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Source:
“You Can’t Drink Yourself Sober”: Financial Crisis Far from Over, Ritholtz Says
Aaron Task
Yahoo Tech Ticker, May 14, 2009 12:34pm EDT
http://finance.yahoo.com/tech-ticker/article/247879/%22You-Can%27t-Drink-Yourself-Sober%22-Financial-Crisis-Far-from-Over-Ritholtz-Says
In any great organization it is far, far safer to be wrong with the majority than to be right alone. —John Kenneth Galbraith
Asian currencies continue to sell off vs the $ on the heels of the news yesterday that South Korea said they will look into hot money inflows stemming from the $ carry trade and the Bank of Indonesia said they are looking into the foreign buying of bills. This follows the news a few weeks ago that Taiwan was limiting foreign deposit holdings and Brazil was taxing foreign inflow transactions. As I mentioned yesterday, we may have reached a short term pain threshold in terms of $ weakness and foreign countries are fighting back as they certainly won't wait for...
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May 15th, 2009 at 3:27 pm
“you can’t drink yourself sober” How come the only place I hear this sobering and true observation is here and Minyanville? Is everyone else still too drunk that the logic makes sense??!
The only problem BR that I see with your platform for which you interact with the world is too small. This web site, which is a special and valuable resource, is simply and eddy in the river of information. The book will help. But your face needs to be on a Kudlow-type show on a regular basis. If it isn’t, the world slowly forgets, marginalizes, and of course the loudest gongs will write the history of how they “held people’s hands” in the time of crisis and got people through it…
I think you’ve built something great, I can’t wait for Amazon to deliver the book, I’m sure FusionIQ is wonderfully successful, but to make that impact you need to be leveraged up even more in the media. Until then, we are all just a coalition of the willing…
May 15th, 2009 at 3:48 pm
[...] « Financial Crisis Far from Over, Ritholtz Says To US or not to US [...]
May 15th, 2009 at 4:22 pm
“You Can’t Drink Yourself Sober”
Well, I will keep trying.
(it’s Friday after all)
May 15th, 2009 at 5:19 pm
[...] Another fun interview with Aaron Task at Yahoo Tech Ticker: “You Can’t Drink Yourself Sober. . . “ [...]
May 15th, 2009 at 6:34 pm
[...] Here is why banks aren’t exactly lending by Barry Ritholtz [who just wrote the Bailout Nation] which I can’t wait to get and read [and YOU should too!]. This is the very reason why Robert Applebaum’s thought that canceling student debt will stimulate the economy is wrong. Robert doesn’t seem to live on the same Earth that the rest of us do and laws of this planet [maybe one day we'll stop calling it that R.I.P. Pluto] don’t apply to his ideas. Oh well, it is a good thing his idea is politically unattainable. [...]
May 15th, 2009 at 10:24 pm
JasRas Says “How come the only place I hear this sobering and true observation is here and Minyanville? ”
Maybe the same reason here and Minyanville was where you heard about the shit that has happened the last two years 3-4 years before it happened.
May 16th, 2009 at 12:39 am
Personally, I feel must more secure knowing all my money is going to the Money Centers. These folks don’t make the big bucks for nothing.
May 16th, 2009 at 12:52 am
Barry, it’s not that there isn’t demand for money, it’s that banks are being extremely conservative now and few people are qualifying. I tried to refi my mortgage recently but it’s a no-go because the broker says the banks are requiring 70% debt-to-equity to qualify me for refi on my 1st and 2nd. I was below 70% only recently, but now that home prices are plummeting and appraisers are actually doing their jobs again the pendulum swings the other way.
It’s good to see some sanity returning, and I’ll muddle on at my current rates. But I can only imagine how terrible this is going to be for people with ARM resets coming up, or those who are tired of being underwater on their mortgages.
It’s gonna be a long, hot summer I think.
May 16th, 2009 at 11:12 am
If you’ve ever had the fortune of idly debating economic systems with a Marxist or a real, honest-to-god communist, you probably had the part of the conversation where you point out all the failures of communism (Russia, Cuba, Angola, etc.) and they respond with: “Yes, but, those weren’t real communist systems, those were bastardizations of the ideal.”
That’s kind of a tough line to refute — cause how can it be disproved — except that if every time we mortal humans try communism it utterly fails, what different does it make if some perfect, non-human aliens can make it work?
It turns out, the tables have turned, and it’s the self-proclaimed free market economies that are in the death spiral, done in by their own excesses.
Of course, this can’t be an indictment of capitalism. Cause after all, America doesn’t have real capitalism.
No, see, we don’t have capitalism, we have corporatism (aha!). Or they say, how can you call our system capitalist, when we have a Federal Reserve, which sets the price of money. Or, how can you call it capitalism when the financial sector has thoroughly captured the public sector.
May 16th, 2009 at 11:25 am
Weekend at Bernie’s
HOW APPROPRIATE