The Paulson Plan Will Make Money For Taxpayers http://online.wsj.com/article/SB122230704116773989.html?mod=rss_opinion_main
On Wed, Sep 24, 2008 at 9:50 PM, Robert Munn <[EMAIL PROTECTED]> wrote: > It comes down to credit ratings agencies. Big firms holding all these toxic > financial assets started getting downgraded as credit risks. The downgrade > in their credit rating made it impossible for them to borrow money at a time > when they most needed to borrow money, leading to the collapse of Bear > Stearns, Lehman, the mess at AIG, etc. > > Why did no one see it coming? Well, in a very broad sense, a lot of people > saw the Freddie and Fannie mess coming, and they warned Congress about it, > but Congress failed to act. As to the specifics why no one knew a month ago, > I think the issue is opacity of risk. These organizations got into the > business of these highly complex financial derivatives and outsmarted > themselves. They didn't know, they still don't know, exactly what they own > or what the risks are in their investments. As a result, no one will lend > money to anyone else in the financial industry, so the entire credit market > has ground to a halt. > > I'm not a big fan of Bloomberg, CNBC, etc, but it's worth watching right now > to help fill in the gaps on what Wall Street is watching right now. > > ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Adobe® ColdFusion® 8 software 8 is the most important and dramatic release to date Get the Free Trial http://ad.doubleclick.net/clk;207172674;29440083;f Archive: http://www.houseoffusion.com/groups/CF-Community/message.cfm/messageid:270755 Subscription: http://www.houseoffusion.com/groups/CF-Community/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=11502.10531.5
