The mother of bailouts

Crisis Endgame

We don?t know yet what that "comprehensive approach" will look like. There have been hopeful comparisons to the financial rescue the Swedish government carried out in the early 1990s, a rescue that involved a temporary public takeover of a large part of the country?s financial system. It?s not clear, however, whether policy makers in Washington are prepared to exert a comparable degree of control. And if they aren?t, this could turn into the wrong kind of rescue ? a bailout of stockholders as well as the market, in effect rescuing the financial industry from the consequences of its own greed.  

mvh spx970

" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

Tänk om du var Paulsson SPX.
Då skulle vi ha kraschat nu, kul tanke!

Om jag var Paulson , det första jag gör att fängsla alla ansvarige för denna kris... en efter en..   à la Enron...

Och har inget emot om Hank betalar med egna pengar...

Banker rule the world.

 mvh spx970

" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

Inlägget är redigerat av författaren.

Vad har Marx för gemensamnämnare med Bernake ?! 

#4
Jag vet Metod!

"intresset ljuger inte"
Idetta fall gäller det att Paulssons intresse är hans arbete som han sköter efter bästa förmåga.
Frågan man får ställa sig när han o Ben B får skäll av SPX är att: "skulle spx gjort ett bättre jobb?"

Jag tror inte det. Allt snack om att de höjdare i samhället i själva verket springer ärenden åt andra än sig själva är bara påhitt. Eller ett bra bevis på att man inte förstår vad som händer.

Paulssons intresse är att hålla betalningssystmet i god balans och vid sunda vätskor.
Tycker han lyckats bra hitintills, säger inte att allt kommer bli fint.
US har problems o hur det går får man ju se, men i dag ser det bättre ut än i går.

Ett bra jobb, hur vet du det?.. handlar inte allt om att vinna tid...

Lite fakta för dem som har ett kort minne

- Bear Stearns
- Economic Stimulus progam
- Housing Bailout Program
- Fannie & Freddie
- AIG
- No Short selling rules
- Fed liquidity programs (Term Lending facility, Term Auction facility, etc.)
- Money Market fund insurance program
- New RTC type

Jag tog inte dem försvann såsom Lehman...

och sen vi vet inte hur paulson nya plan ser ut...

men många frågor ställs av en del

1.) Where is this money going to come from?

2.) Will the companies who sell their assets be penalized?

3.) What is a bad debt?

4.) Will the purchase of these assets be non-political? 

5.) Will there be a maximum size of the fund?

6.) How long will the entity last?

7.) At a time when the US government is bleeding money it's going to spend more.

mvh spx970

" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

Levitt, Siegel and Poole on the Paulson Plan

Poole: Former Fed Governor


These are grand ideas that cannot be executed. There will be one stumbling block after another. I am very leery of jumping in with emergency measures like this.

mvh spx970

" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

 Congressional Leaders Stunned by Warnings

When Mr. Schumer described the meeting as "somber," Mr. Dodd cut in. "Somber doesn?t begin to justify the words," he said. "We have never heard language like this."

Bernanke talade saningen för första gången...

mvh spx970

" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

Text of Draft Proposal for Bailout Plan

The Secretary?s authority to purchase mortgage-related assets under this Act shall be limited to $700,000,000,000 outstanding at any one time

U.S. Treasury Secretary Henry Paulson is sending a financial-rescue plan worth about $700 billion to Congress as Democrats prepare to turn it into a vehicle to help people with high-cost mortgages stay in their homes.

...

markets should be allowed to penalize bad bets, warned that bailout could saddle taxpayers with large debts.

``This could be the biggest bailout in the history of the country and could ultimately cost $500 billion to $1 trillion,'' Shelby, the ranking Republican on the Senate Banking Committee, said in a Bloomberg Television interview yesterday. ``Congress is not going to rubber stamp something.''

mvh spx970 

" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

Inlägget är redigerat av författaren.

#9

I texten skriver man:  (2) protecting the taxpayer.

humm , jag undrar hur?

Mr. and Ms. Taxpayer will learn to play the blues

The historic proposal to have the government take the toxic waste off of the balance sheets of U.S. financial institution will balloon the federal deficit and alter the economic landscape, analysts said.

mvh spx970

" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

Inlägget är redigerat av författaren.

Helt genrellt.

Om ett samhälle skall kunna fungera långsiktigt så måste det vara värdeskapning. Flest folk möjligt måste ha jobb och helst jobba ganska effektivt.

Än så länge är blandningen av marknadsekonomi och viss del av statlig styrning det bästa problemet.

Man kan inte ha allting privatiserat... det går inte. Man kan inte ha allting planstyrt heller... det skulle gå ännu sämre.

Om någon tror att USA är en helt renodlad marknadsekonomi så tror den personen ganska fel. När jag bodde i USA för ca 10 år sedan uppskattade man att fördelningen privat/statlig var 72/28(%). Det landet som på den tidspunkten var mest marknadsekonomi var Hong Kong med en uppskattad fördelning på 9/91. Sverige kommer avsevärt annorlunda.. 55/45 kanske.

Det är helt normalt att staten kan gripa in i ekonmin i länder som har stor del marknadsekonomi totalt sett.

......

För att snacka om någonting annat som USA har problem med(anser jag) är att alltför stor del av pengarna som genereras i tillväxten(de sista 15 åren) går till en för liten del av befolkningen(topchefer etc). Det är ju helt bizarrt att chefer som fått sparken från banker som gått konk och håller på att gå i konk får löner på några hundra miljoner kronor. Många borde bli dömda till att betala tillbaka pengar.

