Runnin' Scared...

[GRG55]

Either that or he's as two-faced as they come. Just about fell out of my chair laughing when I read this.

Seems a tad late, doesn't it? Or am I missing something?

...``For market discipline to be effective, it is imperative that market participants not have the expectation that lending from the Fed, or any other government support, is readily available,'' Paulson said...

more...

[metalman]

Re: Runnin' Scared...

Either that or he's as two-faced as they come. Just about fell out of my chair laughing when I read this.

Seems a tad late, doesn't it? Or am I missing something?

...``For market discipline to be effective, it is imperative that market participants not have the expectation that lending from the Fed, or any other government support, is readily available,'' Paulson said...

more...

what he meant was...

"For market discipline to be effective, it is imperative that market participants not have the expectation that lending from the Fed, or any other government support, is readily available, present company excepted,'' Paulson said at a speech before the group of bankers.

[ocelotl]

Re: Runnin' Scared...

what he meant was...

"For market discipline to be effective, it is imperative that market participants not have the expectation that lending from the Fed, or any other government support, is readily available, present company excepted,'' Paulson said at a speech before the group of bankers.

:eek: ¿99.25% APR? ¿Would anyone be that desperate?

Also, on one of my web mail boxes, I'm beginning to get "We buy your House" messages, along with the 3 month old "We buy your Gold" set of messages and the "Learn Spanish with 138 words" ones...

[bill]

Re: Runnin' Scared...

Either that or he's as two-faced as they come. Just about fell out of my chair laughing when I read this.

Seems a tad late, doesn't it? Or am I missing something?

...``For market discipline to be effective, it is imperative that market participants not have the expectation that lending from the Fed, or any other government support, is readily available,'' Paulson said...

more...

Sounds to me he’s requesting powers to facilitate an orderly collapse of financial firms.
Antispin: Powers are needed to control liquidation process of failed financial firms assets to be acquired by Paulson’s new found money source “SWF”.

http://www.bloomberg.com/news/av/
Audio/Video Reports


Paulson Calls for Process to Liquidate Failing Firms July 2 (Bloomberg) -- U.S. Treasury Secretary Henry Paulson speaks in London about the global economy and financial market regulation. Paulson called for regulatory changes that would allow financial firms to fail without threatening broader market stability. (Source: Bloomberg) Watch

[Sapiens]

Re: Runnin' Scared...

Sounds to me he’s requesting powers to facilitate an orderly collapse of financial firms.
Antispin: Powers are needed to control liquidation process of failed financial firms assets to be acquired by Paulson’s new found money source “SWF”.

I agree; time for the land grab of 2008 to begin!

[GRG55]

Re: Runnin' Scared...

Sounds to me he’s requesting powers to facilitate an orderly collapse of financial firms.
Antispin: Powers are needed to control liquidation process of failed financial firms assets to be acquired by Paulson’s new found money source “SWF”.

An "orderly collapse" of financial firms. Is that actually possible...having the very core activity of the US FIRE economy implode, and attempt to stage manage it in an "orderly" fashion?

Good luck to them.

Until I see solid evidence to the contrary, and Paulson overcomes his "deer in the headlights" facial expression, I'll stick with the view that they are runnin' scared and improvising to beat hell...

[bill]

Re: Runnin' Scared...

An "orderly collapse" of financial firms. Is that actually possible...having the very core activity of the US FIRE economy implode, and attempt to stage manage it in an "orderly" fashion?

Good luck to them.

Until I see solid evidence to the contrary, and Paulson overcomes his "deer in the headlights" facial expression, I'll stick with the view that they are runnin' scared and improvising to beat hell...

I’m sure Paulson secured readily available capital commitments from SWF. Capital and access to a lot of it will facilitate order in a liquidation process.
To have an orderly collapse it must be cleaned up quickly with liquidation immediately.
Paulson wants fast track process, as he stated 16min. into his speech.
Maybe the Middle East funds have finally found a representative acceptable to the US public after he http://www.telegraph.co.uk/money/mai...nprince130.xml gets done with Britain

[GRG55]

Re: Runnin' Scared...

I’m sure Paulson secured readily available capital commitments from SWF. Capital and access to a lot of it will facilitate order in a liquidation process.
To have an orderly collapse it must be cleaned up quickly with liquidation immediately.
Paulson wants fast track process, as he stated 16min. into his speech.
Maybe the Middle East funds have finally found a representative acceptable to the US public after he http://www.telegraph.co.uk/money/mai...nprince130.xml gets done with Britain

Well if it is to be orderly then there's no point holding on to ones gold.

The voluntary, wholesale [and orderly] exchange of US assets for US $ flowing in from abroad should ensure a $ crisis is completely avoided.

Let's hope, as with Rockefeller Centre and Pebble Beach golf course, US citizens find a way to buy their assets back, sometime in the future, at a discount to the current FIRE sale price. :rolleyes:

[Nervous Drake]

Re: Runnin' Scared...

.

[Rajiv]

Re: Runnin' Scared...

Did you see the links I posted on the Vanity Fair article? See also Sakowicz article on Bear Stearns

[bill]

Re: Runnin' Scared...

Well if it is to be orderly then there's no point holding on to ones gold.

No crisis is orderly.
SWF get the asset liquidation as well as the opportunity to enter into the re-inflate program using real value assets not yet touchable. Hold your gold.

[c1ue]

Re: Runnin' Scared...

Also keep in mind - what exactly are the assets of a financial institution?

Normally it is composed of the deposits, the investments, the infrastructure, the brand, and the people.

Deposits and investments are clearly net negative.

Infrastructure, especially with outsourcing, is more easily replicable.

