700000000000.org

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Contents 1 Theory and Commentary 2 Solutions 3 Timeline 3.1 U.S. 3.2 International 4 Who 5 Stuff to Do 6 Bad Guys 7 Misc 8 Dollar Bill Test 9 Notes

Theory and Commentary

• Riding out the Crisis; supports own theory re. Wall Street as a place to silo extra money, but has better terms adapt and use
• the illusory market
• essence of the bailout
• bad explanation of stock market
• blame Greenspan
• demise of capitalism a somewhat rambling FastCompany semi-editorial piece
• op ed on why Paulson should claw back bonuses for failed CEOs
• Charlie Rose, episode 4327 11-3-2008; good discussion with Chuck Schumer on politics in general, does touch on the bailout; key points in paraphrase: we needed capital injection, but we did it in the wrong way, need a rational, non-ideological stimulus plan; David Books, intellectual conservative from NYT; key points in paraphrase (political, so only peripherally related): Obama was not a great senator, and it was his springboard (not necessarily a bad thing though), the politically engaged made up their mind on who to support a long time ago so the push for the undecided necessarily targets the politically unsophisticated (Z: which we could extend to understand unsophisticated policy pushes); liberals believe in equality, conservatives believe in freedom, Lincoln believed in mobility
• Charlie Rose, episode 4323; Michael Milken and Muhammad Yunus; very interesting piece; Milken: my phrasing: we focus on money and ignore quality of living; some very interesting facts on credit ratings: there are only six triple A rated companies in America and 9 in the world, but there are thousands of triple A rated financial instruments. I take the underlying point to assume a bell curve of distribution in the credit population. He's arguing that our ratings were a distortion of the underlying reality, which by ample evidence from other domains almost certainly dictates a bell curve distribution within the the financial securities. In other words, we are very much underplaying the risk. Goes on to say that I went to Wall Street from Berkely and Morton with the idea that my studies of credit said loaning money to small and medium business, that are growing and creating jobs is a 'better credit' (z: my quotes) than people perceive. It has less risk than people perceive. It has less risk than people perceive and the future of our country, or any country was providing capital to those individuals. Charlie goes on to say clarify that these companies are successful and can pay the higher rate (z: which will offset the risk). Milken goes on to talk about Yunis' model can bring the many of the 28 million people in America that don't have access to a bank. Z: that's 10% of Americans with no access to the most basic savings institutions. What's amazing to me is that if they don't have banks, the don't have access to anything. It's not like some of those 28 million who don't have access to a bank have access to a brokerage account--they have access to nothing. For better or for worse, getting you're money to work for you has become a critical skill in the modern age. Lack of this basic access--and the information necessary to utilize that access--is a significant drag on those not fortunate enough to have it.
• Obama fails to consider the real engine
• Money and Hormones
• Fool commentary on why bailing out the auto giants is a bad idea
• visualize world lending
• pundits scoff at truth
• on other recessions
• Forbes analysis of auto bailout need
• auto bailout as insane subsidy and counterpoint
• Lessig echoes my thoughts on auto bailout
• graphic showing 2008 is as bad as it's ever been for the Samp;P
• NTY on why the $73/hour wage is a lie but also talks what is true and why there may be a reason for bailout after all
• WSJ on the historical failures of stimulus
• kind bosses get results
• In depth article on risk assesment
• non-useful rich
• dealing with recessions past
• blame game
• what's the point of helping home owners?; I agree with the thought; question is does he understand the housing plan? need to read Obama's plan to see what the cut-offs, qualifications, etc. are.
• at least people understand it really is the fault of the ones that made the decisions; though they miss the complicity of regulators, congressmen, etc. (Glass-Steagal anyone?)
• when the economists that got everything wrong about our economy right up to the crisis give Obama failing marks is that good news?
• bear raids, market manipulation, and why the bailout won't work
• Germany thinks toxic buyup is bad idea
• Krugman on financial wizardry
• International impact
• Reagan Did It
• Media Matters, May 29, 2009 has an interview with lawyers from both sides as to whether the rating Standards and Poors, Finch, and Moody give should be treated as free speech opinion or not. The nay side holds that in some cases, yes, but in the case of the structured debts of the big financial banks the agencies had a clear financial interest in the ratings and worked on the inside to game the system for favorable ratings. The ratings were (my conclusion) essentially advertisements for a product that the agency themselves was invested in and not independent opinion, as a journalist might make. The aye side essentially concedes all this, but says that the separation between business interest and editorial output was sufficient and clear.
• 7 factors
• B schools in existential crisis
• World escapes American thrall
• Telegraph theorizes US headed towards doubling interest rates and (national) debt explosion
• Swiss block US reform
• too few oil traders
• Economist: The Week Ahead for July 23rd: proposes the idea that one of if not the biggest prop for the world economy, that ultimately smoothed and lessened the general credit crunch was the amazingly successful stimulus put in place by China
• three possible economic models part I, and part II
• bypassing banks
• good stuff crisis breakdown

Solutions

• brits considering raising leaving school age, we've seen this kind of thing before and we know it can be helpful; sometimes in the short run, but almost always in the long run. It's about time we got more education, interesting to view economic crisis as a natural which serves the function of doing so.
• Iceland appoints women to run banks
• let housing prices fall
• tax rate in context
• hedge fund conflict of interest
• European countries more focused on controlling problems than spending sprees
• trade gap shrinks

Timeline

U.S.

