Comments on: Chronicle of a banking-system collapse

By: minn.tc

minn.tc — Mon, 13 Oct 2008 03:45:14 +0000

Deregulation, Capitalism, and Credit Default Swaps. Oh My!...

Actually, this post is discussing a snippit of the banking system’s involvement in all of this economic sludge we’re sitting in.
Red line: Total Borrowings of Depository Institutions from the Federal Reserve. High: Bad.
Blue line: Non-Borr...

By: Anonymous

Anonymous — Sat, 06 Sep 2008 06:25:06 +0000

Chronicle of a banking-system collapse...

Chronicle of a banking-system collapse...

By: JIm Libersky

JIm Libersky — Wed, 20 Aug 2008 21:42:38 +0000

Great bit of information and insight. However, as I have watched Squawk Box and other media talk about the liquidity issue I keep going back to 2001. I am not so sure that the Fed. Reserve along with the administration was using the housing sector to boast jobs and the economy. We were just coming off a huge Y2K spend in tech. and everything else was seeming to be flat or tanking fast. So, how does one reach into a bag of tricks. One way to create jobs and prosperity is through the housing sector. All you had to do is relax the rules or look the other way on lending. That brings extra volume for demand. Along with that it takes supply awhile to catch up. Thus, perceived equity is built. The result is controlled inflation with added value in everyone house. So, that is a good thing. Everyone feels good because we are worth more. The house becomes a major part of the asset and bank for consumers. IT was a good idea but it was left unchecked to long. So, they got caught. It is funny how 4 year presidential campaigns might play into this.

This theory if nothing else is good for a conspiracy theory.

By: Steve Borsch

Steve Borsch — Mon, 26 May 2008 14:22:04 +0000

BTW, my bride is on a week long biz trip to London, and I'm catching up on several podcasts. This morning I listened to "Pool of Money" by This American Life and it *is* fabulous. Here's the question though: why can't mainstream media explain the credit crisis in one hour like they did so it's understandable for non-Wall Streeter's?

By: ben

ben — Sun, 11 May 2008 00:56:05 +0000

I'm pretty sure that the Fed's recent low-interest loan auctions to banks are to blame here. They're trying to inject liquidity into an all but frozen credit market. Luckily, these are very short term loans (1-3 months). I'd expect this to move back to normal relatively soon.

By: Steve Borsch

Steve Borsch — Sat, 12 Apr 2008 05:42:05 +0000

The overwhelming sadness I feel when I look at my 13 year old son and wonder what his economic world will look like when he graduates from college is exacerbated when I look at charts like these. Scary stuff. Three years ago my bride and I were on a very, very serious hunt for "the last, big house" and didn't do it. We made an offer on a second home in Scottsdale and, not liking the counter, walked away. As I type this in my 14 year old house with a ridiculously inexpensive monthly nut, I thank God we didn't do either and have kept our expenses low and debt non-existent. Buying gold? How about MRE's (Meals, Ready to Eat) and long term, shelf stable water? I'm planning for potential distribution system hiccups and it seems like a good risk mitigation strategy. Keep up posts like these Mike.