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This Should "Scare" You

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October 25, 2008 – Comments (4)

I read over on Mish's blog that Paulson is considering buying Insurers

The insurers are far more insolvent then the banks and have liabilities truly beyond comprehension.

The securitization of debt, without reserves, has essentially been an infinite money supply creator.  There is no way that that all that debt can be cashed in for goods.  The amount of money required to bail out the insurers is astonomical.  I can't see the economy adjusting to this kind of move without incredible hardship to those that are already struggling.

And it is this kind of crap, incredible outright greed and risk, that's being bailed out.  Poor traders, the trade went against them...

4 Comments – Post Your Own

#1) On October 25, 2008 at 10:56 AM, dwot (50.85) wrote:

Bankwatcher linked a post about 10% of the 700 billion bailout going as bonuses to the morons that created this.

I love the picture of the protestors "Class war crime."

 

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#2) On October 25, 2008 at 12:04 PM, kdakota630 (29.56) wrote:

Sickening.

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#3) On October 25, 2008 at 2:36 PM, lquadland10 (< 20) wrote:

http://globaleconomicanalysis.blogspot.com/2008/10/australian-funds-block-withdrawals.html   
Australian Funds Block Withdrawals
The Age BusinessDay is reporting Four fund providers suspend withdrawals as redemptions soar http://globaleconomicanalysis.blogspot.com/2008/10/russian-default-risk-soars-ltcm-repeat.html
Russian Default Risk Soars: LTCM Repeat Play
The Telegraph is reporting Russian default risk tops Iceland as crisis deepens. Bloomberg is reporting Argentina Default Looms as Pension Funds Seizure Roils Markets   

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#4) On October 25, 2008 at 2:57 PM, dwot (50.85) wrote:

I saw those lquadland...

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