Comments on: Uncertainty paralyzes U.S. banking system

By: Tony

Tony — Tue, 16 Dec 2008 11:12:14 +0000

Why does not the governament creates small bank agencies to help the families?

By: john wade

john wade — Tue, 02 Dec 2008 16:55:15 +0000

but micro economic moves only tend to work on national debt and decrease gnp which mind you is determined by the overall function of the national product. Is inflation looming if and when banks disseminate this newly acpuried capitalamong the populace or will they tighten up standards causing a surplus and shift to in house(bank) spending. In other words will main street be rescued by uncle sam or just passified until big business gets its marketing strategy in order. To pouch upon poor customer in revenge for his part in the THE CREDIT CRUNCH

By: DOOMSDAY CLOCK

DOOMSDAY CLOCK — Tue, 02 Dec 2008 12:26:07 +0000

I was reading that goldman sachs will report 2 billion dollars loss for the fourth quarter. This means that all these Zombie companies and banks lived artificially from loans from other banks and the Fed. what will happen when these loans are due or dry up. Another crunch???

By: SRK

SRK — Tue, 02 Dec 2008 11:46:23 +0000

Regarding the person with a FICO score of 780, and a credit card debt of 2500. When that situation came about, he should have paid off the 2500$ immediatly so that his utilization would be 0%.
Then, he should shop around for a different credit card.
Many ways to skin a cat….

By: Mark Walklate

Mark Walklate — Tue, 02 Dec 2008 09:42:59 +0000

All this stuff started with Enron and the way they operated. It was the darling of Wall Street and bankers copied their ideas and used them and gorged on it. In a room full of smoke and mirrors people get hurt so SPV’s need to be brought on to balance sheets and assets deflated rather than hyped up in value. Other wise we will all end up like the late Ken Lay’s Enron, instead of Arthur Anderson being destroyed it will be Governments rather than auditors.

By: Yes, I agree with all of you

Yes, I agree with all of you — Tue, 02 Dec 2008 09:37:46 +0000

Yes, the world financial system is based on systems developed ad hoc thousands of years ago, when we were that much closer to our ancestral roots as amoebas in the ocean. So, forget everything you know. The word of the day is REDESIGN.

Redesign everything, from the financial system to the education system and from the English language to mathematics. We need to constantly redesign everything forever. We are all there is in this area of the universe, so it’s really up to us to make it happen.

By: Jonathan Cole

Jonathan Cole — Tue, 02 Dec 2008 08:53:49 +0000

Anybody remember the scene in the Michael Moore movie Fahrenheit 911 when Dubya is talking to a meeting of the elites and he says straight out, “I’m your guy!!” We are now seeing what happens when a kinder gentler fascist moron signals to the pinnacle of amoral corporatist pirates that under his reign, anything goes. I guess quite a few of them might take advantage of the situation by creating insane levels of leverage so that they can generate phony profits and get those multi-million dollar bonuses.

The house of cards is now collapsing, but I fear that so far we have only seen the collapse on the top few stories of this fragile edifice. Before its over, there will be a lot of excess suffering in this world. It may be that the only cure is prosecution and bringing these mercenary traitors to justice.

By: g Anton

g Anton — Tue, 02 Dec 2008 08:02:11 +0000

The more facts that are exposed (which obviously lowers uncertainty), the worse the obvious situation becomes. What’s hidden is all bad, and casting light on the hidden will only adversely affect the economy (for example, the highly volatile stock markets typically rise on optimistic opinions or miss-interpretations of data, and plunges on hard facts. Also, some of us have recently discovered that the economy has been in recession since December of 2007!).

Of course, the truth will out eventually. But it’s clear that US government propaganda, supression of meaningful data, and manipulation of stock and gold markets have only made the long term situation much worse and much more volatile.

By: Giedrius

Giedrius — Tue, 02 Dec 2008 07:37:16 +0000

The banks do not lend not because they do not like to, but because they are short of liquidity. In fact most of the bank long term lending is based on short term borrowing. If they can not borrow to replenish their short term credit resources to further finance long term loans, they have to stop issuing new loans. The bank can not just call a good 25 year loan back just because they have no further lending resources.

By: Mark

Mark — Mon, 01 Dec 2008 21:55:55 +0000

no, it is actually paper based curerency created by central banks and commercial banks out of thin air which has parralized the world banking system eversince we departed from commodity (gold) standart with 100% bank reserves, I strongly recommend Austrian School of Economy for more detailed explanation, http://www.mises.org