The brand? Can be bought after liquidation (see AT & T)

And the people? Well, without jobs the people will move somewhere else.

Unlike a factory or a tech company, there just isn't much in the way of irreplaceable assets or IP in a financial institution.

[jk]

Re: Runnin' Scared...

Also keep in mind - what exactly are the assets of a financial institution?

Normally it is composed of the deposits, ...

the deposits are liabilities for the institutions, not assets. i guess you could say that an intangible asset resides in the institution's ability to gather deposits, in general a very low cost of funding.

[FRED]

Re: Runnin' Scared...

the deposits are liabilities for the institutions, not assets. i guess you could say that an intangible asset resides in the institution's ability to gather deposits, in general a very low cost of funding.

Indeed, to a bank a loan is an asset whereas on a household or corporation balance sheet a loan is a liability. Conversely, deposits in a bank account are assets to a household or corporation but a liability to the bank.

Investment banks, however, are not banks, although some have commercial banking operations. They primarily underwrite, or arrange the sale, of stock and bonds for companies, and earn income from fees. In the UK they're called merchant banks.

[Rajiv]

Re: Runnin' Scared...

Indeed, to a bank a loan is an asset whereas on a household or corporation balance sheet a loan is a liability. Conversely, deposits in a bank account are assets to a household or corporation but a liability to the bank..

Two interesting articles by Elaine Supkis on this topic

Burns, Nixon And Death of Dollar

inside there

As banks see their 'value' vanish, they 'replenish reserves'. This is, as is usual these days, fancy talk that hides reality. What banks are doing is BORROWING MONEY FROM SOMEONE. Who has 'money'? As yesterday's story about Scrooge McDuck tells us in the opening song about the history of money, 'We all want more MONEY!' The cartoon also makes it clear, anything can be 'money'. For 'money' is a human affectation. It is a stand in for 'wealth'. Wealth, as always, is valuable things such as slaves, the ability to tax, harvest surpluses, gold, tools, domesticated animals, weapons, etc. To trade these things and especially to tax all these things, something has to be a stand-in for the accumulated value of these things.


When money was invented to perform this function, the first thing the taxmen discovered was, tax payers and debt payers always want to have more money. And this desire is greatest with the TAXMEN THEMSELVES. They want more money! To buy weapons, to bribe other taxmen in other kingdoms, to build pyramids and palaces. So everyone is united in one regard: they all want more money circulating. All except for one entity: savers. There is a 20% part of the population that is very strongly inclined towards saving money. We recognize these people because they save string, old rubber bands, etc. These people are the ones who make the entire concept of 'banking' possible.


On banking spread sheets, these people are called 'liabilities' because the bank owes THEM money, not the reverse! And bankers need these people who are the ones who 'replenish reserves.' And they have to be kept happy or they bury their money in the ground or buy a big safe and squirrel it away there. The Disney cartoon begs such people to please give money for investment so it can 'grow'. But as I showed, this 1967 cartoon was made on the eve of a terrible banking failure: the US money system suddenly up and died! Big time! And inflation took off with a roar. Destroying the value of these savings.

and

Scrooge McDuck's Golden Hoard

First, the opening song is hilarious. The concern of the bankers and the rulers since the collapse in banking and investment in 1929 was to prevent hoarding. Many cartoons were made in WWII about the dangers of hoarding. A number were made in the 1930's that condemned savers and praised spenders. The earliest Popeye cartoons were drawn at the very beginning of the Great Depression. In it, the very fat Wimpy would woefully wander about what looks like Coney Island, begging not for spare change or seeking to earn money. He is begging for LOANS. So he can buy a mere hamburger. Popeye seems to be unemployed, himself. Olive Oyl seems to be running a run down rooming house.
The point is, the audiences thought it was hilarious to see a fat man seeking loans when there were no more loans to be gotten for love or money. Olive Oyl is skinny and she squirrels away her money in her stocking, just for example. She can be lured into folly by false promises of marriage. Everyone wants her money since her sex appeal is slender, at best. But she has CASH.

The Uncle Scrooge of 1967 is a Victorian who is a hoarder from the past. He is also an emissary of the US government which has hired Disney to put out propaganda since WWII. Uncle Walt was a notorious penny pincher who refused to share funds with the animators who actually drew the cartoons. Here is a picture I pulled from the second video which is when Scrooge finally convinces his nephews to sign on the dotted line, buying penny stocks for $1.95 [more than $5 today!] and they hand him over their slender savings so it can 'circulate' and 'grow'.

Note the expression on his face when he collects his three penny fee!



You need a sharp eye to catch that transformation from the friendly looking face to the evil leer! I was watching very closely at that point and as if flashed by [it is only one frame long, after all!] I saw it come and go. The entire cartoon is very schizoid. The overt message and songs and the merry expressions of the characters are all about how happy they are to make money CIRCULATE. Then, the cartoon runs through a funny history of money that leaves out important parts, the mention of earning interest being rushed over while the discussion of what could be called 'money' was thoroughly hashed through. Indeed, and this is VERY IMPORTANT: the role of gold and silver in all this was BARELY MENTIONED!

Ah! The date! 1967 was when the degradation of the currency was flowing madly forwards. Coins were being recalled and melted and re-issued with cheaper metals! The dollar was not, as the cartoon characters sang, 'Good as gold'. Indeed, the total collapse of the gold standard was already in the secret planning stages! The Fed chair, Mc Chesney Martin Jr. even gave a most interesting speech about foreign held dollar reserves, trade and the gold standard that we should all read:

International Responsibilities of the Federal Reserve Remarks of Wm McC Martin, Jr . Chairman, Board of Governors of the Federal Reserve System at the Annual Dinner of The Overseas Bankers Club, Guildhall, London, England
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(contd)