Showing posts with label Too Big to Save. Show all posts
Showing posts with label Too Big to Save. Show all posts
Monday, August 6
Tuesday, October 4
"Dexia Has a Problem of Liquidity, Not Solvency"
In a move eerily reminiscent of 2008 Belgium and France have agreed to bailout Dexia, with a French official apparently claiming that Dexia "has a problem of liquidity, not solvency".
Ok, so it looks like Bear Stearns would have made for a better metaphor than Lehman.
But now that it's been decided to backstop the Brussels-based megabank (again) Belgium's caretaker government might have to explain in the not too distant future whether the country itself is having a liquidity or solvency problem. Per the below chart Dexia's assets are almost 200% of Belgian GDP.
(Note: the above chart from ZeroHedge does not appear to include France's GDP in the calculation of Dexia's ratio, just Belgium's. However, it does give a sense of just how big Dexia is relative to the size of Belgium's economy, along with other large banks in Europe.)
Ok, so it looks like Bear Stearns would have made for a better metaphor than Lehman.
But now that it's been decided to backstop the Brussels-based megabank (again) Belgium's caretaker government might have to explain in the not too distant future whether the country itself is having a liquidity or solvency problem. Per the below chart Dexia's assets are almost 200% of Belgian GDP.
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| (click to enlarge) |
Monday, December 6
Video: Famed Investor David Einhorn on CNBC
Great to see David speaking publicly recently (more recent Einhorn here). Wide ranging interview covering his expectations on the price of gold, and even some positive, upbeat thoughts from the legendary short seller.
The below video features David Einhorn (who was guest hosting on CNBC this morning) sparring with Fed insider Larry Meyer from Macroeconomic Advisors.
The below video features David Einhorn (who was guest hosting on CNBC this morning) sparring with Fed insider Larry Meyer from Macroeconomic Advisors.
Monday, November 8
Sunday, November 7
Too Big to Save: Is Ireland the 'Lehman' of Europe's Sovereign Debt Crisis?
One of the most articulate and knowledgeable authorities on the financial system and crisis is MIT Professor and former IMF Chief Economist, Simon Johnson.
In two must watch videos Professor Johnson clearly explains why another financial crisis is inevitable unless specific steps are taken to prevent one.
In two must watch videos Professor Johnson clearly explains why another financial crisis is inevitable unless specific steps are taken to prevent one.
Wednesday, October 20
Here We Go Again: More TARP was "Profitable" Hooey
We're coming up on Wall Street bonus season, rumored to be another record setter. So it shouldn't be too big a surprise to see more propaganda being pumped out on the "profitability" of TARP.
On this blog I generally strive not to repeat myself. However, I hope you'll agree that dispelling the reoccurring attempt to foster a myth of TARP "profitability" is worth making an exception. So here goes: it is intellectually dishonest to try and disentangle the "profits" from TARP from the total government bailout.
The real shame about this particular piece of "analysis" is its source, Bloomberg, which had been doing yeoman's work on challenging Fed secrecy and reporting the true cost the entire government bailout. Check this video out for a previous take from the very same Bloomberg on what the entire government bailout has cost taxpayers. (Note to Bloomberg's Editorial Department: you guys need to get your staff on the same page!)
Oh when of when will we cease indulging the fiction that Too Big Too Fail banks are private enterprises?
On this blog I generally strive not to repeat myself. However, I hope you'll agree that dispelling the reoccurring attempt to foster a myth of TARP "profitability" is worth making an exception. So here goes: it is intellectually dishonest to try and disentangle the "profits" from TARP from the total government bailout.
The real shame about this particular piece of "analysis" is its source, Bloomberg, which had been doing yeoman's work on challenging Fed secrecy and reporting the true cost the entire government bailout. Check this video out for a previous take from the very same Bloomberg on what the entire government bailout has cost taxpayers. (Note to Bloomberg's Editorial Department: you guys need to get your staff on the same page!)
Oh when of when will we cease indulging the fiction that Too Big Too Fail banks are private enterprises?
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