Comments on: Berlin Warns Financial System Still At Risk of Collapse http://www.nakedcapitalism.com/2008/10/berlin-warns-financial-system-still-at.html Sun, 22 Nov 2009 07:56:24 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Anonymous http://www.nakedcapitalism.com/2008/10/berlin-warns-financial-system-still-at.html#comment-23389 Anonymous Mon, 27 Oct 2008 12:10:00 +0000 http://www.nakedcapitalism.com/2008/10/berlin-warns-financial-system-still-at-risk-of-collapse/#comment-23389 Everyone is assuming that the current crop of azz hats can solve the current financial problems. <br/><br/>Unfortunately, I do not believe that a group of Einstinian IQed, totally committed economists could solve the current problems in the short unwind time alloted.<br/><br/>Bush said we were going to Mars. Too bad it's the economy that will make the trip. Everyone is assuming that the current crop of azz hats can solve the current financial problems.

Unfortunately, I do not believe that a group of Einstinian IQed, totally committed economists could solve the current problems in the short unwind time alloted.

Bush said we were going to Mars. Too bad it’s the economy that will make the trip.

]]> By: Anonymous http://www.nakedcapitalism.com/2008/10/berlin-warns-financial-system-still-at.html#comment-23384 Anonymous Mon, 27 Oct 2008 11:41:00 +0000 http://www.nakedcapitalism.com/2008/10/berlin-warns-financial-system-still-at-risk-of-collapse/#comment-23384 It's hard to reconcile Steinbrück on Sunday ("risk of collapse") with Steinbrück a couple of weeks ago ("American problem"). I think in fact he is way out of his depth and he is just blustering about. German finance ministers traditionally do not have a great deal to say about world finance. Their job is to look after the budget and make sure no-one overspends (a stern, grumpy look, steel-rimmed glasses and frequent use of the word "no" is part of the job). The chancellor (German prime minister) is supposed to do the international heavy lifting. But we have Merkel as chancellor and she really doesn't know anything about finance, having grown up, studied and worked in the communist DDR. So they all rely on a couple of top level backroom bureaucrats (Jörg Asmussen in the Finance Ministry and Jens Weidmann in the Chancellor's office) and the top bankers like Deutsche Bank's Ackermann.<br/><br/>The result is this hotch-potch system of take it or leave it. Instead of forcing the banks to accept additional capital, as in UK, France, USA, the German banks have to out themselves as needing capital first. Really stupid.<br/><br/>Instead, the German government should go one step better than all the others in Europe and USA and force the banks to open the books first and write down all the bad assets and then take additional capital. Otherwise we are all just throwing bad money after good - and that's of course what no good German finance minister wants to do. It’s hard to reconcile Steinbrück on Sunday (”risk of collapse”) with Steinbrück a couple of weeks ago (”American problem”). I think in fact he is way out of his depth and he is just blustering about. German finance ministers traditionally do not have a great deal to say about world finance. Their job is to look after the budget and make sure no-one overspends (a stern, grumpy look, steel-rimmed glasses and frequent use of the word “no” is part of the job). The chancellor (German prime minister) is supposed to do the international heavy lifting. But we have Merkel as chancellor and she really doesn’t know anything about finance, having grown up, studied and worked in the communist DDR. So they all rely on a couple of top level backroom bureaucrats (Jörg Asmussen in the Finance Ministry and Jens Weidmann in the Chancellor’s office) and the top bankers like Deutsche Bank’s Ackermann.

The result is this hotch-potch system of take it or leave it. Instead of forcing the banks to accept additional capital, as in UK, France, USA, the German banks have to out themselves as needing capital first. Really stupid.

Instead, the German government should go one step better than all the others in Europe and USA and force the banks to open the books first and write down all the bad assets and then take additional capital. Otherwise we are all just throwing bad money after good – and that’s of course what no good German finance minister wants to do.

