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October 23, 2008

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bad

They're just tipsy from all of the celebration libation swilled prematurely.

clarice plumber

Wow--and what's happened to AQ in Mesopotamia? I need to know when my grand daughter asks me,"What was the New York Times?"

M. Simon

I thought Palin was the leader of Itan.

sbw

What was the New York Times?

The failure of the triumph of hope over reality.

clarice plumber

No, M Simon, Itan was Kerry.

Rick Ballard

Why pay attention to a newspaper that is bleeding out?

When are S & P and Moody's going to do their duty and cut NYT debt to the junk that it is? The stock traded under $10 this morning and it's not much of a deal above $5. If the building can be sold.

I dearly love the stupidity of this highlight:

"may now see the United States, hobbled by financial crisis, as even more vulnerable."

I'm seeing bear forecasts of oil at less than $50 this morning. Two years of that and we'll see who's "vulnerable". Scheduled production increases of over 2MBD plus demand cuts of 2MBD total 4MBD of surplus sloshing oil around. Four million barrels per day - 2 VLCC supertankers worth. Per day.

If I have the money you need and you have something I don't particularly need, who's vulnerable? To call this reporter an idiot would be an undeserved act of charity and an insult to all idiots.

Charlie (Colorado)

I hate it when you guys use up the wry one-liners while I'm busy.

sylvia

Was reading an older 9/29 article in Time magazine that I thought explained the mortgage meltdown well. LUN, but I didn't see the good charts that they had in the print copy.

One thing I still don't get is who actually closes a bank down. They don't have a sheriff come lock up the door. They don't have credit card debt collection services call and harass them. Legal action has to be taken through the courts and takes time. So who or what actually enforces bank rules on capitalization and enforces the bank failing if they don't? I guess the Feds are the only choice but I'm not sure how that relationship works exactly between the Feds and a privately owned enterprise and what power the Feds have.

Charlie (Colorado)

Sylvia, it comes through FDIC. Since they have the FDIC insurance (perforce), the FDIC has the power. The way it happens is like the IndyMac thing: they declare the bank insolvent (which means they're out of cash, it's slightly different than insolvency in general) and they take it over, reorganizing and selling the operation, including deposits and depositors, to new stockholders or to another bank.

sbw

who actually closes a bank down

Sgt. Friday... on the days he's not trying to catch the klepto who copped the copper clappers.

sbw

Carson: If I ever catch kleptomaniac Claude Cooper from Cleveland who copped
my clean copper clappers kept in the closet,
Webb: Yes?
Carson: I'll clobber 'im!

sbw

wry one-liners

Charlie, think if it as saving you from a well-deserved Clarice THWACK!

ROA

Utube of Claude Cooper's copper clappers

LUN

sylvia

"Since they have the FDIC insurance (perforce), the FDIC has the power."

So lots of people kwetching about the big Fed takeover of banks- the Feds already had the banks to begin wtih. There's not much new here.

sylvia

So if the Feds have the power through the FDIC, I'm wondering then what is the advantage of selling off pieces of banks or closing them due to a temporary cash shortage as compared to other methods that other companies have of declaring bankruptcy, which is buying themselves some time to pay off debts and build up cash. Probably stability but it seems a little dramatic for all situations. I suppose that is the bailout concept, giving them some temp cash instead of the dismantling.

M. Simon

To call this reporter an idiot would be an undeserved act of charity and an insult to all idiots.

Gotta second Charlie on that one. Damn.

clarice plumber

So lots of people kwetching about the big Fed takeover of banks- the Feds already had the banks to begin wtih. There's not much new here.

Not exactly, Sylvia. Not exactly.The FDIC sells the Bank to others . This time, the Feds kept a share for themselves.

Rick Ballard

Some very good news - WaMu auction nets 57%. That's a little below what the bonds were trading for yesterday but it sets a floor as to what P & B will be offering on a broad basis when they start mopping up MBS. Not an absolute minimum, because there is some garbage out there that really is worth only 22 cents but WaMu was not particularly skilled at creating their MBS pools.

LindaK

That is good news. Is that why the market turned around at the end of the day?

Another piece of good news: Hugo Chavez has been gloating over the demise of US markets. Well, guess what? Hugo bought a bunch of toxic Lehman structured notes. Good luck collecting.

Rick Ballard

"Is that why the market turned around at the end of the day?"

I don't think so. IMO we're seeing an inversion of the "if it's 3PM, it's time to sell" attitude prevalent a couple weeks ago. Now traders are afraid to go to bed without being long for fear of missing a spike in the morning.

That's cheering news about Hugo. So is this.

I still haven't seen a story mentioning that the oil price drop is leaving more in consumer pockets. Business reporters keep looking for more clouds and ignoring every bit of sunshine that shows up.

Angie Smith

Why didn't they just declarae bankruptcy to obtain time and build up cash? Who closes the banks down, the FDIC? What do the liberal elitist illuminati say to this?

bgates

If I have the money you need and you have something I don't particularly need, who's vulnerable?
Not a line I'd want to take in front of the People's Committee for Distribution of Excess Wealth, Rick.

Charlie (Colorado)

So lots of people kwetching about the big Fed takeover of banks- the Feds already had the banks to begin wtih. There's not much new here.

Yes.

Too little kvelling, too much kvetching.

Rick Ballard

bgates,

Machts nix. According to my Instruction To Report, it's just not necessary to bring money to Barrow. Apparently the ANWR Protection Brigades provide everything necessary. The Instructions say not to even bother with a coat.

Charlie (Colorado)

So if the Feds have the power through the FDIC, I'm wondering then what is the advantage of selling off pieces of banks or closing them due to a temporary cash shortage as compared to other methods that other companies have of declaring bankruptcy, which is buying themselves some time to pay off debts and build up cash.

Well, some of it's historical; the FDIC stuff comes from the very early days of FDR's first term, 1933. Before the Glass-Steagal Act, the depositors in a bank were just unsecured creditors, like anyone else; in a bankruptcy of a bank, they might recover very little of their deposits, say 5¢ on the dollar, and it might take a year. Now banks don't go through bankruptcy the same ay other companies do, but they're considered insolvent for the purposes of FDIC on much more stringent grounds than normal companies, too --- basically, if you can't get the liquid cash to pay out deposits, you're insolvent, no matter what the balance sheet says.

Charlie (Colorado)

Just report to your Barrow burrow. You can borrow what you need in your Barrow burrow. Of course returning it can be difficult, especially if you are bivouacked in a burrow in the in the outer borough of Barrow. You might have to borrow a burro to get back from your bivouac in the outer borough Barrow burrow.

matt

"All the News That Fits" into a trash masher....

matt

The guy who closes the bank down, Sylvia, is named Joe...he's the plumber's cousin. he comes in and shuts off the lights and makes sure the water is turned off in the executive washroom, and then he goes downstairs to the basement and shuts off the heat and the water and it becomes a Starbucks or a Blockbuster....oh, Blockbuster's in trouble....never mind.....oh, so's Starbucks...what a shame....

sylvia

Thanks Charlie. You're a wealth of knowledge today. Well if the Feds make the rules, I suppose the Feds could suspend the rules too in actute situations like this. Although prob easier just to give out money than to open a can of worms by suspending rules, but cetainly a lot cheaper in the short run.

Charlie (Colorado)

Thanks Charlie. You're a wealth of knowledge today.

What comes of having a head full of flypaper.

boris

Well for buddha sake don't sneeze then !

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