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Bear of Little Brain

Why do I keep thinking that if I knew enough about Mussolini and Hitler, I would be having some sense of deja vu?
I imagine that Timothy "The Fixer" Geithner's idea of forceful action is not what the plebs expect.

BTW, beautiful dog , Elaine.

Anthony

Can somebody show that the explosive growth of derivative market only can happen in post Glass-Steagall ?


The derivative market essentially can only happen when they are able to lie about actual financial product rating right? (I mean, they put some clever math nobody can understand to cover it up, as if it actually represent actual safety)

My feeling this type of situation can only happen when rating agency and seller are in it together, lying and hyping the market.

Bear of Little Brain

Anthony:

Not sure if this is the kind of thing you mean (using accounting loopholes):

http://www.businessweek.com/magazine/content/08_15/b4079024463824.htm?campaign_id=rss_topStories

I see that MBIA and its parent were downgraded Friday p.m. (gives someone the weekend to prop it up, I suppose). Yet another dropping shoe to catch?

blues

I have a very bad feeling about all of this!

About 18 months ago I tried to tell a very old friend to not buy a house. I asked what would happen if its value went down. Everybody thought I was getting Alzheimer's. The value would have to go up forever. And why was I raining on this fine parade, anyhow? That was about 18 months ago.

About these derivative thingies, does anyone happen to have a picture of one? What would they look like? Like an overwrought insurance policy maybe? It seems odd that they could crash and burn the whole economy, and yet hardly anyone has seen one.

Elaine Meinel Supkis

Blues, the Derivative Beast is invisible and dwells in a very dark part of the Outer Darkness. There is no photo of it. But what it does is eat numbers on computers. The world's entire banking system is really a relay of lots of computers. With some hard paperwork for insurance. They worry about this global computer system being wrecked in some ways. So they pass the numbers through deep cave dwelling computers that can survive a direct strike from nuclear bombs. Or so is their benighted hope.

Blunt Force Trauma

I love the doggie pics. What breed is that?

blues

Oh good grief. Not the computers again. I have blogged for months against computerized voting. I know enough about the software that I could (in theory) begin to write programs if I could type enough. And I sometimes fix computer cards to the component level. I know exactly how secure they are. They are very insecure indeed. In fact, the malware producers are leaving the anti-malware (antivirus) businesses in the dust.

Some people want to move to awful "solutions" like TCP:

((----- Copy & Paste - W/O The Line Breaks -----))

http://www.schneier.com/blog/archives/2005/08

/trusted_computi.html

However, this could lead to worse disaster, since once any malware learns how to be "trusted" by the hardware, it automatically becomes encrypted and thus invisible. Computers become very dangerous when people develop a strong motive to hack them. Then again, all those people live in the West Coast earthquake regions. People seem to have a negative learning curve.

Oh, and the dog looks very sweet!

DeVaul

This is the first post by Mike that I really enjoyed reading. I laughed out loud at some of his satirical comments. He also seems to be realizing the true criminality of all the main players in this epic drama. Good for him.

To Mike: the more satire, the better. Spare none.

Elaine Meinel Supkis

Mike and I had a tiny bit of a chat. Heh.

Yes, we have to use rapier wit around here. And if that fails, a heavy club to the head.

hardrock

What are 'they' trying to accomplish? 'They' have been eying the 'baby boomer' nest eggs for years and years. 'They' want it all and with the new Paulson proposals, when implemented, there will be no way to stop them from robbing the entire hen house....eggs, chickens and all. The boomers and their kids will be left paupers with few exceptions....with the sad irony of "no one to blame....it's the market". Greed is the key to all great crimes.

hardrock

The 'Great Robbery' will take place in about 3 years from now. 'They' with the help of the media and compromised politicians will lure the public and their trusted fiduciaries back into the market [coop] just in time for the slaughter. As Elaine has pointed out time and again....the money will have escaped the grasp of all Americans, stashed in private 'pirate coves' in different parts of the world. Americans will be left holding worthless paper....stocks, bonds and fiat, printed currency. Is it any wonder why the safest bet is to hold some gold, silver and a piece of ground with water rights....oh yes, a home that is paid for and maybe a fully stocked fallout shelter. I am convinced there is a plan to destroy this nation and the people who founded it. I don't want to get into all the past evils lain at the feet of the evil white men who took the country from the 'noble savages'. That cannot be rectified at this point, it can be reconciled to a point at some future date....provided we survive as a nation.

All we can do is try to inform our fellow citizens to prepare and become aware, otherwise they will become a burden on those of us who do prepare.

If there is anyone out there who has a better idea on how to prepare and survive the coming difficulties I'd like to hear it. We all can't be an Elaine.

blues

The points of your above comment are are basically right, hardrock. Although it would surprise me if the financial shell games can continue for another three years.

