Kraldan kralci, Gingrich’ten gingrichci “koktenpiyasacilara” mesajim..
Written on September 19, 2008 by ozan
—– Original Message —–
From: Ozan Tarman
Sent: 09/19/2008 12:31 AM EDT
To: esintiler@egroups.com
Subject: Fw: WSJ: U.S. Plans to Clean Up Finance System As Part of Widening Effort to Stem Crisis
Budur..
Mesela benim Murad Haci Okay ile Bear’in “battigi” Pazartesi’den beri 6 aydir konustugumuz konu.
The final silver bullet.
Bu arada, Turkiye’deki Amerikali kapitalisttendahakapitalist, benim hedge fund’cimdan daha “koktenpiyasaci” neoliberaller de insallah su gelismelerden ders aliyordur.
Newt Gingrich dudugu.. Do u still want smaller government, ezber sakiz gibi?
McCain dudugu.. AIG devletlestirilmeseydi, sen su an var olmuyordun.. Bir Florida emeklisi seni cig cig yemisti.
Cocuk oyuncagu degil bu isler, “kokten laissez faire” takimi.
Bunu yazan da savasin, Piyasanin ta cephesinde.
Gunaydin.
—– Original Message —–
From: Torsten Slok
Sent: 09/18/2008 09:08 PM EDT
Subject: WSJ: U.S. Plans to Clean Up Finance System As Part of Widening Effort to Stem Crisis
Excerpts:
“At the center of the potential plan is a mechanism that would take
bad assets off the balance sheets of financial companies, according to
people familiar with the matter, a device that echoes similar moves
taken in past financial crises. It’s size could reach hundreds of
billions of dollars, one person said.
Another proposal would create federal insurance for investors in
money-market funds, something akin to the deposit insurance currently
available for regular bank accounts. The move is designed to stem an
outflow of funds as consumers start to worry about even the safest of
investments, a worrying sign of how the crisis is spreading to Main
Street.”
“A vote on the plan could come as soon as next week.”
U.S. Plans to Clean Up Finance System As Part of Widening Effort to Stem Crisis
Major Central Banks Offer Credit as Investors Flee Money Funds; Stocks
Rise on Bailout Talk, Fresh Moves Against Short Sales
By DEBORAH SOLOMON, KARA SCANNELL and DAMIAN PALETTAArticle
The federal government, acknowledging the need to take a more
comprehensive approach to the financial crisis, is working on a
sweeping series of programs that would represent perhaps the biggest
intervention in financial markets since the 1930s.
At the center of the potential plan is a mechanism that would take bad
assets off the balance sheets of financial companies, according to
people familiar with the matter, a device that echoes similar moves
taken in past financial crises. It’s size could reach hundreds of
billions of dollars, one person said.
Another proposal would create federal insurance for investors in
money-market funds, something akin to the deposit insurance currently
available for regular bank accounts. The move is designed to stem an
outflow of funds as consumers start to worry about even the safest of
investments, a worrying sign of how the crisis is spreading to Main
Street.
In addition, the Securities and Exchange Commission is set to propose
banning short selling temporarily. It’s not clear how broadly the ban
might apply, but is expected to apply to financial stocks. (See
related story.)
All told, the moves are an effort to stop the bleeding on Wall Street
as the spiral of bad debts, credit downgrades and tumbling stocks has
taken its toll on venerable names from investment bank Lehman Brothers
Holdings Inc. to insurance giant American International Group Inc.
Treasury Department officials have studied a structure to buy up
distressed assets for weeks but have been reluctant to ask Congress
for such authority unless they were certain it could get approved. The
intensified market turmoil may have changed that political calculus,
even with less than two months left until the November elections.
A Treasury spokeswoman said: “Treasury Secretary Paulson joined
Federal Reserve Chairman Bernanke in a meeting with House and Senate
Republicans and Democrats to discuss current market conditions. They
began a discussion with them on a comprehensive approach to address
the illiquid assets on bank balance sheets that are at the underlying
source of the current stresses in our financial institutions and
financial markets. They are exploring all options, legislative and
administrative, and expect to work through the weekend with
Congressional leaders to finalize a way forward.”
A vote on the plan could come as soon as next week.
