Robert, FYI, I tried to create an account, but my email was determined "invalid" and the door was closed. I think there is a problem with email validation. The CAPCHA being case sensitive is very difficult also.
They lose the equity in the house but can stay and pay rent. Doesn't quite make sense because if one can afford the rent they should be able to make the house payment.
1) Many of the largest mortgage servicers (Chase, BofA, Citi, Wells Fargo) are also the second mortgage holders. There is a conflict of interest. The second mortgages are practically worthless (40 cents on the dollar is very generous) and any loan mod decreases the value even more.
2) Banks are holding out for increase in housing prices. Good luck with this one. If they are this will be worse than a "lost decade".
Geithner/Summers are the best thing for the financial oligarchy (pretty obvious). Both Geithner/Summers will rely on multi- multi- million dollar jobs when they leave the government. So, they don't want to upset their future employers by being aggressive. They need to preserve the TBTF institution for their own personal gain when they leave the government.
A smaller more competitive less powerful financial sector means smaller compensation packages for them when they leave.
the past few days, Johnny. I have been processing the academic presentation that you pose to my real world understanding an area of the country that I know very well.
West Point is just across the state border from my home town. In fact, when I was a young pup, industry was vibrant in the area. We had Uniroyal, 2 West Point plants, Diversified Products, Ampex and several other industrial complexes. Now these once manufacturing giants lay barren. Jobs have somewhat been replaced by the nearby University, but most (as my brothers and I have) just left the area and there has been little growth in the area since then.
Yes, all those within commuting distance are very excited about the Kia plant - as they were about the Mercedes plant in Tuscaloosa and the Toyota plant in Huntsville. But, this is really just a small drop in the bucket compared to the industry that once thrived there.
One of my job relocations was to New England - where abandoned factories are refurbished into condos, malls, office complexes or just sit empty due to asbestos.
Upon the prior move to CT,I had a conversation with my Dad in which I relayed how disillusioned I felt to find out that Eli Whitney was from Norwich, CT - as he has semi-deity status in much of the South. My father said, "Of course, he was. That's where the manufacturing existed at the time." The next time I passed by one of the CT abandoned factory villages, I wondered if that was what was happening to my hometown.
So, to your point about whether to welcome foreign investment, it is unavoidable. I agree with seebert that if industry owners are abroad they have less vested in the community. Of course, the track record is not so great for those business owners who were part of the community.
Hmmm, between the Ranger school at Ft Benning, all those college kids, and 2 spectacular golf courses, maybe West Point would be a good place for a casino.
I'll admit all of their actions are heading this way, but the one thing I've been challenged on again and again is the why. I think I understand it's about hierarchical power structures, but hasn't the past 150 years in the United States proven time and time again that the flatter the hierarchy is, the more resilient and flexible the entire enterprise becomes?
-------------------------------------
Maximum jobs, not maximum profits.
If those "lawmakers" were either honest or not terminally ignorant (and often it's difficult to distinguish with them - although usually it's dishonesty), they would realize that the chronic speculation on Goldman Sachs' part is extraordinarily disruptive and detrimental to the economy of the US, and probably a number of other countries as well.
Rigged markets and speculation are the true economic killers. Again I would recommend and remind anyone who has yet to read this report to take a few minutes to peruse it.
Any potential solution is shot down as Economic Fiction.
I think that censorship will always destroy debate, in any forum. I'd rather see the gold bug spammers back than see this forum die. And shoot- I've learned a lot from people on this board who disagree with me- that's the entire point, isn't it?
-------------------------------------
Maximum jobs, not maximum profits.
I know there are a lot of readers out there because I see the web stats. But maybe people do not realize that anyone can create an account, logon and at least use the comment sections to have a real discussion.
I appreciate the references I think all here try hard to write about precisely this "structural malaise" of our economy.
The Economic Populist has become a regular read for me. The team here has a great grasp of our current dire reality.
The "New Economy" should be re-named, "101 Ways to Loot and Destroy the Middle-Class".
IMO the deflationary depression we find ourselves in is a result/symptom of the dismantling, destruction of this countries productive industrial/manufacturing base and the JOBS that it provided under the veil of Globalization and Free Trade over the past 30 years. When financial skimming morphs from gaming an economy to underpinning an economy, collapse cannot be far off. Just look at Iceland's situation.
