Aimee's Two Cents on the Economic Crisis
Posted in News & Views on October 16th, 2008 by – Comments OffMY COMMENTS from the Planet Money Blog
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Comment on: Better News? No.at 10/16/2008 12:40 PM EDT
About a week ago, I watched the Bloomberg web site update the TED graphic to include the # 5 line in the scale. Since the spread has been topping over 4, they had to redraw the graph. Now that’s creepy.
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Comment on: Can the banks cheat?at 10/16/2008 10:41 AM EDT
What prices are Fannie and Freddie paying for ‘toxic’ assets from other banks? I read a story last week that the Treasury has required them to start buying $40 billion a month worth of bad assets. What??? I figured the Treasury was going to scrap the auction idea after reading about the new $40 billion plan with the Macs and the capital injection plan. Someone please help me understand the Treasury’s motives.
Comment on: About That Rate Cutat 10/8/2008 1:17 PM EDT
Without a doubt this interest rate cut by the Fed is serious. But I’ll be scared when they start calling for new bank holidays.
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Comment on: Hear: Got a Candidate?at 10/16/2008 9:54 AM EDT
Perhaps I’m alone in this, but I’ve really enjoyed learning about the economy and the problems we are facing without the political debate. If we start debating the politics of the crisis and how to fix it, we may lose our ability to truly understand it.
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Comment on: Go Ask Alex. Today.at 10/15/2008 12:28 PM EDT
Thanks Alex for answering our questions today! It was great reading questions from other Planet Money listeners. I learned a lot and now it seems I have more questions. So we’ll keep listening if you all keep podcasting!
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Comment on: ‘Bad News Everywhere’at 10/15/2008 11:51 AM EDT
We should have “Debbie the Downer” from Saturday Night Live read the business news from now on.
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Comment on: Hear: Of Devils and Detailsat 10/15/2008 8:44 AM EDT
This morning I heard that Wells Fargo is reporting better than expected profits. What??? Why is our government planning to inject capital into profitable companies? Wells Fargo needs to take their profits, re-inject it back into the business as new capital, and give taxpayers our money back. I’m furious! I am sick with anger for these ignorant bankers taking bets (credit defaults swaps) they can’t cover and getting all of us into this mess. If this were just about home foreclosures, we could fix it like in the 1990s. That didn’t freeze the credit markets. This crisis is about untested products called “complex derivatives” and those who are responsible for creating & using them should be held criminally responsible. It’s time for me to take a step back and count to ten.
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Comment on: Hear: Of Devils and Detailsat 10/14/2008 7:09 PM EDT
Great Show! Please continue to get updates from Trader Will on the credit markets. It’s great to get an insider’s account of the markets.On the bank capitalization:Is it possible that the Treasury was under pressure from folks like Warren Buffet and Mitsubishi to relax any limits on dividends or stock buy backs since they’ve recently invested in a few of these weak banks?
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Comment on: Personal Waysat 10/14/2008 12:33 PM EDT
I believe we will all need to follow your mother’s advice whether we like it or not.On another note: Do you think it helps for Paulson to tell us how much he doesn’t believe in the idea of government involvement in banks as he tells us his unprecedented plan to do exactly that?I was feeling pretty good about our government injecting liquidity directly into banks, until I heard Paulson’s speech this morning. Now, I am more worried that it won’t ease credit. It must be a horrible situation if he is willing to do something he’s so opposed to ideologically. If he is so into ‘hands-off’ free markets, why is he even working for the government?Shouldn’t government believe in itself, especially at a time of global crisis?
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Comment on: One Idea: Shut the Markets Downat 10/10/2008 1:38 PM EDT
I’m pretty sure there are still those backstops in place. However, this recent crisis has created a “slow-motion” crash of the stock market over several sessions. I think it’s just slow enough to keep the backstops from kicking in.Perhaps, a global shutdown of the markets could give “Time” to let panic subside. However, I don’t know if that could ease the credit markets or freeze them closed.
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Comment on: Change We Can Believe Inat 10/9/2008 1:17 PM EDT
Did their hero Adam Smith factor in credit default swaps and other complex derivatives when he wrote THE WEALTH OF NATIONS?How does the INVISIBLE HAND deal with “Control Frauds” (i.e. Charles Keating) and “Creative Accounting” (i.e. Arthur Andersen)?Can the INVISIBLE HAND even see the ‘shadow markets’ of derivatives?
Comment on: About That Rate Cutat 10/8/2008 1:17 PM EDT
Without a doubt this interest rate cut by the Fed is serious. But I’ll be scared when they start calling for new bank holidays.
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