Comments on: The Bailout Game http://www.ritholtz.com/blog/2009/01/bailout-game/ Macro Perspective on the Capital Markets, Economy, Geopolitics, Technology, and Digital Media Sat, 21 Nov 2009 19:53:21 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: mudpuppy http://www.ritholtz.com/blog/2009/01/bailout-game/comment-page-1/#comment-139624 mudpuppy Fri, 16 Jan 2009 20:35:14 +0000 http://www.ritholtz.com/blog/?p=16254#comment-139624 DL Could it be that those on the inside, Obama, Bernacke, Pauslon etc, are scared shitless be what they see. With 62 trillion dollars in CDSs the fear that iff one of the dominoes fall they all fall. We are too far down the road for the invisible hand to work. Or as someone has said it turns out the invisible hand turned out to be a pick pocket. DL
Could it be that those on the inside, Obama, Bernacke, Pauslon etc, are scared shitless be what they see.
With 62 trillion dollars in CDSs the fear that iff one of the dominoes fall they all fall. We are too far down the road for the invisible hand to work. Or as someone has said it turns out the invisible hand turned out to be a pick pocket.

]]> By: dunnage http://www.ritholtz.com/blog/2009/01/bailout-game/comment-page-1/#comment-139457 dunnage Fri, 16 Jan 2009 06:52:32 +0000 http://www.ritholtz.com/blog/?p=16254#comment-139457 Supply-Side economics without make-up. Paulsen said give me a Trillion and I'm going to give it to these 9 guys, no strings attached. He got the $1,000,000,000 and gave it. Now any other give aways he was against -- free market, capitalism etc. \ When workers have not gotten a "real" pay increase in 40 years, what would you expect. Oh, I noticed they are going to have to "cram" some more Billions down BOA's throat. Supply-Side is rough at the top. Supply-Side economics without make-up. Paulsen said give me a Trillion and I’m going to give it to these 9 guys, no strings attached. He got the $1,000,000,000 and gave it. Now any other give aways he was against — free market, capitalism etc. \

When workers have not gotten a “real” pay increase in 40 years, what would you expect.

Oh, I noticed they are going to have to “cram” some more Billions down BOA’s throat. Supply-Side is rough at the top.

]]> By: ben22 http://www.ritholtz.com/blog/2009/01/bailout-game/comment-page-1/#comment-139387 ben22 Fri, 16 Jan 2009 00:15:59 +0000 http://www.ritholtz.com/blog/?p=16254#comment-139387 o.k. I waited until I got home to play the game, had a blast, I let every single company fail! o.k. I waited until I got home to play the game, had a blast, I let every single company fail!

]]> By: JZumbrun http://www.ritholtz.com/blog/2009/01/bailout-game/comment-page-1/#comment-139336 JZumbrun Thu, 15 Jan 2009 20:02:41 +0000 http://www.ritholtz.com/blog/?p=16254#comment-139336 Did nobody play the game? I suspect it makes a lot of interesting assumptions about the relationship between events. I played twice. If you save Bear and let Lehman fail it creates a huge disaster, but if you don't save Bear then it's no huge deal if you let Lehman fail. That's an interesting assumption, and I suspect the game is full of them. I placed 70th on the all-time leader board by letting Bear and Lehman both fail and then bailing out all the banks once TARP passed. The game apparently has some specific scenario in mind about what would have been the best way to handle the bailouts. Did nobody play the game? I suspect it makes a lot of interesting assumptions about the relationship between events. I played twice. If you save Bear and let Lehman fail it creates a huge disaster, but if you don’t save Bear then it’s no huge deal if you let Lehman fail. That’s an interesting assumption, and I suspect the game is full of them. I placed 70th on the all-time leader board by letting Bear and Lehman both fail and then bailing out all the banks once TARP passed. The game apparently has some specific scenario in mind about what would have been the best way to handle the bailouts.

]]> By: Greg0658 http://www.ritholtz.com/blog/2009/01/bailout-game/comment-page-1/#comment-139325 Greg0658 Thu, 15 Jan 2009 19:42:34 +0000 http://www.ritholtz.com/blog/?p=16254#comment-139325 and I'm not try'g to be a dork either ... I saw this full length tv show last night on PBS and TBPs info was all over in it I was so impressed I ordered a copy for our library http://www.pbs.org/wnet/ascentofmoney/featured/watch-full-program-the-ascent-of-money/24/ thanks to all and especially our editor BarryR and I’m not try’g to be a dork either …
I saw this full length tv show last night on PBS and TBPs info was all over in it
I was so impressed I ordered a copy for our library

http://www.pbs.org/wnet/ascentofmoney/featured/watch-full-program-the-ascent-of-money/24/

