Investment bankers of the world, unite!

Friday 19 September 2008 - Investment bankers of the world, unite!

Presented by Paul Donovan


+ Thursday saw three different policies implemented in the financial crisis. The net effect is to mark the beginning of the end of the crisis for the financial system. However, the worst still lies ahead of us for the global real economy.


+ Confronted by the effective closing of money markets, central banks injected massive amounts of liquidity. Market sclerosis and central bank injections have continued today. UK regulators also moved to ban short sales of shares, which is ascribing blame to the wrong cause.


+ The end game was signalled by Senator Schumer of the US. The Treasury will come up with a plan to socialise the banking system problems by injecting capital. The structure is not clear, but the basic solution of capital injection seems set.


+ Tactically this is a positive for equities and credit, and a negative for government bonds. However, we need to remember that the real economic recovery is some way off. The process of deleveraging borrower balance sheets will still have to take place.

Category:

News & Politics

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• economics
• daily
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• paul
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• investment
• banking
• credit
• crisis
• fed
• bernanke
• financial
• markets
• central
• banks

[srkh28]

"Socialising the financial systems problems?" - what drivel. I think you have a bit more to lose than than just a "credit problem" - which is a problem as difficult as you growing your own hair back. Managing the emotions of the people you have destroyed for your own personal wealth may be harder than you think. The longer we let you keep your seasoned greedy fingers on the financial controls, the greater the debt for entire countries will be as you extract more and more for yourself.

[IAMTHEFUDGEMAN2000]

synth@

Exactly, you are totally right. It's too much welfare, they should toughen up the standards even way more if you ask me.

[synthpop88]

What's wrong with greed? anyway, the taxpayers would likely get their money back (even more) since the shares accorded to the gov't will appreciate after recovery. Want someone to blame for your tax issues? GOV'T BUREAUCRATS! They will suck any profit out of this before you even hear about it.

[synthpop88]

Actually socialists screwing up the market with institutions like Freddie and Fannie to "give" homes to "minority" buyers caused this problem. government- STAY OUT!!!

and people- if you can't handle the risk, STAY OUT! If you are making min. wage, don't buy a $300k house!!

[chena3]

you bankers caused this problem

you got greedy

you moraless unethical scum

you should all go to jail ..

liars and thieves ..

woof

bad doggie ...no biscuit ..