly work. What's worse is the structured $700 billion is a mere down payment.
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Thursday, September 25, 2008
Urgent Financial Crisis Appeal : Recapitalize Financial Institutions Rather than Bail Out Debt / Politics / Credit Crisis Bailouts
By: Axel_Merk
In the coming days, Congress may authorize $700 billion to buy bad debt from financial institutions. Even if all challenges of the plan were to be overcome, the plan does not address one of the fundamental reasons why credit markets don't function properly: the under-capitalization of financial institutions. Under-capitalized financial institutions may seek to repair their balance sheet rather than engage in lending activities. Read full article... Read full article...
Thursday, September 25, 2008
How to End the Credit Crisis at No Cost to US Taxpayers / Politics / Credit Crisis Bailouts
By: Money_Morning
Shah Gilani writes: While it's clear from the current credit crisis that our financial system is at a critical juncture, it's just as clear that there's no agreement over how we should fix the problems we face. The reality is that neither the plan put forth by U.S. Treasury Secretary Henry M. "Hank" Paulson Jr . - nor any of the addendums offered up by Congress or the lobbyists - will resolve this crisis.
The key culprits are the structured financial products that reside on the balance sheets of banks, dead investment banks, insurance companies, hedge funds and all manner of other duped and unsuspecting investor entities worldwide , as well as the proliferation of the unregulated $62 trillion credit default swaps (CDS) market.
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Thursday, September 25, 2008
Bush Speech Financial Crisis NightMare for American Taxpayers- Act Now! / Politics / Credit Crisis Bailouts
By: Mike_Shedlock
In case you missed Bush's speech you can see it in this MSNBC Clip . This is a critical juncture. We absolutely need your help for another massive Fax-In, Phone In.Read full article... Read full article...
Wednesday, September 24, 2008
Credit Crisis Bailout- Bill Gross Should be Ashamed of Himself! / Interest-Rates / Credit Crisis Bailouts
By: Chip_Hanlon
I just got the chance to read the op-ed penned by Pimco's Bill Gross in this morning's Washington Post. Wow, have you read this mess?
He did get one thing right, and he backed up his math well enough: the government could potentially make some money on this plan by buying up securitized debt instruments at deeper discounts than they should otherwise be trading. But that actually points to a key, lynchpin part of the problem: mark-to-market accounting is undoubtedly preventing many free-market speculators from purchasing such securities today due to what it would immediately do to their balance sheets. Thus, government may get to scoop up this paper at a deeper discount than is warranted due to its own accounting rules! Ay, yi yi.
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Wednesday, September 24, 2008
How to save the US Taxpayer $700 Billion and the Failure of "Mark to Market" / Politics / Credit Crisis Bailouts
By: Andrew_Butter
So that's the BIG PLAN unveiled to the Senate Banking Committee yesterday, put the assets that you don't want to "Mark to Market" in quarantine, and save them for a rainy day.
OK that buys time, but (a) at what cost and (b) who knows if $700 billion will be enough? Some people say it will take $5 Trillion.
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Wednesday, September 24, 2008
Fascist Business System Breeds Corruption & Receivership / Politics / Credit Crisis Bailouts
By: Jim_Willie_CB
The United States has transformed itself, the most radical degraded aspects having occurred in the last eight years. Many might object or cringe at repeated mention of the Fascist Business Model implemented by the Clinton Administration, and carried to extreme by the Bush II Administration. It is a harsh departure from Beacon of Freedom. Too bad, fact of life! This merger of state and big business in the midst of a climax, the biggest display of exported financial toxin in modern history, and the disintegration of the financial structure for the nation owning the world reserve currency. Read full article... Read full article...