Mvh Silicon Valley

"Spain - the kings of football in Europe."

Märkligt att arknaden inte reagerat... The bailout of the fed!

Expansion of the Fed Balance Sheet through unprecedented Treasury refinance without appropriation by Congress

The U.S. Treasury said it will sell an additional $100 billion in short-term debt to aid the Federal Reserve's balance sheet, amid the biggest extension of central- bank credit to financial companies since the Great Depression.

mvh spx970

" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

No deal

I hate to say this, but looking at the plan as leaked, I have to say no deal. Not unless Treasury explains, very clearly, why this is supposed to work, other than through having taxpayers pay premium prices for lousy assets.

The Treasury plan, by contrast, looks like an attempt to restore confidence in the financial system ? that is, convince creditors of troubled institutions that everything?s OK ? simply by buying assets off these institutions. This will only work if the prices Treasury pays are much higher than current market prices; that, in turn, can only be true either if this is mainly a liquidity problem ? which seems doubtful ? or if Treasury is going to be paying a huge premium, in effect throwing taxpayers? money at the financial world.

mvh spx970

" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

Backlash Over Bailouts Grows in Congress, Wall Street 

``If we don't stop now, there will be no end,'' said Gerald O'Driscoll, a former vice president of the Dallas Fed and now a scholar at the Cato Institute in Washington. He joins Vince Reinhart, former director of the Fed's monetary affairs division, and Marvin Goodfriend, a former official at the Richmond Fed in questioning the market interventions.

They're getting support from Republican lawmakers, who are stepping up their efforts to put a halt to further rescues. Yesterday a group of 100 lawmakers released a letter asking Fed Chairman Ben S. Bernanke and Treasury Secretary Henry Paulson to ``refrain from conducting any additional government-financed bailouts for large financial firms.''

`Let the Markets Work'

``We may just be prolonging the housing slump,'' said Congressman Scott Garrett, a New Jersey Republican. ``We should let the markets work.''

...

``Where do we stop, where do we draw the line?'' Shelby said in a Bloomberg Television interview. ``I don't know what road'' the Fed ``is going down,'' he said. ``If they don't watch what they are doing, they are going down a path of no return.''`

Doug Elmendorf, a former economist at both the Fed and Treasury, said he doesn't oppose government interventions, though he's ``opposed to doing it wrong.''

`A Major Challenge'

``I think it would be a major challenge for the government to design a fair and effective program to inject funds into financial institutions,'' said Elmendorf, now a senior fellow at the Brookings Institution. ``Structuring either of those in a way that doesn't reward mistaken private investments is very difficult.''

Peter Boockvar, an equity strategist at Miller Tabak & Co in New York, agreed. Bailing out Bear Stearns and creating lending facilities for investment banks, he said, ``gave financial companies a false sense of security that they had time to de-lever at their leisure.''

Unless the central bank stops interfering with market discipline, Wall Street's problems will continue, he said. ``The market can get to the right price on its own,'' Boockvar said. ``Anything that prevents it from happening is just prolonging the inevitable.''

Doug Elmendorf, a former economist at both the Fed and Treasury, said he doesn't oppose government interventions, though he's ``opposed to doing it wrong.''

`A Major Challenge'

``I think it would be a major challenge for the government to design a fair and effective program to inject funds into financial institutions,'' said Elmendorf, now a senior fellow at the Brookings Institution. ``Structuring either of those in a way that doesn't reward mistaken private investments is very difficult.''

Peter Boockvar, an equity strategist at Miller Tabak & Co in New York, agreed. Bailing out Bear Stearns and creating lending facilities for investment banks, he said, ``gave financial companies a false sense of security that they had time to de-lever at their leisure.''

Unless the central bank stops interfering with market discipline, Wall Street's problems will continue, he said. ``The market can get to the right price on its own,'' Boockvar said. ``Anything that prevents it from happening is just prolonging the inevitable.''

Det vad jag har sagt sedan krisen startade....

mvh spx970

" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

The Mother Of All Frauds

mvh spx970 

" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

Treasury Seeks Authority to Buy Mortgages Unchecked by Courts

He's asking for a huge amount of power,'' said Nouriel Roubini, an economist at New York University. ``He's saying, `Trust me, I'm going to do it right if you give me absolute control.' This is not a monarchy.'' 

mvh spx970 

" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

#13 "why this is supposed to work, other than through having taxpayers pay premium prices for lousy assets."

- Nu vet du ju inte ännu vad det är för priser som kommer att betalas? Enl Treasury förfrågan till Kongressen så kommer det att röra sig om omvända auktioner. Dvs det finansiella institut som kan tänka sig att säla "skiten" billigast får så göra.

Då beror hela utfallet på storleken av insatsen. $700 mdr har det sagts. (1) Är då denna summma för liten så kommer ju priset för de köpta tillgångarna att bli lägre. (2) Är den lagom stor så blir priset "fair" och marknaden får bort det mesta av dessa gigtiga tillgångar. (3) Det tredje och sista fallet är det att insatsen är för stor, då blir priset staten betalar för dyrt.

Bara i det sista fallet torskar skattebetalarna på sikt stora pengar. I flera tidigare dylika, om än mindre, bail-outs så har staten tjänat pengar genom att utnyttja panikslagna marknader och köpa tillgångar på REA.

Historien får utvisa. 

|StRY| "Caveat emptor. Buyer beware."

Jepp historien får utvisa...

Vi har redan fått smaka på som väntar oss när nu Ben och Hank tänker tänker ta hand om the bad debt som finans sektorn har...

