Tag Archive: Bailout

Cyprus Hell

As you may have heard, Cyprus is being bailed out by the EU and the terms are rather striking:

The euro zone agreed on Saturday to hand Cyprus a bailout worth 10 billion euros ($13 billion), but demanded depositors in its banks forfeit some money to stave off bankruptcy despite the risk of a wider run on savings.

The eastern Mediterranean island becomes the fifth country after Greece, Ireland, Portugal and Spain to turn

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Banking On AIG

Hmmmm:

The U.S. Treasury’s sale of its remaining stake in American International Group Inc (AIG.N) will leave taxpayers with a profit of nearly $23 billion – more than the next three most successful bailouts combined.

The government’s profit on the deal is a turnabout from what was one of the most reviled bailouts of the financial crisis.

The 2008 rescue later spurred a senator to suggest top executives at the insurer consider suicide. The

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The UAW Bailout

A new study concludes … surprise! … that the automotive bailout was mainly a bailout of … well, you know:

President Obama touts the bailout of General Motors and Chrysler as one of the signature successes of his administration. He argues that the estimated $23 billion the taxpayers lost was worth paying to avoid massive job losses. However, our research finds that the president could have both kept the auto makers running and avoided

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Delusions of Mediocrity

Ladies and Gentlemen. If you ever want to know just how deeply some people drink of the Obama Kool-aid, take a look at this image someone just sent me.

I know that’s probably hard to read, so I’ll take the claims one at a time so you can appreciate the delusion:

Three million new private sector jobs. This number sounds accurate enough. But over 40 months, that’s less than population growth. Job recovery has … Read more

The Taibbi Plan

Matt Taibbi, one of the key members of the More Clever than Smart Club, has an essay on what he would have OccupyWallStreet demand. It’s making the rounds. Let’s go through it. I’ve almost finished reading The Big Short, a book you really should read to understand the recent financial crisis. So this will serve two purposes: responding to Taibbi and talking about what I learned from Michael Lewis.

1. Break up the monopolies.

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Jubilee

That’s apparently one idea that the OccupyWallStreet crowd are keen on: an expansion of the stupid “get rid of student debt” idea I flayed a couple of weeks ago.

So my immodest proposal is simply this: Individuals and households in the bottom 99 percent who owe debt to any large financial institution that received federal government support during and after the 2008 crisis should see their debt forgiven. That would certainly stimulate the economy, as

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Ain’t that a bitch?

Guess who so far has ended up being the biggest beneficiary of the Dodd-Frank financial regulation law? For those of you not familiar with Dodd and Frank, here is some background. Chris Dodd was a senator from my state, Connecticut, and one of the instrumental people behind the previous laws and government push to force lending to high risk people in his political career, ending up as the banking committee chairman (better to rob us … Read more

What’s the definition of insanity again?

Isn’t it doing the same thing over and over, but expecting a different and contrary result? Well, if that’s the case, then the Euros are insane. The Euro is getting hammered and the S&P has downgraded Greece’s rating 2 notches yet again – they obviously are certain a Greek default is a question of when, not if – with several other southern European countries heading the same way, and what do they do? Well, they … Read more