Exactly how such an entity might be structured isn’t yet clear. The
possible plan isn’t expected to mirror the Resolution Trust Corp.,
which was created two decades ago during the savings and loan crisis
to hold and sell off the assets of failed banks. Rather, a new entity
might purchase assets at a steep discount from solvent financial
institutions and eventually sell them back into the market.
Messrs. Paulson and Bernanke briefed top lawmakers Thursday evening on
recent developments. The two made a similar trip to Capitol Hill on
Tuesday evening to discuss the takeover of insurer American
International Group Inc.
The briefing discussed potential solutions to the financial crisis,
including such a mechanism to buy distressed assets, according to
people familiar with the matter.
Talk of the asset-purging idea came on a day of dramatic action by
global financial authorities and Wall Street executives aimed at
stemming the broadening crisis.
Joining Forces
The world’s major central banks joined forces Thursday to flood global
markets with U.S. dollars. The U.S. Securities and Exchange
Commission, the New York State Attorney General and U.K. financial
authorities — encouraged by the British government — separately took
aim at short sellers, who are blamed by some for the stock market’s
volatility.
The net effect was to send the stock market soaring in one of its
sharpest reversals in recent memory. The Dow Jones Industrial Average
ended up 3.9%, the index’s biggest percentage gain in nearly six
years, on record New York Stock Exchange volume. The blue-chip index
finished more than 560 points above its intraday low and reclaimed
about 90% of its Wednesday losses. Nasdaq composite trading also saw
trading volume set a new single-day high at 3.89 billion shares.
All 30 Dow component stocks closed higher, but financial companies
were the biggest winners, racking up double-digit percentage gains
after weeks of selling off.
The government efforts went hand in hand with aggressive moves from
private players, including Morgan Stanley Chief Executive John Mack
and Goldman Sachs Group Inc. Chief Executive Lloyd Blankfein. Both men
had spoken to numerous government officials in the past few days to
discuss how to reduce the influence of short-sellers, people familiar
with the matter said. The two CEOs have also spoken five or six times
about the issue in recent days, one of these people added.
Calpers — California Public Employees’ Retirement System, the largest
U.S. public pension fund — is no longer lending out shares of
Goldman, Morgan Stanley or Wachovia. Lending of shares is an essential
step in the short-selling process, and the move could help limit
negative bets on those stocks.
The flurry of moves might have bought the markets some breathing room,
but they didn’t offer much in the way of long-term solutions to the
complex financial problems sweeping the market.
“The market wants to see a more systemic solution that doesn’t leave
us wondering day after day about the next institution that’s the
weakest link in the chain,” said former Fed Board member Laurence
Meyer, vice chairman of Macroeconomic Advisers, an economic research
firm.
Markets worldwide have been rattled as the consequences of the housing
downturn cascaded through the financial system, felling Lehman
Brothers Holdings Inc. and prompting a government takeover of insurer
American International Group Inc. Banks have grown unwilling to lend
to one another, a sign of extreme stress, because financial markets
work only when institutions have faith in each other’s ability to meet
their obligations.
Russian Market
In Russia, officials suspended stock-market trading for the
second-straight day as the Russian government promised to inject $20
billion to halt a collapse in share prices. In China, government
officials directed purchases of bank shares and encouraged companies
to buy their own shares in efforts to prop up a falling market.
President George Bush met with Mr. Paulson, Securities and Exchange
Commission Chairman Christopher Cox and Federal Reserve Chairman Ben
Bernanke for 45 minutes Thursday to discuss “the serious conditions in
our financial markets,” said White House spokesman Tony Fratto.
A series of veteran policy makers, including former Treasury Secretary
Lawrence Summers and former Fed Chief Paul Volcker, has pushed in
recent weeks for a government agency that would attempt a
comprehensive solution to the markets crisis.
The idea behind a debt-purging entity would be to steady the market so
that investors regain confidence in financial institutions and resume
conducting business normally with them. “By stepping in here and
getting the markets to function again, the government could deliver
the Sunday punch to this financial turmoil,” said former Comptroller
of the Currency Eugene Ludwig, who is now chief executive of
Promontory Financial Group, and a big proponent for the idea. “By
taking the first step and making a market the new government entity
could take fear out of marketplace,” he added.