Nightmare on Wall Street

EVEN by the standards of the worst financial crisis for at least a generation, the events of Sunday September 14th and the day before were extraordinary. The weekend began with hopes that a deal could be struck, with or without government backing, to save Lehman Brothers, America?s fourth-largest investment bank. Early Monday morning Lehman filed for Chapter 11 bankruptcy protection. It has more than $613 billion of debt. 

$613 billion of debt

mvh spx970

" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

I flera månader har man vägrat erkänna att det finns en finans kris och nu kräver Paulson  att ma skall fatta ett snabbt beslut...  Sedan när snabba beslut har löst ett gigantisk problem som vi nu har...

"We want this to be clean, and we want it to be quick,"

mvh spx970

" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

The decisions that will be made this weekend matter not just to the prospects of the U.S. economy in the year to come; they will shape the type of capitalism we will live in for the next fifty years. Do we want to live in a system where profits are private, but losses are socialized? Where taxpayer money is used to prop up failed firms? Or do we want to live in a system where people are held responsible for their decisions, where imprudent behavior is penalized and prudent behavior rewarded? 

mvh spx970 

" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

#12 Marknaden har reagerat. Priset på CDS för US sovereign debt steg flera punkter i samband med detta. 

Mvh, /Leif

#18 detta var att likställa med en hemförsäkring

The biggest worry is the effect on derivatives markets, particularly the giant one for credit-default swaps. Lehman is a top-ten counterparty in CDSs, holding contracts with a notional value of almost $800 billion. On Sunday, banks called in their derivatives traders to assess their exposures to Lehman and work on mitigating risks. The Securities and Exchange Commission, Lehman?s main regulator, said it is working with the bank to protect clients and trading partners and to "maintain orderly markets". 

 

Mvh werik1

#19

Echoes of Iraq in Bush handling of mortgage crisis
News analysis: Another 'trust me' remedy is getting rushed before lawmakers

Fairly or not, some critics say they can't help but see similarities between the Bush administration's hurried approach to the financial market crisis and its headlong plunge into the Iraq war. 

...

#6

Economists said there was a central problem to the Paulson plan. Most of the toxic waste in question does have some price, but it has been too low for the financial institution holding them to accept. So the government buyout would only work if taxpayers overpay for the assets.

"It is no wonder that the Bush administration is pressing to get the plan passed quickly before any real oversight can be brought to bear, because even the simplest due diligence suggests that it needs some work if the taxpayer's interests are to be even minimally protected and some real oversight brought to bear on the whole process," wrote Josh Shapiro, chief U.S. economist at MFR Inc. in a note to clients.

mvh spx970

" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

Dem som tror på an snabb-lösning??

#0

U.S. May Find Painful Parallels in 1990s Nordic Banking Bailout

If Henry Paulson and Ben S. Bernanke want to know what happens when central banks and governments bail out financial institutions, they should be ``learning Swedish.''

...

The Nordic effort -- similar in speed and scope to what the U.S. is planning now, though smaller in size -- did manage to end the financial crisis. At the same time, it failed to slow surging unemployment or bring a quick end to recessions in all three countries.

``In the long term, there were benefits, but it took half a decade before they began to show in the economy,'' said Esko Ollila, a member of the Bank of Finland board from 1983 to 2000.

mvh spx970

" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

Jepp Paulson och Bernanke som för några veckor sen sade att allt är under kontroll plötsligt ändade man sig till att nåt måste göras annars kommer systemet att kollapsa.

``I believe if the credit markets are not functioning, that jobs will be lost, the unemployment rate will rise, more houses will be foreclosed upon, GDP will contract, that the economy will just not be able to recover,'' Bernanke told the Senate Banking Committee today. ``My interest is solely for the strength and recovery of the U.S. economy.''

Kapitol Hill ville ha svar på många frågor... Fick inga... Därför är Paulson tvungen att komma med en ny plan...

'It (the bailout) would do nothing in my view to let a single family save a home. It would do nothing to stop a CEO from dumping billion dollars of toxic assets on the back of American taxpayers.' Sen. Chris Dodd, chairman of Senate Banking Commmittee

PAUL kRUGMAN skriver Getting real ? and letting the cat out of the bag

As I wrote earlier this morning, the whole "take these assets off the balance sheets" line is fundamentally disingenuous; the key question is what price Treasury pays for the assets. And here we have Bernanke effectively saying that it?s going to pay above-market prices ? prices that allegedly reflect "hold-to-maturity" value, but still more than private investors are willing to pay.

Aplauder, Aplauder...

mvh spx970

" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

Inlägget är redigerat av författaren.

Hur kan du/ orkar du leva i Sverige med tanke på att vi är modell för det? 

Mvh Corpsee

 Paulson Debt Plan May Benefit Mostly Goldman, Morgan

``Its benefits, in its current form, will be largely limited to investment banks and other banks that have aggressively written down the value of their holdings and have already recognized the attendant capital impairment,'' Jeffrey Rosenberg, Bank of America's head of credit strategy research, wrote in a report dated yesterday, without identifying particular banks.

mvh spx970

" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

"I nationalize strategic companies and get criticized,but when Bush does
it, it's OK," Chavez said on weekly television program Sept. 21. "Bush is turning socialist. How are you, comrade Bush?"

mvh spx970

" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

Video

Rep. McDermott "Paulson can throw a pass to himself" 

The people in Washington State are very troubled by the fact that King George has been disposed of by King Henry.

We picked up Newsweek magazine today and we have a new King... King Henry?

