Who else resents USAians for causing this finanical crisis?

[BeBMan]

The more this crisis developes the more it becomes clear that it was caused by Bush to make America's enemies suffer. Just look how oil is getting cheaper....and who wants high oil prices? Yeah, Iran, Venezuela and :HappyPutin:

So it's no question now that we are seeing a brilliantly planned move against the axis of oil rich countries unfolding right now. Bush thought it out together with Germany's Green Party, btw.

[Dauphin]

Edit - misread.

[MrFun]

I want DanS to pull out his magic charts and graphs to reassure us that we are in the midst of prosperity.

You're letting us down, DanS.

[Agathon]

Originally posted by MrFun
I want DanS to pull out his magic charts and graphs to reassure us that we are in the midst of prosperity.

Leave him alone. His ass is empty.

[Dauphin]

Originally posted by Aeson

That chart would look very different if European and US banks were measured using the same accounting policies.

[DanS]

How would it look?

I note that IIUC some of the off balance sheet transactions made by the US banks were taken back on the balance sheets by June 2008.

[Dauphin]

Originally posted by DanS
How would it look?

I note that IIUC some of the off balance sheet transactions made by the US banks were taken back on the balance sheets by June 2008.

I couldn't say specifically, but you could almost be halving the ratio of some of the European banks (Deutsche Bank I think is the oft-quoted example).

From FT/Morgan Stanley

[chequita guevara]

The tail is wagging the dog in this thread. It is not the U.S. that lured money in to bad investments, it was that there was so much money available for investment that investors were demanding the mortgage brokers give away ever more shaky loans (on the assumption that American housing prices never went down-at least they'd get their investment back in the form of a house). Too much money caused this crisis.

[Kidlicious]

Originally posted by Comrade Snuggles
The tail is wagging the dog in this thread. It is not the U.S. that lured money in to bad investments, it was that there was so much money available for investment that investors were demanding the mortgage brokers give away ever more shaky loans (on the assumption that American housing prices never went down-at least they'd get their investment back in the form of a house). Too much money caused this crisis.

It's not just that. It's that investors thought that something like this wouldn't happen. If there was less money available for investment this still would have happened, but it might be at a later time, and not as bad.

[Aeson]

Originally posted by Dauphin
That chart would look very different if European and US banks were measured using the same accounting policies.

It's rather irrelevant what the actual ratios are. It's clear that the ratios are way too high, and that both US and Euro financial institutions did it to themselves.

[DanS]

Originally posted by Dauphin
I couldn't say specifically, but you could almost be halving the ratio of some of the European banks (Deutsche Bank I think is the oft-quoted example).

If this were so, why was the magnitude of the bank bailout in the US about 1/3rd of most European countries? I can think of some possible reasons, but the simplest is that the European banks needed about 3x the help versus US banks.

The relative magnitude of the bailouts is striking to me. Isn't it the US real estate market that has imploded?

[DanS]

Originally posted by MrFun
I want DanS to pull out his magic charts and graphs to reassure us that we are in the midst of prosperity.

Why would I do that?

[Traianvs]

Originally posted by Comrade Snuggles
The tail is wagging the dog in this thread. It is not the U.S. that lured money in to bad investments, it was that there was so much money available for investment that investors were demanding the mortgage brokers give away ever more shaky loans (on the assumption that American housing prices never went down-at least they'd get their investment back in the form of a house). Too much money caused this crisis.

Erm, actually it was the investment of ****loads of money that really did not exist. Banks created all kinds of inventive ways to put investments into some obscure fund elsewhere in order to quickly gain money, as the past two decades has proven, but they didn't have anything to back it all up. They were just playin poker with a hand they hardly bothered looking at. bleh

[HalfLotus]

The Federal Reserve's artificially low interest rates and rampant inflation via our fiat currency are the primary causes of this problem. The Wall Street and corporate malinvestment are symptoms.

Too much of the economic discussion entirely ignores the policies of the most powerful central bank in the history of the world. Educate yourself on the Fed.

[Traianvs]

Originally posted by DanS


If this were so, why was the magnitude of the bank bailout in the US about 1/3rd of most European countries? I can think of some possible reasons, but the simplest is that the European banks needed about 3x the help versus US banks.

The relative magnitude of the bailouts is striking to me. Isn't it the US real estate market that has imploded?

I know that many people with money in funds Fortis managed for them, had invested in Lehman brothers for example...

Lots of them turbocapitalists here just depend on the US, shortsighted as they were.

The top cats at fortis did earn a lot of money in a short time period. But that's the only good thing that it ever got us.