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WerringtonSilent

Listed below are comments made by WerringtonSilent between Friday, 13th March 2009 and Thursday, 19th March 2009.

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Back to the nineteenth century? 10:19pm on 19 Mar 2009 Using global wholesale credit markets to smooth domestic fluctuations synchronises all economies. This brings us to the crisis of the present moment: all-encompassing, leaving no engine of recovery intact anywhere, because every country in the world is at the same stage of the economic cycle at the same time.

The classic boom-bust cycle of 7-8 years is preferable, at least then the timing and character of recessions remain specific to nations and there is always wealth and demand elsewhere that can be tapped. There is a cost, regular recessions, but it is better than the alternative we are about to experience, which is global depression.
QE and the US 5:58pm on 19 Mar 2009 Sic transit gloria mundi.
FSA's blueprint to make banking safe 11:09pm on 17 Mar 2009 Most of that was standard practice after the last depression. Capital adequacy rules, who would have thought it? We learn the wisdom of the ages the hard way again.
Time to hug a banker? 7:50pm on 17 Mar 2009 This is not journalism.
The Goldman infallibility myth 6:46pm on 16 Mar 2009 "We should probably be grateful that their ability to do so was never actually put to the test." - Robert Peston

Is that a helpful suggestion? Speak for yourself. They are welcome to your fawning gratitude.
The Goldman infallibility myth 5:28pm on 16 Mar 2009 It is a myth the AIG bailout was needed. Most of those CDS were written without any capital behind them. The banks stood to lose nothing but the value they claimed. The bailout turned shadow into substance at the taxpayers' expense.
Watchdog says markets not rational 10:24pm on 14 Mar 2009 "Markets have shown not to be rational; excesses have not been corrected by market discipline". - Hector Sants

How disingenuous of him. Markets correct excesses by insolvency and liquidation. As a matter of government policy, this remedy has been prevented. Markets are perfectly rational. It is just what they have on offer is unwelcome to some.
Talk is cheap 10:17pm on 14 Mar 2009 I watched the coverage. Nothing of importance was said in front of the cameras. What was said was patronising in its banality. They remain committed to growth, apparently. Whom do these clowns represent, again?
Passing the hat 11:23am on 13 Mar 2009 #36 tonyparksrun:

The leverage is GONE and it is NOT coming back because the required capital and value in the collateral does not EXIST. It never DID. Nearly everyone thought otherwise, but it was FAKE. There is clear air between the leveraged and the floor, and much of the lifting out of poverty was based on an ILLUSION. There may be a sense of having been cheated, of entitlement, but it cannot be delivered upon in perpetuity. There was no way it ever could. The last decade and a half of prosperity was global inter-generational cheque kiting, it was nice while it lasted, but here is the bounce and the game is up.

"We are all in this together" is precisely why bailouts will not work. We are talking about passing money from one hat to another in a circle. We are all broke. The German banking system is levered even higher than ours, something like 50:1 vs 33:1. The main difference is their risk is largely foreign, not domestic, and their tales of woe are more difficult to connect than the journalistic field day over here. It might be an outwardly more orderly crash over there, but that is about all that can be said for it.

Insolvency, there is a tool we all have. Start coming to terms with it. This is the whole point of a depression, what it is and how it works. The starting point is recognising that behind the problems you see is not an unfortunate event, but a lie. Something you thought was possible, never was.

Sorry to channel AC on you, but the sooner people start figuring out what we are dealing with, the sooner we can all move on. Stop stalling for time, repay or default. That is what recovery comes down to.
Pushing string 00:07am on 13 Mar 2009 If you don't have any debts and the currency is not devalued, then even if your income falls in nominal terms, under deflation you will be richer. Much richer. Cash bidders buying without competition from credit bidders would clean up in a sale that comes along only once every three generations. The only problem is this cyclical redistribution of wealth is not inclusive enough for these politically correct times. Everyone should be a winner, always, even if they made the wrong choices in life, and someone else should pay for it. That is the sentiment that dare not speak its name. Pushing string is the process of attempting to give credit to those unqualified or reluctant to receive it so they may sneak into the event. Yet compound interest reveals all posers in the fullness of time.

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