Schwarzenegger to U.S.: State may need $7-billion loan – Los Angeles Times
The bad news just keeps on coming. How will this help the US overall? Surely this is taking the debt out of one pocket and putting it in the other.
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Just when you thought is was over…
Saturday, October 4th, 2008
The real story…
Friday, October 3rd, 2008“So we no longer have any money and were now perceived as a bad risk in the wholesale money markets, so none of the other banks will lend us any money, which they havent got in any case, because no one will lend them any money because everyones too paranoid about everyone else being a bad risk.
So Im afraid were going into liquidation, but that nice Mr Potter in town will give you 12 cents in the dollar for your money which I think youll agree is a pretty good return on a triple-A rated bond these days.”
The only good thing about times like this…
Monday, September 22nd, 2008…is that the comedy is good.
“You see, what happened is that we lent the money you gave us to Joe and the Kennedys and Mrs Maklin to buy houses with, and then we lent them some more money to buy a second property on a buy-to-let basis and a third rental property too and then we lent them some more money against the value of all the various properties that wed lent them the money to buy, so they could go on a nice holiday.
In fact the money youd deposited with us wasnt enough for all the money wed encouraged them to borrow, so we packaged up their mortgages and sold them on to some other people so that wed have more money to lend more people to buy more houses.
Are you with me?”
Seeing the future…
Monday, September 15th, 2008Next weekend on the political talk shows, someone will say “nobody foresaw this crisis”. It’s the same excuse used for the morgage crisis; and just like the morgage crisis, it’s untrue.
“The practice is very different, as Warren Buffett worked out years ago. His 2002 letter to his Berkshire Hathaway shareholders made headlines by condemning derivatives as “financial weapons of mass destruction”. The passage comprised only a couple of pages of the lengthy letter but read it again today – it is the best guide to understanding how Wall Street has arrived at today’s mess.”
Wall Street crisis: Is this the death knell for derivatives? |Business |guardian.co.uk
