[Rhodes22-list] Calm Before Storm, change the subject to non sailing topic, look here

[Brad Haslett]

Ed,

The author got it about right.  I hope he's wrong about the taxpayers
bailing the big banks out of a mess of their own making.  The Fed is
currently pumping liquidity into the market with the hope that this passes,
and it can work if Congress stays out of it!  What really surprises me is
where are the last of the big accounting firms?  You would think that after
Enron and World Com took down Arthur Anderson they'd cry foul about what was
an obvious problem - the reserves for risky loans were too small.  Anyway,
the problem with banking and auditing banks is that small problems in their
loan portfolio can quickly get magnified into large problems when things go
sour because of their reserve requirements.  That's essentially what the Fed
is doing, making it easier and giving them time for them to get their
reserves in order.  We can do it quickly on the taxpayers nickel or exercise
some patience, let the big boys take the write-offs for bad loans during the
next few quarters, and move on. This is pretty much what the Chinese have
been doing with their large state owned banks for a decade.  If we do it
right, Citicorp and their fellow travellers can take their medicine and be
healthy in a couple of quarters. He is definitely right about one thing, the
economy is still doing well.  I'm glad I didn't panic a few weeks ago when
it was all gloom and doom.  Think long term!

Now about oil..................

Brad



On 11/2/07, Tootle <ekroposki at charter.net> wrote:
>
>
>
> Big Al, this is not for you...  it is non sailing ...
>
> Brad,
>
> Explain this article:
>
>
> http://www.nytimes.com/2007/10/21/business/21every.html?pagewanted=2&_r=2&th&emc=th
>
> You da man...
>
> Ed K
> Greenville, SC, USA
> Addendum: "It is not our affluence, or our plumbing, or our clogged
> freeways
> that grip the imagination of others.  Rather, it is the values upon which
> our system is built."  J. William Fulbright
>
>
> --
> View this message in context:
> http://www.nabble.com/Calm-Before-Storm-tf4737420.html#a13558199
> Sent from the Rhodes 22 mailing list archive at Nabble.com.
>
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