On FDL, masaccio peers into the financial statements of Citi and Bank of America, to determine Bad Bank or Nationalization: What will CDSs Cost Us?masaccio. Suffice it to say that if the credit default swaps are honored, it's going to cost A LOT of money. Cram down, anyone? I think the answer is discussed in Institutional Risk Analytic's interview, The Big Banks vs. America: A Roundtable with David Kotok and Josh Rosner.
There is one notable quote from masacci, which is actually pulled from a Financial Times article:
Howard Simons, one of the Chicago traders who always loathed the New York CDS dealers, speaks for many of his comrades in rejecting the trading of CDS on the futures exchanges. "The clearing members of the CME [Chicago Mercantile Exchange] think trading this stuff is the stupidest idea in the world. I didn't work my whole life so some investment bank can take all our capital. Do I look like Hank Paulson?"
Yeah. so much for THAT idea. I hope Geithner and Summers get an ear full soon.
Sweden, Sweden, Sweden!
They cannot possibly consider honoring all of those derivatives. These people are insane.
But they are the ones with the money
and so, it's their choice, not ours. They could not care less about the rest of the world, which is the problem.
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Maximum jobs, not maximum profits.
Yeah, These people are insane
but, they gots the power.
We'll get to see if you have the right of it....
...there are other options besides this. Interesting news today: I had forgotten that after the Senate passes whatever version of the stimulus package they like, and theirs already differs from the House version, both bills go to a conference committee.
Now Obama is giving every indication that he's not too happy with the Republicans. And....
It's reported that more than a few of the Republicans in the House voted no on the package knowing full well they'd get another shot at voting yes.
I you've got problems with the 'package' as it is now...
....why, let your reps and Obama know.
Game has only just begun.
'When you see a rattlesnake poised to strike, you do not wait until he has struck to crush him.'
no "redo"
Conferees are "hand picked" by "senate and house leadership" ....
so it's just a couple from each Chamber who "do the bill" after the bill.
or it can be, depending.
Then, it's pretty clear the Senate is going to change things considerably.
True..
...my point is that it will bear watching if the House Republicans stand firm on their second chance at voting for the 'package'.
The buzz is that more than a few will vote 'yes'.
No matter what the bill looks like.
Boehner can bloviate all he wants....
....he's not up for re-election just now. Some of his posse of fellow House Republicans are.
They are scared...
...the usual mental state of all politicians.
'When you see a rattlesnake poised to strike, you do not wait until he has struck to crush him.'
I'l bet all of America is pulling out their hair at this point
I'll have to do this for the next poll but I think people want D.C. to do things....that will actually work, are worth the money and make sense.
Rome burns and these cats fiddle.
I'm actually to the point
That I consider corporate, stock-market based capitalism as much of a failed experiment as communism. Time to move on to a new new deal.
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Maximum jobs, not maximum profits.