Comments on: LBO Loan Prices Continue to Fall http://www.nakedcapitalism.com/2008/09/lbo-loan-prices-continue-to-fall.html Mon, 23 Nov 2009 06:07:28 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Anonymous http://www.nakedcapitalism.com/2008/09/lbo-loan-prices-continue-to-fall.html#comment-16516 Anonymous Mon, 22 Sep 2008 16:18:00 +0000 http://www.nakedcapitalism.com/2008/09/lbo-loan-prices-continue-to-fall/#comment-16516 Spengler has an interesting and somewhat humorous take on the current US financial situation...I have taken the liberty of excerpting a couple of comments...<br/><br/>'E pluribus hokum or <br/>When the gamblers bail out the casino'<br/><br/>'Believe it or not, there is a rational explanation, and quite in keeping with America's national motto, E pluribus hokum. Part of the problem is that Wall Street, like the ethnic godfather in the old joke, has made America an offer it can't understand. The collapsing the mortgage-backed securities market embodies a degree of complexity that mystifies the average policy wonk. But that is a lesser, superficial side of the story. <br/><br/>Paulson's dreadful scheme will become law, because Americans love their bankers. The bankers enable their collective gambling habit. Think of America as a town with one casino, in which the only economic activity is gambling. Most people lose, but the casino keeps lending them more money to play. Eventually, of course, the casino must go bankrupt. At this point, the townspeople people vote to tax themselves in order to bail out the casino. Collectively, the gamblers cannot help but lose; individually they nonetheless hope to win their way out of the hole.'<br/><br/>and...<br/><br/>'Alas for the gamblers of America: they will tax themselves to keep the casino in operation, but it will not profit them. Where, oh where, is America's Vladimir Putin, who will drive out the oligarchs who have stolen the country's treasure and debased it's currency.'<br/><br/>http://www.atimes.com/atimes/Global_Economy/JI23Dj06.html<br/><br/>River Spengler has an interesting and somewhat humorous take on the current US financial situation…I have taken the liberty of excerpting a couple of comments…

‘E pluribus hokum or
When the gamblers bail out the casino’

‘Believe it or not, there is a rational explanation, and quite in keeping with America’s national motto, E pluribus hokum. Part of the problem is that Wall Street, like the ethnic godfather in the old joke, has made America an offer it can’t understand. The collapsing the mortgage-backed securities market embodies a degree of complexity that mystifies the average policy wonk. But that is a lesser, superficial side of the story.

Paulson’s dreadful scheme will become law, because Americans love their bankers. The bankers enable their collective gambling habit. Think of America as a town with one casino, in which the only economic activity is gambling. Most people lose, but the casino keeps lending them more money to play. Eventually, of course, the casino must go bankrupt. At this point, the townspeople people vote to tax themselves in order to bail out the casino. Collectively, the gamblers cannot help but lose; individually they nonetheless hope to win their way out of the hole.’

and…

‘Alas for the gamblers of America: they will tax themselves to keep the casino in operation, but it will not profit them. Where, oh where, is America’s Vladimir Putin, who will drive out the oligarchs who have stolen the country’s treasure and debased it’s currency.’

http://www.atimes.com/atimes/Global_Economy/JI23Dj06.html

River

]]> By: Anonymous http://www.nakedcapitalism.com/2008/09/lbo-loan-prices-continue-to-fall.html#comment-16510 Anonymous Mon, 22 Sep 2008 15:39:00 +0000 http://www.nakedcapitalism.com/2008/09/lbo-loan-prices-continue-to-fall/#comment-16510 Anyone know what happened to Citi's $5B LBO debt from Terra Firmas (Guy Hands ex Nomura) EMI LBO?<br/><br/>Citi struggles to reduce EMI loan exposure:<br/>http://www.ft.com/cms/s/0/c863d380-0807-11dd-a922-0000779fd2ac.html?nclick_check=1 Anyone know what happened to Citi’s $5B LBO debt from Terra Firmas (Guy Hands ex Nomura) EMI LBO?

Citi struggles to reduce EMI loan exposure:
http://www.ft.com/cms/s/0/c863d380-0807-11dd-a922-0000779fd2ac.html?nclick_check=1

]]> By: Matthew Dubuque http://www.nakedcapitalism.com/2008/09/lbo-loan-prices-continue-to-fall.html#comment-16492 Matthew Dubuque Mon, 22 Sep 2008 13:26:00 +0000 http://www.nakedcapitalism.com/2008/09/lbo-loan-prices-continue-to-fall/#comment-16492 Matthew Dubuque<br/><br/>Anon at 6:12: <br/><br/>Sorry, but MEDICAID will NOT pay for that.<br/><br/>Keep in mind the next wave is for the Friedman fanatics to push their radical jihad social agenda upon us in this time of crisis. That's their modus operandi.<br/><br/>The BIG push will be on to privatize BOTH Social Security AND Medicare.<br/><br/>Morgan and Goldman need the billions in fees and we now KNOW that the private sector miraculously solves all problems, come right over here m'am, just pray at this little altar of the INVISIBLE HAND, give me your wallet and everything will be just fine.<br/><br/>PRIVATIZE all gains, SOCIALIZE all losses.<br/><br/>Matthew Dubuque Matthew Dubuque

Anon at 6:12:

Sorry, but MEDICAID will NOT pay for that.

