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The Everyman's Guide To The Credit Crisis
The Everyman's Guide To The Credit Crisis by Michael de Portu of the Prism Group LLC.
A must read
hat tip Ed
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ANGER NEVER SLEEPS
It is a rainy 53 degree day. Not the kind of day you want to be out on the street. Today, prisoner 348217 is no longer a prisoner, on the inside. Ten years is a long time for taking on a little risk with someone else’s money.
A cab pulls up to the curb outside the prison. A pretty blond-headed woman sitting in the back seat and wearing only a mink coat calls to him by name. Need a ride? She smiles. He moves into the taxi, thinking, he must know this woman.
No sooner had the taxi moved she jumps into his lap. She pushes his head back against the rest. She places the end of her tongue at the bottom of his neck while moving her left hand under his chin. Slowly she pulls her tongue up his neck. His conscience is absorbing every centimeter while his sub-conscience is trying to remember her.
She pulls up to his ear and in a soft whisper says I have been waiting years for this moment. She leans back, and while he is still looking up at the ceiling of the cab with his eyes closed, she plunges a 10-1/2 inch Bowie knife into his left chest. As his conscience mind watches his life rewind in fast forward, she flips back onto her can-can, taps the driver on the shoulder, says- I’ll get out here-, and hands him a 3/8 inch thick envelope.
As she is leaving the cab, his sub-conscious catches her silhouette in the light of the open door. Now it remembers her- he had her when she was a red-head.
Just a take-off on a very boring story line I read in a post somewhere this morning; just trying to keep it real.
Is she the reason he was in prison?
That sucked me right in.
Is there more?
http://www.youtube.com/watch?v=AYUmCj4yud4&feature=related
http://online.wsj.com/article/SB2000142405297020386320457434651295622734...
anon#35052,
Rove makes some good points about HR3200, the push to get it passed and other "campaign" tactics being used by the administration and Congress. However, I do believe it is disingenuous of him when he writes, "Mr. Obama's exaggerations, misdirection and efforts to divide Americans are becoming more obvious." It is disingenuous because it is painting "dividing Americans" as a party problem. Were it not disingenuous it might read something like, "The Democrats and the Republicans exaggerations, misdirection and efforts to divide Americans are becoming more obvious to some Americans." Just my four cents (inflation).
Thanks. Simplified:
http://docs.google.com/present/view?skipauth=true&id=ddp4zq7n_0cdjsr4fn
I'll take this version too.
Supertramp: ROFL!! I want the T-Shirt!
Excellent simplification, thank you.
Thank you. I laughed so hard it woke my wife up. She's not too happy with me right now. Oh well, "I fucked up." LMAO.
Excellent stuff. Did you make this?
No, only wish I was that smart and/or funny. Part of its brilliance is that fact that no one claimed authorship. Hmmm, makes me wonder if maybe its the work of Cornelius?
Another good one is http://www.crisisofcredit.com/
http://www.youtube.com/watch?v=AYUmCj4yud4&feature=related awsome guy, awsome speaker!! MUST WATCH....WATCH THE FULL VIDEO TO MAKE SENSE...
There is no such thing as a true financial crisis. People, whistle blowers and naysayers make it a crisis. These kinds of people are even worse than communist/socialist Democrats!
Why make waves when it makes the ride in the boat less pleasurable for everyone, including yourself?
I've made it a corporate-wide effort at UBS to eliminate whistle blowers. It's now what I do on a daily basis since my tax evasion clientele has evaporated because of the f-in IRS. At least I have a purpose again...
-- Phil
Phil is this really you?
http://www.time.com/time/specials/packages/article/0,28804,1877351_18773...
If this website were not so addicting to read, I would have UBS firewall it here on our corporate network. Blasphemy like ZH can be even more fun to read than the tabloids.
-- Phil
phil, you are good....tell us, did your good friend JM share any of that alaskan pelt?
Wendy would not let me within 20 feet of that woman. From 20 feet, she looks heavenly. Get any closer, you may lose a limb...
By the way, I heard that she shaves her pelt, if you find that interesting.
-- Phil
Niiiiiiiiisssssssssssse.
It's the "Telly Savalas" cut. Took a 48 inch twin blade Toro to do though, and reputedly one Mexican immigrant lost his life to the savage wounds she inflicted during the process. A replacement mower was quickly summoned, and the job completed in under an hour. Still. . . .
She's pretty tough...maybe a weed whacker.
