Video of Volcker with Charlie Rose
Submitted by
CalculatedRisk on Wed, 03/19/2008 - 8:50am (66 comments)
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Using my status as FIRST I'd like to ask: Whatever happened to the delightful Robert Cote?
We're in unchartered waters people. And the Herion addicts keep "investing" in equities, as long as BB keeps pushing more black tar.
FDIC Quarterly: 4Q 2007
FDIC: FDIC Quarterly
he is expecting Housing to bottom up in late 2008.
Using my status as post-first, my question is what does Volker really say to his friends when his words aren't being taped. My guess is it is something like this.
"Bleeping idiots. Bleeping blepper bleepers. Bleeping us our bleeping country. I'm bleeping glad I'm bleeping old and don't have to bleeping worrying about this bleeping mess for bleeping long. Bleep. Bleep."
Cote has another handle Rob Dawg.
Elvis
LoL, 2 for 2 this morning.
Oh my!, he has gotten old!
I was a geeky kid who read Time and WSJ in the 1980s and my (vivid) mental image of Paul Volcker is from that era.
Sigh.
guys; Merrill is taking it in the pants right this minute. the next shoe?
who beat up Charlie Rose?
The four horsemen of economic crash usually are the following:
Nordics (Sweden and Finland) in the late 80's managed to get the first three and it caused to them 15+ percent unemployment AND interest rates. The government indebteness went from low teens to 70-80 percent of GDP in matter of few years during recession.
In the 1920's you got "only" one and a little bit of two but now you guys hit the real jackpot, all FOUR!
For more, all imports to US are now 14 percent of US GDP. You can put all the YEARLY industrial production (planes, cars, everything) of US together and still come up SHORT (12 percent of GDP)!
Volcker says that it is the fed's job to contol inflation. What a joke. The fed is the creator of inflation.
The fed as an inflation fighter - what a scam.
Paul Volcker - wasn't he appointed by the worst president in America history?
And didn't he actually scrimp by on a government salary while his wife was sick - thus actually demonstrating the sort of restraint and self-discipline so lacking since it was morning in America?
And hasn't he been warning about what is now happening for years?
I am imagine he must be some bitter old renter by this point, since he was so skeptical of the economic miracle that is modern America, the envy of the whole planet.
Actually, in all truth, I bet his heart is heavy when he contemplates how thoroughly his handling of America's last economic crisis has been thrown on the ash heap of history by his successors.
It's basically government responsibility.
wise words, we'll miss you Mrs. Volcker
in 6 months everybody will be "oh my ,what we've done".
Angry Saver said: "Volcker says that it is the fed's job to contol inflation...."
Well, that was his job at the time he was Fed Chair, so there's a little bit of "fighting the last war" here. We're not in the same situation today.
S.
Volcker is basically saying in a very professional way is the we are all TOAST...
rent_to_own writes:
Paul Volcker - wasn't he appointed by the worst president in America history?
Was he appointed in the last 8 eights?
Volcker is bashing the fed for protecting the investment banks.
whoops -- years
Living in the past, all of you. Who is The Man now?
Fed Chairman Ben Bernankes stock is at a 52-week high on Wall Street --- with the exception perhaps of Bear Stearns, which appears to be selling him short.
Bernanke, who was criticized for being behind the curve of the credit crunch for most if not all of 2007, has won high marks in recent weeks, using both tried and true and unconventional tools to fight an economy suffering from both a cyclical slowdown and credit crunch.
who beat up Charlie Rose?
A sidewalk of New York. It did some job, eh?
Mr. Volcker was the second Fed chairman appointed by Carter. The first was G. William Miller, who was a lawyer by profession. Miller only lasted about a year and a half
(1978-1979).
Angry Saver - 'The fed as an inflation fighter - what a scam.'
Your lack of history is showing, not to mention your facile understanding of what Volcker did.
Unless you think double digit interest rates are inflationary, which would not only place you against Volcker, but also such institutions as the Bundesbank, whose record at fighting inflation remains one of the proudest accomplishments of the BRD. I sent the 10 euro Bundesbank silver commerative coins as Christmas presents last year - about 1/2 oz silver, which cost 10 euros. That's right, fiat money backed by silver. (My children are subscribed, at no cost, to receiving such silver coins 5 times a year, by the way.)
But then, America has little to learn from the world's largest exporting economy, or how it handles inflation, right? Because like Volcker's Fed, I guess the Bundesbank was just a scam too.
And notice how the Bundesbank's successor is still more worried about inflation than it is with propping up consumption at any cost.
Whether the ECB is making the right policy choices is another debate, but notice that it is at least consistent in focus, and worried about the longer term. And willing to inflict pain in the short term to prevent inflation in the longer term. just like Volcker's Fed.
And before anyone tries to explain to me again how inflation measures are "wrong", I'd recommend "The Prize: The Epic Quest for Oil, Money & Power" by Daniel Yergin.
