Comments on: How to Repair a Broken Financial World http://www.ritholtz.com/blog/2009/01/how-to-repair-a-broken-financial-world/ Macro Perspective on the Capital Markets, Economy, Geopolitics, Technology, and Digital Media Sat, 21 Nov 2009 16:15:53 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: batmando http://www.ritholtz.com/blog/2009/01/how-to-repair-a-broken-financial-world/comment-page-1/#comment-137520 batmando Mon, 05 Jan 2009 18:37:11 +0000 http://www.ritholtz.com/blog/?p=15054#comment-137520 Wunsacon - My questions exactly. Was looking/hoping for responses from some of the more insightful commenters hereon. Wunsacon -
My questions exactly. Was looking/hoping for responses from some of the more insightful commenters hereon.

]]> By: steward84 http://www.ritholtz.com/blog/2009/01/how-to-repair-a-broken-financial-world/comment-page-1/#comment-137491 steward84 Mon, 05 Jan 2009 16:46:49 +0000 http://www.ritholtz.com/blog/?p=15054#comment-137491 My favorite observation of the entire piece is this quote from the op-ed, referring to government's attempt at restoring confidence in the system: 'When you shout at people “be confident,” you shouldn’t expect them to be anything but terrified.' My favorite observation of the entire piece is this quote from the op-ed, referring to government’s attempt at restoring confidence in the system:

‘When you shout at people “be confident,” you shouldn’t expect them to be anything but terrified.’

]]> By: dunnage http://www.ritholtz.com/blog/2009/01/how-to-repair-a-broken-financial-world/comment-page-1/#comment-137414 dunnage Mon, 05 Jan 2009 02:14:03 +0000 http://www.ritholtz.com/blog/?p=15054#comment-137414 As far as Policy. One way has always been used and always will be used: throw public money at the problem. The only question is where. Governments, Kings, Queens, and Dictators have no other tools, or inclinations for that matter. As far as Policy. One way has always been used and always will be used: throw public money at the problem. The only question is where. Governments, Kings, Queens, and Dictators have no other tools, or inclinations for that matter.

]]> By: dunnage http://www.ritholtz.com/blog/2009/01/how-to-repair-a-broken-financial-world/comment-page-1/#comment-137412 dunnage Mon, 05 Jan 2009 02:08:49 +0000 http://www.ritholtz.com/blog/?p=15054#comment-137412 Would you rather be confused and wrong or simply wrong? The CIA did not provide bad info on WMD. They said they did not exist and Iraq was not a problem -- then under pressure they lied. Powell lied at the U.N.. I watched him show two grainy pictures and tell a stupid story. What did you see? So Paulson -- confusing? hell no. He demanded a trillion dollars to give as he pleased -- no questions now or later. So he gives a few hundred billion to friends -- did he expect them to loan the $. No. Does he expect them to soon loan the money. No. He showed that the gov was behind the Big 9 Sponges. Great for perception cause what the hell else do you do when you know they are totally underwater. Besides his buds could use the cash. Yes, I can imagine the fight they put up. Beyond this, does Paulson know anything we don't know -- hell no, the guy got us into this mess, his job is done. Oh, and look at the new blood in the White House. Who are those guys? Would you rather be confused and wrong or simply wrong? The CIA did not provide bad info on WMD. They said they did not exist and Iraq was not a problem — then under pressure they lied. Powell lied at the U.N.. I watched him show two grainy pictures and tell a stupid story. What did you see?

So Paulson — confusing? hell no. He demanded a trillion dollars to give as he pleased — no questions now or later. So he gives a few hundred billion to friends — did he expect them to loan the $. No. Does he expect them to soon loan the money. No. He showed that the gov was behind the Big 9 Sponges. Great for perception cause what the hell else do you do when you know they are totally underwater. Besides his buds could use the cash. Yes, I can imagine the fight they put up. Beyond this, does Paulson know anything we don’t know — hell no, the guy got us into this mess, his job is done. Oh, and look at the new blood in the White House. Who are those guys?

]]> By: Graphite http://www.ritholtz.com/blog/2009/01/how-to-repair-a-broken-financial-world/comment-page-1/#comment-137399 Graphite Sun, 04 Jan 2009 23:49:38 +0000 http://www.ritholtz.com/blog/?p=15054#comment-137399 "The whole world is increasingly morphing into a centralized command economy. Questions… 1. - Where can I take my marbles? Agricultural commodities and precious metals?" Buy a farm in some corner of the world where no army will ever care to fuck with you. Bring lots of guns and carry them with you at all times. This is going to be soooooo much better than laissez-faire, you guys! “The whole world is increasingly morphing into a centralized command economy.

Questions…

1. – Where can I take my marbles? Agricultural commodities and precious metals?”

Buy a farm in some corner of the world where no army will ever care to fuck with you. Bring lots of guns and carry them with you at all times.

This is going to be soooooo much better than laissez-faire, you guys!

