Comments on: An Annotated Guide to the Financial Meltdown (Podcast Edition) http://adam.rosi-kessel.org/weblog/2008/09/22/an-annotated-guide-to-the-financial-meltdown-podcast-edition Technology, law, and personal stories Tue, 27 Jul 2010 16:21:10 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Blah http://adam.rosi-kessel.org/weblog/2008/09/22/an-annotated-guide-to-the-financial-meltdown-podcast-edition/comment-page-1#comment-4708 Blah Thu, 25 Sep 2008 02:59:25 +0000 http://adam.rosi-kessel.org/weblog/?p=674#comment-4708 <p>Check out Denniger's Market Ticker blog. He's been railing about this for several years. Add him to your RSS reader...</p> <p>http://market-ticker.denninger.net/</p> Check out Denniger’s Market Ticker blog. He’s been railing about this for several years. Add him to your RSS reader…

http://market-ticker.denninger.net/

]]> By: adam http://adam.rosi-kessel.org/weblog/2008/09/22/an-annotated-guide-to-the-financial-meltdown-podcast-edition/comment-page-1#comment-4698 adam Tue, 23 Sep 2008 11:14:39 +0000 http://adam.rosi-kessel.org/weblog/?p=674#comment-4698 <p>Michael: your point, I think, falls under the "unless the Treasury overpays for assets" provision in Krugman's entry.</p> Michael: your point, I think, falls under the “unless the Treasury overpays for assets” provision in Krugman’s entry.

]]> By: Michael Goetze http://adam.rosi-kessel.org/weblog/2008/09/22/an-annotated-guide-to-the-financial-meltdown-podcast-edition/comment-page-1#comment-4697 Michael Goetze Tue, 23 Sep 2008 11:00:49 +0000 http://adam.rosi-kessel.org/weblog/?p=674#comment-4697 <p>"2. The losses in MBS, in turn, have left the financial system undercapitalized"</p> <p>"But in that case, shouldn’t the public intervention also be at stage 2"</p> <p>Uhm, actually this plan <em>does</em> address "stage 2", <em>if</em> the MBS are bought back at a level above their present market value. That doing so rewards banks for taking on overly high levels of risk (at the expense of the taxpayer) is another matter, nevertheless, this analysis is flawed.</p> “2. The losses in MBS, in turn, have left the financial system undercapitalized”

“But in that case, shouldn’t the public intervention also be at stage 2″

Uhm, actually this plan does address “stage 2″, if the MBS are bought back at a level above their present market value. That doing so rewards banks for taking on overly high levels of risk (at the expense of the taxpayer) is another matter, nevertheless, this analysis is flawed.

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