• Wired article on understanding the financial crisis
• AP Wire story re. how finance is asking for more days after the $700 billion bill is passed
• CNN reports that AIG wants more money on top of the $85bn
• one of many articles tracking the stock markets
• BBC coverage of Obama's economic rescue plan
• Morgan Stanley secures investment
• $250bn banking rescue
• lack of transparency
• bailout looks to be failing
• companies line up for cash
• US cuts rate to 1%
• despite all that the economy only sees a 0.3% shrink
• Obama weighs in
• retail sales collapse
• US economy weaker all around
• Ford CEO will work for dollar
• majority oppose auto bailout
• wall street fund may be used to bailout autos
• Detroit still flying jets despite bailout and meltdown
• Bush decides to f'up auto business before leaving office
• Bush grants pardon to mortgage fraudster; culture of no responsibility; the pardon was later withdrawn, which is better, but doesn't abrogate the implications of the original action: if it could get away with it, the White House would be all to happy to free those at the root of our financial crisis from any responsibility in exchange for a few gifts. This is the worst kind of leadership and a culture as corrupt as any
• jobless rate up in every state
• no recession on wall street
• senate approves TARP exec pay limits, with summaries hereref group=notesI like most everything except maybe the Prohibits a compensation plan that has incentives for employees to take unnecessary and excessive risks that threaten the value of the company. Would like to see how that's worded./ref
• Obama calls WS bonuses shameful
• job less in recession present and recent past
• Auto makers head back to the well.
• bankers and their parachutes
• GM CEO resigns as part of bailout
• 10 banks exit tarp
• House subpoenas Fed Reserve
• recovery hits mainstream press
• no one to fill the gap
• Congress wants fed probe
• JPMorgan profits soar
• lender on brink
• fed must disclose

International

• Guardian article on why Britain most likely won't be doing a big bail out
• Guardian article on Dublin's bailout
• Guardian article on the Bamp;B bailout
• Report from NYT on the European response; whose holding the line and whose breaking ranks
• BBC report on dire IMF warnings
• BBC report on Iceland collapse
• BBC follow up report on Iceland talks
• NYT story on Britain and Germany pledge of funds for banks
• NYT article on the European part in the situation
• NYT article on Spanish banks plan to acquire Sovereign Bancorp
• NYT article on Australian pledge to guarantee bank funds
• fun little graphical rundown of some of the highlights; UK and US
• European recession fears
• Iceland looks for help
• Brits love the bailout
• Swiss bail out UBS
• global shares continue to tumble
• Asian markets tank
• Brits call for overhaul
• Europe out bail outs US
• IMF predicts further failure
• German on the street reactions
• Poland plays it cool
• two big euro banks give gloomy outlook
• IMF calls for more funding
• Credit Suise cuts deep
• European banks cut rates
• UK takes over RBS
• Commerzebank is partly nationalized
• Japanese economy nosedives
• UK bonds jump
• UK looks at pay review
• Japanese GDP plummets
• 2009 eurozone economy forecasts 5% shrink
• Franch beats US to timely stimulus spending
• France and Germany exit recession

Who

• Washington Post piece on how Congress has told Wall Street to cough up some scapegoats and the sinners will be spared
• BBC News article discussing the party divisions on the bailout (or why I may vote for some Republicans after all)
• Bloomberg story on the frequent and expensive trips by executives
• Guardian story and video of Congressional questioning of Lehman Brothers boss; interesting for a few facts (when the company did well, he gets $500mil, when it crashes, he gets $350mil), but also for how mild the criticism actually is but how the article talks it up as a grilling (archive of the video under /data/media/video/economy on file server)
• one congressman is not tempted by pork

Stuff to Do

• minimum wage tariff (via Andrew Butler)
• alternate energy initiative; when even Abu Dhabi is investing in alternative energy, you know it's time has come

Bad Guys

• MS subsidiary and fraud

Misc

• news report from Democracy Now; points out a bunch of additional money over the 700bn amid a lot of what seems to me as (I hate to say it) liberal scare mongering
• unknown youtuber; not really interesting for itself, but includes a lot clips that may be interesting to follow up
• brief rundown on some previous bailouts; only a couple are on point though
• credit crunch insomnia

Dollar Bill Test

• 2008/10/13: Jennifer used a dollar bill with the magenta stamp on back under God we Trust at change machine at the central library; no problems

Notes

references group=notes /