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QUOTE (TheFerret @ Tuesday 25/11/08 06:38pm)

Ferret, I don't need to know it. But it does need to be known. The people who will know it are the people at the top. It is what is commonly referred to as governance which is a direct output of the quality of the people at the top.

 

Obama's new Treasurer is intimately involved with Citi.

 

That will do me.

 

The systemic risk has been plugged with Fannie and Freddie bail outs and the AIG debacle. The rest is the market shake out phase of free markets. That will include bankruptcies (Lehmans) and M&A action (Wachovia) and sell offs and write downs and other rationalization actions (Citi).

 

Meanwhile, the debt remains and interest accrues.

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In reply to: plastic on Wednesday 26/11/08 07:08am

"But it does need to be known. The people who will know it are the people at the top. It is what is commonly referred to as governance which is a direct output of the quality of the people at the top."

 

That's the problem, there was no governance and is no governance, no regulations, no clearing house with these OTC derivatives - the people at the top do not know because the people at the relevant institutions that created, then bundled, the sold the toxic crap do not know.

 

Reserves will continue to be wiped out, the taxpayer will continue to bail them out, but the taxpayer is taped out - as unemployment rises the pressure on the banks increases.

 

The only solution is to let the banks fail and start again, the competent banks will survive, the incompetent banks should be wiped out, rewarding bad behavior will not achieve anything but more of the same.

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Showing my age here but I can remember when Citibank was just First National City Bank of New York, long before it expanded overseas and well before the merger with Travellers'.

In those days it was a significant US domestic bank but far from thr behemoth (now slimming!) that it has become.

A timely reminder of how the mighty can fall!

 

http://www.sharescene.com/html/emoticons/sadsmiley02.gif

 

 

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This might be of some interest to you guys, it's the current bailout cost in context.

 

The total cost now exceeds $4.6 trillion dollars and rising.

 

People have a hard time conceptualizing very large numbers, so letÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s give this some context.

 

Crunching the inflation adjusted numbers, the bailout has cost more than all of these big budget government expenditures ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã‚¡ÃƒÆ’‚¬Ãƒâ€Â¦ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ combined:

 

Marshall Plan: Cost: $12.7 billion, Inflation Adjusted Cost: $115.3 billion

 

Louisiana Purchase: Cost: $15 million, Inflation Adjusted Cost: $217 billion

 

Race to the Moon: Cost: $36.4 billion, Inflation Adjusted Cost: $237 billion

 

S&L Crisis: Cost: $153 billion, Inflation Adjusted Cost: $256 billion

 

Korean War: Cost: $54 billion, Inflation Adjusted Cost: $454 billion

 

The New Deal: Cost: $32 billion (Est), Inflation Adjusted Cost: $500 billion (Est)

 

Invasion of Iraq: Cost: $551b, Inflation Adjusted Cost: $597 billion

 

Vietnam War: Cost: $111 billion, Inflation Adjusted Cost: $698 billion

 

NASA: Cost: $416.7 billion, Inflation Adjusted Cost: $851.2 billion

 

TOTAL: $3.92 trillion

 

The current Credit Crisis bailout is now the largest outlay In American history.

 

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In reply to: cyclops on Wednesday 26/11/08 03:26pm

And it's all newly created money (Thanks Fed), when the hyperinflation hits at some point in the future and your burning your worthless paper money to keep warm - you can thank the privately own Fed for your misery.

 

 

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