In Sweeny Todd fashion the Financial industry has chosen, on first blush, a rather unexpected target for its financial rapacity – itself. And recent articles in the prestigious MIT Technology Review- The Blow Up and The Economist-the Darkside of Debt detail how the jugular cuts, more appropriate to a cheap Hollywood Slasher flick, were done […]
Wall Street Presents Sweeny Todd – Greedy Guts Itself Again Read More »
The depth of Greedy Gutting Itself is beginning to emerge. Paul Krugman at the NYTIMES has this estimate of the depth and breadth of the problem . If you do the math on homes averaging $250,000 in value one has between$3-5 trillion on the line. And Allan Greenspan is calling it Turbulent Times – its
Greedy Guts Itself: III, Casualties(Updated again) Read More »
In our initial Greedy article, I have argued that Financial Institutions have largely put aside Fiduciary Trust – and now have a new primary goal – their own wealth with perhaps some coincident client gains but only for a carefully selected class. In this article by Steven Pearlstein at the Washington Post – you see
Greedy Guts Itself:2 Read More »
In modern life we pay a lot of premiums almost automatically for the convenience of faster commerce, more security, trust and peace of mind in our social and economic lives. Brand names like Microsoft software, Maytag appliances, or State Farm home insurance imply top of the line products or services with implicit warranties of good
Greedy Guts Itself Read More »
In mathematics QED Quod Est Demonstrandum is used at the end of a proof. It means that which was required to be proved has now been provided for all to see. I have been arguing for the past two years that the US Financial System has gone off the rails because unmitigated greed (I have
In mathematics QED Quod Est Demonstrandum is used at the end of a proof. It means that which was required to be proved has now been provided for all to see. I have been arguing for the last two years that the US Financial System has gone off the rails because of unmitigated greed (I
The reason that stock prices continue to gyrate so much as they head down and the credit markets still are frozen – even after unprecedented action by the Fed and worldwide central banks – all is captured in a single phrase – the derivative mess. The Size of the Problem That is why I am
The Derivative Mess Read More »
There is a news item at the NYTimes that confirms in no uncertain terms what has become abundantly obvious – Wall Street will not regulate itself. Not only that but Wall Street cannot rescue itself when it gets into trouble. The whole reason the banking system is failing now is that a)no financial institution trusts
Wall Street’s Incompetencies Read More »
The day after assesments of the Wall Street Fix are not sanguine. The essence of the argument is that the government has still not done the right thing because all the derivative based bad debt has: 1)Not been identified and reported completely to the SEC+Fed by the investment banks and other bad funds holders; 2)the
Two days ago I raised the question of whether US Secretary Paulson and the Treasury would be able to stop Wall Streets run on the Moral Hazard Insurance Company – that is as Paul Krugman of the New York Time’s calls it: “[Federal] officials are worried that their rescue efforts will encourage even more risky
The Moral Hazard Denoument Read More »
