The Economy

Beagle · Post by **Beagle** » Tue Mar 11, 2008 1:33 pm

The stock market is very happy today following the Fed decision to loan the banks 200 Billion dollars.

Where is Greenspan when you need him? With oil prices going up, we may now be looking at a bad inflation of the economy and further weakening of the dollar.

Rudolph Hucker · Post by **Rudolph Hucker** » Wed Mar 12, 2008 4:21 am

Have they worked out yet wich is the financial institution believed to in danger of collapse and probably the reason for this liquidity increase?

And yes, it looks as if the US economoy is headed down followed by the dollar.

This is no cause for non-Americans to gloat, quite the reverse: although the US share of world trade is lower now, there will of course be effects felt worldwide.

Cash is King.

Post by **Minimalist** » Wed Mar 12, 2008 12:51 pm

I just love it how these "regulation-of-business-is-bad-let-the-market-do-its-thing" cocksuckers always have their hands out for a government bailout when that market sticks itself up their assholes.

There is an equation here...... 1 Bush = 1 Banking Crisis

Wonder why that is?

Beagle · Post by **Beagle** » Wed Mar 12, 2008 5:23 pm

Min,
US banks are heavily regulated. They are not part of the private enterprise system.

The bailout was engineered by the Fed., not the government.

http://en.wikipedia.org/wiki/Federal_Reserve_System

Great Britain has a banking crisis going on right now and has had one major bank federalized. We in the US are seeing a sub prime mortgage crisis going on that may help fuel difficulty internationally.

No banking crisis here yet.

Post by **Minimalist** » Wed Mar 12, 2008 6:37 pm

I think you are being somewhat optimistic, Beags.

john · Post by **john** » Fri Mar 14, 2008 8:28 pm

Beagle wrote:Min,
US banks are heavily regulated. They are not part of the private enterprise system.

The bailout was engineered by the Fed., not the government.

http://en.wikipedia.org/wiki/Federal_Reserve_System

Great Britain has a banking crisis going on right now and has had one major bank federalized. We in the US are seeing a sub prime mortgage crisis going on that may help fuel difficulty internationally.

No banking crisis here yet.

Beagle -

The Bear/Stearns workaround, anyone?

Pretty big bank.

So............

We use a Roosevelt law to loan money to somebody so we can loan money to somebody

so that

We can recapitalize the greedheads.

Yeah, right.

john

Beagle · Post by **Beagle** » Fri Mar 14, 2008 9:48 pm

http://money.cnn.com/news/newsfeeds/art ... RTUNE5.htm

NEW YORK -(Dow Jones)- Bear Stearns Cos. (BSC) is making history as the first investment bank to require a Federal Reserve bailout, indirectly through JPMorgan Chase & Co. (JPM), but its problems are far from over.

"Once this happens, no one will deal with them," said Joseph Rizzi, a veteran banker who focuses on risk-management. He equated the crisis of confidence to the one that caused Barings Bank to collapse after its massive trading scandal. "The remaining franchise value, customers and employees, will evaporate," he said.

In a conference call on Friday, Bear Stearns Chief Executive Alan Schwartz suggested that the company may be working toward a long-term solution, which some observers interpreted as a sale of the company.

You didn't say what you thought about the bailout John, but I would have let them go under. They got themselves into the mess and I wouldn't have bailed them out. As the article says, they will probably sell the company now, since there is no consumer confidence.

I'm just glad none of my tax dollars were involved.

Post by **MichelleH** » Sat Mar 15, 2008 5:59 am

I've got to agree with Beags here. Bear Sterns started having problems last August with the collapse of two of their major hedge funds. These were backed by 'bundled' sub-prime mortgage packages.

When the CEO comes out stating that the company just unraveled in 24 hours on a rumor, don't believe it. Somebody was not paying attention and got busted for it.

As for J.P. Morgan acting as a 'conduit' to save Bear Sterns, again, don't believe it. Sharks won't eat their own until that's all that's left. Morgan can come in and take over in a fire sale while eliminating some of the competition.

Wall Street and Washington want to where the market confidence went, well they continued to lie and got greedy.

The fallout of Bears Stern is a correction from the street telling them so. I don't believe this will be the last shake out before the market calms down.

Just my 2 cents worth....

Post by **MichelleH** » Sun Mar 16, 2008 3:30 pm

I hate to say I told you so, but this was just posted 25 minutes ago.....the sharks are now eating their own.

Bear close to announcing sale to JPMorgan

http://news.yahoo.com/s/nm/20080316/bs_ ... yWcgYE1vAI

Bear Stearns Cos Inc (BSC.N) is close to announcing a deal to sell itself to JPMorgan Chase & Co, (JPM.N) a person familiar with the matter said on Sunday, as the fifth-largest U.S. investment bank strives to save itself.