The high inflation in the 1970's and 1980's was fueled (no pun intended) by a radical change (increase) in how oil-producing countries were paid for their oil.
S.
Financials doing the Walmart thing to unload LBO debt:
Goldman, the world's biggest securities firm by market value, is selling its approximately 20 percent portion of Chrysler's $7 billion in loans for as little as 72 cents on the dollar, said investors, who declined to be identified because the terms are private.
OK, so who the heck is making 3-month loans at 0.59% interest?
That you, Misean?
Wowzers.
NJ unemployment rate increases from 4.2 to 4.8% in from Dec - Feb. > 0.5% increase.
http://lwd.dol.state.nj.us/labor/lpa/pub/emppress/pressrelease/prelease.pdf
^IRX: Basic Chart for 13-WEEK TREASURY BILL - Yahoo! Finance
The 13-week T-bill at 0.59% yield.
This is a good thing, eh, Ben?
Nemo | Homepage | 03.19.08 - 1:50 pm
That is what floor safes at home are for. At .59% I will keep the cash in my grubby palms thankyouverymuch.
Chris
wow baby. Merrill down 10.4%
market is giving it back
Hello PPT where are you. vacatio
may we haz anutha rate cut?
something must be in the wind. goldman is down 6. lehman down 4.
ok now what? more sleepless nights to come. how many shoes can drop?
This is a thing of beauty
The Man now?
/snark
Nemo, I'd be selling them in droves.
Also, this from Ambac CEO,
"Michael Callen, Chairman and CEO of Ambac Financial Group, commented that, "We believe that we have limited exposure to Bear Stearns and we will continue to monitor it closely. We understand that, in times of market stress, it is particularly important to communicate this information with investors and our other constituents."
http://www.pr-inside.com/ambac-comments-on-exposure-to-bear-r493314.htm
I wonder if he believes the Easter Bunny is coming on Sunday as well.
Cheers,
Special thread music for Sebastian:
"Well the music is your special friend
Dance on fire as it intends
Music is your only friend
Until the end"
YouTube -
Does anybody have a throwback Volcker jersey I can buy?
"Hello PPT where are you. "
Illiquid.
BSC is down ~$1
(feeling only a little guilty for kicking when down...)
Hey energy,
Did you here about Arthur C. Clarke
Sorry OT
BBC NEWS | UK | Writer Arthur C Clarke dies at 90
Cheers,
Rent to Own,
Angry Saver - 'The fed as an inflation fighter - what a scam.'
Your lack of history is showing, not to mention your facile understanding of what Volcker did.
Consider:
CPI inflation in U.S.:
1775 - 1913: 0.19% annualized
1913 - 2007: 3.32% annualized
When Volcker left the fed, inflation rate was 4.14%, a historically high inflation rate. Hardly a success in my view.
Your focus on silver seems to make my point.
energyecon --
Shorting BSC is the most obvious trade I have ever seen in my life. (So obvious it makes me nervous). That stock is going to $2.50 or lower. I am not sure exactly what path it will take to get there, but that's where it's going.
The biggest risk in shorting any financial over the past year is that you never know how the Powers That Be might act tomorrow. But in this case, the Powers have already acted, and they decided to sacrifice Bear.
Consider: Last Friday, the Fed opened the discount window to Bear Stearns, but only through J.P. Morgan. Why not provide liquidity to Bear directly? The only possible explanation is that the Fed wanted to give JPM control over the spigot.
This was confirmed Sunday -- less than 72 hours later! -- just after the deal was sealed, when the Fed opened the discount window to the investment banks directly (!).
Point being, everyone from the Treasury to the Fed to the other IB's is on board with this buy-out. Would you want to bet with that group, or against them?
Angry Saver,
Get a clue, it is the rate of change that matters and in Volcker's case it was further down than under any other Fed governor. Is it your ideology talking?
Goldman, Morgan Stanley Use Fed's Wall Street Window (Update2)
By Yalman Onaran and Christine Harper
March 19 (Bloomberg) -- Goldman Sachs Group Inc., Morgan Stanley and Lehman Brothers Holdings Inc. said they've borrowed from a program created by the Federal Reserve to jumpstart lending amid concern that Wall Street faced a cash shortage.
We have tested the window because we want to remove the stigma from the window,'' Morgan Stanley Chief Financial Officer Colm Kelleher said in an interview today, referring to the Fed lending program.It's meant to be there for normal business. It's not meant to be there as a last-recourse thing.''
Goldman spokesman Michael DuVally said his firm is also testing'' the Fed facility, started March 17, and will use itif doing so makes sense from an economic and funding diversification point of view.'' Lehman Chief Financial Officer Erin Callan said the company used the window last night.
``We wanted to show some leadership,'' Callan said in an interview on Bloomberg Television. Wall Street firms were reluctant to turn to the Fed earlier this week because of concern that it might make them appear financially weak, the Wall Street Journal reported today.