We're supposed to give him 700 billion dollars of our money. He doesn't want any review. He wants to be able to do whatever he wants with it. He doesn't want any Congressional oversight. And worst of all, the new king is just like the old king: He doesn't want any sacrifice.

He says, "Oh we can't threaten the salares of the investment bankers who drove us into a ditch. We can't get anyone to pay for this."

This is the third time we've done it with this bunch. First the war, that didn't get paid for. Then the tax cuts, that didn't get paid for, and now King Henry takes over to distribute 700 billion dollars. He's going to be there for four months. And in four months he will make deals and then he'll go out and he'll be able to catch a pass he threw to himself.

mvh spx970

" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

Bernanke Signals U.S. Should Pay More for Bad Debt 

Sept. 23 (Bloomberg) -- Federal Reserve Chairman Ben S. Bernanke signaled that the government should buy devalued assets at above-market values to make its proposed $700 billion rescue package most effective in combating the financial crisis.

``Accounting rules require banks to value many assets at something close to a very low fire-sale price rather than the hold-to-maturity price,'' Bernanke said in testimony to the Senate Banking Committee today. ``If the Treasury bids for and then buys assets at a price close to the hold-to-maturity price, there will be substantial benefits.''

Bernanke's remarks, an unusual departure from his prepared testimony, come as lawmakers and the Bush administration negotiate a rescue plan aimed at easing the worst financial crisis since the Great Depression. The Fed chief said paying prices higher than the bad assets would fetch in the open market would help ``unfreeze'' credit markets and aid the economy.

Analysts said Bernanke is essentially advocating that government use a pricing model that assumes that the debt will be paid in full over a long period of time. That is different from the mark-to-market model used by investment banks that prices assets at what they are worth on a given day.

...

Tja, ovanstående är väl hela kärnan i bailout-planen. För att den ska kunna ge en positiv effekt på bankernas balansräkningar så måste man köpa loss tillgångarna till ett högre pris än aktuellt marknadspris. Det man då gör är att man lämpar över risken att marknadspriset skulle råka vara korrekt på skattebetalarna. Frågan är ju vad ett korrekt hold-to-maturity-pris kommer att visa sig vara när maturity inträffar. Det är det ju liksom ingen som riktigt kan veta i dagsläget.

Detta måste vara en del av vad planen egentligen går ut på, att komma ifrån effekterna av mark-to-market accounting. Att få igenom detta upplägg i klartext torde vara ganska svårt med tanke på det förestående valet. Det är väl kanske därför man har varit luddig kring hur prissättningen ska ske och även begärt ansvarsfrihet. Verkar som att Ben kanske försa sig här. Blir intressant att se hur detta utvecklar sig. Det fälldes en hel del skarpa kommentarer vid dagens utfrågning och det känns inte helt självklart att planen kommer att gå igenom. Fast det är klar, det kan ju bara vara en massa positionerande från ledamöternas sida.

Mvh, /Leif

Fed Acted Like a Liquidity Drug Dealer: Economist

"About 15 percent of U.S. households have negative equity. Who supplied the leverage into the system? It's called the Federal Reserve Board," Faber said.

"If I'm the drug dealer I'm not responsible that everybody takes drugs, but I facilitate it, especially if I give it out free of charge, I can enlarge the market share, and that's what the Fed has done."

mvh spx970

" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

Stopping a Financial Crisis, the Swedish Way

...

...The country was so far in the hole in 1992 ? after years of imprudent regulation, short-sighted economic policy and the end of its property boom ? that its banking system was, for all practical purposes, insolvent.
The country was so far in the hole in 1992 ? after years of imprudent regulation, short-sighted economic policy and the end of its property boom ? that its banking system was, for all practical purposes, insolvent.

But Sweden took a different course than the one now being proposed by the United States Treasury. And Swedish officials say there are lessons from their own nightmare that Washington may be missing.

Sweden did not just bail out its financial institutions by having the government take over the bad debts. It extracted pounds of flesh from bank shareholders before writing checks. Banks had to write down losses and issue warrants to the government.


mvh spx970

" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

Administration said to agree to limit on pay¨

President Bush readied a prime time speech to the nation and Treasury Secretary Henry Paulson accepted a major change in legislation for a $700 billion bailout of the financial industry on Wednesday as the administration scrambled to prevent further deterioration in the economy

mvh spx970

" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

Inte än...

Treasury officials denied an AP report that Secretary Henry Paulson had agreed to accept limits on pay packages for executives whose companies benefit from a proposed $700 billion bailout of the financial industry

mvh spx970 

" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

FLASHBACK: Six Months Ago, Paulson Said ?Our Banks And Investment Banks Are Strong?»

För fyra månader sen...

I do believe that the worst is likely to be behind us," Paulson told the newspaper in an interview

Paulson gör säkert  ett bra jobb...

mvh spx970

" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

video

Let's Play "WALLSTREET BAILOUT" The Rules Are... Rep Kapture

mvh spx970 

" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

Man jobbar för för fullt för att komma överens... vi kanske inte får nån svar förrän söndag eller det kommer att dröja...

En storm av protester från mainstreet har har faktiskt  stoppat  denna bailout.

A $700 billion slap in the face

and if the lack of a deal puts the financial world under strain, blame Paulson and Bernanke, who have wasted most of a week demanding authority without explanation

mvh spx970

" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

#36 Skön krutgumma, jag tror minsann jag gillar Marcy Kaptur :)

Gillar även dej spx970 :) 

Mvh Jamenvisst

Det senaste kring planen verkar vara ett upplägg som inkluderar att staten får (preferens-?)aktier och warrants i de företag vars tillgångar omhändertas. 

