Great piece from Zerohedge:
As observant readers will recall, a week ago we pointed out a letter in which the New York Fed’s Steven Manzari instructed AIG to stand down on all discussions with counterparties on “tearing up/unwinding CDS trades on the CDO portfolio.” At the time we focused on the word “stand down” as an [...]
written by Mike Whitney
In a little more than a decade, Credit Default Swaps (CDS) have ballooned into a multi-billion dollar industry which has changed the fundamental character of the financial system and increased systemic risk by many orders of magnitude. CDS, which were originally created to reduce potential losses from defaulting bonds, has turned into [...]
written by Mark Thornton of Mises.org blog:
Ai note: no nationalization, liquidation. Ah, in another world. We have time.
The current crisis has revealed the Keynesian roots of mainstream economics. The only debate has been the type and size of bailouts and stimulus packages. For example, Nobel laureate Joseph Stiglitz of Columbia University thinks nationalization is preferable [...]
Even more tightly tied to Wall Street..private lunches with bankers and one job offer. Tim Geithner’s calendar
The NY Times:
An examination of Mr. Geithner’s five years as president of the New York Fed, an era of unbridled and ultimately disastrous risk-taking by the financial industry, shows that he forged unusually close relationships with executives of Wall [...]
Geithner: “Central question is are we doing enough.”
Yes you are doing..enough steps to destroy the future of next generation..Please stop it. Let the looser banks fail, break them apart into small banks, clean CDS market…and..go away.
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