Any question as to whether the government was going to use its powers to directly prop up failing financial institutions will soon be eliminated. According to Bloomberg: U.S. Treasury Said to Invest $125 Billion in Major U.S. Banks The Bush administration will invest about $125 billion in nine of the biggest U.S. banks, including Citigroup [...]
Although the news around the financial crisis continues to worsen, an equally important and self-perpetuating component of this crisis is people’s reaction to the news. Where We Are In The Crisis To re-iterate: It has been obvious for two years that a recession was inevitable, and it is likely we will see more losses for [...]
Apparently there may be up to $360B dollars in losses tomorrow as the auction for the Lehman CDS contracts are settled according to this Reuters article: Lehman CDS sellers face massive losses in auction Banks, hedge funds and other sellers of protection on Lehman Brothers’ debt are facing losses in the area of 90 percent [...]
There is a lot of bad news out there. But keep in mind, this isn’t new news – just a change of focus. A video blog-post tonight about why we should stay optimistic even in these tough times: addthis_url = ‘http%3A%2F%2Fparanoidbull.com%2F2008%2F10%2Fbe-optimistic-video%2F’; addthis_title = ‘Be+Optimistic+%28video%29′; addthis_pub = ”;
A long, but worthwhile explanation on where we are…and why the bailout was necessary. Thx to ADK. Some highlight Buffett-isms from the video: I would rather be approximately right than precisely wrong This is truly an economic Pearl Harbor. The patient on the floor in cardiac arrest is not Wall Street, it is the American [...]
Have you ever noticed that when you are sitting in around a table in a meeting, when the “alpha” laughs everyone else typically follows suit? Often this is the boss, and I remember reading somewhere this is explained by some social-psychological theory about pecking order or something like that. I think of it as another [...]
What caused the credit crisis? People have been speculating about this for months, and until recently most of the conversation on the topic was relegated to our corner of the blogosphere and academia. During the lead up to the current headline events, this debate has been enriching, and although people disagree about the fundamental causes, [...]
So the Senate passed the bill…kind of. They passed a bailout plan, but they also included a load of pork along with the bill. Although arguably not a bad development, the fact that a website called “Treehugger.com” is blogging about the fact that this bill has a tax credit for plug-in vehicles shows you how business really gets [...]