Free Republic
Browse · Search
Bloggers & Personal
Topics · Post Article

To: TigerLikesRooster
We have transparency in balance sheets - for every firm on the exchange

Can you help me with this, why did AIG Lehman Bros, Goldman Sachs FMae Fmac GM Ford Chrysler etc etc et al, all, all of a sudden develop into a crisis? I for one (and I appear to not be the exception to the rule) cannot comprehend (I can read it but that is about it) financials, was no one able to over the past 2 or 3 quarters not see these problems developing? One other question, just what did their respective Boards of Directors do during this same time frame?

10 posted on 11/21/2008 8:59:46 PM PST by Jolla
[ Post Reply | Private Reply | To 1 | View Replies ]


To: Jolla
It is like a domino. You are safe as long as your next neighbor starts to fall. Domino started last year with subprime. Everybody on the domino chain was busy rationalizing that the domino fall would not reach them, that it may be stopped mid-way and the crisis could be averted, as a few previous intervention by Fed or the government had done.

However, domino continued its fall, and by the first half of this year, it hit a major domino hub where chain reaction could spread much wider and faster. Domino spread beyond financial sector and move into real economy. Credit is being destroyed, banks stop lending.

All struggling business now starts to go under. Soon some healthy ones would be in danger.

You have to also consider that people in the know have tried ans are still trying to hide the true magnitude of the problem as long as possible, hoping to avert the one catastrophic crash, which can do great damage to their interest and the general economy, and secure some escape route for them, however unlikely it would be. For a long time, the market has not been transparent. It has gotten much worse in recent months. I am sure there are still so much going on behind the scene in strict secrecy.

16 posted on 11/21/2008 9:16:14 PM PST by TigerLikesRooster (kim jong-il, chia head, ppogri, In Grim Reaper we trust)
[ Post Reply | Private Reply | To 10 | View Replies ]

Free Republic
Browse · Search
Bloggers & Personal
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson