patrick.net

MST,

You see, we actually agree on something. The bad things are caused by FIC and REIC that want to write their own regulations.

MST, time and events will prove our correctness.

MST,

I would say that the real problem was the rule allowed i-banks to increase their leverage to 30/1 in 2004, by decree of the Bush-appointed SEC chaired by Bush-strawman Christopher Cox. THAT was the real reason it went to hell.

That would not be a problem if those i-banks were allowed to fail.

Off topic; just venting.

If I hear of 401(k)'s being referred to as "savings," one more time..........

Didn't the people know they were playing the market? I have no pity.

If I hear of 401(k)’s being referred to as “savings,” one more time……….

Better than homes being referred to as "savings." :)

OMG, Nikkei extremely ugly, Hang Seng extremely ugly, it is going on 24x7 again.

Ben probably needs to cut 1.5% by tomorrow. He is not pumping fast enough, hopefully he will correct that mistake soon.

Nikkei reached 38,000 in 1990, and 18 years later, it is at 9695.

We will see a similar pattern with DOW in another 2 decades. Japan showed us the way.

I guess the Fed wants to bypass the banks and give money directly to companies.

I'm now afraid to ask: "What else can they (the government) do?"

Bap33, I already donated some money to Obama last week. If he asks, I'll say $100 of t is from you.

Did McCain say in tonight's debate that he's going to request another bailout on top of the bailout to purchase bad mortgages? Is he kidding, senile, or what? What exactly is he proposing?

RaiderJeff Says:

Did McCain say in tonight’s debate that he’s going to request another bailout on top of the bailout to purchase bad mortgages? Is he kidding, senile, or what? What exactly is he proposing?

There is no doubt he is senile. If you carefully observe his talking style and content, you can discern that he keeps repeating stuff over and over again.He clearly shows that most of his brain cells are either dead or frozen with old ideas.
There should be a new rule banning people with IQ less than 100 or age great than 70 from contesting in presidential races.

"...There should be a new rule banning people with IQ less than 100 or age great than 70 from contesting in presidential races."

And what about his running mate. Isn't she a piece of work. I just can't believe he would alienate conservatives even further by suggesting he would spend billions more to purchase bad mortgages. Didn't he notice that people around the country weren't too thrilled about the idea of a huge bailout? Now he's offering another bailout to fix a problem that should take care of itself?

McCain is really a horrible image to show the rest of the world, America is so short on talent that we need to vote for a somewhat incapacitated President?

He won't last through the first 4 years, especially given what he has to face. Stroke is a very big risk and there is no medicine for stopping that, you can only reduce the risk but there is no guarantee. When he responds to questions, the way he blinks bothers the hell outta me, it is a sign of his brain's functional decline. Reagan, alternatively, was in much better physical shape when he ran.

I am not comfortable with a senile old fart's finger is on the button. For that reason, I would rather vote for Palin, and have her pick another VP.

Peter P. says capitalism is the only thing that can work.
Is he kidding?
"For that reason, I would rather vote for Palin, and have her pick another VP."
There's another good idea: Vote for a total idealogue and hope her No.2 is less bad.
Does this blog have any useful ideas?

Hey, it is a puppet show anyway, so why bother choosing one candidate over the other?

As long as the next President won't get us into a nuclear warfare, or foolishly outsource the whole country, I am content.

If I am going to choose a clown, I might as well choose a hot woman so that when she opens her mouth, her stupid words can be overcome by her pretty face (and body).

The only useful idea is, get yourself diversified, both careerwise and moneywise. Do not see retirement in the US as a must.

RaiderJeff,

Indeed McCain did. I wonder exactly which incumbents this is going to make a certain crowd of people vote against.

justme,

I don't know. One of my local reps (Campbell, of Orange County) is a far right leaning conservative who voted in favor of the bailout. I emailed him to say his opponent will be getting my vote. His office sent back a response (probably a canned response), which tried to explain why the bailout was necessary. I didn't email his office back. Nevertheless, his message was more or less an excuse, and it didn't cause me to change my mind.

His office sent back a response (probably a canned response), which tried to explain why the bailout was necessary.

"There are no necessary evils in government. Its evils exist only in its abuses."

-- Andrew Jackson

Based on mccain's POW record, its clear that mccain is a very patriotic guy.There is no doubt, he would " try " to do all he can to improve the country.
The only problem : he is not smart enough to do that

moreover, he too old to learn anything new to enhance his decision making skills. He will eventually rely on others for his core decisions. Just like Bush relied on cheny !!

BTW, My dog is also very loyal to me and wants to do all it can for me.
The only problem : it does not have the brains.

From the International Herald Tribune:
"Consumer borrowing fell in August for the first time in more than a decade as U.S. households cut back sharply on their use of credit.

Economists are worried that consumer spending, which accounts for two-thirds of total economic activity, will decline"

About fucking time that consumer _spending_ caught up with consumer _earning_. Funny how none of the talking-heads on telly mention consumer earning.

Duke said:
The days of how-mucha-month are over. Everyone now knows that buying today means you will lose your 20% down payment AND be stuck for a very long time since you will not be able to sell.

Really? There still seems to be no shortage of complete retards around here who still are hoping for low interest rates to buy a house. I have given up trying to reason with these cretins.

I completely agree with your premise on why it is a lousy time to buy - just that I think it will take a few more months for the sheeple to turn.