Mvh, /Leif

#38   :-))

Student, car debt quietly added to bailout plan

Paulson misslyckades med att få det han ville... jag tror wallstreet gillar inte den nya planen eftersom dem måste dela med sig tårtan eller nästan de få bara smaka...

Jag tror det finns krafter genom wallstreet som kommer att göra allt för tvinga usa regeringen till en större bailout...

Räkna med stor volatiletet och mer negatibva nyheter...

..

 mvh spx970

" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

Kazakhstan Plans Paulson-Style Rescue Fund for Riskiest Banks

``The Kazakh plan is similar to the U.S. plan'' to buy bank assets, said Ekaterina Trofimova, a Paris-based analyst for Standard and Poor's, said in an interview in Almaty. ``In these circumstances there aren't many roads to salvation.''

mvh spx970

" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

Could Warren Buffett Negotiate a Better Deal for Taxpayers?

Mr. Bernanke pointed out Wednesday that Mr. Buffett had urged Congress to pass the current bailout plan. I?d point out that Mr. Buffett drove a harder bargain when his own money was on the line.

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" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

To the Speaker of the House of Representatives and the President pro tempore of the Senate

As economists, we want to express to Congress our great concern for the plan proposed by Treasury Secretary Paulson to deal with the financial crisis. We are well aware of the difficulty of the current financial situation and we agree with the need for bold action to ensure that the financial system continues to function. We see three fatal pitfalls in the currently proposed plan 

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" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

Jag förstår inte Logiken att man måste göra nåt än inte göra nåt alls för att rädda finans sektorn... och jag som ofta brukar skriva man kan inte släcka elden med olja och det är precis vad som hänt och försättr hända...

Fed har sedan krisen börjat försökt vinna tid... och tiden har han tyvärr inte för att krisen vi upplever är djup rotad i systemmet.

Fed's Fisher Says Bank Rescue Plan Would Worsen Fiscal `Chasm'Fed's Fisher Says Bank Rescue Plan Would Worsen Fiscal `Chasm'

The plan by Treasury Secretary Henry Paulson to buy troubled assets from financial institutions would put ``one more straw on the back of the frightfully encumbered camel that is the federal government ledger,'' Fisher said today in the text of a speech in New York. ``We are deeply submerged in a vast fiscal chasm.''

2) Hundreds of Economists Urge Congress Not to Rush on Rescue Plan

``I suspect that part of what we're seeing in the freezing up of lending markets is strategic behavior on the part of big financial players who stand to benefit from the bailout,'' said David K. Levine, an economist at Washington University in St. Louis, who studies liquidity constraints and game theory.    #40

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" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

No deal... 

Dodd says White House meeting was a disaster

Det är politik på hög nivå

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" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

'Bailout Nation' Author Questions Current Bailout

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S Borin

Marc Faber Says $5 Trillion Needed for U.S. Financial Bailout

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S Borin

#44 "Jag förstår inte Logiken att man måste göra nåt än inte göra nåt alls för att rädda finans sektorn..."

- Vad du då eventuellt inte (men jag tvivlar på det faktiskt) förstår är att verkligheten nu, även om vi vill inse det eller ej, är att det inte enbart handlar om finanssektorn isolerat nu längre. Nej, nu pratar vi hela ekonomin. En utdragen finanskris smittar av sig på realekonomin och kan få oanade konsekvenser.

Obs att detta inte innebär att Jag tycker Paulson & Bernankes $700 mdr-förslag är bra. Långt därifrån. De bör snegla mer på hur Buffett gjorde sin Goldman-deal... 

#47 Vart får han $5 biljoner från? Det är hälften av USAs utstående bolån, och äve om läget är illa nu så är det knappast så illa.

|StRY| "Caveat emptor. Buyer beware."

