Tuesday, November 25, 2008

Toxic securities

Many point to particular things, such as sub-prime mortgages or tranche, and similar, methods, as the primary causes of the current mess. But, as we saw recently with the taxpayers paying for a bank to take toxic things off of the CitiGroup balance, the issues are more wide-ranging.

We can say that the systemic problem is deeper than we would like to believe. Essentially, a misuse of mathematics and computation are a couple prime factors that we need to get a handle on. Too, money-by-fiat (supported by a gab standard) is an important factor, too.

A WSJ article today was brave enough to suggest that we ought to re-define banking. To bad, we cannot just stop and start over.

So, where to go from here?


08/01/2013 -- We're relook at this as we consider the good side (as if there is one) of financial engineering.

04/03/2011 -- Need to look at some background. Too, tranche and trash.

11/04/2010 -- Big Ben is still putting us at risk and trashing the savers.

07/23/2009 -- After the bust and the rebound, toxic assets are still a problem due to tranche realities.

06/07/2009 -- Say what?

03/25/2009 -- Rhetoric can be fun, but we have to get into these issues with depth and technicalities.

02/13/2009 -- ASF 2009 shows that regulations abound; these, no doubt, need to be re-addressed for overlap, coherency, and such. As WFB, Jr said: Stop!! But, why do we need regulatory oversight to remind these people about fiduciary duty.

01/18/2009 - We even need to look at why we need finance.

12/01/2008 -- We need to learn what we might be taught about money by Islamic Finance.

11/26/2008 -- After the recent bailout news from the Feb, the government will own about 1/2 of the economy. How can enticing the consumer into even more debt be the answer?

Modified: 08/01/2013

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