Comments on: Let the Current Bailout Die http://alephblog.com/2008/09/26/let-the-current-bailout-die/ Helping Institutions and Ordinary People Invest Better by Focusing on Risk Control Sun, 12 Feb 2012 22:02:53 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Johnhttp://alephblog.com/2008/09/26/let-the-current-bailout-die/comment-page-1/#comment-19042 John Sat, 27 Sep 2008 09:38:33 +0000 http://alephblog.com/?p=958#comment-19042 Clever investment firms will take advantage of the government and its agents, and only sell overpriced assets to the government. Mr. Ritholtz in the book - “Bailout Nation” - sketches out an intriguing alternative history of Chrysler and Detroit. John <a href="http://www.jobsearchdigest.com/investment_banking_jobs" rel="nofollow">Investment Banking Jobs</a> Clever investment firms will take advantage of the government and its agents, and only sell overpriced assets to the government. Mr. Ritholtz in the book – “Bailout Nation” – sketches out an intriguing alternative history of Chrysler and Detroit.

John
Investment Banking Jobs

]]> By: Markhttp://alephblog.com/2008/09/26/let-the-current-bailout-die/comment-page-1/#comment-19031 Mark Fri, 26 Sep 2008 20:09:23 +0000 http://alephblog.com/?p=958#comment-19031 Can you speak to the costs of the systemic risks involved with *not* doing anything? Meaning, can you speculate on the negative impact of waiting to let the next administration handle it? I agree that the valuation is not optimal (mtm pricing is certainly flawed), but without getting into the doom and gloom of it all, what will impact to the markets (equity and credit) if this capital is not injected? Isn't the Fed going to have to intervene again as a LOLR at some point anyways? I'm not disagreeing; I just need further clarification, because your arguments are very well made, but I'm also looking at the other side of things. Thanks! Can you speak to the costs of the systemic risks involved with *not* doing anything? Meaning, can you speculate on the negative impact of waiting to let the next administration handle it? I agree that the valuation is not optimal (mtm pricing is certainly flawed), but without getting into the doom and gloom of it all, what will impact to the markets (equity and credit) if this capital is not injected? Isn’t the Fed going to have to intervene again as a LOLR at some point anyways? I’m not disagreeing; I just need further clarification, because your arguments are very well made, but I’m also looking at the other side of things. Thanks!

]]> By: A.http://alephblog.com/2008/09/26/let-the-current-bailout-die/comment-page-1/#comment-19029 A. Fri, 26 Sep 2008 19:25:45 +0000 http://alephblog.com/?p=958#comment-19029 Reader Matt took the words out of my mouth. When writing to several of elected officials in recent days (and again today), I have taken the liberty to link to your blog and this excellent analysis. Hope & wish someone would take you up on your offer to testify in Washington. Clear-minded expertise, ability to make a complex issue understandable and moral compass to boot is what's direly needed. Thank you, David. Reader Matt took the words out of my mouth.

When writing to several of elected officials in recent days (and again today), I have taken the liberty to link to your blog and this excellent analysis. Hope & wish someone would take you up on your offer to testify in Washington.

Clear-minded expertise, ability to make a complex issue understandable and moral compass to boot is what’s direly needed.

Thank you, David.

]]> By: Matt Swansojeikrhttp://alephblog.com/2008/09/26/let-the-current-bailout-die/comment-page-1/#comment-19025 Matt Swansojeikr Fri, 26 Sep 2008 15:05:33 +0000 http://alephblog.com/?p=958#comment-19025 This post should be required reading for anyone who wishes to speak intelligently about the Paulson plan and all of its spawn. It's hard to appreciate just how cuspy these asset values are. Even slight changes in assumptions result in dramatic changes in value (thank you, leverage!). It's even more fraught with peril when all indicators are pointing down, as they are now. Thank you SO MUCH taking the time and effort to share your knowledge and experience. This post should be required reading for anyone who wishes to speak intelligently about the Paulson plan and all of its spawn.

It’s hard to appreciate just how cuspy these asset values are. Even slight changes in assumptions result in dramatic changes in value (thank you, leverage!). It’s even more fraught with peril when all indicators are pointing down, as they are now.

Thank you SO MUCH taking the time and effort to share your knowledge and experience.

]]> By: JV DeLonghttp://alephblog.com/2008/09/26/let-the-current-bailout-die/comment-page-1/#comment-19024 JV DeLong Fri, 26 Sep 2008 14:54:16 +0000 http://alephblog.com/?p=958#comment-19024 Excellent post -- the big question: What are the quantities that bear the different ratings? How much money is in AAA, AA, A, B, etc? One of the problems with the public discussion is that it is unanchored to any estimates of the amounts that are actually involved. Excellent post — the big question: What are the quantities that bear the different ratings? How much money is in AAA, AA, A, B, etc? One of the problems with the public discussion is that it is unanchored to any estimates of the amounts that are actually involved.

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