Comments on: Stress Test Zombies: Not Too Big To Fail? Tough Tootsies Little Banks!

By: John_aka_bozo

John_aka_bozo — Sat, 14 Mar 2009 19:29:37 +0000

Re: that the judgment of the single party state called Washington is to simply hide the problem under an ever-widening public TARP

Re: And two, the policy of subsidizing the bond holders of the largest banks is unworkable politically and must eventually also be changed to conform with domestic political reality

This is where the story has a conflict. The reality is that the peasants are NOT part of the politics of `mmmrrca. So, the “unworkable politically” part is totally bogus. It’s COMPLETELY workable, and IS working right now! Oh sure, they (the peasants) might be a bit pissed off at TARP (but, to the average `mmmrrrcan peasant – TARP sounds allot lot Tart, which might mean those deamoncrats are up to no good helping those fornicatin’ harlots again!!) So, the insiders will be happily looting the government – in the open, in public – until it is bone-dry and the peasants will go about their psychotic lives of being lead around by the nose by the likes of Faux News. (Look, over there, one of “those welfare queens” got your “hard earned tax money”. See, SEE!, this bail-out is going to THOSE PEOPLE. YOU FIGURE IT OUT).

The REAL `mmmrrrcan peasants are dumber than dirt. And “their government” proves it, every day.

By: wunsacon

wunsacon — Sat, 14 Mar 2009 14:55:50 +0000

“TOO BIG TO STRESS” — Any bank that’s TBTF is TBTS!

By: bonghiteric

bonghiteric — Sat, 14 Mar 2009 12:20:30 +0000

@ottobvs,

1. Now we are at a point where there are few solutions but to change accounting rules? This was politically shot down months ago, now there appears to be the will to do so.

2. The concerted effort by the banks this week to report two month’s of earnings before taxes and w/off’s smacks of desperation and smells very Thainy. They will be back.

3. Plenty more resets coming = more losses

4. Eventually the last person standing not bleeding will be the creditors. By this time it won’t be lost on many.

By: Chris Whalen

Chris Whalen — Sat, 14 Mar 2009 09:31:23 +0000

Yeah, I am frustrated with our supposed leaders. None of them are truly free agents, able to do the public’s business. Geithner, Bernanke and the rest are slaves to the system and cannot suggest solutions that would disenfranchise their political sponsors. Bob Rubin and the Goldman Boys are still pulling the strings here, but the rot is so deep that resolution will be the eventual outcome. As my friend Alex Pollock likes to remind me, the losses have already occurred, it’s just a matter of when to recognize them.

By: Transor Z

Transor Z — Sat, 14 Mar 2009 03:09:14 +0000

@autobus:

You mean trade wars like those produced by the economic downturns in 80-83…

Yes. The U.S. imposed quotas on Japanese auto imports in the early 80s — FAIL

By: Mark E Hoffer

Mark E Hoffer — Sat, 14 Mar 2009 02:05:11 +0000

otto goes w/: “You mean trade wars like those produced by the economic downturns in 80-83, 90-91, and 2001-02?….”

Yeah, I’ll mean that. Japan Inc., Taiwan, S. Korea, the rest of the Rain-Forest demolishing “Asia Tigers”, China, and their “Brown Cloud”, surely, they’ve been in a “Trade War”, (uni-/tri-)lateral -style all through that time frame, including those ‘downturns’..We’ve seen “Protectionist” measures, as political sops, thrown in for good measure, as well..

and, as antidote to otto’s BS: http://georgewashington2.blogspot.com/2009/03/why-patient-is-not-getting-better.html

By: philipat

philipat — Sat, 14 Mar 2009 01:06:39 +0000

Isn’t this just semantics? Either way, the taxpayer will have to cash the trash shorterm if the financial system is to recover. And don’t forget this actually first started in March 2007, 2 years ago. The VIX closed still above 40 and Libor is back up again. So where’s the alternative solution?

Call me Bjorn perhaps but Sweden came out of it all quite well. But it’s different this time?

By: rktbrkr

rktbrkr — Sat, 14 Mar 2009 00:28:08 +0000

If prices are down 40% in the bubble states with the big banks in various forms of moritoria what will it be like when they start liquidating their huge shadow inventory? The big banks wrote over 50% of the mortgages. Will they wait til April 1st? Ken, Jamie and Vikram will say the 1Q losses were unexpected and unimaginable!

The US borrows from China at 3% to lend to these banks at 1% to gouge their customers at up to 29.99% and then the US taxes us to pay for the shortfall from borrowing at 3% to lend at 1%.

By: ottovbvs

ottovbvs — Sat, 14 Mar 2009 00:23:29 +0000

Transor Z Says:

March 13th, 2009 at 7:43 pm
@autobus:

Thanks for pointing out the error of my ways earlier. I was just parroting comic book wisdom that says economic downturns tend to produce protectionism and trade wars.

……….You mean trade wars like those produced by the economic downturns in 80-83, 90-91, and 2001-02?….That’s the problem with parroting comic book wisdom, it bears little relation to reality….And I don’t believe in quotas in trade or trading riffs even it it causes problems for the limp wristed!

By: Transor Z

Transor Z — Fri, 13 Mar 2009 23:43:22 +0000

@autobus:

Thanks for pointing out the error of my ways earlier. I was just parroting comic book wisdom that says economic downturns tend to produce protectionism and trade wars.

P.S. Maybe a self-imposed quota on your part per thread might be a good idea. I’m getting carpal tunnel rolling the mouse wheel past all of your posts. Thanks again.