Need an explanation, concise on Financial bailouts?

[Robert Oak]

Over on the The Economic Populist, midtowng just wrote the best piece
I've seen to date giving the precise details of every bailout, the EFFECT and the next one.

He has tons of graphs and it's very well written. A must read, clear, concise and gives the overall timeline on what just happened and what is about to happen.

What the Hell Just Happened?


http://www.economicpopulist.org/?q=content/what-hell-just-happened

He's pointing out that these bailouts exasperated the situation by triggering CDS (default credit swaps).

Also over on The Economic Populist are some tutorials on what the hell are these derivatives in the first place
and why do they matter to you?

Derivatives DeRide! Is part of the Friday Night videos series and this week any video that explained these structure finance vehicles clearly in layman's terms was dug up and posted in this piece.

http://www.economicpopulist.org/?q=content/friday-movie-night-derivatives-de-ride

[rosesaylavee]

1. Sounds good

Bookmarking for reading later.

K & R

[roguevalley]

15. someone said the derivatives debacle is 403 TRILLION dollars.

imagine that one, 'my friends'.

[kirby]

2. "He's pointing out that these bailouts exasperated the situation by triggering CDS"

I disagree. The triggers were due to lowered debt ratings by the various agencies. That caused the triggers for repayment and made it more expensive for companies to borrow with a lower rating.

[Robert Oak]

3. invite to come over

and point out that in the comments.

That's something he may not consider and one thought I had was, hell they were going into bankruptcy so would they or would they not take their lovely CDSes with them? (probably not?)

If you're looking at the credit agencies I have something for you which I just loved.

Here is an overview on how AIG the day it was about to implode had a AAA credit rating.

Has a link to a CNBC interview where they just tried to get any straight answer from a S&P's rep and of course did not!

http://www.economicpopulist.org/?q=content/yesterday-aig-had-aaa-credit-rating

[The Velveteen Ocelot]

8. I think they mean "exacerbated."

Although there is plenty of reason to be exasperated.

[Eurobabe]

4. Excellent site. Thanks for that. BTW, Germany is pissed

all I've heard all week long is, we've been SWINDLED by Wall Street. One of our commerical banks accidentally wired Lehman 350mil euros on the day they went bankrupt. Heads are about to roll over here.

[Robert Oak]

5. The Economic Populist

lawsuits will abound No doubt about it. Just changing the rules midstream and saying no one could short certain stocks is going to do it, never mind magically sucking in $350B from the Germans.

Nice parting gift!


I wanted to invite all those who focus in on all things economics or those who want to understand better all things economics to come on over to the site, create an account and join in.

The Economic Populist is a community blog, very similar to any Soapblox structure or Scoop structure.

In other words, it's like dailykos or open left or mydd and so on, but completely focused on all things $$$$.

[sandnsea]

11. And that was the real problem

Banks around the world weren't trusting any of these institutions with normal financial transactions. The money was going to dry up. No money, no where. Had little to do with lending to the local restaurant owner.

[Robert Oak]

6. TEXT OF BILL - ACTION ALERT!

The text of the bill is now online.

http://www.economicpopulist.org/?q=content/text-bail-out-act-congress-take-action-now

This is a must read plus must FAX your Congress representatives. No joke, this gives unlimited executive authority via a bailout.

[rosesaylavee]

18. Thank you

Just sent it out on email - will call my congress people. This is unprecedented power given to an unelected official acting in our name with our money.

I am going to suggest that this have a 60-90 day term whereupon it will be reviewed in the first session of the next Congress.

[dixiegrrrrl]

7. This is great stuff ...really great.

Simple to understand.

and very un-nerving, so be forewarned if you go there.

[MadrasT]

9. 5th rec and off to the greatest...

...this is great stuff. Thanks! :hi:

[Robert Oak]

10. thx

Spread it around, people have simply got to start paying attention to real policy positions because this time...
it really matters.

[bbgrunt]

12. thanks for the link. k and r

[DeepBlueC]

13. thank you. excellent stuff

but OMG, jaw-dropping.

[midnight]

14. It is late, I'm so tired. I'll save and review at another time.

Thank you to all the smart D.U. people here. I appriciate your understanding of this complex situation.

[BrklynLiberal]

16. K & R

[KoKo]

17. Thanks for post...will bookmark to read tomorrow!

[halobeam]

19. k and r

[Robert Oak]

20. hedge funds now tittering

http://www.economicpopulist.org/?q=content/here-comes-de-hedge-funds

and basically while Congress seems to make a fuss...supposedly this nightmare is going to pass.