Posts Tagged ‘gold’

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Derivative Markets and the 2nd Great Depression

September 19, 2008

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questions for the comments: 1. Who the hell can shed some light on this derivative market thing? 2. Is the current crisis the start of a a depression, or just a normal bump in the free market road? 3. Investment tips? 4. Is the Hermit video making style derivative of any other? 5. AC/DC- lover em or hate em?

Also – I notice there are some newbies here. If you are wondering what all of this is about, read below the fold: Read the rest of this entry ?

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Scrambling to Clean Up After A Category 4 Financial Storm

September 18, 2008

You know, I shy away from talking about economics, because I feel like someone (yours truly) who can’t keep their bank account above zero for very long, or who famously decided to enter the market on the day the tech bubble burst (my mediaplex stock went from 50 bucks a share to somewhere in the neighborhood of 32 cents a share in a matter of months in the spring of 98 or thereabouts) I found the following article as easy to comprehend as it is horrifying. A kind of cliff notes crystal ball economic vision of the future. -DT

Scrambling to Clean Up After A Category 4 Financial Storm
By Steven Pearlstein / Washington Post Staff Writer

You know you’re in a heap of trouble when the lender of last resort suddenly runs out of money.

Having pumped $100 billion into the banking system and lent $115 billion more to rescue Bear Stearns and AIG, the Federal Reserve was forced to ask the Treasury yesterday to borrow some extra money to replenish its coffers. If there was any good news in that, it was that investors here and abroad were eager to help out, having decided that the only safe place to put their money is in U.S. government securities. Indeed, demand was so brisk at one point yesterday that, for an investor, the effective yield on a three-month Treasury bill was driven below zero, once the broker’s fee was figured in. Read the rest of this entry ?