EPT5 Trillion Dollars - Page 2
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BalliSLife
1339 Posts
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Ecael
United States6703 Posts
The market has been punishing itself, really, top executives might've got away with it mostly unscathed (in a way) this time, but they won't be allowed to pull stunts like that again. The Fed's concerns should be about keeping the economy in a better overall condition rather than giving messages about individuals running their companies - the companies will most likely avoid this kind of risk taking from now on. With the fallout of Lehman, I wouldn't be surprised to see more companies building in safety mechanisms and have lower tolerance overall for the kind of risky behaviors that has led us up to this point. | ||
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dybydx
Canada1764 Posts
it be interesting to see by the end of all this, how much money did each group of ppl lost. the managers definitely came out on top. even after getting sacked, their prior year bonus, stocks (if they sold it early enuf) and raw salary still put em far ahead of everyone else. certainly way ahead of suckers who got their homes taken away. | ||
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Ecael
United States6703 Posts
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kpcrew
Korea (South)1071 Posts
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dybydx
Canada1764 Posts
likewise, you CAN regulate mortgages by forcing banks to keep a reserve if need be. (ie if u have 100B mortgage outstanding, u need a minimum cash balance of 100M. | ||
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NoName
United States1558 Posts
Much bigger version Enron and Ken Lay, with all their funny accounting to sell risky and junk mortgages as AAA investment vehicles. We don't seem to learn. As they say, moral hazard. so all these CEOs, executives, brokers are still going to walk away with hundreds thousands up to hundreds of millions bonus and commissions made directly off of junk mortgages because of US government's active involvement in encouraging loose lending and accounting practices. Unlike Ken Lay and Jeffrey Skilling end up jailed, broke or dead. | ||
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SweeTLemonS[TPR]
11739 Posts
On September 18 2008 10:24 dybydx wrote: you CAN regulate it. in the early days, the gov prevented banks from overlending by keeping a reserve ratio. the Fed also has a regulation that automatically loan banks money and guarantee deposits up to 100k. all these are regulations aimed that protecting the public and prevent bank failures. likewise, you CAN regulate mortgages by forcing banks to keep a reserve if need be. (ie if u have 100B mortgage outstanding, u need a minimum cash balance of 100M. 100M isn't shit in comparison to 100B. That's the equivalent to saying if you have 1k you need to keep one dollar. A 1/1000 ratio isn't high enough. Unless 100B was a typo for 1B, and you meant they needed 10% saved. On September 18 2008 10:30 NoName wrote: Yeah, Much bigger version Enron and Ken Lay, with all their funny accounting to sell risky and junk mortgages as AAA investment vehicles. We don't seem to learn. As they say, moral hazard. so all these CEOs, executives, brokers are still going to walk away with hundreds thousands up to hundreds of millions bonus and commissions made directly off of junk mortgages because of US government's active involvement in encouraging loose lending and accounting practices. Unlike Ken Lay and Jeffrey Skilling end up jailed, broke or dead. Yeah, but if the crisis isn't solved, their money won't be worth anything at all. There's a much bigger problem than a few guys scamming the system this time. | ||
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kpcrew
Korea (South)1071 Posts
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mahnini
United States6862 Posts
On September 18 2008 10:31 SweeTLemonS[TPR] wrote: 100M isn't shit in comparison to 100B. That's the equivalent to saying if you have 1k you need to keep one dollar. A 1/1000 ratio isn't high enough. Unless 100B was a typo for 1B, and you meant they needed 10% saved. the fed forces banks to keep a money supply of at least 10% on hand, not only "in the early days", but today as well | ||
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decafchicken
United States20105 Posts
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dybydx
Canada1764 Posts
On September 18 2008 10:33 mahnini wrote: the fed forces banks to keep a money supply of at least 10% on hand, not only "in the early days", but today as well 10% used to be a reasonable reserve level for demand funds, a mortgage is not usually due on demand, thus a lower reserve level is appropriate. realistically i m thinking of 1%. but in practice, these companies like fannie and freddie, which are involved in $trillions of mortgages usually have much much less than 1% of that (1% of 1 trillion is 10B cash) on hand. | ||
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tyr0
United States125 Posts
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CTStalker
Canada9720 Posts
http://docs.google.com/TeamPresent?docid=ddp4zq7n_0cdjsr4fn&skipauth=true&pli=1 | ||
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kpcrew
Korea (South)1071 Posts
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Ecael
United States6703 Posts
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Archaic
United States4024 Posts
On September 18 2008 11:01 CTStalker wrote: a poorly drawn comic that explains the bullshit in a dumbed down way http://docs.google.com/TeamPresent?docid=ddp4zq7n_0cdjsr4fn&skipauth=true&pli=1 Probably doesn't factor in the actual direness of the situation, but it is hilarious. Who cares about the United States economy; China can take over anyways. Far East Asia shall take over the world! It is already starting. World Economy: China Inventions & Innovation: Japan Technology: S. Korea That "political issue" country: N. Korea Cyber Gaming: S. Korea To explain more about the Cyber Gaming community, and how it is taking over... think about Spirit Tournament. They are taking the best from the rest of the world, and containing them in S. Korea training houses. They hire thousands of Dark Archons (As seen in OSL commercials) to maelstrom the pro-gamer material foreigners while the rest of the world deteriorates. They take over, and Far East Asia owns everything, the best of the best of every thing possible on Earth. GG Wow.. didn't I drift off topic.... Yeah.. losing money 'n stuff, US in debt. Bad. | ||
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dybydx
Canada1764 Posts
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decafchicken
United States20105 Posts
On September 18 2008 11:01 CTStalker wrote: a poorly drawn comic that explains the bullshit in a dumbed down way http://docs.google.com/TeamPresent?docid=ddp4zq7n_0cdjsr4fn&skipauth=true&pli=1 oh man thats hilarious | ||
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HeavOnEarth
United States7087 Posts
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