Comments on: Dizard: Fed Backs Hypocrisy of Bank Recapitalization http://www.nakedcapitalism.com/2008/04/dizard-fed-backs-hypocrisy-of-bank.html Sun, 22 Nov 2009 07:56:24 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Anonymous http://www.nakedcapitalism.com/2008/04/dizard-fed-backs-hypocrisy-of-bank.html#comment-6911 Anonymous Wed, 16 Apr 2008 12:29:00 +0000 http://www.nakedcapitalism.com/2008/04/dizard-fed-backs-hypocrisy-of-bank-recapitalization/#comment-6911 Next occupant of the White House:<br/><br/>If it is McCain, we'll get 4 more years of free markets<br/><br/>If it is Hillary, we'll get blue ribbon commissions of wise men/women like Alan Greenspan to solve these problems<br/><br/>If it is Obama, we'll get moralisms about hope without any specific actions Next occupant of the White House:

If it is McCain, we’ll get 4 more years of free markets

If it is Hillary, we’ll get blue ribbon commissions of wise men/women like Alan Greenspan to solve these problems

If it is Obama, we’ll get moralisms about hope without any specific actions

]]> By: Anonymous http://www.nakedcapitalism.com/2008/04/dizard-fed-backs-hypocrisy-of-bank.html#comment-6887 Anonymous Wed, 16 Apr 2008 00:56:00 +0000 http://www.nakedcapitalism.com/2008/04/dizard-fed-backs-hypocrisy-of-bank-recapitalization/#comment-6887 One more OT note from Kurt please:<br/><br/>"One of the things that Goedel proved was that time does not exist, at least not in the physical world. It is an imaginary dimension, both in the ordinary sense, and in the mathematical sense. In math, imaginary numbers have the square root of minus one as a factor, which segregates them from real number. Only real numbers correspond to real dimensions, which allow movement."<br/><br/>This is related to the fact that this recession will pass by unobserved in the physical world and thus only be a relative matter for time based things like daytrading... One more OT note from Kurt please:

“One of the things that Goedel proved was that time does not exist, at least not in the physical world. It is an imaginary dimension, both in the ordinary sense, and in the mathematical sense. In math, imaginary numbers have the square root of minus one as a factor, which segregates them from real number. Only real numbers correspond to real dimensions, which allow movement.”

This is related to the fact that this recession will pass by unobserved in the physical world and thus only be a relative matter for time based things like daytrading…

]]> By: Anonymous http://www.nakedcapitalism.com/2008/04/dizard-fed-backs-hypocrisy-of-bank.html#comment-6884 Anonymous Wed, 16 Apr 2008 00:31:00 +0000 http://www.nakedcapitalism.com/2008/04/dizard-fed-backs-hypocrisy-of-bank-recapitalization/#comment-6884 Re: "the amount of funds that banks need to rebuild their balance sheets is so large that it cannot be obtained without some form of government sponsorship."<br/><br/>>> Gödel's first incompleteness theorem, perhaps the single most celebrated result in mathematical logic, states that:<br/>For any consistent formal, recursively enumerable theory that proves basic arithmetical truths, an arithmetical statement that is true, but not provable in the theory, can be constructed. That is, any effectively generated theory capable of expressing elementary arithmetic cannot be both consistent and complete. Re: “the amount of funds that banks need to rebuild their balance sheets is so large that it cannot be obtained without some form of government sponsorship.”

>> Gödel’s first incompleteness theorem, perhaps the single most celebrated result in mathematical logic, states that:
For any consistent formal, recursively enumerable theory that proves basic arithmetical truths, an arithmetical statement that is true, but not provable in the theory, can be constructed. That is, any effectively generated theory capable of expressing elementary arithmetic cannot be both consistent and complete.

]]> By: Anonymous http://www.nakedcapitalism.com/2008/04/dizard-fed-backs-hypocrisy-of-bank.html#comment-6883 Anonymous Wed, 16 Apr 2008 00:26:00 +0000 http://www.nakedcapitalism.com/2008/04/dizard-fed-backs-hypocrisy-of-bank-recapitalization/#comment-6883 Out of crisis (or crises) comes opportunity.<br/><br/>The next president (and I assume that it will be BHO) will arrive at one of those special moments in time when whatever he wishes to implement as a global or all-inclusive solution will find sufficient support to become law.<br/><br/>A redesign of a number of our social systems, education, central banking, regulatory and others (actually, many others) is essential if this nation is to remain prosperous subsequent to 2010.<br/><br/>The current model has failed, snd even many of the eight-figure-net-worth (and higher) beneficiaries of its imbalances know this and want radical change,<br/><br/>because being a big fish in a drained pond "ain't no fun at all." Out of crisis (or crises) comes opportunity.

