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Tilted Cat Head
Administrator
Location: Manhattan, NY
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Quote:
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Originally Posted by host
Cynthetiq, I can make a case now that the ONLY reason Lehman, stock symbol LEH, is still a "going concern", is because of the sudden implementation of a brokerage bailout policy, led by two men the president appointed....one reports directly to him, the treasury sect'y, and the other is Fed Chairman Bernanke. How does that square with the president's brother being paid by a firm that the president's administration is shoveling cash at, to keep it afloat?
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I don't doubt that host, the challenge is as I'm trying to digest the first part, you've already moved the conversation onwards before I have any time to understand or even address the first portions. That's difficult for people to swallow, and may even make them feel stupid. People don't like to feel stupid. If they do, they retreat to topics that don't make them feel stupid like Obama's bowling score.
I was reading something in Newsweek.com and found it rather interesting which lead me back to this thread:
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In 1993, the late senator Daniel Patrick Moynihan coined the term "defining deviancy down." The prevalence of bad behavior in the underclass, he argued, caused institutions to lower standards and expectations, which effectively socialized the costs of dysfunction. Today, the Federal Reserve is "defining solvency down."
In recent weeks, the Fed has responded to Wall Street's crisis by systematically lowering the standards of what it would accept as collateral for loans. (Historically, only government bonds or bonds backed by Fannie Mae and Freddie Mac were good enough.) But as part of the Bear Stearns deal, it agreed to lend $30 billion against assets of dubious provenance.And guess who bears the risk if that $30 billion can't be paid back? You and me. If write-downs continue, rumor has it, the Fed might start accepting sports memorabilia, Beanie Babies and Pokémon card collections as collateral.
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Again, I'm not claiming to know alot about this, but my understanding is trying to understand more because I know it to be important, at least more important than the rest of things that people tend to spend more time on.
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