Until recently, Congress appeared unwilling to act on such an idea
quickly. But the near-panic of the past 10 days might have changed
their calculation, should Congressional approval be needed. Rep. Paul
Kanjorski, (R., Pa.) said lawmakers should extend their session to
finalize a plan.
But House Majority Leader Steny Hoyer said that’s unlikely. “I don’t
think it’s going to happen in the next 14 days,” Hoyer told reporters
at a press conference. “Speaker Pelosi and I are both focused on the
Sept. 26 adjournment.”
Yesterday, Republican nominee Sen. John McCain sought a broad
expansion of government regulation over financial institutions,
including the formation of a body to both assume distressed mortgages
and help failing investment banks.
Saying the government cannot “wait until the system fails,” Sen.
McCain called for the creation of an entity that would essentially
help companies sell off bad loans and other impaired assets. It is
unclear how the body, dubbed the Mortgage and Financial Institutions
trust, would operate, including whether or not institutions would seek
help or whether the government would intervene on its own behalf.
His rival, Democratic Sen. Barack Obama of Illinois was less specific
about what steps he would take, offering broader outlines of policy
proposals that included a “Homeowner and Financial Support Act.” The
measure, which would inject capital and liquidity in the financial
system, is designed to provide a more coordinated response than “the
daily improvisations that have characterized policy-making over the
last year.”
Both government and the financial industry ganged up on short sellers
Thursday. Short selling is a legitimate investment tactic that bets on
the future decline of a stock. In recent weeks, banks and government
officials have blamed short sellers for driving down stock prices,
thereby damaging financial firms’ ability to raise capital.
Short-Selling Ban
Thursday, the U.K.’s market regulator, the Financial Service
Authority, banned short selling in financial stocks until January.
U.K. Treasury Chief Alistair Darling was involved in the FSA’s
discussion.
In a statement Thursday, Mr. Darling said he welcomed the FSA’s
“decisive action,” saying that in current market conditions, it was in
the “interests of financial stability.” Some British politicians have
blamed hedge funds for the plunge in the share price of the country’s
largest mortgage lender, HBOS PLC, which led to the bank being taken
over by fellow U.K. lender Lloyds TSB Group PLC in a rescue encouraged
by the UK government.
Meanwhile, New York State Attorney General Andrew Cuomo said he opened
investigations into short-sellers who he believes are trafficking in
false rumors to manipulate the market.
“No one is saying short selling caused this crisis,” Mr. Cuomo said in
an interview. “I believe it’s possible that it’s been aggravated by
illegal short selling — people passing on fraudulent information and
conspiring to drive down the value of a stock.”
The developments came a day after the U.S. Securities and Exchange
Commission announced three new trading rules aimed at curbing abusive
short sales and plans to require hedge fund managers to disclose more
information about their short positions. The SEC also said it was
expanding on already extensive investigations into false rumors.
The actions increase pressure on the SEC to take more aggressive steps
to curb short-sales, including possibly a ban similar to what the FSA
has instituted. Lawmakers, including Democratic Sen. Charles Schumer
of New York, have pitched the idea to Mr. Cox to extend a ban on
certain financial companies for 30 days.
The SEC wouldn’t say if it would follow London’s steps, although that
is one of several ideas the staff has drawn up for the commission to
consider.
Richard Baker, head of the Managed Funds Association, a hedge fund
lobbying group, downplayed the role of short-selling in the volatile
market saying that said hedge funds short because they identify
fundamental problems with a company.
“If in fact a company does fail,” he said, “it will have nothing to do
with the fact that someone from the outside noticed these
deficiencies.”
Action in Private Sector
Meanwhile, the private sector took action against short sales. The
California State Teachers’ Retirement System, the nation’s
second-largest pension fund with a securities lending program of $29
billion, on Wednesday said it was halting lending of Goldman Sachs and
Morgan Stanley shares. On Thursday, the pension fund added State
Street Corp. and Wachovia to the list.
Calstrs Chief Investment Officer Christopher Ailman said he sent out a
note to 60 other pension funds urging them to take similar steps.
“It’s quite clear you can see where the enemy is hiding and you can
prevent it from being armed,” Mr. Ailman said, referring to the short
sellers who were borrowing shares to push their prices lower.