For typical middle wealth Connecticut dwellers. Putting money in the stock market is just like putting it in a bank that gets robbed every day. Inside information i supposed illegal. Yet it is used every second. Get rid of the stock market. Let every community be protected by democracy and let each one build and own its own industry. Capitalism has totally failed.

Elaine Meinel Supkis

No one is more 'inside' than our multimillionaire Presidents and Congress.

PLovering

The Neurastheniac Suicide Club wants to wrap up their New Federal Banking Empire before Obama takes office.

Who needs a proactive President asking awkward questions?

pramod panda

I think it is time we recognise that the design of financial regulation needs to be cognizant of a very fundamental fact that the adhesiveness that has been growing in the financial system demands unique structure and processes for regulation. No more the conventional understanding of the potential risk (macro) would be helpful in finding the right governance structure for the financial system.


The difference in banking as an off market phenomenon and the financial market as a place where exchanges take place is no more the relevant factor to be taken into account to assume that different structures are needed for the financial market and banking system and then to set up separate regulatory and supervisory structure for the banking system and non-banking financial system ( financial market regulation)

hardrock

Never heard such 'gobbledygook' in my life. Pramod panda, must be a corporate insider, a recent college grad or a seasoned bureaucrat. Does anyone reading here have any idea what he is attempting to say? Would you bet on it?

For a start: A designer of financial regs can be 'cognizant' but I rather doubt the regs can.

Bear of Little Brain

hardrock:
I think it comes down to this snippet:

"that different structures are needed for the financial market and banking system"

But we have that. Goldman looks after the markets and Morgan looks after the banks. Done!

Bear of Little Brain

Panda:
Don't mean to make light of your comment, but it is a little tricky to figure out. :-)
I think it's the "no mores" that add confusion.


ClaireVoyant

Hardrock:
"Safest bet is to hold gold, silver, and a piece of land with water rights" -- in an economic meltdown nothing is safe: They can seize land assets, too. Don't forget the Supreme Court recently legalized "condemnation" of private property for the taking by private interests, at will. My grandparents had considerable farmland acreage confiscated during the Depression, by the simple strategem of fixing it at inflated tax values; when the tenant farmers' revenues failed to cover the inflated tax bill, the land was seized for a public park; this was accomplished quickly, while the hearings to dispute the inflated tax value dragged on until the issue was moot.
The "safe" course is for more people to become educated and become activists: out the bastards, expose their misdeeds, publicize the scam behind calls for "free markets" and de-regulation and DEMAND ACCOUNTABILITY. Brava to Elaine and all you posters for laying bare the machinations of these miscreants. Thanks for your work in cutting the Gordian knot of confusion surrounding their plots to defraud the public.

Dutch

Paulson's real motive is to preempt the regulatory sledgehammer that is set to descend on the entire financial industry following the 2008 electionElection-Campaign-Money Mar-08 . There's growing fear that a President Obama may tote his firehose down to Wall StreetWall-Street-Layoffs and flush out some of the debris that has collected in the market's dark corners.

It is impossible for him to do this, I think of Obama as a 'bargaining chip' to do one thing,(save the currency market in Chicago).

Big American money is on him. And we know who the Clinton Toy belongs too.

Interesting note on the Carlyle Group, Bush Family are the main share holders no?

While this was going on wasn't he in New York(Conveniently after Spitzer got the axe) Screaming about how this was the fault of housing speculators and there wasn't going to be any bailout for them!

What a Pinko Commie, this little bush is! He stabbed Bear in the back too! Just like he will liquidate a drugged comotose society, to poor to pay their bills.

Dutch

For those of you afraid of Fascism, you will never see it. And remember this, the Communists have MURDERED more people in history than any other animal before or after since this wretched disease of the mind showed up on our doorstep.

blues

Seriously, Why would anyone give a damn about the suggested "communist murders"? Like, I mean, we murder people every single day! It's a frickin tradition around here! Communists my ass. Rather be "communist" than Amero idiot jackass!

Elaine Meinel Supkis

As proportion to population, the Mongols were worse.

Gary W

The Assyrians were quite nasty too. It's a pretty sorry history, but it'll be nothing compared to the catastrophe unfolding if we don't get on top of climate change, resource depletion, food shortages, industrial pollution, and overpopulation. Who are we going to blame for all that? Besides each other.

Elaine Meinel Supkis

Humans killed all the Neanderthals, every last one of them.

Our past is very dark, indeed. Ask the gorillas and chimps about us.

Dutch

I dont know about you but if I saw a neanderthal in my front yard, I would shoot the sonofabitch.HAHA

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