18/09/2008

Subprime crisis: a scientific explanation

The clearer explanation I've heard about the subprime crisis, from an insider

Be sure to check out their interviews about the army or the political adviser at the white house.

On a related note, last year, Mr. Fuld earned about $45 million, according to the calculations of Equilar, an executive pay research company. That amounts to roughly $17,000 an hour to obliterate a firm. If you’re willing to drive a company into the ground for less, apply by calling Lehman Brothers at (212) 526-7000.

And top 3 Merrill Lynch execs to receive $200 million windfall. While Thain managed to negotiate a merger even as rival Lehman Brothers Holdings Inc. sank into bankruptcy, shareholders may resent the executive payouts. Merrill's stock returned more than 13 percent a year from 2000 through 2006. Since Dec. 1 of last year, Thain's first day, the shares have fallen more than 60 percent, as write-downs on devalued mortgage holdings eroded the company's financial results.

As always,"Profits have been privatized and losses socialized"

It seems than 10% of the bailout (ie. 7000 million dollars) is going to be wisely invested to pay bonuses to the wonderful bankers that created this mess.

http://www.guardian.co.uk/business/2008/oct/17/executivesalaries-banking
Anti-democratic nature of US capitalism is being exposed
http://www.irishtimes.com/newspaper/opinion/2008/1010/1223560345968.html
Bush: bank buyout needed 'to preserve free market'

http://www.timesonline.co.uk/tol/news/world/us_and_americas/article4942192.ece

Seriously, government intervention needed to preserve free market (ie. market without government intervention) ?

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