I'MMA LET YOU FINISH
go me. I first?
second?
when has Jim Cramer not been postal?
We're in ur Dollar...
Killing ur Value!
Who knows, who cares? If it troubles the elite, good.
Maybe they'll end up second-homeless.
imagine a mind like russell's developing from where his journey began....
"If it troubles the elite, good."
yeah - but they tend to take the great unwashed masses down with them.
I just want the Euro to crash so I don't have to cancel my trip to Europe.
Short-sighted and self-centered. but only for a moment.
yeah - but they tend to take the great unwashed masses down with them.
Uncle Blodge, Urban Teacher | 08.04.07 - 2:15 pm | #
On us pee-ons ?
Actually they tend to push the unwashed masses down the ravine in their place.
Many thanks for posting this, don't usually frequent the financial sites and would have missed this fur shur
I must remember to stop to shed a tear for the poor down-on-his-luck investment banker, unable to make his Beemer payments this month. *snif*
OMFG!!!
anybody's interested, the "Leadership Forum" with Dem candidates is being streamed Chez Great Orange Satan.
"Actually they tend to push the unwashed masses down the ravine in their place."
right - they lose their shirts some number of poor folks lose their ass.
Oh I wish there were an applause meter at YKOS
You mean I've finally been sprung from haloscan hell?
We must immediately nuke the Federal Resreve.
Wait a second!
The rich asking for a fucking bailout? Haven't they gotten enough federal assistance over the years?
Haven't they gotten enough federal assistance over the years?
smalfish,bikerider
Silly peasant! There is no such thing as enough!
/rich dood
Dammit!
Vista's fucking with my shit.
Silly peasant! There is no such thing as enough!
dooh nibor, to the rescue!
dooh nibor, to the rescue!
dirk gently, sociopathetic© | Homepage | 08.04.07 - 2:23 pm | #
Ntodd's non-blog ?
The impending stock market crash? The Democratic Congress and hippies will be entirely to blame, of course.
Unless Chimpy can stall it til 2009, then it will be the new President's fault.
This can only be good for Rethuglicans.
sheets
de smet, SD, about 30 miles to the west of where i'm at, was named after father de smet. native's called him 'black robe'... if you're still on this subject, anyway.
the town is also where laura ingall's wilder grew up and was the 'little town on the prairie' that she grew up in.
So Cramer says Bear Stearns needs to be quiet,
They need to be more measured and more clerical,
Then he proceeds to break into a riot
And scream and rant in ways beyond hysterical.
Cramer is a clown but the problem is gigantic, stupendous, mind boggling. I suppose there might be some rabbit they, the they being Wall Street and the Fed and the Treasury and the worlds Central Banks, can pull out of their hats to keep the Credit Bubble* inflated awhile longer.
The financial mania of the 80's and 90's was created in large part out of credit. The source of the credit being from outside the banking system. The market crash of 2001 was a chance to correct the excesses, Instead Greenspan and all politicians of all strips and the financial industry decided it would be better to put the Credit Bubble into overdrive.
The mortgage mania most know about. The gigantic excesses in all manner of 'Structured Finance' are less well know. The flood of dollars throughout the world which has made the few so rich is a con game, The biggest con game of all time. It was Ponzi finance. The most important point is that credit growth must contintue, ever faster.
Unfortunately as was bound to happen we now are at the point where credit availability is plummeting at the same time as demand for credit is abating.
Wall Street invented a method of converting high risk debt into AAA securities. There are 5 non financial major corporations with a AAA rating, amounting to $23 billion in debt. There are 37000 plus credit securitizations rated AAA amounting to, well I don't know, Maybe $30 TRILLION. Including many many mortgage backed securities which are still rated AAA and haven't been marked to market. Heaven and earth will now be moved to prevent impared financial assets from being market to market.
Even that won't save us however. The Fed can't reignite the mortgage market or the credit markets. Fannie May and the rest can't either. There are hilarious calls by even Dem politicians now for the GSE's to enter the mortgage market and sop up paper which nobody else now wants. They can't. They have been selling off their paper, to the Chinese Central Bank by the way, because their regulators demanded it. Since thousands of accountants have been working years not to try and make heads of tails of their financial statements, and they can't do it. Fannie Mae and Freddie Mac have combined holdings and guarantees of $4 TRILLION dollars of deteriorating quality. Backed up by $60 billion in equity. It's a joke.
