[eastbay]

$this->bbcode_second_pass_quote('DantesPeak', '')$this->bbcode_second_pass_quote('shortonoil', 'N')ever in history have we seen a defaulting debt load of this magnitude, with this kind of leverage, and with a $1000 trillion derivatives market that will create a total world wide melt down when it implodes. This can not be compared to the S&L Crisis, the Asian Contagion or any other financial crisis in modern history. It is many, many magnitudes of order larger. Comparing past crisis to the one now developing, would be like comparing a flea to a bull elephant!

[seahorse]

JD, Why don't I take up OF2 on his bet? Because, I've never made a bet in my life on anything, don't believe in betting under any circumstances for any reasons. Just like I've never had a drink.

Now JD, last year or so, I asked you to tell me why the US invaded Iraq. You've ignored that question for a long time. Are you willing to give us your explanation now?

[yesplease]

$this->bbcode_second_pass_quote('MattS', '')$this->bbcode_second_pass_quote('seahorse', ' ')There's a lot of interesting stuff going on in the banking sector.

[Tyler_JC]

I was talking about taxpayer losses.

The final tab for the American taxpayer will undoubtedly be higher than the Savings and Loans crisis. My twice as expensive guess was just a guess but I think it's within the ballpark.

Private losses will greatly exceed taxpayer losses but I don't care much about foolish investors.

The Federal Government is going to attempt to bail out these banks by using its perfect credit to buy junk loans from companies with junk credit.

And I have a feeling that we'll be bailing out a lot of our elected leaders' friends...Silverado Savings And Loans:x

[cube]

$this->bbcode_second_pass_quote('DoubleD', 'I')gnore works beautifully - except when those of you who "play" the game keep quoting the person I have on ignore. Then I am subjected to seeing the posts despite my attempts to properly ignore it completely.

[jupiters_release]

$this->bbcode_second_pass_quote('cube', 'I') have someone on my ignore list who keeps on quoting what I say out of context hoping to discredit me in front of others. I found out about it because somebody else quoted him.
That's beyond trolling.
That's being a $2 drama llama whore

[ThereWillBeMoreBlood]

Why not just keep them off ignore to begin with? It isn't that hard to skip over someone's post if you don't want to read what they have to write.

[cube]

$this->bbcode_second_pass_quote('ThereWillBeMoreBlood', 'W')hy not just keep them off ignore to begin with? It isn't that hard to skip over someone's post if you don't want to read what they have to write.

[idiom]

$this->bbcode_second_pass_quote('', 'I')f somebody acts like an idiot to you IRL what do you do?

[IslandCrow]

$this->bbcode_second_pass_quote('Concerned', 'I')MO it's not the volume of bank failures it's the volume of loans as a percentage of GDP that fail that is the problem.
e.g. 50 banks fail with 2 million bad loans each
4 banks fail with 250 million bad loans each
Thats an order of magnitude difference between the two scenarios. (figures are for illustrative purposes only)

[3rensho]

$this->bbcode_second_pass_quote('seahorse', 'J')ust like I've never had a drink.

[jbrovont]

$this->bbcode_second_pass_quote('Tyler_JC', 'P')rivate losses will greatly exceed taxpayer losses but I don't care much about foolish investors.

[Peleg]

$this->bbcode_second_pass_quote('Tyler_JC', '[')img]http://economistblog.com/wp-content/uploads/2008/01/carpediem251.jpg[/img]

[cube]

$this->bbcode_second_pass_quote('Peleg', '')$this->bbcode_second_pass_quote('Tyler_JC', '[')img]http://economistblog.com/wp-content/uploads/2008/01/carpediem251.jpg[/img]

[shortonoil]

MattS said:

$this->bbcode_second_pass_quote('', 'I')nteresting that your paraphrasing, or interpretation, of what Roubini said, is in direct contradiction to what he said.
"at least a couple hundred small banks" is what Nouriel said.

[seahorse2]

I too value Tyler's opinion and also the opinion of Mr. Bill. I would like to know Tyler's opinion on the status of the banking/financial sectors right now. From reading both Tyler's and Mr. Bill's posts over the last couple of months, it appears to me that they have become more pessimistic as of late. So, maybe they will weigh in here.

Here's the point of me starting this thread and some others on banking/financial issues of late. The financial sector is in trouble. Take for example the fact that after a couple of years without any bank failures, we have several this year, including Indymac which was the largest bank failure in California history I believe, but even if not, a big failure. Thus, there is reason for people to be concerned about the financial sector and people need to make sure their elected officials are taking the right actions. The future is always uncertain but is most certainly determined by actions today.

That's why I take issue with people who attempt to downplay this issue. For example, when OF2 attempts to downplay the issue by saying "he's never heard of the two banks that failed" it undermines the real significance of the serious issues at play and of the issues being debated in Congress about bailing out various financial institutions.

[shortonoil]

MattS said:

$this->bbcode_second_pass_quote('', 'N')ow see, if you want to present hysterical quotes and then use them, I'm all for that. But presenting non hysterical quotes and trying to MAKE them hysterical....thats completely different.

[Specop_007]

$this->bbcode_second_pass_quote('shortonoil', '
')
Washington Mutual is now $129 billion behind the eight ball. If (when) if collapses it will be the largest bank failure in US history. It will completely strip the FDIC and leave the gate open. If a couple more banks fail before Congress gets around to re-capitalizing that agency, it could get very interesting.

[threadbear]

$this->bbcode_second_pass_quote('MattS', '')$this->bbcode_second_pass_quote('seahorse2', ' ')

That's why I take issue with people who attempt to downplay this issue. For example, when OF2 attempts to downplay the issue by saying "he's never heard of the two banks that failed" it undermines the real significance of the serious issues at play and of the issues being debated in Congress about bailing out various financial institutions.

[threadbear]

$this->bbcode_second_pass_quote('MattS', '
')Interesting that your paraphrasing, or interpretation, of what Roubini said, is in direct contradiction to what he said.
"at least a couple hundred small banks" is what Nouriel said.