Now back to writing the script for the Audio Archaeology News......

Beagle · Post by **Beagle** » Sun Mar 16, 2008 8:19 pm

Good call Michelle.

Beagle · Post by **Beagle** » Mon Mar 17, 2008 6:01 am

http://www.france24.com/en/20080317-cur ... i=ECONOMIE

The current crisis rocking the markets and global economy could turn out to be the worst since World War II, former US Federal Reserve chairman Alan Greenspan said in remarks published Monday.

"The current financial crisis in the US is likely to be judged in retrospect as the most wrenching since the end of the Second World War," Greenspan said in a Financial Times commentary.

"It will end eventually when home prices stabilise and with them the value of equity in homes supporting troubled mortgage securities," he said, referring to the meltdown in the US subprime home loan market and subsequent massive losses for the banks holding the debt instruments.

Greenspan weighs in from the sidelines.

Rudolph Hucker · Post by **Rudolph Hucker** » Sat Mar 22, 2008 9:01 pm

A Bear Sterns fund manager with too mcuh time on his hands ......

A remake of Bohemian Rhapsody....

Is this the real price?
Is this just fantasy?
Financial landslide
No escape from reality

Open your eyes
And look at your buys and see.
I'm now a poor boy
High-yielding casualty

Because I bought it high, watched it blow Rating high, value low Any way the Fed goes Doesn't really matter to me, to me

Mama - just killed my fund
Quoted CDO's instead
Pulled the trigger, now it's dead
Mama - I had just begun
These CDO's have blown it all away

Mama - oooh
I still wanna buy
I sometimes wish I'd never left Goldman at all.

I see a little silhouette of a Fed
Bernanke! Bernanke! Can you save the whole market?
Monolines and munis - very very frightening me!
Super senior, super senior
Super senior CDO - magnifico

I'm long of subprime, nobody loves me
He's long of subprime CDO fantasy
Spare the margin call you monstrous PB!
Easy come easy go, will you let me go?
Peloton! No - we will not let you go - let him go Peloton! We will not let you go - let him go Peloton! We will not let you go - let me go Will not let you go
- let me go (never) Never let you go - let me go Never let me go - ooo

No, no, no, no, no, no, no, -
Oh mama mia, mama mia, mama mia let me go S&P had the devil put aside for me For me, for me, for me

So you think you can fund me and spit in my eye?
And then margin call me and leave me to die Oh PB - can't do this to me PB Just gotta get out - just gotta get right outta here

Ooh yeah, ooh yeah
No price really matters
No liquidity
Nothing really matters - no price really matters to me

Any way the Fed goes.....

Beagle · Post by **Beagle** » Fri Apr 25, 2008 10:12 pm

http://www.breitbart.com/article.php?id ... _article=1

The finances of many states have deteriorated so badly that they appear to be in a recession, regardless of whether that's true for the nation as a whole, a survey of all 50 state fiscal directors concludes.
The situation looks even worse for the fiscal year that begins July 1 in most states.

"Whether or not the national economy is in recession—a subject of ongoing debate—is almost beside the point for some states," said the report to be released Friday by the National Conference of State Legislatures.

The weakening economy is hitting tax revenue in a number of ways: People's discretionary income is being gobbled up by higher food and fuel costs, while the tanking housing market means people are spending less on furniture and appliances associated with buying a house.

The situation is grim in Delaware, with a $69 million gap this year, and bleak in California, with a projected $16 billion budget shortfall over the next two years, the report said. Florida does not expect a rapid turnaround in revenue because of the prolonged real estate slump there.

Some states are doing poorly. Map included with article. Local reports here say Tennessee is in good shape.

Forum Monk · Post by **Forum Monk** » Sat Apr 26, 2008 3:16 pm

I live in the rust belt where steel was king. Many of the mills in my area sold special high-strength alloys to the aerospace and automotive industries. The rise and far of these industries was reflected in the rise of fall of steel production. Usually a weak steel market would be a prime indicator of a failing economy and usually the steel industry was one of the last to recover.

But now something strange has happened due to the weak dollar. The auto industry has collapsed but instead of steel following suit, it is booming selling its products in Europe and the far east. Most of the surviving mills are now at full production and actually building new capacity. Imagine places like Italy, Germany, Spain, Japan and Korea buying american steel and steel prices have risen. This hasn't happened since the 1970s.

spacecase0 · Post by **spacecase0** » Sun Apr 27, 2008 10:27 am

there is also a lack of cargo containers in the USA, because so many people in other countries are buying products made in the USA.
things are being sold as fast as they can be shipped.
I think that it will all work itself out in a happy way.