Comments for The rigger's log

Comment on Throw Granny to the wolves. Or the Vultures. by jchere

jchere — Fri, 20 Jan 2012 04:37:09 +0000

YES. It should be like the Social Security Trust Fund, carefully locked away, earning interest, constantly growing , safe, where no matter what happends, it will be there when you retire

Comment on The Debt: Who, What, When? by jchere

jchere — Thu, 12 Jan 2012 20:57:41 +0000

The point avoided is that we, the tax payers owe it to the holders and will NEVER repat it.

Comment on The (Dec 2011) Occupy Special Edition Capital Drain newsletter has gone out by Rick Drain

Rick Drain — Wed, 28 Dec 2011 03:35:11 +0000

Here’s an interesting retrospective summary:

“10 Ways the Occupy Movement Changes Everything

Many question whether this movement can really make a difference. The truth is that it is already changing everything. Here’s how.

by Sarah van Gelder, David Korten, Steve Piersanti
posted Nov 01, 2011″

http://www.yesmagazine.org/people-power/10-ways-the-occupy-movement-changes-everything

Comment on Moral Hazard and Too Big to Fail by Rick Drain

Rick Drain — Fri, 16 Dec 2011 22:44:06 +0000

I got an interesting question/comment from a reader, which others may also have wondered about.

Paraphrased: “Isn’t it true that back in the Clinton Administration the banks were pressured to make more sub-prime home loans?”

Great question, and a frequent one because some news channels have reported things more accurately than others.
Both the Clinton and Bush administrations wanted Fanny and Freddy, the Federal home loan guarantors, to encourage more loans to lower-income people. Some of those loans were “Sub-Prime”, usually because the borrowers had relatively poor credit or work history. That is NOT the same as telling the banks to make no-down loans, or no-doc loans, or all the other abuses of the mid-2000s.
By the way, any “pressured” loans from the Clinton years would have been six or more years old by the time things blew up– but what blew up initially was loans that were only a year (or less!) or two old.
Also, most of the loans that have been foreclosed were not sub-prime. They were prime. Once the crash and recession started, then lots of people lost jobs and homes, as you can probably see all around you in where you live.

So, back to what I said: no one made the banks lend on stupid terms. They did that because they were earning higher fees on the no- or low-doc and other sub-sub-prime loans, and they thought the bubble would never end and they’d get away with it.

Comment on Paradox Lost by Paradox Lost (2006) - Movie

Paradox Lost (2006) - Movie — Sun, 03 Apr 2011 09:26:06 +0000

Paradox Lost (2006) – Movie…

Paradox Lost is a Short, Comedy Movie of 2006 made in USA. Director: Ryan SuitsCast: Diana Heliotis, Ryan Suits, Colin T. Waters, Jesse Spielman, Kimberly Nogle, Catherine Kurtz, George Velesko, Katherine Lindquist…

Comment on Where we stand today, in context by Rick Drain

Rick Drain — Sat, 12 Jun 2010 00:00:52 +0000

The graphs here are snapshots from the day of the post. To see the current graphs (which show much more improvement!) go to the site’s Econ Charts page at http://www.longspliceinvest.com/econCharts.shtml

Comment on Too Big to Fail by Rick Drain

Rick Drain — Sat, 20 Jun 2009 23:47:04 +0000

Here’s another good article, from the New York Times.:

http://www.nytimes.com/2009/06/21/weekinreview/21dash.html

“If It’s Too Big to Fail, Is It Too Big to Exist?,” by Eric Dash, 20 Jun 2009.

quote:
” One dissenter within the administration — Sheila C. Bair, the chairwoman of the Federal Deposit Insurance Corporation — says the government must stamp out the notion that Washington will ride to the rescue if big banks run into trouble. Investors must understand that they will lose money even if the government has to step in, she says.

“The reality is there are investors and creditors out there that have relied on ‘too big to fail’ to make investment decisions,” Ms. Bair said. “We have to take this security blanket away.” “

Comment on Too Big to Fail by Rick Drain

Rick Drain — Sun, 07 Jun 2009 22:21:54 +0000

And lo it came to pass that other people and organizations were thinking the same thing: “If they’re “too big to fail,” then they’re too big to exist.”

You can add your voice to their campaign:
http://www.democrats.com/break-up-the-banks

Comment on Too Big to Fail by Rick Drain

Rick Drain — Wed, 01 Apr 2009 16:53:49 +0000

As it happens, someone had already thought this through in detail.

Five years ago Gary Stern, the president of the Federal Reserve Bank of Minneapolis, wrote a book about the problem and a prescription.

http://blogs.wsj.com/economics/2009/03/31/another-look-at-the-too-big-to-fail-problem/

The Bush administration, the then-Chairman of the Federal Reserve, and the Wall Street leaders still believed in the infallibility of markets, so they ignored him. And here we are.

Let’s hope his ideas get a fair and thorough examination this time around.

Comment on Congress and GM by Rick Drain

Rick Drain — Tue, 31 Mar 2009 02:17:27 +0000

And now Wagoner is gone, and the real promise of a drastic remake of GM hangs in the air. It’s sad for the GM community that GM had to lose 95% of its market value and its profits and a big chunk of its reputation (all during Wagoner’s tenure) to get here. We’ll see if there’s enough left to save.