You ready to pay what's comin'?
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You ready to pay what's comin'?         


Author: Dennis
Date: Jul 22, 2008 08:54

OPINION FROM THE WALL STREET JOURNAL

HEAD: Paying the Tab For a Cleanup

Get ready, American taxpayer -- you may be called on to solve the credit
crisis.

So far in this debacle, now more than a year old, the government response
has been mainly designed to keep the markets and economy running, with the
Federal Reserve slashing interest rates and pumping cash into the financial
system. The fiscal response, similarly, has kept consumers spending with tax
rebates.

The next stage of the crisis won't be solved by easy money. It involves not
liquidity but the capital base of financial institutions that have
warehouses full of mortgage debt, leveraged loans and other toxic assets
fouling up their balance sheets.

One approach for regulators could be to force these firms to either raise
new capital or get out of the game by liquidating their assets.
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4 Comments
Re: You ready to pay what's comin'?         


Author: Titix
Date: Jul 22, 2008 22:43

"Dennis" never.net> wrote in message
news:pvadnSBmqP0rnxvVnZ2dnUVZ_u2dnZ2d@comcast.com...
> OPINION FROM THE WALL STREET JOURNAL
>
> HEAD: Paying the Tab For a Cleanup
>
>
> Get ready, American taxpayer -- you may be called on to solve the credit
> crisis.
>"Our regulators have been lax in their enforcement of existing capital
>rules," says Daniel Alpert, managing director at Westwood Capital. "When
you
>have top institutions, such as Merrill Lynch,scrounging around for the
>family silver to sell each quarter, clearly our financial institutions are
>not adequately capitalized for long-term viability."
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Re: You ready to pay what's comin'?         


Author: Dennis
Date: Jul 23, 2008 05:20

"Titix" spamfree.com> wrote in message
news:Buzhk.16135$uE5.9283@flpi144.ffdc.sbc.com...
>
> "Dennis" never.net> wrote in message
> news:pvadnSBmqP0rnxvVnZ2dnUVZ_u2dnZ2d@comcast.com...
>> OPINION FROM THE WALL STREET JOURNAL
>>
>> HEAD: Paying the Tab For a Cleanup
>>
>>
>> Get ready, American taxpayer -- you may be called on to solve the credit
>> crisis.
>
>
>>"Our regulators have been lax in their enforcement of existing capital
>>rules," says Daniel Alpert, managing director at Westwood Capital. "When
> you
>>have top institutions, such as Merrill Lynch,scrounging around for the
>>family silver to sell each quarter, clearly our financial institutions are
>>not adequately capitalized for long-term viability." ...
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Re: You ready to pay what's comin'?         


Author: eldorado
Date: Jul 23, 2008 06:08

On Tue, 22 Jul 2008, Titix wrote:
>
>
>
> "Dennis" never.net> wrote in message
> news:pvadnSBmqP0rnxvVnZ2dnUVZ_u2dnZ2d@comcast.com...
>> OPINION FROM THE WALL STREET JOURNAL
>>
>> HEAD: Paying the Tab For a Cleanup
>>
>>...
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Re: You ready to pay what's comin'?         


Author: Dennis
Date: Jul 23, 2008 09:08

"eldorado" io.com> wrote in message
news:20080723080654.H73797@fnord.io.com...
> On Tue, 22 Jul 2008, Titix wrote:
>
>>
>>
>>
>> "Dennis" never.net> wrote in message
>> news:pvadnSBmqP0rnxvVnZ2dnUVZ_u2dnZ2d@comcast.com...
>>> OPINION FROM THE WALL STREET JOURNAL
>>>
>>> HEAD: Paying the Tab For a Cleanup
>>>
>>>
>>> Get ready, American taxpayer -- you may be called on to solve the credit
>>> crisis.
>>
>>
>>> "Our regulators have been lax in their enforcement of existing capital
>>> rules," says Daniel Alpert, managing director at Westwood Capital. "When ...
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