Wall Street is back

The Economist ^ | May 11, 2013

[1rudeboy]

American investment banks dominate global finance once more. That’s not necessarily good for America

FOR a few tense weeks in 2008, as investment-bank executives huddled behind the imposing doors of the New York Federal Reserve, Wall Street seemed to be collapsing around them. Lehman Brothers filed for bankruptcy, Merrill Lynch collapsed into the arms of Bank of America. American International Group (AIG) and Citigroup had to be bailed out and the rot seemed to be spreading. Hank Paulson, the treasury secretary at the time, recalled in his memoir that: “Lose Morgan Stanley and Goldman Sachs would be next in line—if they fell the financial system might vaporise.”

Across the Atlantic, European politicians saw this as the timely comeuppance of American capitalism. Angela Merkel, Germany’s chancellor, blamed her peers in Washington for not having regulated banks and hedge funds more rigorously. European banks saw the crisis as their chance to get one up on the American banks that had long dominated international finance. Barclays quickly pounced on the carcass of Lehman Brothers, buying its American operations in what Bob Diamond, the head of its investment bank at the time, called “an incredible opportunity” to gain entry to the American market. Deutsche Bank, a German giant, also expanded to take market share from American rivals. The dominance that American firms had long exerted over global capital markets seemed to have come to an abrupt end.

Almost five years on it is Europe’s banks that are on their knees and Wall Street that is resurgent.

[Toddsterpatriot]

Fed Undertakes QE3 With $40 Billion Monthly MBS Purchases

Are you claiming the MBS the Fed is buying is toxic?

[Toddsterpatriot]

When it’s over, the Fed can just keep on printing money.

And you can keep avoiding the question.

[Toddsterpatriot]

No, you know that housing is in trouble.

What does that have to do with your MBS claim?

And you were working for some company bailed out; as you said before.

Wrong and wrong.

You're on a roll.

We all know people are struggling with house payments.

Some people. But many others have refinanced to ridiculously low rates and reduced their overall debt.

[Toddsterpatriot]

Anybody can look at the thread; you’re the only pro-bailout voice on the thread.

Correcting your errors makes me pro-bailout?

The Fed buying up more home loans isn’t the fix and you know it.

I wonder where I claimed it was?

So who are you defending here, Obama? The Fed? Bernanke?

I'll defend to the death, your right to make silly, error-filled claims.

[Toddsterpatriot]

Funny how you challenged several people on the thread.

Looking for proof of claims. You keep running from yours.

[expat_panama]

I still look in on it now and then.

Absolutely --me too and likewise w/ the NYT, BBC, & the LAT.  Sure they can turn the stomach but there are gems.  Kind of like picking though a full toilet for the accidently dropped gold ring but always worth the trouble.

[expat_panama]

you were OK with using the Treasury to bail everything out.

Help me out, I can't find where Todd said anything about using the treasury --on this thread.

[Toddsterpatriot]

I already told you how I felt about the Fed buying up housing debt.

Yes, you said the Fed was buying toxic debt. So prove it.

[Toddsterpatriot]

You already have my thoughts on it.

Yes, I already saw your silly claim about toxic debt.

Well, tell ya what, ping me back on the thread when The Fed gets all those loans paid back.

They're guaranteed......the opposite of toxic.