"Profits have been privatized, losses socialized"

[mshan]

Interesting that he said this was all due to lack of regulation in markets over the last couple years.

Also said that FDIC has $50 billion, but used $8 billion on IndyMac and will have to use half of their total reserves to bail out WAMU depositors.

Cramer last year projected "subprime" losses at up to $500 billion, $1 trillion sounds reasonable now, and Nouriel Rabini says when all other junk loans such as credit cards, etc. are taken into account, losses could add up to $2 trillion dollars.

Great job, Bush!!! :roll:

 

[Slew Foot]

Because GWB made everyone loan out $$$ that they didnt have to people who couldnt pay it back?

I blame the banks themselves, and maybe if anything the govt for not breaking the banks into smaller entities not "too big to fail".

 

[mshan]

Is this really a problem of loaning just to "subprime" borrowers only, or, plain and simple, just overextending credit to used to be prime, alt-A, and true subprime borrowers?

I mean, are you really arguing that Ed McMahon was a "subprime" borrower?

 

[mshan]

CNBC Asia webstream just announced that the government will take an 80% stake in AIG in return for a $85 billion bridge loan (in addition shotgun $to 70 billion shotgun private consortium the government rustled up over the weekend).

I trust Ben Bernanke, view Hank Paulson as a perfect for the Bush Administration (this is not a compliment), but really have to wonder that, given the capital reserves of the US government allows them to be a patient long term investor, will they end up making money on this deal over the long term?

Too Big to Fail?: talking head clip on CNBC Asia said market could be down 1000 points tomorrow, if AIG had been allowed to declare bankruptcy.