I'll end my rant now
Cramer is especially peeved at Bill Poole, the prez of the St Louis Fed. Poole said recently that the Greenspan Put days are over. Poor Cramer. Boo-yah.
Oh boo-hoo-hoo! Our stupidity finally caught up with us! Save us oh government that we usually heap nothing but scorn on until we need something because we are selfish, short-sighted, ignorant man(and woman)-children!!!
I’m never comfortable with the idea of “yelling ‘fire’ in a crowded theater.” But Jim Cramer already did as much late this afternoon on CNBC. His “we’re in Armageddon” tirade (available at CNBC.com) was made moments after Bear Stearns’ CFO Samuel Molinaro offered a disconcerting assessment of market conditions during the company’s hastily called conference call: “I’ve been out here for 22 years, and this is as bad as I’ve seen it in the fixed-income markets.” A highly-aroused Mr. Cramer, volunteering to speak on behalf of Wall Street, called for the Fed to aggressively cut rates and “open the discount window.”
The Credit Market has Dislocated,
From Credit Bubble Bulletin, by Doug Noland. The bible of the alt view of the financial world.
Scroll 3/4 of the way down the page for the discussion. Same thing for ever weekly Bulletin. What is about to come isn't a surprise. Read from the archives starting in 1998.
http://www.prudentbear.com/archi...asp?
category=18
A good starting point might be 'If Minsky Were Alive Today' from 2000,
http://www.prudentbear.com/artic...ticles/show/
632
Or the classic, Financial Arbitrage Capitalism.
http://www.prudentbear.com/artic...ticles/show/
536
As always scroll 3/4 of the way down the page to get the commentary.
Read about the Minsky Moment and Ponzi Finance from blogger Russ Winter at The Wall Street Examiner.
http://wallstreetexaminer.com/bl...m/blogs/winter/
AS my currently super-rich brother says, capitalist like him take the risk, own the risk, and deserve the payoff. Except when there's really risk, apparently...at which time, me and you bail out the risk takers. I never understood this.
definitely creepy!
"AS my currently super-rich brother says, capitalist like him take the risk, own the risk, and deserve the payoff. Except when there's really risk, apparently...at which time, me and you bail out the risk takers. I never understood this."
That's called "Capitalism".
Marx wrote about all this shit ages ago, predicted it all, but he's just some crazy hippie commie so who cares what he had to say, right?
Jim Cramer gets horrendous ratings but the GE brass thinks he has "star quality" He looks like your average perv unsub on the "Criminal Minds" show on CBS
I just want the Euro to crash so I don't have to cancel my trip to Europe.
Short-sighted and self-centered. but only for a moment.
Jim | 08.04.07 - 2:15 pm | #
Sorry Jim but the financial irresponsibility of the twin deficits (budget and trade) guarantees a continuing decline in the dollar.
Man that is spooky.
Jim Cramer is a nut. At one time (pre 2001) reputedly a Democrat, he turned Republican in time to suck up to WINGERS Kudlow and Luskin.
He's also known as wrong-way Cramer. The very fact that he's calling the markets a catastrophe is good news.
Cramer is worried because his elite friends are invested in hedge funds, and they are worried. IMHO the moderatly rich (lower to mid upper class) will be hit the hardest this time, too many have been overpaying for high end real estate while investing their money in high yield junk.
Cramer should go fuck himself.
With a broom handle.
Sideways.
Whoa. Time to get out of high yield. Time to get out of investment grade.
Most of the risk is taken with other peoples money. If the brother in law works in brokerage or for a hedge fund or anywhere in the financial industry he is taking risks with other peoples money, which pays spectacularly well.
You have probably heard about hedge funds blowing up and people not being able to get their money out. There is a lot more of this coming. There is going to be a run on the hedge funds.
Risk itself has been banished to outer space apparantly. Everyone expects if there is trouble that the Fed or whoever will make things right. This is the core of the problem and there is a term for it; moral hazard. The so called Greenspan Put has made our entire economic structure one big experiment in Moral Hazard.
You know what this Cramer meltdown reminded me of for some reason today? The time Duncan referred to super moron Don Luskin as a stalker and Luskin tried to sue him. That was some funny stuff.
"Believing that fundamental conditions of the country are sound...my son and I have for some days been purchasing sound common stocks" -- John D. Rockefeller, October 29, 1929.
"Sure, who else had any money left?"--Eddie Cantor
Someone who makes money from giving advice to investors wants the rate lowered so the moribund market can heat up a bit. Who would have guessed?
