"Market crisis" by redserpenthttp://www.trailfire.com/redserpent/trails/66924redserpent/trails60Five Lessons From the Credit Crisis - TheStreet.comhttp://www.trailfire.com/redserpent/marks/2443131- Solvency, not liquidity, is king.
2- Valuation is in the eye of the beholder.
3- Public policy cannot cure private market woes.
4- Deleveraging markets kill innovation.
5- No company is too big to fail.
fannie-mae, freddie mac, goldman sachs, merryl lynch, Morgan stanley, wamu, aig, Wachovia,
During September, the Dow Jones Industrial Average has dropped nearly 10%. This compares with drops in the Nasdaq of 16%, the S&P small-cap index of 9% and the Wilshire 5000 of 14%. While prices were dropping, the government became linked with the capital markets. Over the past year, we have seen the Treasury and Federal Reserve attempt to influence behavior.
To gain perspective, during September we have seen key linchpins of the housing market placed into conservatorship (Fannie Mae and Freddie Mac), the failure of two large banks (Washington Mutual and Wachovia), the nationalization of the largest insurance company (American International Group), the elimination of the stand-alone investment bank (Lehman's(LEH Quote) bankruptcy and Morgan Stanley(MS Quote) and Goldman Sachs(GS Quote) becoming commercial banks) and the disappearance of the largest brokerage firm (Merrill Lynch merging with Bank of America). "]]>Market crisisredserpentWed, 12 Aug 2009 15:08:59 -0700trailfire:markId:244313Holman Jenkins Says the AIG Bonus Episode Reveals Our Elected Officials' Lack of Political Courage - WSJ.comhttp://www.trailfire.com/redserpent/marks/278659Article segments: "The stock market was intoxicated with the Obama administration's toxic asset plan. Whatever its contempt for the upper middle class that acquires wealth through salaried work and bonuses, Team Obama still has eyes for the hedge fund class, which will be ladled out taxpayer dollars to make one-way bets on problematic bank assets.
Whether Mr. Geithner knew the specifics is unimportant. The retention plan was known to his staff. The details had been disclosed over and over in public filings. As far back as October, New York Attorney General Andrew Cuomo had summoned the Treasury-appointed Mr. Liddy to hammer out a deal on AIG's pay practices."]]>Market crisisredserpentWed, 12 Aug 2009 15:07:22 -0700trailfire:markId:278659Ruth Marcus - Grin and Bear the Bonuses - washingtonpost.comhttp://www.trailfire.com/redserpent/marks/278660Market crisisredserpentWed, 12 Aug 2009 15:13:55 -0700trailfire:markId:278660Focus on Individualism Creates MBA "Monsters"? | Back to B-School | BNEThttp://www.trailfire.com/redserpent/marks/278661Article segments: "Peggy Cunningham, the new director of the School of Business Administration at Dalhousie University, Canada, Having left a tenured position at Queen’s University, Cunningham wants to restructure the Dalhousie business school program around a core concept of responsible leadership.

Too much focus on individual success and competition between companies makes people forget that they’re part of a larger social system to which they are accountable. As Cunningham says:

Business schools have to take a very hard look at themselves to see the kind of people we are graduating and take our responsibility very much to heart in terms of the models we use to graduate these people."

]]>Market crisisredserpentWed, 12 Aug 2009 15:17:50 -0700trailfire:markId:278661FT.com / Columnists / John Kay - How the ‘Madoff twist’ entices the astutehttp://www.trailfire.com/redserpent/marks/278662fraud is the sophistication of its victims. Some thought his returns might have been based on front-running – using the information derived from his brokering business to benefit his asset management clients. The device is not exclusive to fraudsters. The fundamental cause of the banking crisis is the multiplicity of conflicts of interest within today’s financial conglomerates.
The Madoff twist provides the answer. Each group of customers understood there were conflicts of interest but believed they were being managed for their benefit.]]>Market crisisredserpentWed, 12 Aug 2009 14:55:01 -0700trailfire:markId:278662At Auto Show, Presenters Meet a Tough Crowd - NYTimes.comhttp://www.trailfire.com/redserpent/marks/278663Market crisisredserpentTue, 14 Apr 2009 03:26:22 -0700trailfire:markId:278663StumbleUpon WebToolbar - Free eBooks at Planet eBook - Classic Novels and Literature Youre Free to Sharehttp://www.trailfire.com/redserpent/marks/278674Market crisisredserpentTue, 14 Apr 2009 03:51:56 -0700trailfire:markId:278674Trailfire - redserpent - Activityhttp://www.trailfire.com/redserpent/marks/278677Market crisisredserpentTue, 14 Apr 2009 03:53:53 -0700trailfire:markId:278677