MST said:
Throw the bums out. Right, Left, Center. Presidents one term (with the threat of a second?), House “members” maybe three, Senators maybe two, then out with the scoundrels.

I support term limits - one term in office, and one term in jail.

He will eventually rely on others for his core decisions. Just like Bush relied on cheny !!

So Palin will be the man behind the curtain.

RaiderJeff Says:
And what about his running mate. Isn’t she a piece of work.

I kept an open mind on this. Governor of Alaska, got some tough legislation going, seems to know how to get some results, outside the beltway candidate, etc. Besides, if she gets elected, it would validate my prediction about the Republicans getting a woman to the white house first (though I had someone like Mrs. Dole in mind at the time I said that).

Then I heard a speech she gave, and then saw the deer-in-the-headlights at the debate. Oy vey. Can we get Dan Quayle back?

Peter P Says:
He will eventually rely on others for his core decisions. Just like Bush relied on cheny !! So Palin will be the man behind the curtain.

Dick-less Cheney

NIKKEI -952.58 -9.38%

Sweetness. TOB, time to post that economist cover again. You may have to bring that out every day now.

I am fine with the current system, only that I believe that the voters are the problem.

We need a system in which the voters themselves have to score at least 100 on IQ test, and they actually can deal with more than one issue in their head. All eligible voters have to memorize at least 5 issues the candidates are rooting for.

There should be a new rule banning people with IQ less than 100 or age great than 70 from contesting in presidential races.

And no more boner pills for boomers!

OO Says:
Ben probably needs to cut 1.5% by tomorrow. He is not pumping fast enough, hopefully he will correct that mistake soon.

Ben will pretty much have to cut. In his October newsletter, Bill Gross has already ordered Bernanke to:
1. buy commercial paper (done today)
2. cut fed rate to 1%
3. co-ordinate a worldwide rate cut with other CB's

http://www.thesmokinggun.com/archive/years/2008/1007083aig1.html

Here is a copy of the AIG party invoice.

Neutron,

Any comments from Hank Paulson about this abuse of taxpayer money? I will be looking carefully for some immediate sign of leadership on this action of theft.

MST,

Barry Ritholtz of bigpicture blog fame has the following to say about the right-wingnut meme meme that Jimmy Carter and the CRA of 1977 is somehow to fault for the housing bubble and ensuing financial crisis:

From a speech back in 2004 comes this telling quote:
>

"One other thing I've done, is I've called on private sector mortgage banks and banks to be more aggressive about lending money to first-time home buyers. And the response has been really good. There's a lot of people in this -- our communities around the country that deeply care about the issue of homeownership, and they've been responsive."

- George W. Bush, U.S. President, March 26, 2004.

>

Its important to understand how this situation occurred in the first place, if we want to be able to fix it. Blaming the CRA and Fannie/Freddie is a total misunderstanding of how the problem occurred, and what we need to do to fix it now, and avoid doing it again in the future.

To repeat my prior arguments, the proximate cause of the Housing crisis were 1) Ultra-low rates; and 2) Abdication of traditional lending standards, thanks to 3) originators ability to resell mortgages for securitization purposes, and hence, 4) not have to worry about loan defaults.

The credit crisis was caused by 1) the above securitized mortgage paper, that was 2) rated triple AAA by Moody's and Standard & Poors, which then 3) Which was then "insured" by credit default swaps (CDS) -- the unreserved for, shadow insurance products 4) whose exemption was made possible by the Commodities Futures Modernization Act. That legislation exempted these derivatives from any supervision or regulation. The lack of reserve requirements is why there is now $62 trillion in CDS, many of which will never pay their counter parties the promised insurance.

If you are going to blame Fannie/Freddie/CRA, or George Bush or Barney Frank, you are missing the big picture.

Barry Ritholtz of bigpicture blog fame also had the following analysis that further links to a Newsweek article that talks about said meme:

http://bigpicture.typepad.com/comments/2008/10/subprime-suspec.html

Suffice to say that the right-wing spin machine is working overtime, and MST bought the argument rather uncrtitically.

"Those executives should be fired," Democratic presidential candidate Sen. Barack Obama said at a debate with Sen. John McCain on Tuesday, referring to the retreat participants. Obama also said AIG should give the Treasury $440,000 to cover the costs of the retreat.

But Eric Dinallo, superintendent of the New York State Insurance Department, said he could see the value of such a retreat under the circumstances.

"Having been at large global companies and knowing what condition AIG was in ... the absolute worst thing that could have happened" would have been for employees and underwriters in its life insurance subsidiary to flee the company.

"I do agree there is some profligate spending there, but the concept of bringing all the major employees together ... to ensure that the $85 billion could be as greatly as possible paid back would have been not a crazy corporate decision," Dinallo told the House committee.

I wish Roubini would stop predicting things will get worse. I wonder if he's a doomsdayer on a lucky streak, or if he just knows his shit and will call the bottom.

Obama also said AIG should give the Treasury $440,000 to cover the costs of the retreat.

440K is how many percent of 700B? My calculator has trouble displaying the infinitesimal result.

All those senators and congressmen voted in favor of the bailout should be fired.

Both Obama AND McCain are duds.

God save our Queen!

Dick-less Cheney

LOL!! Be nice.

when was the last time market didn't respond to rate cuts ?
I think its time to accept the reality that the market is at no return point.
700B was a waste of money.
Taking a hungry man to a buffet doesn't help if he is already dead !

http://wormseyevieweconomics.blogspot.com/