Can the Titanic stay afloat?
March 16, 2008
– Comments (8)
Reading the opening paragraph on this wsj piece and calling it the "titanic credit mess," well, the first thing that came to my mind was the Titanic sank...
Hmmm, more big words, tsunami... all have this sinking/drowning metaphor...
More seriously, this disasterous policy of bailouts seems to have caught up to itself. At first the bail outs were small relative to the size of the bailer, but now banks are so big, the bailer is getting dwarfed here...
This quote is good. Basically right about now the US needs the rest of the world yet the fed seems intent on alienating them rather than taking the deserved knocks and making those responsible accountable.
“For the government to print money at the expense of taxpayers as opposed to requiring or going about a receivership and wind-down of any insolvent institutions should be troubling to taxpayers and regulators alike,” said Josh Rosner, an analyst at Graham Fisher & Company and an expert on mortgage securities. “The Fed has now crossed the line in a very clear way on ‘moral hazard,’ because they have opened the door to the view that they are required to save almost any institution through non-recourse loans — except the government doesn’t have the money and it destroys the U.S.’s reputation as the broadest, deepest, most transparent and properly regulated capital market in the world.”
Here's another enlightening one, a British perspective... No kidding wall street is nervous about what Monday will bring...
I've been saying for months to take steps to protect yourself, even make sure you have a second bank account and some resources set aside in case of problems at your main financial institution. I hope everyone finds themselves in a position to not be pulled out to sea...
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