Jesse's Café Américain Wed 2010-09-29 09:13 EDT

Slouching Towards Bethlehem: Double Dip or Banana Split?

Jesse

NBER: "If the 2010 contraction we are now monitoring in consumer demand for discretionary durable goods scales to the full economy as faithfully as the "Great Recession" did, the second dip will, at minimum, be 33% more painful than the first dip and will extend at least half again as long." This is the case for trouble dead ahead, a worse decline in consumer activity and therefore GDP than the first, and the likelihood of further quantitative easing from the US Federal Reserve to patch over the inability of the political process to reform the financial system and balance the real economy because of their myriad conflicts of interest. These policy errors favoring a small minority will most likely result in a stagflation of the most pernicious and corrosive kind, high unemployment and a rising price of essentials, that may ultimately test the fabric of society...

Banana Splits; Bethlehem; double dip; Jesse's Café Américain; Slouching.

naked capitalism Sun 2009-09-13 15:59 EDT

Another Lehman Mess: No One Can Run the Software

Lehman's global derivatives book included contracts with a notional face value of $39,000bn and deals with 8,000 different counterparties when it went bust. The derivatives business was actually split into multiple strands, backed up by between 20 and 30 different systems. Once it went bankrupt, the staff who supported these systems "evaporated"...The more time goes by, the less insight remains in terms of the people who staffed those systems...Many previously hidden costs of running a derivatives business, including technology support of multiple disjointed systems, can no longer be discounted.

Lehman Mess; naked capitalism; running; software.

Mon 2009-01-19 00:00 EST

naked capitalism: FT: Citi to Split Investment and Commercial Bank

Citi; commercial banks; FT; naked capitalism; split investment.

Sun 2008-06-29 00:00 EDT

Winter (Economic & Market) Watch >> eCONomIc SpLiT pErSonaLiTy and NeutEnron Bombs

Winter (Economic & Market) Watch >> eCONomIc SpLiT pErSonaLiTy and NeutEnron Bombs; "the Boyz looked at Enron as the model, spliced and diced it, and then calculated new and better scams under the guise of financial innovation (blessed by buffoons and sycophants like Alan Greenspan and Ben Beranake) and non-public markets (OTC and derivatives) in which to create even larger financial smoke and mirrors in which to loot."

economic; eCONomIc SpLiT pErSonaLiTy; Market; NeutEnron Bombs; watch; winter.