]]> By: Richard Kline http://www.nakedcapitalism.com/2008/10/berlin-warns-financial-system-still-at.html#comment-23375 Richard Kline Mon, 27 Oct 2008 08:43:00 +0000 http://www.nakedcapitalism.com/2008/10/berlin-warns-financial-system-still-at-risk-of-collapse/#comment-23375 Whoops, got the 'word verification' in the name box at 4:42; 'twas so remarkable I brainlocked on it. Whoops, got the ‘word verification’ in the name box at 4:42; ’twas so remarkable I brainlocked on it.

]]> By: hater http://www.nakedcapitalism.com/2008/10/berlin-warns-financial-system-still-at.html#comment-23374 hater Mon, 27 Oct 2008 08:42:00 +0000 http://www.nakedcapitalism.com/2008/10/berlin-warns-financial-system-still-at-risk-of-collapse/#comment-23374 Yo 3% Anon, you're one whitewater dude after my own heart. For some trading is a profession; for others, a calling; for a few, the drug of choice. If money did me at all, I'd be there, too, but it just doesn't make my pleasure centers activate a tittle; like watching poplars have sex. I'll bet you deathmatch, too, something else that puts me to sleep. Yo 3% Anon, you’re one whitewater dude after my own heart. For some trading is a profession; for others, a calling; for a few, the drug of choice. If money did me at all, I’d be there, too, but it just doesn’t make my pleasure centers activate a tittle; like watching poplars have sex. I’ll bet you deathmatch, too, something else that puts me to sleep.

]]> By: Anonymous http://www.nakedcapitalism.com/2008/10/berlin-warns-financial-system-still-at.html#comment-23354 Anonymous Mon, 27 Oct 2008 05:59:00 +0000 http://www.nakedcapitalism.com/2008/10/berlin-warns-financial-system-still-at-risk-of-collapse/#comment-23354 Rick and Molecool.....<br/><br/>Though Der Spiegel is by far a better source than the ever-popular, glaring Bild Zeitung with its boldface headlines and hefty dose of bare-chested beauties to keep sales up, keep in mind that "Spiegel" is and always has been far left of the middle, and a German-style middle for that. If you read German, the FAZ.de (Frankfurter Allgemeine Zeitung) is a better news source; at least they cover more ground. Rick and Molecool…..

Though Der Spiegel is by far a better source than the ever-popular, glaring Bild Zeitung with its boldface headlines and hefty dose of bare-chested beauties to keep sales up, keep in mind that “Spiegel” is and always has been far left of the middle, and a German-style middle for that. If you read German, the FAZ.de (Frankfurter Allgemeine Zeitung) is a better news source; at least they cover more ground.

]]> By: patrick neid http://www.nakedcapitalism.com/2008/10/berlin-warns-financial-system-still-at.html#comment-23341 patrick neid Mon, 27 Oct 2008 04:18:00 +0000 http://www.nakedcapitalism.com/2008/10/berlin-warns-financial-system-still-at-risk-of-collapse/#comment-23341 I don't believe a word he says. Mind you everything he says might actually be true but he personally hasn't a clue if it is.<br/><br/>I'm surprised that so many want to believe that the folks who had no clue what was afoot are prepared to believe that now, as if struck by ligthening, thay know the solutions going forward to problems they never saw. This is our never ending dilemma when academics run the equipment.<br/><br/>As a trader all I can say is god help us all. <br/><br/>What I will say, despite all the shrieking and shouts of fire in the theatre, the stock and bond markets have been very orderly. For the past month despite the volatility, anyone who wanted to liquidate a position has had no problem. That speaks volumes.<br/><br/>As to the preposterous notion that the transparency in the news is better in Europe you must be kidding. These are the same yahoos who not a month ago were telling us the the US was through, never to be the same again and that European banking was much sounder. Fast forward as these mental midgets have now found out that their problem is several magnitudes worst that ours. Yes, very bright folks they are. Please, by all means, tell me again what you see going forward herr minister. I don’t believe a word he says. Mind you everything he says might actually be true but he personally hasn’t a clue if it is.