The Fed started the lending program for brokers, which is similar to the so-called discount window used by commercial banks, after a run on Bear Stearns Cos. last week pushed the fifth-largest securities firm to the brink of collapse.
The central bank's new Primary Dealer Credit Facility allows Wall Street banks to borrow money overnight at a 2.5 percent interest rate. In its first weekend emergency action in almost three decades, the Fed lowered the so-called discount rate by a quarter of a percentage point to 3.25 percent, and then lowered it again yesterday. The Fed also agreed to provide as much as $30 billion to JPMorgan Chase & Co. to help finance the bank's takeover of Bear Stearns.
Under the Fed's existing discount window for commercial banks, loans are available for as long as 90 days; the Fed extended the terms from 30 days in a March 16 decision and from overnight in August.
dow doen 180.......
now what? moodys downgrades america?
How much more can we take?
RE,
Yes, it is my ideology talking.
Inflation is theft in my view. Taxation without representation.
Volcker saying it's the fed's job to control inflation while allowing it is doublespeak in my view.
angry saver
I agree.
everyone is secretly aware that the taxpayers are toast, tapped out, unemployed. we are not backed by the full faith and credit of the US because that equals zero. We are backed by foreign govts who are realizing there's nothing in it for them anymore. welcome to Rome or worse, hell
RE,
it is the rate of change that matters
I disagree. It's the constant change in inflation rates that is so damning. Under the gold standard periods of inflation were offset with periods of deflation. Business planning was easier and hence real growth greater.
Heavy put volume in MER( April@30)
MER: Options for ML CO CMN STK - Yahoo! Finance
IRX yield cliff diving (down 40%)
^IRX: Basic Chart for 13-WEEK TREASURY BILL - Yahoo! Finance
may be anotherIB ab?out to blow up?
No Elvis, Georgie Bush 2 is the worst.president.ever. Not even close. Now apologize to the peanut farmer/nuclear scientist/Navy officer. At least he served his full tour of duty.
the banks that owned visa made alot of money today on visa ipo. that should their balance sheets for a few days
help their balance sheets
Clyde
I wouldnt dignify him by calling him president.
Clyde,
Lay off the scotch for a couple of minute. Your assertion is my same point. We agree.
elvis and clyde.
the shmuck cant even pronounce the word nuclear, my kids always laugh when they hear him say nucular. Only in America can a monkey (cheney) run the whitehouse
my question is what does Volker really say to his friends when his words aren't being taped.
Elvis - Funniest thing I've read all day!
Misean writes:
Hey energy,
Did you hear about Arthur C. Clarke
Yeah, a sad day for all "hard science" sci-fi fans.
Misean writes:
Nemo, I'd be selling them in droves.
Also, this from Ambac CEO,
"Michael Callen, Chairman and CEO of Ambac Financial Group, commented that, "We believe that we have limited exposure to Bear Stearns and we will continue to monitor it closely. We understand that, in times of market stress, it is particularly important to communicate this information with investors and our other constituents."
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I think the Fed looked at the fallout of a Bear blowup and discovered the Ambac "well capatilized" turd would tank. This would initiate the tanking of other AAA monolines and Moody's might look bad. No, on second thought, they would downgrade on Wednesday....
GS, MS, LEH test new discount window.
Market says: test failed.
safe_as_apts,
Here you go dude. Buy a dozen for your CR friends. Fuck Bush T-shirt - Political T-shirts
Charlie talking about fighting inflation...and he has bandaid and black eye...Very nice.
Misean, sdtfs,
Yes saw the sad news - got a little misty eyed watching a clip of his 90th birthday - for some reason the book of his I remember best is 'Rendezvous with Rama'...the man could write and he had the insight to anticipate the use of communication satellites in geosynchronous orbit. And he liked to dive!
Nemo,
Yes, between the TPTB and the many ways the financials can play 'hide the sausage' timing is chancy...yes you have to wonder if this is payback for Bear not participating in bailing out LTCM or what - the clear lesson being that you play ball with the Fed or you won't get that medicine when you are looking for it!
Thank you Paul Volcker--I will miss the old world thinkers....Don't like this New World Order. It's a treacherous time, where the Govt bails out BS--basically unregulated industry--made out like bandits. There should be the act of being 'pigeonholed' re-instated:
Def. for the similar instrument in which the hands of culprits were confined, when being flogged. Obs.
1592 GREENE Disput. Wks. (Grosart) X. 233, I dare scarce speake of Bridewell because my shoulders tremble at the name of it,..yet looke but in there, and you shall heare poore men with their handes in their Piggen hoales crye...
Bear Holder Lewis May Seek Alternative to JPMorgan (Update4) - Bloomberg.com
Lewis' losses give me a warm fuzzy feeling mixed with a wee bit of giddiness. Schadenfreud, no doubt.