At Despair.com.
Posted on 03/10/2009 1:03:22 PM PDT by Ernest_at_the_Beach
WASHINGTON (MarketWatch) -- Federal Reserve Board Chairman Ben Bernanke stressed Tuesday that major financial institutions would not be allowed to fail given the fragile state of financial markets and the global economy.
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'It was the...collapse of banks and other institutions in late 1930 and early 1931 that made the Great Depression great.'
— Fed Chairman Ben Bernanke
(Excerpt) Read more at marketwatch.com ...
Bernanke: We need improvements to fair value rules
AND for the Global picture...
Resource material :
Posted this earlier ...Sunday::
BIS Quarterly Review, December 2008 ( Global Financial Information )and also this:
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The $700 trillion elephant (Gargantuan derivatives market weighs on all other issues)
I think the Global situation is driving much of this ....see links at post #21
At Despair.com.
It can be both. One deals with earnings in the quarter and one deals with capital to cover losses and make loans.
Let's say you make $100k per year and can save 20%. Your earnings are great. But you have guaranteed the student loans of your lazy kid who got a degree in psychology and has now defaulted on his loans which you have to pay. Without a payment plan, you would be wiped out even though you are making good money.
“too big to fail” the unintended cost of bank mergers. The economy of scale focused toxic assets in the few. Bank mergers should not have been allowed to arrive at this point. The bigs now should be broken up.
What’s that sucking sound I hear, Ernest?
Thanks Ernest!
I know he has some very vocal critics here and elsewhere...but he touched on a lot of things...including Mark to Market...causes of the financial crisis ....the huge amount of unregulated risk taking occurring with a huge inflow of capital from overseas...think subprime CD's....etc...
says you can buy it for $29.95.
Earlier, Fed. Chair. Ben Bernanke told the Council on Foreign Relations about reforms to the bank regulatory system and stated that regulatory overhaul is needed.
The Video clip ....bit over one hour
Chair. Bernanke's Address on Systemic Risk
and I may see text:
Yes....Indeed:
March 10, 2009
Financial Reform to Address Systemic Risk
Might be worthwhile to start a thread ....with just this text....
Thanks Ernest, good idea.
Financial Reform to Address Systemic Risk: Speech by Fed Reseve Chairman Bernanke ( Video link)
Why not? Heads they win. Tails the US taxpayers lose. You ought to be running AIG. If nothing else, you would earn your 8 figure bonus more than the yahoo collecting it.
No, not unintended at all. Institutions saw Long Term Capital Management get bailed out and they all scrambled to become at least as big so as to become “too big too fail.” This was an intentional strategy on the part of the commercial and investment banks and for the most part, it has paid handsomely.
Not at all unintended. You get more of what you subsidize. They should have let LTCM crash and burn. That would have sent a warning shot across the bow of every bank. Instead, they subsidized “too big too fail”, and very predictably, we got more of the same.
You get more of what you subsidize, and we did. Simple as that.
Oh for goodness sakes Bernenke is such a dumbass.
Everyone is pulling in different directions and no one is coming up with a reasonable solution to the whole mess, whatever reasonable solution would even mean at this point.
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