I’m surprised that so many want to believe that the folks who had no clue what was afoot are prepared to believe that now, as if struck by ligthening, thay know the solutions going forward to problems they never saw. This is our never ending dilemma when academics run the equipment.

As a trader all I can say is god help us all.

What I will say, despite all the shrieking and shouts of fire in the theatre, the stock and bond markets have been very orderly. For the past month despite the volatility, anyone who wanted to liquidate a position has had no problem. That speaks volumes.

As to the preposterous notion that the transparency in the news is better in Europe you must be kidding. These are the same yahoos who not a month ago were telling us the the US was through, never to be the same again and that European banking was much sounder. Fast forward as these mental midgets have now found out that their problem is several magnitudes worst that ours. Yes, very bright folks they are. Please, by all means, tell me again what you see going forward herr minister.

]]> By: rick http://www.nakedcapitalism.com/2008/10/berlin-warns-financial-system-still-at.html#comment-23342 rick Mon, 27 Oct 2008 04:18:00 +0000 http://www.nakedcapitalism.com/2008/10/berlin-warns-financial-system-still-at-risk-of-collapse/#comment-23342 Molecool - I've bookmarked www.spiegel.de - thanks for the tip.<br/><br/>I've also just begun reading chinadaily.com hoping to get some news Molecool – I’ve bookmarked http://www.spiegel.de – thanks for the tip.

I’ve also just begun reading chinadaily.com hoping to get some news

]]> By: Anonymous http://www.nakedcapitalism.com/2008/10/berlin-warns-financial-system-still-at.html#comment-23340 Anonymous Mon, 27 Oct 2008 04:06:00 +0000 http://www.nakedcapitalism.com/2008/10/berlin-warns-financial-system-still-at-risk-of-collapse/#comment-23340 I wasn't aware that the German banks were shunning the government's bailout plan. It's kind of refreshing that a supposedly quasi-socialistic country like Germany gives its banks the option whil we abrogate the rule of law and force our banks to accept government money. So much for stereotypes. I wasn’t aware that the German banks were shunning the government’s bailout plan. It’s kind of refreshing that a supposedly quasi-socialistic country like Germany gives its banks the option whil we abrogate the rule of law and force our banks to accept government money. So much for stereotypes.

]]> By: Anonymous http://www.nakedcapitalism.com/2008/10/berlin-warns-financial-system-still-at.html#comment-23335 Anonymous Mon, 27 Oct 2008 03:23:00 +0000 http://www.nakedcapitalism.com/2008/10/berlin-warns-financial-system-still-at-risk-of-collapse/#comment-23335 it seems that folks who supposed to be at least aware of what's going on, if not in charge of it, like Treasury secretaries, finance ministers, politicians in general have absolutely no clue what's going on but they thinks it is their job to constantly comment on events and appear as if they knew. If you need to clear up your mind just ignore these clowns, read the optimistic proclamations of the clowns from the 30s. I remember Victor Niederhoffer mentioning in his autobiography that he tends to read books that are more than a 100 years old. Taleb writes that it's best to ignore news altogether. it seems that folks who supposed to be at least aware of what’s going on, if not in charge of it, like Treasury secretaries, finance ministers, politicians in general have absolutely no clue what’s going on but they thinks it is their job to constantly comment on events and appear as if they knew. If you need to clear up your mind just ignore these clowns, read the optimistic proclamations of the clowns from the 30s. I remember Victor Niederhoffer mentioning in his autobiography that he tends to read books that are more than a 100 years old. Taleb writes that it’s best to ignore news altogether.

]]> By: a_REAL_American http://www.nakedcapitalism.com/2008/10/berlin-warns-financial-system-still-at.html#comment-23334 a_REAL_American Mon, 27 Oct 2008 03:12:00 +0000 http://www.nakedcapitalism.com/2008/10/berlin-warns-financial-system-still-at-risk-of-collapse/#comment-23334 Just more unpatriotic negativism from liberals that hate America, and the troops. Just more unpatriotic negativism from liberals that hate America, and the troops.

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