#48

kolla denna  

~~~~~~~~~~~~~~~~
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S Borin

#48

Inget är isolerat,,, vi vet att finans oro kommer att skada ekonomin.

men jag upprepar, Ben och Hank policy kommer inte att lösa nåt..

Man borde från börjar agerat som en brandman.

Om man vet att det brinner på några platser och man vet att an inte kan släcka elden, vad göra för att stoppa elden från att spridda sig...?  Inte genom att belöna dem som startat elden... Inte genom att lägga all kraft genom att vatten-bomba det brinnande skogen men väl att man försöker att isolera andra skogs områden från att drabbas. man bygger en storts stor mur omringad av sten och sand eller helt enkelt stort område helt fri från träd...

Hade man från börjar agerat genom att tvinga alla att lägga alla kort på bordet för att skilja mellan det rutna äpplet från det goda... nej man blandat  friskt så att elden kunde lätt sprida sig till andra områden. och andra friska äpplen..

Och ju mer elden sprider sig desto svårare kommer man att lyckas med att släcka den tills elden äter upp allt...

Och det precis vad Ben och Hank försökt göra sedan krisen startade, sänka räntan till 2%, sen olika program för att låna från fed...

Hank och Ben satsat alla kort på att rädda det som inte går att räddas... dvs säga det ruttnat äpplet.. och nu skriker man att hela systemet kommer att kolapsa, ekonomin kommer att kollapsa...

Nu skall skattebetalarna rädda dem som går att räddas...

Om man följer Paulsson plan så jag räknar med situationen kommer att bli ännu värre... nu väntar vi på det nya planen... men jag är rädd att den kommer tillfälligt att stoppa oron... sen kommer nästa smäll...

Nej, Nu är problemmet större än Hank och Ben och hela USA... Det är nu ett globalt fenomen som hottar alla. Vänta bara, när vi sett samma mönster sprida sig utanför usa där vi kommer att sen många banker gå omkull ...

Sedan krisen början har jag sagt att Fed agerande kommer inte att lösa nåt, fed håller att vinna tid... många andra tyckte att jag ville se börsen krasha och mycket annat snack, istället för att kritisk granska Ben och Hank policy jagade man mina inlägg, för jag tyckte att Fed plicy kommer inte att lösa nåt,

Nu med facit i hand ser man vad Han och Ben gjorde... Och försätter göra men nu vill dem ha hjälp från den amerikanska regeringen för dem tappat helt kontrollen över lägget och nästa steg, den amerikanska regeringen som kommer att tappa kontroll...

Hoppas att eländet slutar nu men tyvärr ser inget slut för detta... oavsett om man gillar det jag skriver eller inte... det är absolut inte mitt fel att vi ligger illa ... är man arg så bör man bli arg på dem som startat det elden...

jag läser och följer vad som händer, jag observerar, jag konstaterar och kommer till slutasatser som många kanske inte gillar...

Men så är lägget enligt mig... den som vill måla en positivare bild...bara att ta fram penna och skriv...

mvh spx970

" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

Inlägget är redigerat av författaren.

från calculated risk

Significant bipartisan work has built consensus around dramatic improvements to the original Bush-Paulson plan to stabilize American financial markets -- including cutting in half the Administration's initial request for $700 billion and requiring Congressional review for any future commitment of taxpayers' funds. If the government loses money, the financial industry will pay back the taxpayers.

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" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

Gentlemen, I have had men watching you for a long time and I am convinced that you have used the funds of the bank to speculate in the breadstuffs of the country. When you won, you divided the profits amongst you, and when you lost, you charged it to the bank. You tell me that if I take the deposits from the bank and annul its charter, I shall ruin ten thousand families. That may be true, gentlemen, but that is your sin! Should I let you go on, you will ruin fifty thousand families, and that would be my sin! You are a den of vipers and thieves." -Andrew Jackson, 7th US President

In 1836, Andrew Jackson forced the closing of the Second Bank of the U.S. by revoking its charter.

Second Bank of the United States

" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

WASHINGTON, Sept 28 (Reuters) - Legislation providing up to $700 billion to bail out the U.S. financial industry will be voted on in the U.S. Senate no earlier than Wednesday, sources close to the discussions said on Sunday.

NEW YORK (MarketWatch) -- Republican Senator Judd Gregg said Sunday that negotiators have reached a deal on a draft version of the economic rescue bill. Gregg made the announcement at a televised press conference, following reports earlier in the day that a tentative agreement had been reachedNEW

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" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

Video

"This is not going to end the credit crisis," says Ed Yardeni, an independent Wall Street strategist and president of Yardeni Reseach. "I wish I could tell you it will. But I think we still have a ways to go." He tells John Wordock this is a "good first step." If anything, Yardeni says, the rescue plan buys us time. "I think it should avert this widespread fear of an imminent financial and economic disaster and time is what we need."  

Paulson plan var skriver på 3 sidor nu talar man om 100 sidor...

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" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

pdf

Emergency Economic Stabilization Act of 2008 

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" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

Roubini Says U.S. Bank Rescue Plan Is `Very Flawed'

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" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

``The impact on the taxpayer will be considerably less than $700 billion,'' Nussle said in a letter to House Republican Leader John Boehner of Ohio that was released by the White House.  

Hur vet man det?

mvh spx970

" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

``The impact on the taxpayer will be considerably less than $700 billion,'' Nussle said in a letter to House Republican Leader John Boehner of Ohio that was released by the White House.  

Hur vet man det?

mvh spx970

" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

#56

Thus, the Treasury plan is a disgrace: a bailout of reckless bankers, lenders and investors that provides little direct debt relief to borrowers and financially stressed households and that will come at a very high cost to the US taxpayer. And the plan does nothing to resolve the severe stress in money markets and interbank markets that are now close to a systemic meltdown. It is pathetic that Congress did not consult any of the many professional economists that have presented - many on the RGE Monitor Finance blog forum - alternative plans that were more fair and efficient and less costly ways to resolve this crisis. This is again a case of privatizing the gains and socializing the losses; a bailout and socialism for the rich, the well-connected and Wall Street. And it is a scandal that even Congressional Democrats have fallen for this Treasury scam that does little to resolve the debt burden of millions of distressed home owners.

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" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

