Wall Street Journal: Credit Crisis To Worsen Dramatically, Taking Down Wall Street

Discussion in 'Economics' started by ByLoSellHi, Jul 6, 2008.

  1. . When it becomes too plentiful [money], bankers and other financial intermediaries end up taking on more and more risk for less return.
    --------------------

    No one was twisting their arm. Buffett and other are sitting on a piles of cash, the scenario is too easy to write off calling everyone idiots, I see this as an act of desperation in today's business climate.

    A simple example. GM, if you can make more profit on the credit side than the actual production of an automobile, we have a problem.

    In retail, if you can't operate a business based on profits from selling the merchandise but realize you can give the stuff away and make your margin on credit, this is fighting for survival of what business you are in.

    Now everyone is in the credit business, they are not in the business of maufacturing or retail as we once knew it.

    Of course we are taking on more risk for less return not because we want to but because it is all that is left. Gov't regs, from epa all the way down to senstivity training ( along with insurance liability of every concievable sort fear of being sued) has stripped the productivity out of ordinary business operations.
     
    #11     Jul 6, 2008
  2. I'M GOING TO MAKE A PREDICTION TOO!!

    OIL IS GOING TO OVER $100 A BARREL, HURTING CONSUMERS AND RAISING GAS PRICES!!

    Please send your payment for this analysis in cash or certified money order only.
     
    #12     Jul 6, 2008
  3. I don't think so
     
    #13     Jul 6, 2008
  4. Prevail

    Prevail Guest

    you sound like a pissed guy.

     
    #14     Jul 6, 2008
  5. GTS

    GTS

    Its much more likely that your AV program is giving a false positive than the WSJ is infected with a virus.

    AV signatures are based on pattern matching and heuristics - just because your AV program is alerting doesn't mean its real.

    Look for yourself, looks clean to me:
    http://s.wsj.net/javascript/commonFunctions.js
     
    #16     Jul 6, 2008
  6. Correct.
     
    #17     Jul 6, 2008
  7. 2ticks

    2ticks

    #18     Jul 6, 2008
  8. For anyone worried about viruses, that's a direct link to the Wall Street Journal Online.

    I guess you could to the WSJ Online, and manually find the article, but it will pull up the same link anyways.


    About this credit crisis, UBS/Credit Suisse was just ordered to set aside an additional 68 billion U.S. in reserves because of losses. That's for one company. 50 billion here, 68 billion there, pretty soon we're talking real money:

    UBS, CS May Have to Set Aside $68 Billion: Report

    Article Tools Sponsored By
    By REUTERS
    Published: July 6, 2008

    Filed at 12:19 p.m. ET

    ZURICH (Reuters) -
    Swiss authorities could require UBS <UBSN.VX> and Credit Suisse <CSGN.VX> to set aside an additional 70 billion Swiss francs ($68.29 billion) in capital, a newspaper reported on Sunday, citing lawmakers.

    "40 billion for UBS, 30 billion francs for CS," parliamentarian Hans Kaufmann told Swiss weekly Sonntag, referring to the additional capital the banks would have to put aside under the proposal.

    Switzerland's top banking watchdog, the EBK, has told Reuters it plans to introduce more stringent capital rules by October to restrain UBS and Credit Suisse, so they do not run into the same trouble again that made UBS the biggest European casualty of the global financial turmoil.

    A spokesman for the EBK, Alain Bichsel, told Sonntag that a sum had been proposed and it would make details known in the autumn.

    (Reporting by Sam Cage; Editing by Erica Billingham)
     
    #19     Jul 6, 2008