Posts filed under “Bailouts”

Casualties of the Financial Crisis

Great graphic depicting the size of various bailouts around the globe, from 2007-08:

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click for ginormous graphic

1001bizwebglobal

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Excerpt:

"Barely a week after Europeans rebuffed American pleas to join in their bailout of the banking system, Europe now faces a financial crisis almost as grave as that in the United States — demonstrating how swiftly this contagion is spreading around the world.

In the last two days, governments from London to Berlin have seized or bailed out five faltering banks. In Ireland, where rumors of panicked withdrawals from banks spooked the stock market, the government has offered a two-year blanket guarantee on all deposits and bank debt.

Asia has been less buffeted by the turmoil, though a brief run on a bank in Hong Kong last week brought back dark memories of June 1997, when speculation against the Thai currency sparked a financial crisis that fanned rapidly across Asia, and later to Brazil and Russia.

Economists see a parallel between these two crises a decade apart: once creditors panic and begin to pull out their holdings, the underlying health of banks — or entire countries — no longer matters a great deal. In a global financial system, national borders are porous."

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Source:
The U.S. Financial Crisis Is Spreading to Europe 
MARK LANDLER
NYT, September 30, 2008
http://www.nytimes.com/2008/10/01/business/worldbusiness/01global.html

Category: Bailouts, Credit, Taxes and Policy

Byron Dorgan on the 1999 Financial Modernization Act

In 1999 Congress passed the Financial Modernization Act, which allowed banks, insurance companies and investment houses to merge. Many experts point to it as one of the causes of our current financial crisis. At the time, Byron Dorgan was one of the few senators to speak out strongly against the legislation. Looking back, his predictions in 1999 seem prophetic and, looking forward, his views raise more questions about the $700 billion bailout plan.

Video after the jump

 

Source:
Byron Dorgan’s Crystal Ball
Lagan Sebert
American News Project, Oct 01, 2008
http://americannewsproject.com/node/135

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Category: Bailouts, Video

Bailout Plan Open Thread

Category: Bailouts, Weblogs

We need to act quickly on the Bailout!

Category: Bailouts, Taxes and Policy

Stiglitz on Worst Case Scenario

Economist Joseph Stiglitz says everyone would be hurt if nothing is done

60_minutesstiglitz

"Worst Case Scenario"
      

Originally broadcast: 60 Minutes – Sun Sep 28,  7:00 PM ET      

Category: Bailouts, Credit, Derivatives, Economy, Video

House Votes Down Bailout Bill; Dow Down 716

Category: Bailouts, Markets, Trading

Ron Paul on the Bailout

Ron Paul schools the rest of the House on the Bailout bill

September 29, 2008 C-SPAN 

via CSpan Junkie

Category: Bailouts, Video

Market Votes Nay on Bailout Plan; Dow Off 330

http://www.youtube.com/watch?v=726Zf-zin-s

Category: Bailouts, Markets, Trading

What Lehman’s Collapse Would Have Wrought

Category: Bailouts, Credit, Derivatives, Federal Reserve, Taxes and Policy

Fed & Treasury Needs to Stop Targeting Asset Prices

Category: Bailouts, Credit, Federal Reserve, Real Estate, Taxes and Policy