WASHINGTON (MarketWatch) -- The Federal Reserve on Monday announced that it was providing more liquidity into global money markets to ease recent strains. The Fed said it was boosting the size of its auctions of liquidity to commercial banks and the size of its swap agreements from a number of foreign central banks to $620 billion from $290 billion. In addition, the Fed announced a new forward auction to provide lending to banks over the year-end. "These steps are undertaken to mitigate pressures evident in the term funding markets in the United States and abroad," the Fed said in a statement. "By committing to provide a very large quantity of term funding, the Fed actions should reassure financial market participants that financing will be available against good collateral, lessening concerns about funding and rollover risk," the Fed added. Central banks stand ready to do more, the statement said

Sverige är med i leken

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" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

video

The Dark Bailout

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" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

 Fed agerande

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" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

Anledning till att man röstat ner beror för det mest för en storm av protester-... Och dem lyckades så länge

Final Push To Kill The Bailout Monstrosity 

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" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

205 Yes - 228 No - We Won!!!! 

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" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

OK, we are a banana republic

I assume Pelosi calls a new vote; but if it fails, then what? I guess write a bill that is actually, you know, a good plan, and try to pass it ? though politically it might not make sense to try until after the election.

As a friend said last night, we?ve become a banana republic with nukes

mvh spx970

" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

Rejection of the plan means there's no political solution to this financial crisis on the horizon. As it now stands, the markets are on their own. 

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" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

video

The Fed threw $630 billion into the market before the vote, and yet the S&P 500 was down 40 handles anyway, and in fact tanked after the vote.

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" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

#50

Nej, Nu är problemmet större än Hank och Ben och hela USA... Det är nu ett globalt fenomen som hottar alla. Vänta bara, när vi ser samma mönster sprida sig utanför usa där vi kommer att sen många banker gå omkull ...

Banking crisis reaches eurozone

This weekend, the banking crisis arrived on our shores with a vengeance. Fortis Bank got bailed out by the Benelux governments, and Hypo Real Estate, Europe?s largest mortgage bank, received a last minute credit facility. Over in the UK, the UK government was about to nationalise the Bradford and Bingley building society 

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" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

video

1)

We Are Under Martial Law

2)

What's Good For Wallstreet Is Good For Mainstreet, Not Today! Dennis Kucinich

Det finns ett starkt motstånd speciellt när nu November närmar sig... Det kommer att bli svårt... därför bäst att avvakta köp...

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" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

Inlägget är redigerat av författaren.

Rogers Says U.S. Should Let Banks Fail, Clean Out System

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" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

STOCKHOLM (Direkt) Dennis Lockhart, Fed-chef i
Atlanta, sade på tisdagen att han arbetar under
förutsättningen att regeringen inte kommer att få igenom en
omfattande plan för att stödja finansinstitutionerna och
dämpa den värsta kreditkrisen sedan Depressionen.

"Jag arbetar under antagandet, vilket synes vara det
mest realistiska i nuläget, att det inte blir något
omfattande program. Vi går vidare med att hantera vad som än
dyker upp sak för sak", sade han enligt Bloomberg News.

Han sade att oron på kreditmarknaderna kan komma att
förvärra arbetslösheten och orsaka "allvarlig skada" för den
amerikanska ekonomin, medan inflationstrycket kan komma att
avta.

"Totalt sett har inflationsutsikterna kanske
förbättrats, men utsikterna för tillväxten har försämrats.
Problemen på finansmarknaderna lägger till betydande
nedåtrisk för ekonomin", sade han.

Han sade att marknaderna har sett en accelererande
nedgång i företagskrediter på alla nivåer, från stora till
små företag. Sammanfattningsvis har september inneburit en
accelererande nedgång i institutions- och marknadslandskapet
i finanssystemet.

Han sade också att övertagande av Fannie Mae och
Freddie Mac har gett stabilitet på både bostads- och
bolånemarknaderna och regeringen kommer sannolikt att styra
dessa institut i stor utsträckning som de styrts tidigare,
och sedan återföra dem till "privat status"./MS




mvh spx970

" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

Obama: 'Put The Fire Out' on Economic Crisis 

Well herre Obama, det var inte igår som elden startade... #50

Men paketet kommer inte att lösa allt...

Bästa lösningen att stärka dem banker som har bättre balance sheet och bli av med alla banker som har dålig balance sheet, zero cash...

Att stärka dessa banker kommer att skapa en bra grund för framtiden...

Det är inte lätt men det bästa lösningen...

Men glöm inte att många vill inte se  paketet gå igenom... kill the bill!?

WASHINGTON -- Members of the House of Representatives who supported bailing out the financial sector with $700 billion in taxpayer money have received 51 percent more in campaign contributions from the finance, insurance and real estate sector in their congressional careers than those who opposed the emergency legislation, the nonpartisan Center for Responsive Politics calculated following the 228-205 vote on Monday that defeated the House bill.

Examining campaign contributions from the industries that were most eager to see the Emergency Economic Stabilization Act of 2008 passed, the Center found that the gap between lawmakers who supported the bailout and those who successfully opposed it was especially wide among House Democrats.

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" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

Corporate America's widening bailout mindset
Anxiety widens as federal intervention extends well beyond Wall StreetCorporate

"The government doesn't seem to have a plan as much as they have a plan to have a plan," said Bob Brusca, chief economist at FAO Economics. "Is it the end of capitalism? It seems to say it's a loss of belief in the things we claimed to have believed in. If this were Star Trek, Spock would never do this. It's just not logical."  

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" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

Video

Bailout Bill: Pros & Cons

Rep. Brad Sherman, D California:

