29 March 2009
19 March 2009
“You have the black hole of commercial real estate and that hasn’t happened yet,” said Mr Black in a wide-ranging interview on FT.com.
That's from a Financial Times article. It goes on to mention that the extra costs associated with this segment of the downturn could be as much as $2 trillion.Remember what I said?
17 March 2009
An internal memo from AIG was leaked (you can find it here) and in it they argue that they have to pay these retention bonuses because if they don't it's a cross-default on their part and they'll have to pony up billions more in payments to CDS counterparties. Are you effing serious! I've never even heard of a cross-default.
I think these assholes engineered it this way. How can we not pay these crooks to stay on and untangle the mess they've created to screw everybody over now? If these jerks are not paid they'll walk, and then you and I will be pumping in however many more billions to cover the cross-default payments! It's a lose-lose situation for the American taxpayer. You clever bastards!
13 March 2009
08 March 2009
But to my point. I bet those student loans she's repaying are government guaranteed, and I bet you that she probably couldn't have afforded college without government guaranteed student loans offering low interest rates. So where the hell does she get the gall to say that the government is rewarding underachievers and inefficiency? If she is such an achiever, as Rush tells her she is, she wouldn't need government guaranteed student loans to get through college. She could have toiled on her own and made her own success. But she chose to take the government handout, MY handout. You and I subsidized her education, and now she's going to criticize the assistance of others.
And on a side-note, buying a house right now is just stupid. Because when she get's laid off in the next year and can't afford her mortgage payment anymore it won't seem like such a smart decision to "refuse to participate" in this recession. And then she'll take the next government handout, a bail-out of her mortgage to prevent foreclosure and unemployment benefits.
Talk is cheap. Ideology is hogwash. What matters is incentives. I'm so sick of the "left" and the "right" and the "liberals" and "conservatives". They all talk a lot, but when it comes down to it their philosophies are hollow. Just an image. When it all comes down to the bottom line, people take what they can get. Costs and benefits are what matter. The rest is bull.
An excerpt from a NY Times article about President Obama:
Mr. Obama rode to the White House partly on his savvy use of new technology, and he has a staff-written blog on his presidential Web site. Even so, he said he did not find blogs to be reliable, citing the economy as one example.“Part of the reason we don’t spend a lot of time looking at blogs,” he said, “is because if you haven’t looked at it very carefully, then you may be under the impression that somehow there’s a clean answer one way or another — well, you just nationalize all the banks, or you just leave them alone and they’ll be fine.”
I think this is a bad policy. There are many bloggers offering analysis and opinion grounded on extensive knowledge of both economics and finance. I'm not saying that we should subscribe to any one econblogger's ideas, but in this situation more information is definitely better, and there is some high quality information available via the econblogs.