Comments on: Bank rescue plan: will it work? http://liberalconspiracy.org/2008/10/08/bank-rescue-plan-will-it-work/ Left-wing news, opinion and activism Sun, 12 Feb 2012 02:53:34 +0000 hourly 1 http://wordpress.org/?v=3.3 By: Chuck H. http://liberalconspiracy.org/2008/10/08/bank-rescue-plan-will-it-work/#comment-22284 Chuck H. Thu, 09 Oct 2008 21:12:35 +0000 http://www.liberalconspiracy.org/?p=1416#comment-22284 The untold story so far is the state of the derivatives market (nominally valued at half a quadrillion and counting), of which the sub-prime collapse is merely an effect. If that house of cards starts to fall - with leverage levels at 100x plus, then this capitalisation is going to look like small change. Gulp... The untold story so far is the state of the derivatives market (nominally valued at half a quadrillion and counting), of which the sub-prime collapse is merely an effect.

If that house of cards starts to fall – with leverage levels at 100x plus, then this capitalisation is going to look like small change.

Gulp…

]]> By: john b http://liberalconspiracy.org/2008/10/08/bank-rescue-plan-will-it-work/#comment-22250 john b Thu, 09 Oct 2008 09:26:09 +0000 http://www.liberalconspiracy.org/?p=1416#comment-22250 "The free market right will find much that is offensive, and the social market left will find it unnecessarily timid." Doesn't that make it likely to be quite a good plan, altogether? “The free market right will find much that is offensive, and the social market left will find it unnecessarily timid.”

Doesn’t that make it likely to be quite a good plan, altogether?

]]> By: Luis Enrique http://liberalconspiracy.org/2008/10/08/bank-rescue-plan-will-it-work/#comment-22246 Luis Enrique Thu, 09 Oct 2008 07:34:34 +0000 http://www.liberalconspiracy.org/?p=1416#comment-22246 oh, looks like I messed up the link - here it is: http://krugman.blogs.nytimes.com/2008/10/08/to-do-not-to-do/ oh, looks like I messed up the link – here it is:
http://krugman.blogs.nytimes.com/2008/10/08/to-do-not-to-do/

]]> By: Luis Enrique http://liberalconspiracy.org/2008/10/08/bank-rescue-plan-will-it-work/#comment-22245 Luis Enrique Thu, 09 Oct 2008 07:33:23 +0000 http://www.liberalconspiracy.org/?p=1416#comment-22245 Taking on extra risk in an attempt to maximise income sounds like the sort of thing those greedy bankers would do; I'm not sure why you regret the state not doing it. If the near-future for the banks involves them paying no dividend to ordinary shareholders, as they struggle to recapitalise themselves from operating cashflow, prefs are going to look like a good idea I think. You might be interested in commentary on Brown's plan from across the pond Taking on extra risk in an attempt to maximise income sounds like the sort of thing those greedy bankers would do; I’m not sure why you regret the state not doing it. If the near-future for the banks involves them paying no dividend to ordinary shareholders, as they struggle to recapitalise themselves from operating cashflow, prefs are going to look like a good idea I think. You might be interested in commentary on Brown’s plan from across the pond

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