]]> By: Bruce in Tn http://www.ritholtz.com/blog/2009/01/how-to-repair-a-broken-financial-world/comment-page-1/#comment-137380 Bruce in Tn Sun, 04 Jan 2009 21:28:36 +0000 http://www.ritholtz.com/blog/?p=15054#comment-137380 Well, I don't know what all the fuss is about. Mr. Luskin today says the recession is already over...(see SmartMoney)...so I thought I'd post this little gem from August.. http://www.smartmoney.com/investing/stocks/Think-Were-in-a-Recession-Head-to-Disneyland-23631/ Think We're in a Recession? Head to Disneyland (The fellow who played Goofy was sick, and Don was doing a little moonlighting...) Well, I don’t know what all the fuss is about. Mr. Luskin today says the recession is already over…(see SmartMoney)…so I thought I’d post this little gem from August..

http://www.smartmoney.com/investing/stocks/Think-Were-in-a-Recession-Head-to-Disneyland-23631/

Think We’re in a Recession? Head to Disneyland

(The fellow who played Goofy was sick, and Don was doing a little moonlighting…)

]]> By: Mark E Hoffer http://www.ritholtz.com/blog/2009/01/how-to-repair-a-broken-financial-world/comment-page-1/#comment-137379 Mark E Hoffer Sun, 04 Jan 2009 21:22:37 +0000 http://www.ritholtz.com/blog/?p=15054#comment-137379 wunsa- w/this: "That runs the risk of allowing the government to sponsor the papers it likes and not the papers it dislikes.)" forget the Fact that they're Already doing it.. The MSM will assure you that: "That could Never happen...too many 'people' would know, 'someone' would talk", etc., et al., ad infi.. wunsa-

w/this: “That runs the risk of allowing the government to sponsor the papers it likes and not the papers it dislikes.)”

forget the Fact that they’re Already doing it..

The MSM will assure you that: “That could Never happen…too many ‘people’ would know, ’someone’ would talk”, etc., et al., ad infi..

]]> By: Che Stadium http://www.ritholtz.com/blog/2009/01/how-to-repair-a-broken-financial-world/comment-page-1/#comment-137374 Che Stadium Sun, 04 Jan 2009 20:40:15 +0000 http://www.ritholtz.com/blog/?p=15054#comment-137374 @Wunsacon: What's so "overbroad" about that statement? I was always very skeptical of the notion that capital injections for banks would increase lending. The only plausible way to make that happen would be to provide the capital to small banks that have meaningful legal lending limit constraints. Those banks would have the highest marginal propensity to lend, but conversely those are the banks where any capital injection would be most potentially dilutive. @Wunsacon:

What’s so “overbroad” about that statement?

I was always very skeptical of the notion that capital injections for banks would increase lending. The only plausible way to make that happen would be to provide the capital to small banks that have meaningful legal lending limit constraints. Those banks would have the highest marginal propensity to lend, but conversely those are the banks where any capital injection would be most potentially dilutive.

]]> By: wunsacon http://www.ritholtz.com/blog/2009/01/how-to-repair-a-broken-financial-world/comment-page-1/#comment-137373 wunsacon Sun, 04 Jan 2009 20:27:57 +0000 http://www.ritholtz.com/blog/?p=15054#comment-137373 "Editing"...Sorry, forgot to remove that first, overbroad statement. That was just my reaction to reading some more of the bailout/payout news this morning. (Apparently, someone's trying to get government money for a newspaper. That runs the risk of allowing the government to sponsor the papers it likes and not the papers it dislikes.) “Editing”…Sorry, forgot to remove that first, overbroad statement. That was just my reaction to reading some more of the bailout/payout news this morning. (Apparently, someone’s trying to get government money for a newspaper. That runs the risk of allowing the government to sponsor the papers it likes and not the papers it dislikes.)

]]> By: wunsacon http://www.ritholtz.com/blog/2009/01/how-to-repair-a-broken-financial-world/comment-page-1/#comment-137372 wunsacon Sun, 04 Jan 2009 20:23:53 +0000 http://www.ritholtz.com/blog/?p=15054#comment-137372 The whole world is increasingly morphing into a centralized command economy. Questions... 1. - Where can I take my marbles? Agricultural commodities and precious metals? Oh, also, let me repost a couple of questions from a less-read thread: 2. - If bond prices fall, will money managers have to “rebalance” away from equities every month-end? 3. - Remember Bernanke’s 2002 speech? Doesn’t he say he can purchase Treasuries in order to keep the yields low, as was supposedly done in the 1950’s? Won’t that hurt TBT investors? Thoughts? The whole world is increasingly morphing into a centralized command economy.

Questions…

1. – Where can I take my marbles? Agricultural commodities and precious metals?

Oh, also, let me repost a couple of questions from a less-read thread:
2. – If bond prices fall, will money managers have to “rebalance” away from equities every month-end?

3. – Remember Bernanke’s 2002 speech? Doesn’t he say he can purchase Treasuries in order to keep the yields low, as was supposedly done in the 1950’s? Won’t that hurt TBT investors?

Thoughts?

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