thanks to all and especially our editor BarryR

]]> By: bacdluckrush http://www.ritholtz.com/blog/2009/01/bailout-game/comment-page-1/#comment-139312 bacdluckrush Thu, 15 Jan 2009 18:52:40 +0000 http://www.ritholtz.com/blog/?p=16254#comment-139312 I wholeheartedly agree that things are so bad all you can do is laugh. I found this great compilation of vieos. It always cheers me up when I've got the economic blues.... <a href="http://tv1.com/playlists/104" rel="nofollow">http://tv1.com/playlists/104</a> I wholeheartedly agree that things are so bad all you can do is laugh. I found this great compilation of vieos. It always cheers me up when I’ve got the economic blues….

http://tv1.com/playlists/104

]]> By: usphoenix http://www.ritholtz.com/blog/2009/01/bailout-game/comment-page-1/#comment-139306 usphoenix Thu, 15 Jan 2009 18:29:07 +0000 http://www.ritholtz.com/blog/?p=16254#comment-139306 JPMorgan surprised everyone today I suppose. But the other shoe hasn't yet dropped. The more I read about the Bailout the more confused I become, or frustrated, or angry. Or all of the above. Transparency has to be brought to the table. Period. If the banks can't weather the publicity, they probably don't deserve to survive. Citi has certainly had their situation wallpapering the media. Don't these companies have an obligation to disclose their Bailout activities to shareholders? How could they not? And if so, how does it differ from public disclosure? BR: Why did you pull the Kohn hearing? Sure it was embarrassing to any self-respecting citizen, but it captured in a nutshell the essence of our incompetency. Oh, I get it. If people are angry now, just wait til they learn the Feds are shoveling taxpayer money to foreign banks. Especially ones connected with such luminaries as Phil Gramm. "Did you give $50B to Credit Suisse?" BOMBSHELL. Game over. I am reminded of a basic trial attorney rule: In court, never ask a question you don't already know the answer to. JPMorgan surprised everyone today I suppose. But the other shoe hasn’t yet dropped.

The more I read about the Bailout the more confused I become, or frustrated, or angry. Or all of the above.

Transparency has to be brought to the table. Period. If the banks can’t weather the publicity, they probably don’t deserve to survive. Citi has certainly had their situation wallpapering the media.

Don’t these companies have an obligation to disclose their Bailout activities to shareholders? How could they not? And if so, how does it differ from public disclosure?

BR: Why did you pull the Kohn hearing? Sure it was embarrassing to any self-respecting citizen, but it captured in a nutshell the essence of our incompetency.

Oh, I get it.

If people are angry now, just wait til they learn the Feds are shoveling taxpayer money to foreign banks. Especially ones connected with such luminaries as Phil Gramm.

“Did you give $50B to Credit Suisse?” BOMBSHELL. Game over.

I am reminded of a basic trial attorney rule: In court, never ask a question you don’t already know the answer to.

]]> By: Mannwich http://www.ritholtz.com/blog/2009/01/bailout-game/comment-page-1/#comment-139286 Mannwich Thu, 15 Jan 2009 17:20:44 +0000 http://www.ritholtz.com/blog/?p=16254#comment-139286 @DL: Yep, they've/we've (since we elected them to represent us in theory) been kicking the can down the road for too long now and it's all crashing down now. This country needs to grow up. We've been in disney-ification la-la land since the days of sunny old Reagan. @DL: Yep, they’ve/we’ve (since we elected them to represent us in theory) been kicking the can down the road for too long now and it’s all crashing down now. This country needs to grow up. We’ve been in disney-ification la-la land since the days of sunny old Reagan.

]]> By: DL http://www.ritholtz.com/blog/2009/01/bailout-game/comment-page-1/#comment-139285 DL Thu, 15 Jan 2009 17:17:50 +0000 http://www.ritholtz.com/blog/?p=16254#comment-139285 Mannwich @ 12:12 Yeah, I suppose you're right. That, and the fact that politicians like to put off the pain as far into the future as possible. Mannwich @ 12:12

Yeah, I suppose you’re right. That, and the fact that politicians like to put off the pain as far into the future as possible.

]]> By: Mannwich http://www.ritholtz.com/blog/2009/01/bailout-game/comment-page-1/#comment-139282 Mannwich Thu, 15 Jan 2009 17:12:53 +0000 http://www.ritholtz.com/blog/?p=16254#comment-139282 @DL: Because Wall Street is where the campaign money is......Congress and Wall Street on same gravy train. Until that train crashes, this won't end. @DL: Because Wall Street is where the campaign money is……Congress and Wall Street on same gravy train. Until that train crashes, this won’t end.

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