Just the same I'd like to see if i was assured I wouldn't turn into a pillar of salt.
http://www.youtube.com/watch?v=AYUmCj4yud4&feature=related awsome guy, awsome speaker!! MUST WATCH....WATCH THE FULL VIDEO TO MAKE SENSE...
phil my man it is always a pleasure when you
drop into these low down places to bless us with
your wisdom....
i would take notes of what you say but i get the
feeling you might be imbibing too much liquid
refreshment before logging in....
also, do you smoke - and no i don't mean cigarettes....
and i don't even mean green shoots....
you know one of the best ways to stop whistle
blowers is to put bubble bath in their whistles....
DX will be voted off island. Bernanke will take all the blame, gov't will distance and reappoint. China must be content with heads rolling. They must take the hit. Totalitarianism helps soften the blow.
Can't make everybody happy and afterall, this is economic warfare. We export out, weaken currency, AND QE to support RE. Globalism may have to take one for the team.
Germany debased and defaulted. They were the techno-progressives and largest debtor nation last time. Japan's QE got absorbed by their prudent savings rich masses. No example there.
USA, no way. Palliatives are all that are left.
ccording to JP Morgan, if we don't let the banks deal in these carbon credits, the planet is going to warm more than normal. Sounds like a reasonable conclusion. What a joke.
my newest bookmarked finance website: finance news & finance opinions
"Must read" 177 pages???
Fark me! It's hard enough keeping up with ZH posts as it is.
That's the first thing I thought... LMAO.
This space-monkey shit is alot of work.
I thought we were just going to make soap :(
the proposed solution represents an overthrow of some of the heavies in the financial oligarchy, so must be taken with a grain of salt. of course, the regulators have had the ability to do what is proposed all along...i.e., forcing a realistic mark (until they lost it to the always-accommodating accountants). the authors are still looking to the government to solve the problem... kind of naive at this point, maybe . the gov still seems to be thinking the insolvent ones can "grow" their way out of their holes, if we can only get inflation going again. and of course the quickest way to get an inflation going is to have a hot war....
I hate to resort to violence, but I love to whenever the opportunity arises.
I stopped reading after the "blame Lehman" bullshit.
He should have sited St. Jude: the patron saint of lost but noble causes.
CHINA DOMINATES GLOBAL GOLD CRISIS
http://truthingold.blogspot.com/2009/08/china-has-become-600-pound-goril...
Not really an oprah fan but I am forced by the threat of being cut off from pussy so I am forced to watch. Anyway I thought this was interesting...."perhaps they didn't get the message that the 'recession is over'....
Enojoy those fat bonuses Goldman, BAC, JPM...you should all be proud....
http://www.oprah.com/article/oprahshow/20090416-tows-heroes-help-donate
It's so, © March 2009.
Enough Prologues.
You know what I learned from this treatise? When we design financial instruments which are so complex that their description makes a reader's (of above average intelligence) head hurt, the instruments are predicated on perpetual growth/appreciation, and then sell them to everybody and their grandmother without anybody watching or caring, we get what we deserve. Well, at least it confirms part of what I already believe.
I skimmed through all of it. The last ~50 pages is the appendix. It's a pretty thorough review but I didn't find anything hard hitting.
This "paper" is so sophomoric, so uninformed politically, that it is a COMPLETE waste of time. If Disney did a show on the financial crisis, the script would be this "paper." Complete idiocy.
anon 34998,
Not sure I understand the point of your post. The title of Tyler's posting of this paper is, after all, "The Everyman's Guide To The Credit Crisis." By title/definition wouldn't you then expect that, "this 'paper' is so sophomoric, so uninformed politically . . ."
http://www.businessinsider.com/harry-markopolos-cds-fraud-will-make-mado...
Markopolos gave a speech to 400 of the faithful at the Greek Orthodox Church in Southampton and predicted major scandals will soon be revealed about the unregulated, $600 trillion, credit-default swap market. "To put it in simple terms, it is like buying fire insurance policies from five different insurance companies on your neighbor's house and then burning down the house," he said.
actually that is a reasonably accurate explanation...
some of the banks are forcing credit events
especially on foreign loans either to collect the
payment or to possibly take control of the banks....
jpm did this recently to a former soviet state
bank on a loan which performing and quite
healthy....
bless markopolos in the name of the father, the
son, and the holy spirit....x
The dream of making the common man pay for the slaves of the wealthy man has arrived. The system has finally been set in equilibrium and is in fine shape.
This is cause for celebration; not contempt, derision, or self-loathing.
i scanned through the first 4 chapters. the 5th and all important conclusive chapter doesnt seem to draw directly and a smooth narrative consequence of the evidence put forth in the previous 4 chapters. there is a lot of jumping to conclusions.