Larry I am glad you have a few seconds to talk to someone who voted against this bill. I am not changing my mind. I want to thank my colleagues who stood up to the purveyors of panic and voted against a very bad bill and voted with 400 eminent economists including three Nobel laureates who wrote to us and said don't panic, don't act hastily, hold hearings, work carefully. The fact is Larry if you read this bill, even you would have voted against it.

It provides hundreds of billions of dollars of bailouts to foreign investors. It provides no real control of Paulson's power. There is a critique board but not really a board that can step in and change what he does. It's a $700 billion program run by a part-time temporary employee and there is no limit on million dollar a month salaries.

Larry Kudlow:

Let me just ask you one question. I think you are referring to foreign banks headquartered in the United States. I do not see how foreign investors get bailed out.

Rep. Brad Sherman:

Larry you have to read the bill. It's very clear. The Bank of Shanghai can transfer all of its toxic assets to the Bank of Shanghai of Los Angeles which can then sell them the next day to the Treasury. I had a provision to say if it wasn't owned by an American entity even a subsidiary, but at least an entity in the US, the Treasury can't buy it. It was rejected.

The bill is very clear. Assets now held in China and London can be sold to US entities on Monday and then sold to the Treasury on Tuesday. Paulson has made it clear he will recommend a veto of any bill that contained a clear provision that said if Americans did not own the asset on September 20th that it can't be sold to the Treasury.

Hundreds of billions of dollars are going to bail out foreign investors. They know it, they demanded it and the bill has been carefully written to make sure that can happen.

mvh spx970

" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

Video..

Viewpoint: Economist Dean Baker on the Bailout Panic

The bailout började med 3 sidor sen upp till 100 och nu med över 400 sidor...

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" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

#50

STOCKHOLM (Direkt) En historisk jämförelse med
tidigare perioder av finansiell stress visar att det finns en
påtaglig sannolikhet för att problemen på finansmarknaden
leder till en kraftig ekonomisk nedgång i USA.

Det skriver IMF-ekonomerna Subir Lall, Roberto
Cardarelli och Selim Elekdag i en rapport på torsdagen, i
anslutning till IMF:s höstprognos som publiceras den 8
oktober.

I en undersökning av perioder av finansiell turbulens
under de senaste 30 åren visar de att nedgången blir längre
och kraftigare om stressen är koncentrerad till banksektorn.
Sannolikheten för att stressen ska leda till en ekonomisk
nedgång är dessutom större om den har föregåtts av en snabb
kreditexpansion, stigande huspriser och kraftig belåning av
hushåll och företag utanför finanssektorn.

"Baserat på jämförelser av den nuvarande perioden med
finansiell stress, jämfört med tidigare perioder, kvarstår en
påtaglig sannolikhet för en kraftig nedgång i USA", skriver
IMF-ekonomerna.

Vissa motverkande krafter kan i dagens läge komma
från de relativt starka balansräkningarna för företag och den
kraftiga penningpolitiska lättnaden från Federal Reserve,
enligt IMF-ekonomerna.

I euroområdet ger den relativt starka balansräkningen
för hushållen ett viss skydd mot en kraftig nedgång.

"Under dessa förhållanden verkar det särskilt viktigt
med kraftfulla handlingar för att hantera stressen och stödja
återupprättandet av det finansiella systemkapitalet", skriver
IMF-ekonomerna.

De framhåller också att en viktig lärdom från
rapporten är hur viktiga finansiella mellanhänder, som
investmentbanker, är för att överföra finansiella chocker
till den reala ekonomin.

"Det understryker vikten av att återupprätta
kapitalbasen för dessa institutioner för att hjälpa till att
mildra ekonomiska nedgångar", skriver IMF:s ekonomer.

Vid en webutsänd pressbriefing på torsdagen beskrev
Charles Collyns, biträdande analyschef vid IMF, den pågående
finanskrisen som "den farligaste chocken mot den finansiella
sektorn sedan 1930-talet".

Han sade att han inte kan påminna sig något tillfälle
där en allvarlig kollaps för banksystemet inte har resulterat
i allvarliga ekonomiska konsekvenser.

"När banksystemet drabbas av allvarlig skada, som i
den nuvarande episoden, ökar sannolikheten för en allvarlig
och utdragen nedgång i aktiviteten", sade Charles Collyns.
/JBA

mvh spx970

" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

Senate puts Lipstick on the Bailout pig and rams it down our throats

Det blev :  $1.45 trillion

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" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

video

C-Span Bailout 

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" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

A Look At Wall Street's Shadow Market

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" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

You Cannot Patch a Busted Dam With Water

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" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

U.S. Investing $250 Billion in Banks

And the Federal Deposit Insurance Corporation will offer an unlimited guarantee on bank deposits in accounts that do not bear interest ? typically those of businesses ? bringing the United States in line with several European countries, which have adopted such blanket guarantees.

Om några veckor om inte tidigare vi får veta om dessa planer hjälper...

mvh spx970

" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

U.S. to Buy Stakes in Nation's Largest Banks

To kick off Tuesday's expected announcement, the government is set to buy preferred equity stakes in Goldman Sachs Group Inc., Morgan Stanley, J.P. Morgan Chase & Co., Bank of America Corp. -- including the soon-to-be acquired Merrill Lynch -- Citigroup Inc., Wells Fargo & Co., Bank of New York Mellon and State Street Corp., according to people familiar with the matter.

Some of the big banks were unhappy about the government taking equity stakes, but acquiesced under pressure from Treasury Secretary Henry Paulson in a meeting Monday. During the financial crisis, the government has steadily increased its involvement in financial markets, culminating with a move that rivals the breadth of the government's response to the Great Depression. It intertwines the banking sector with the federal government for years to come and gives taxpayers a direct stake in the future of American finance, including any possible losses. 

...

The government's new focus is raising questions about why it didn't adopt such an approach sooner. Mr. Paulson actively opposed the idea of investing in banks because he worried about picking winners and losers, though Fed Chairman Ben Bernanke was an early advocate. Mr. Paulson was also concerned banks wouldn't participate because of the perceived stigma and the potential for the government to meddle in their affairs, according to people familiar with the matter.

...

Blanket guarantees, however, might inspire banks to take unnecessary risks, warned Frederic Mishkin, a Columbia University economist who stepped down as Fed governor in August. "You don't want to give a guarantee to banks that are in trouble" that might try to gamble their way out of problems, he said. He says offering broad guarantees will require that U.S. officials more aggressively act to sort out good banks from bad banks.


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" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet