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Tag Archives: crisis

The American people would like an explanation

Have a look at this video to get an idea of the true fire of democracy… Senator Jeff Merkley, of Oregon, uses his heart and soul to push back against the power of Wall Street… Kudos to Senators Merkley, Harkin, Levin, Dorgan, Cantwell, Lincoln, Kaufman, Whitehouse and all others who have taken to the floor […]

Kite flying

From FT Alphaville some comments from Tullett Prebon economist Lena Komileva on the similarities and differences between the growing Euro sovereign contengion and Lehman’s collapse… Basically she’s saying it’s an order of magnitude bigger this time… or maybe two orders of magnitude… ~~~ “…The current episode of the global crisis is similar to the crisis mechanism […]

Let the sunlight in…

Conservatives and progressives worked together to support Senator Sanders in his quest to have the Federal Reserve audited. Kudos to Senator Sanders. We took a big step forward  in reclaiming our nation today. Bloomberg reporting… ~~~ “The Senate approved an amendment to the regulatory-overhaul bill authorizing a one-time audit of the Federal Reserve’s emergency-lending programs, […]

Euro crush

From the brilliant graphics team at the New York Times… ~~~ “Banks and governments in these five shaky economies owe each other many billions of euros — converted here to dollars — and have even larger debts to Britain, France and Germany. Arrow widths are proportional to debt amounts.” ~~~ What is the solution? Haircuts… […]

Lehman 2.0

The global financial system is a tight web of connections. While the US Congress debates financial reform the Euro system is being shaken down by its weakest member Greece… In the financial crisis of 2007-2009 everyone was taken by surprise by “mortgage repayment” default risk… The assumption had always been that RMBS were sufficiently varied by […]

Is the next global crisis beginning?

It’s very helpful to see this chart. Data points like this show the extra risk that investors believe Greek debt represents. In September, 2008 when Lehman failed the global credit markets froze. Note how that impacted the the risk premium for Greek debt. FT Alphaville pointed to comments made by the Bank of France governor, […]

Dean Baker calls Greenspan testimony “silly”

Dean Baker, co-director of the Center for Economic and Policy Research, talks with Bloomberg about former Federal Reserve Chairman Alan Greenspan’s testimony to the Financial Crisis Inquiry Commission on his leadership of the central bank. And from the WSJ… ~~~ “Mr. Greenspan sought to lay blame for the crisis on international economic forces that were […]

Extend and pretend round II

Ross Levine and Glenn Loury of Brown University argue that the 2007-2009 financial crisis is repeat of the S&L crisis  “extend and pretend” treatment of bank solvency. Expect this to become a meme soon… cause it’s true… And another important critique of extend and pretend at ZeroHedge… a comparison to the Latin debt crisis and […]

Our English cousins lay it out…

The House of Commons Treasury Committee Ninth Report of Session 2009–10 Report, together with formal minutes Ordered by the House of Commons, to be published 22 March 2010 Too important to fail– too important to ignore Summary The banking crisis of the last two years resulted in government support for the sector around the world amounting to almost a […]

Lehman, AIG and repo… what an expensive mess…

More on Lehman, AIG and repo from Riski… I did want to point out that the Lehman Examiner (Jenner and Block) cost the estate $38 million dollars for their work… in contrast the Financial Crisis Inquiry Commission, which is tasked to examine the entire financial meltdown, has a budget of $8 million…. it is really shameful how […]