The next president (and I assume that it will be BHO) will arrive at one of those special moments in time when whatever he wishes to implement as a global or all-inclusive solution will find sufficient support to become law.

A redesign of a number of our social systems, education, central banking, regulatory and others (actually, many others) is essential if this nation is to remain prosperous subsequent to 2010.

The current model has failed, snd even many of the eight-figure-net-worth (and higher) beneficiaries of its imbalances know this and want radical change,

because being a big fish in a drained pond “ain’t no fun at all.”

]]> By: S http://www.nakedcapitalism.com/2008/04/dizard-fed-backs-hypocrisy-of-bank.html#comment-6877 S Tue, 15 Apr 2008 22:08:00 +0000 http://www.nakedcapitalism.com/2008/04/dizard-fed-backs-hypocrisy-of-bank-recapitalization/#comment-6877 With all the fed rating cutting heretofore banks are reporting flattish NIM with sequentially declining loan books (to slight increases). Many have said thuis far (regionals) that they have reached a deposit floor which thus removes yet another reaosn for the Fed to cut rates. That said, the notion that this can be streched to an "earn to lose" chosen model with the coming waves of resets, the consumer meltdown and the worsenting employment numbers seems a stretch. The WAMU shareholder meeting was lively, with a former CIO of the company calling management incompetant and castigating them for accepting onerous terms in lieu of the JPM offer of $8. <br/><br/>In't Derivatives just announced that CDS remians robust with $62.2B outstanding at YE - 10x '04 levels. Great. With all the fed rating cutting heretofore banks are reporting flattish NIM with sequentially declining loan books (to slight increases). Many have said thuis far (regionals) that they have reached a deposit floor which thus removes yet another reaosn for the Fed to cut rates. That said, the notion that this can be streched to an “earn to lose” chosen model with the coming waves of resets, the consumer meltdown and the worsenting employment numbers seems a stretch. The WAMU shareholder meeting was lively, with a former CIO of the company calling management incompetant and castigating them for accepting onerous terms in lieu of the JPM offer of $8.

In’t Derivatives just announced that CDS remians robust with $62.2B outstanding at YE – 10x ‘04 levels. Great.

]]> By: Steve http://www.nakedcapitalism.com/2008/04/dizard-fed-backs-hypocrisy-of-bank.html#comment-6868 Steve Tue, 15 Apr 2008 20:04:00 +0000 http://www.nakedcapitalism.com/2008/04/dizard-fed-backs-hypocrisy-of-bank-recapitalization/#comment-6868 A transactional tax on OTC derivatives would encourage a shift to exchange-settled instruments (but the lawyers would have a field day looking for definitional loopholes). From what I've heard, the HF counterparty problem has become a massive multiplayer version of the prisoner's dilemma. A transactional tax on OTC derivatives would encourage a shift to exchange-settled instruments (but the lawyers would have a field day looking for definitional loopholes). From what I’ve heard, the HF counterparty problem has become a massive multiplayer version of the prisoner’s dilemma.

]]> By: Francois http://www.nakedcapitalism.com/2008/04/dizard-fed-backs-hypocrisy-of-bank.html#comment-6867 Francois Tue, 15 Apr 2008 19:54:00 +0000 http://www.nakedcapitalism.com/2008/04/dizard-fed-backs-hypocrisy-of-bank-recapitalization/#comment-6867 "It says that the powers that be assume we can muddle through with the status quo largely intact, or more cynically, are using that posture as a defense for dumping the problem in the lap of the next Administration."<br/><br/>If they wish to punt the can down to the next Administration, they should be very careful. With a crisis likely to get worse by inaction, the next tenant of the White House might have all the needed incentives to really do something drastic to the status quo.<br/><br/>That would not bode well for those who profit form it now. “It says that the powers that be assume we can muddle through with the status quo largely intact, or more cynically, are using that posture as a defense for dumping the problem in the lap of the next Administration.”

If they wish to punt the can down to the next Administration, they should be very careful. With a crisis likely to get worse by inaction, the next tenant of the White House might have all the needed incentives to really do something drastic to the status quo.

That would not bode well for those who profit form it now.

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