Government Sachs is not going to rebuild this nations economic base, they will continue to loot this country of any remaining wealth and discard it's customers, taxpayer's and the middle-class whenever it becomes unprofitable.
Our current reality is not an "accident", it is the manifestation of ruthless greed, void of morals or social responsibility.
Thanks for all your posts and discussions during this financial unraveling. I've crossed posted on Mish's board several times, I hope a few posters have bookmarked your site. The format is nice to navigate with the "New Blog Posts" and the "Instapopulist" sections always handy.
Seriously, no one of any stature has been availed of an inside look at GS's books. Ideally, the GAO - or possibly now the bank examiners (or both) - should have been auditing GS.
Last time I checked, forget where now, but sometime in 2008 the BIS analysis suggested GS had an estimated $30 trillion derivatives exposure.
What Spitzer said truly should apply, legally speaking, as a bank holding company which operates as a super-sized hedge fund, GS should not be covered for any bailouts. The existing regulatory measures should apply - yet haven't really ever been applied to Goldman Sachs - neither when they were an investment firm, and especially not now since they've become a bank holding company - strange brew indeed!
“Do we want other people trying to emulate what they’re doing, perhaps not with the same skill or resources?” asked Arthur Wilmarth, a professor at George Washington University law school who specializes in issues related to banking. “Regulators ought to be concerned and say ‘Is Goldman making this money with any kind of reasonable prudence?’”
Reasonable prudence is the big question. They are still a bank holding company is so where are the regulators? Goldman Sachs is hedging that TBTF will help them again. FDIC debt guarantee program doesn't expire until 2012.
Robert, FYI, I tried to create an account, but my email was determined "invalid" and the door was closed. I think there is a problem with email validation. The CAPCHA being case sensitive is very difficult also.
They lose the equity in the house but can stay and pay rent. Doesn't quite make sense because if one can afford the rent they should be able to make the house payment.
will not happen (in my opinion):
1) Many of the largest mortgage servicers (Chase, BofA, Citi, Wells Fargo) are also the second mortgage holders. There is a conflict of interest. The second mortgages are practically worthless (40 cents on the dollar is very generous) and any loan mod decreases the value even more.
2) Banks are holding out for increase in housing prices. Good luck with this one. If they are this will be worse than a "lost decade".
3) This from Naked Capitalism: Wells Sells $600 million in distressed assets at 35 cents on dollar. Again, banks may be holding out for private deals like this one.
and the economy and had nothing to lose by standing up to the financial oligarchy. Geithner and Summers certainly don't fit that description.
This very obvious. I must be slipping with age.
Geithner/Summers are the best thing for the financial oligarchy (pretty obvious). Both Geithner/Summers will rely on multi- multi- million dollar jobs when they leave the government. So, they don't want to upset their future employers by being aggressive. They need to preserve the TBTF institution for their own personal gain when they leave the government.
A smaller more competitive less powerful financial sector means smaller compensation packages for them when they leave.
They need time to make sure that their statement from the other day was correct: "no exposure".
here some the lawsuits and there is quite a bit of evidence against the credit ratings agencies. I wonder if Sweden or Finland and so on will sue?
the past few days, Johnny. I have been processing the academic presentation that you pose to my real world understanding an area of the country that I know very well.
West Point is just across the state border from my home town. In fact, when I was a young pup, industry was vibrant in the area. We had Uniroyal, 2 West Point plants, Diversified Products, Ampex and several other industrial complexes. Now these once manufacturing giants lay barren. Jobs have somewhat been replaced by the nearby University, but most (as my brothers and I have) just left the area and there has been little growth in the area since then.
Yes, all those within commuting distance are very excited about the Kia plant - as they were about the Mercedes plant in Tuscaloosa and the Toyota plant in Huntsville. But, this is really just a small drop in the bucket compared to the industry that once thrived there.
One of my job relocations was to New England - where abandoned factories are refurbished into condos, malls, office complexes or just sit empty due to asbestos.