"There was a President by the name of Hoover"
Makes me long for the old days.
Government is bad, you see - unless the big investment banks or Cramer's budds in the hedge fund biz need help. In that case, government is good.
Thanks Rapier. Great insight!
I don't see that guy much, and he's always a bit nutty when I have seen him, but that was really freaky. Is that unusual for him?
NOW I wish I hadn't stopped talking to my wingnut family and exfriends years ago. To whom do I get to say "I told you so!"? I can't win for losing. What's the point of being right when you can't rub someone's face in it? (Blog trolls don't count.)
I wonder if my prediction that Bush and Cheney won't leave office in 2009 will come true too. Well, Bush will leave when Cheney overthrows him or has him assassinated, but that's a change in form, not in substance.
Really good conversation here about credit crunch, and "should we be worried?"
http://dailykos.com/storyonly/20.../8/4/2341/
71736
Coked up maybe? I thought that was vintage 80s ... like the S&L crisis.
Thanks for the prudentbear.com tip. Could the gem below explain a few things?
http://www.prudentbear.com/artic...ticles/show/
632
According to Minsky, financial positions evolve from “hedge” (backed by ample and stable cash flows) to “speculative” and finally to “Ponzi” finance, first as expectations about future returns become increasingly optimistic, and later as expectations are disappointed or financial arrangements are disrupted.”
Quoting Minsky: “It can be shown that if hedge financing dominates, then the economy may well be an equilibrium seeking and containing system. In contrast, the greater the weight of speculative and Ponzi finance, the greater the likelihood that the economy is a deviation amplifying system…Over a protracted period of good times, capitalist economies tend to move from a financial structure dominated by hedge finance units to a structure in which there is large weight to units engaged in speculative and Ponzi finance.”
He's always postal, what the hell are you talking about Atrios?
Ominous and creepy, yes, I thought so too when I saw it last night. How seriously should we take this? Cramer was (literally) crying to the Fed for liquidity. I think it was the Kos diarist who pointed out that the Fed can't really lower interest rates because that would adversely affect international lending to the U.S.
So we're stuck in a kind of liquidity trap between those two forces. The only alternative -- and I've believed this must eventually happen -- is to inflate the currency. Because of this particular crunch, that might involve sectoring off the domestic banking industry in order to split the interest rate -- or by raising rates on medium- to long-term debt issued by the U.S.? Is it possible to do that independently of short-term rates?
Obviously I'm speculating. I'd be grateful if someone could enlighten me.
Fly-fornication Moscowitz, funny poem!
If you actually listen to the video, you would have heard that Cramer wasn't just asking for investment brokers to get bailed out. This is not an exact quote, but it is pretty close: "14 million people took out loans in the last 3 years, and 7 million of them got [very risky loans]. Those people are going to lose their homes." and "You can't get a loan today, unless you're rich like me."
There is no scenario in which the Wall Street elites get hammered and the country doesn't get hammered even worse. You people really need to move beyond the petty ressentiment that shouts "booyah!" because the rich are getting the shaft. The shaft you get will be much longer and thicker.
On the other hand, maybe Cramer is just wrong, and the Bush economy is just humming along "on steroids," as some have said.
How come no one here or where the video was posted at bigpicture.typepad.com/comments... seemed to notice the part about 7 million people are going to lose their homes? Cramer's apoplexy reached it's peak there, which, I suppose, speaks well of him.
With respect to people who have contracted debts which they can't service, I want to say that just because I concentrated on liquidity for the brokerage houses, does not mean that I am not worried about "regular" people. Obviously, if investment firms go out of business, many, many people, both "ordinary" and wealthy, get hurt, in various ways.
That's why I'm worried. Unless the crunch gets alleviated somehow, I don't know what kind of scenarios are possible.
With respect to millions of people losing their homes, I don't see how the Fed could help them directly. The borrowers have a contract to pay back their loans on a certain schedule. Now -- and this should surprise no one -- many of those borrowers are unable to make payments on the specified schedules.
Could Fannie Mae, or some other entity, buy up existing mortgages which are going into default, then make new loans on easier terms? Would that in turn cause problems in the international debt markets?
I'm not an economist and I just don't know the answers to these questions. It would be great if Duncan or some other knowledgeable person could lay out a few possible scenarios for how this will play out. I know that prediction is impossible, but should not be impossible to describe a few possible ways this could turn out, including pennies-on-the-dollar payback scenarios.
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