I disagree with a number of the conclusions. one of the main thrusts of the final chapter is that mopping up this crisis , really just means mopping up the financial crisis, which in turn is just about making sure a handful of the top banking institutions that own most of the securitized tranches of mortgages, are somehow induced and or/coerced by government to wash themselves free of their dubiously priced debt. once the obstacle of clearing these madly unpriceable securities off the balance books is accomplished, these large banks can delare their losses and we can move forward and things will begin their long climb back to normalcy. the sooner the better, and the sooner, the less possiblity there is for a liquidity crisis to re-emerge and turn into something that can possibly result in an actual depression.
i think the author too easily brushes off the degenerating condition of small businesses in this country. the demise of CIT, the rise of household debt, the structural decline of service sector job that have been outsourced, and of course, the change in political climate that actually affects the real economy, via taxation, industrial policy, and the national and domestic financing of obligations that will cause a shift in foreign direct investment in the united states. finally he shrugs off 'decoupling' as irrelevant to the economy because it hasn't yet happened. the economy is far too complex an animal to merely explain that the financial crisis seems to have set it off and that once we mop up our finances vis-a-vis cleaning up banks' off balance sheet assets, that the economy is poised to get right back on track.
when studying the great depression, there is always the lesson about the 'permanent' loss of gdp growth that was never recovered. however, the observed change in this macro-indicator curve really represents a much greater story, a story which explains how financial panic steered this country off a cliff which it would not have recovered from if not for its financial/social/and economic flexibility in responding to WWII.
the u.s. has lost its flexibility. we are are a mature beauracratized state, with huge debt obligations overhanging us (ironically social security had its inception with out last great financial crises, whereas it is now seen as the problem not the solution.) and we are not heading into a war the outcome of which will favor us greatly. the financial arrangements that arive at the end of this crisis period (which could last over a decade) will once again be made to favor the winners of this mostly non-military conflict , except those winners will not be the u.s. , they will be the flexible un-leveraged nations such as the asian tigers, maybe japan, india, and perhaps china to an unpredictable extent.
the whole global political landscape, as well as the relatively skewed supply-demand balance for physical commodities going forward is completely difference that that after the great depression. the world , and america with it, have changed.
however the authors major point is well taken. there is still a huge mess to clean up, and we need to keep our eye on the ball before we go forward. if anything, the real difficult question he left unanswered is that if the government should be asked by the large banks for another straight bailout, how shoudl it respond. by the tone of the chapter, it seems he woudl respond, well it depends on how bad their financial situation is. but what he misses, is that dynamic politics will begin to play an ever increasing role in answering these questions, than any supposedly balanced inquiry coming exclusively from Ben Bernanke and T.geitner.
dynamic politics...do I need a gun or can this be done from behind the computer screen?
Look party poopers, it`s Fed day, today is a day for celebration. Get with it.
Kool and The Gang knows...
There's a party goin' on right here
A celebration to last throughout the years
So bring your good times, and your laughter too
We gonna celebrate your party with you
Come on now
Celebration
Let's all celebrate and have a good time
Celebration
We gonna celebrate and have a good time
It's time to come together
It's up to you, what's your pleasure
Everyone around the world
Come on!
Yahoo! It's a celebration
Yahoo!
Toto, I don't think we're in Kansas anymore!
http://www.youtube.com/watch?v=AYUmCj4yud4&feature=related awsome guy, awsome speaker!! MUST WATCH....WATCH THE FULL VIDEO TO MAKE SENSE..
ty?rant
–noun
1. a sovereign or other ruler who uses power oppressively or unjustly.
2. any person in a position of authority who exercises power oppressively or despotically.
3. a tyrannical or compulsory influence.
Loved the loony tunes ending, was that added by the website or MSNBC?
Pg 14
"so now we had a family of instruments that had an attractive interest rate, enhanced likelihood of prepayment within a foreseeable interval, and relative safety, when pooled, so long as either the home prices continued rising ....
Chinese proverb 2009: American finance need parental supervision
imagine a world where this generation passes on its values to the next
it would look like this ... http://www.youtube.com/watch?v=YF7EhwcwEj8
Chris Mathews video
having no sympathy with the tenor of these demonstrations, quite the contrary, I can still say honestly that Chris Mathews whom I have not watched in years is so icky and dickless in his attempt to provoke he makes the demonstrator look good and moderate.
sends a tingle up my leg.
Cheeky Bastard
Thanks for the link. ...the best and the worst, no? But in watching the thing can't help deep thinking ...the best for the world might be the destruction of ...(the rest unspeakable)
Mindreader.
Rove makes some good points about HR3200, the push to get it passed and other "campaign" tactics being used by the administration and Congress.
hat tip: finance news & finance opinions