Comments on: The ballad of Greg Smith http://blogs.reuters.com/felix-salmon/2012/03/14/the-ballad-of-greg-smith/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: Danny_Black http://blogs.reuters.com/felix-salmon/2012/03/14/the-ballad-of-greg-smith/comment-page-1/#comment-36922 Sat, 17 Mar 2012 14:25:25 +0000 http://blogs.reuters.com/felix-salmon/?p=12455#comment-36922 Someone who lays it out better – and more politely – than me:

http://economicsofcontempt.blogspot.com/ 2009/08/hank-paulson-goldman-and-aig-for .html

Note that when AIG was taken over, GS was holding 1.4bn in collateral against the 2.5bn it had bought as protection on AIG.

]]>
By: Danny_Black http://blogs.reuters.com/felix-salmon/2012/03/14/the-ballad-of-greg-smith/comment-page-1/#comment-36915 Sat, 17 Mar 2012 10:24:25 +0000 http://blogs.reuters.com/felix-salmon/?p=12455#comment-36915 Foppe, given that literally nothing you say is true bit rich to be making a claim about lies.

Fact, those tranches bought by the fed at 100c on the dollar made money after a penalty rate.

Fact, GS exposure to AIG on those tranches was not 10B+ but substantially less than 1bn and probably vanishingly close to zero.

These are simply indisputable facts. There is no if or what about them. Of course, they mean you self-righteous outrage is simply based on lies but frankly in a age when someone can check the Fed website you are just going to look stupid making that claim unless you talk to other single digit IQ friends of yours holding similar views..

But hey who cares about the truth right? Keep pretending that it was Taiwan that needed IMF help in 1997 – it was Thailand – and that Malaysia suffered no ill effects from its behaviour at that time, despite the fact it tooks far far longer to get back to square one than the countries that DID take IMF aid. One has to wonder what sort of scumbag is so desparate to cling to their world view that they have to cling to such easily disproved lies.

]]>
By: Foppe http://blogs.reuters.com/felix-salmon/2012/03/14/the-ballad-of-greg-smith/comment-page-1/#comment-36913 Sat, 17 Mar 2012 10:13:36 +0000 http://blogs.reuters.com/felix-salmon/?p=12455#comment-36913 Pardon? I see you’re still going strong on the childish ad-homming front, but your crony capitalists didn’t have to write down anything.. the $180B AIG after-bailout pay-out (to GS, SocGen, BAC, DB etc) was 100c/$.
Anyway, enjoy wallowing in your lies.

]]>
By: Danny_Black http://blogs.reuters.com/felix-salmon/2012/03/14/the-ballad-of-greg-smith/comment-page-1/#comment-36898 Sat, 17 Mar 2012 04:59:43 +0000 http://blogs.reuters.com/felix-salmon/?p=12455#comment-36898 Foppe, I know basic arithmetic is hard for you so will try to make this easy.

Those assets you claim were or would have caused GS losses were being funded at a penalty rate by the Fed and STILL turned a multi-billion dollar profit. Again basic finance – along with basic economics, history and geography apparently – is beyond you but profit is kind of the opposite of loss. You need to pay attention to the plus or minus sign at the front…..

Even at the time the difference between the bottom of the market marks on the tranches GS held and the cash collateral they held against the CDSes was less than a billion.

]]>
By: Foppe http://blogs.reuters.com/felix-salmon/2012/03/14/the-ballad-of-greg-smith/comment-page-1/#comment-36885 Fri, 16 Mar 2012 22:50:49 +0000 http://blogs.reuters.com/felix-salmon/?p=12455#comment-36885 Pardon me? You are saying that GS *didn’t* get bailed out to the tune of what, 10B+?
The rot extends far..

]]>
By: Danny_Black http://blogs.reuters.com/felix-salmon/2012/03/14/the-ballad-of-greg-smith/comment-page-1/#comment-36859 Fri, 16 Mar 2012 14:28:26 +0000 http://blogs.reuters.com/felix-salmon/?p=12455#comment-36859 Sorry, I wasn’t clear enough. I meant ACTUAL losses, not made-up ones. I know that you have difficulty telling the difference.

]]>
By: Foppe http://blogs.reuters.com/felix-salmon/2012/03/14/the-ballad-of-greg-smith/comment-page-1/#comment-36856 Fri, 16 Mar 2012 12:50:48 +0000 http://blogs.reuters.com/felix-salmon/?p=12455#comment-36856 AIG.

]]>
By: Danny_Black http://blogs.reuters.com/felix-salmon/2012/03/14/the-ballad-of-greg-smith/comment-page-1/#comment-36853 Fri, 16 Mar 2012 10:02:40 +0000 http://blogs.reuters.com/felix-salmon/?p=12455#comment-36853 Maxwells_Demon, what losses at GS were socialised?

]]>
By: matthewslyman http://blogs.reuters.com/felix-salmon/2012/03/14/the-ballad-of-greg-smith/comment-page-1/#comment-36846 Fri, 16 Mar 2012 05:09:24 +0000 http://blogs.reuters.com/felix-salmon/?p=12455#comment-36846 “What Smith reveals is nothing new to anyone who has been paying attention – the problem is the increased power that has come with the unparalleled wealth and the socialization of losses of the “Too Big To Fail” institutions. If the steps used to save the banks and the economy had included short term nationalization, firing with possible criminal charges against those who led the debacle and elimination of off balance sheet treatment to enforce a reduction in leverage we would be less likely to face a repeat of the 2008 collapse.”
@NCimon: you raced me. This is an excellent comment by Maxwells_Demon. It’s nothing short of amazing that Obama, who is clearly an intelligent man, did not ensure that precisely these things were done… But as we all know, the managers of these operations have been very clever. Mere nationalization (or public buy-out) might not have enabled the new owners to fire the managers, so easily. Bankruptcy might still have been necessary, in order to do that quickly and legally. Romney is dead right about this… If only Romney had been at the helm, in 2008. As everyone on Reuters must know by now, I’m not a fan of everything Romney is recommending; but this is Romney’s specialist area, and it’s where he really shines.

]]>
By: NCimon http://blogs.reuters.com/felix-salmon/2012/03/14/the-ballad-of-greg-smith/comment-page-1/#comment-36845 Thu, 15 Mar 2012 22:18:32 +0000 http://blogs.reuters.com/felix-salmon/?p=12455#comment-36845 “What Smith reveals is nothing new to anyone who has been paying attention – the problem is the increased power that has come with the unparalleled wealth and the socialization of losses of the “Too Big To Fail” institutions. If the steps used to save the banks and the economy had included short term nationalization, firing with possible criminal charges against those who led the debacle and elimination of off balance sheet treatment to enforce a reduction in leverage we would be less likely to face a repeat of the 2008 collapse.”
…right on, right on, right on!

]]>