Upon the prior move to CT,I had a conversation with my Dad in which I relayed how disillusioned I felt to find out that Eli Whitney was from Norwich, CT - as he has semi-deity status in much of the South. My father said, "Of course, he was. That's where the manufacturing existed at the time." The next time I passed by one of the CT abandoned factory villages, I wondered if that was what was happening to my hometown.
So, to your point about whether to welcome foreign investment, it is unavoidable. I agree with seebert that if industry owners are abroad they have less vested in the community. Of course, the track record is not so great for those business owners who were part of the community.
Hmmm, between the Ranger school at Ft Benning, all those college kids, and 2 spectacular golf courses, maybe West Point would be a good place for a casino.
bankrupt by opening bell
Their competitors went out of business, and are probably hampered by bailout rules. It wouldn't be surprising if Goldman Sachs has more opportunities.
I'll admit all of their actions are heading this way, but the one thing I've been challenged on again and again is the why. I think I understand it's about hierarchical power structures, but hasn't the past 150 years in the United States proven time and time again that the flatter the hierarchy is, the more resilient and flexible the entire enterprise becomes?
-------------------------------------
Maximum jobs, not maximum profits.
If those "lawmakers" were either honest or not terminally ignorant (and often it's difficult to distinguish with them - although usually it's dishonesty), they would realize that the chronic speculation on Goldman Sachs' part is extraordinarily disruptive and detrimental to the economy of the US, and probably a number of other countries as well.
Rigged markets and speculation are the true economic killers. Again I would recommend and remind anyone who has yet to read this report to take a few minutes to peruse it.
Any potential solution is shot down as Economic Fiction.
I think that censorship will always destroy debate, in any forum. I'd rather see the gold bug spammers back than see this forum die. And shoot- I've learned a lot from people on this board who disagree with me- that's the entire point, isn't it?
-------------------------------------
Maximum jobs, not maximum profits.
I know there are a lot of readers out there because I see the web stats. But maybe people do not realize that anyone can create an account, logon and at least use the comment sections to have a real discussion.
I appreciate the references I think all here try hard to write about precisely this "structural malaise" of our economy.
The Economic Populist has become a regular read for me. The team here has a great grasp of our current dire reality.
The "New Economy" should be re-named, "101 Ways to Loot and Destroy the Middle-Class".
IMO the deflationary depression we find ourselves in is a result/symptom of the dismantling, destruction of this countries productive industrial/manufacturing base and the JOBS that it provided under the veil of Globalization and Free Trade over the past 30 years. When financial skimming morphs from gaming an economy to underpinning an economy, collapse cannot be far off. Just look at Iceland's situation.
Government Sachs is not going to rebuild this nations economic base, they will continue to loot this country of any remaining wealth and discard it's customers, taxpayer's and the middle-class whenever it becomes unprofitable.
Our current reality is not an "accident", it is the manifestation of ruthless greed, void of morals or social responsibility.
Thanks for all your posts and discussions during this financial unraveling. I've crossed posted on Mish's board several times, I hope a few posters have bookmarked your site. The format is nice to navigate with the "New Blog Posts" and the "Instapopulist" sections always handy.
2 Thumbs up...
article here.
Seriously, no one of any stature has been availed of an inside look at GS's books. Ideally, the GAO - or possibly now the bank examiners (or both) - should have been auditing GS.
Last time I checked, forget where now, but sometime in 2008 the BIS analysis suggested GS had an estimated $30 trillion derivatives exposure.
What Spitzer said truly should apply, legally speaking, as a bank holding company which operates as a super-sized hedge fund, GS should not be covered for any bailouts. The existing regulatory measures should apply - yet haven't really ever been applied to Goldman Sachs - neither when they were an investment firm, and especially not now since they've become a bank holding company - strange brew indeed!
Goldman Sachs VaR Reaches Record on Risks Led by Equity Trading
Here is what someone said in the article:
Reasonable prudence is the big question. They are still a bank holding company is so where are the regulators? Goldman Sachs is hedging that TBTF will help them again. FDIC debt guarantee program doesn't expire until 2012.
Goldman Sachs' profits were driven by trading - hardly a reliable source of revenue. So, if GS trading tanks will we bail them out again?
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