Keep in mind the next wave is for the Friedman fanatics to push their radical jihad social agenda upon us in this time of crisis. That’s their modus operandi.

The BIG push will be on to privatize BOTH Social Security AND Medicare.

Morgan and Goldman need the billions in fees and we now KNOW that the private sector miraculously solves all problems, come right over here m’am, just pray at this little altar of the INVISIBLE HAND, give me your wallet and everything will be just fine.

PRIVATIZE all gains, SOCIALIZE all losses.

Matthew Dubuque

]]> By: Anonymous http://www.nakedcapitalism.com/2008/09/lbo-loan-prices-continue-to-fall.html#comment-16475 Anonymous Mon, 22 Sep 2008 10:12:00 +0000 http://www.nakedcapitalism.com/2008/09/lbo-loan-prices-continue-to-fall/#comment-16475 Still falling? What a great time to "invest" $700 billion in the name of the Worker/Suckers, to catch a falling knife.<br/><br/>Oops, there goes my hand! Oh well, Medicaid will pay for a swanky prosthesis. Still falling? What a great time to “invest” $700 billion in the name of the Worker/Suckers, to catch a falling knife.

Oops, there goes my hand! Oh well, Medicaid will pay for a swanky prosthesis.

]]> By: Marsha Keeffer http://www.nakedcapitalism.com/2008/09/lbo-loan-prices-continue-to-fall.html#comment-16468 Marsha Keeffer Mon, 22 Sep 2008 06:47:00 +0000 http://www.nakedcapitalism.com/2008/09/lbo-loan-prices-continue-to-fall/#comment-16468 Too many nooks and crannies that have to deflate. My head aches... Too many nooks and crannies that have to deflate. My head aches…

]]> By: Anonymous http://www.nakedcapitalism.com/2008/09/lbo-loan-prices-continue-to-fall.html#comment-16463 Anonymous Mon, 22 Sep 2008 06:18:00 +0000 http://www.nakedcapitalism.com/2008/09/lbo-loan-prices-continue-to-fall/#comment-16463 The government saw this all coming long ago starting with deleting M-3. The accounting or non-accounting at the Federal Reserve hid most of the behind the scene actions except the dollar value. A blind man could see RE correcting taking down anything connect to it. Then out of nowhere you had an IRS give away trying to avert a straight line down economy. Then the bailouts. Now a realignment of banking to hide again behind Fed Reserve accounting.<br/><br/>700b is a drop in the bucket when 100x trillions is the size of outstanding debt worldwide.<br/><br/>Stopgap measures at best. The government saw this all coming long ago starting with deleting M-3. The accounting or non-accounting at the Federal Reserve hid most of the behind the scene actions except the dollar value. A blind man could see RE correcting taking down anything connect to it. Then out of nowhere you had an IRS give away trying to avert a straight line down economy. Then the bailouts. Now a realignment of banking to hide again behind Fed Reserve accounting.

700b is a drop in the bucket when 100x trillions is the size of outstanding debt worldwide.

Stopgap measures at best.

]]> By: Anonymous http://www.nakedcapitalism.com/2008/09/lbo-loan-prices-continue-to-fall.html#comment-16453 Anonymous Mon, 22 Sep 2008 04:41:00 +0000 http://www.nakedcapitalism.com/2008/09/lbo-loan-prices-continue-to-fall/#comment-16453 I've always felt that the LBOs were going to be next on their balance sheets.<br/><br/>So why don't we just let them hold the toxic waste at a made up price until their balance sheets are repaired enough to take the full write down?<br/><br/>Wouldn't it be easier & cheaper if they just suspended mark-to-market accounting "temporarily?"<br/><br/>It's better than having the Treasury buy all this stuff at par at the TARP. I've always felt that the LBOs were going to be next on their balance sheets.

So why don't we just let them hold the toxic waste at a made up price until their balance sheets are repaired enough to take the full write down?

Wouldn't it be easier & cheaper if they just suspended mark-to-market accounting "temporarily?"

It's better than having the Treasury buy all this stuff at par at the TARP.

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