The title is the thesis. About the author:

Mr. Posner is a federal circuit judge and a senior lecturer at the
University of Chicago Law School. He is the author of the just-published
"A Failure of Capitalism: The Crisis of '08 and the Descent into
Depression" (Harvard University Press).


http://online.wsj.com/article/SB124165301306893763.html

The Wall Street Journal, 7 May 2009, page A17.


Joe Gwinn

Joseph Gwinn wrote:
The title is the thesis. About the author:

Mr. Posner is a federal circuit judge and a senior lecturer at the
University of Chicago Law School. He is the author of the just-published
"A Failure of Capitalism: The Crisis of '08 and the Descent into
Depression" (Harvard University Press).


http://online.wsj.com/article/SB124165301306893763.html

The Wall Street Journal, 7 May 2009, page A17.


Joe Gwinn


Fascinating...

Thanks, Joe.

"cavelamb" wrote in message
m...
Joseph Gwinn wrote:
The title is the thesis. About the author:

Mr. Posner is a federal circuit judge and a senior lecturer at the
University of Chicago Law School. He is the author of the just-published
"A Failure of Capitalism: The Crisis of '08 and the Descent into
Depression" (Harvard University Press).


http://online.wsj.com/article/SB124165301306893763.html

The Wall Street Journal, 7 May 2009, page A17.


Joe Gwinn


Fascinating...

Perhaps, but it's largely nonsensical and in some instances, just
innacurate.
Posner apparently doesn't understand what constitutes a "demand deposit"
account.

He's right about one thing, at least. What we are seeing in the worlds of
finance and economics coldn't have happened without the active and passive
assistance of government.

JC

John R. Carroll wrote:
"cavelamb" wrote in message
m...
Joseph Gwinn wrote:
The title is the thesis. About the author:

Mr. Posner is a federal circuit judge and a senior lecturer at the
University of Chicago Law School. He is the author of the just-published
"A Failure of Capitalism: The Crisis of '08 and the Descent into
Depression" (Harvard University Press).


http://online.wsj.com/article/SB124165301306893763.html

The Wall Street Journal, 7 May 2009, page A17.


Joe Gwinn

Fascinating...

Perhaps, but it's largely nonsensical and in some instances, just
innacurate.
Posner apparently doesn't understand what constitutes a "demand deposit"
account.

He's right about one thing, at least. What we are seeing in the worlds of
finance and economics coldn't have happened without the active and passive
assistance of government.

JC



John (et al),

At what point does it become possible to "just say no" to government involvement?

"cavelamb" wrote in message
m...
John R. Carroll wrote:
"cavelamb" wrote in message
m...
Joseph Gwinn wrote:
The title is the thesis. About the author:

Mr. Posner is a federal circuit judge and a senior lecturer at the
University of Chicago Law School. He is the author of the
just-published "A Failure of Capitalism: The Crisis of '08 and the
Descent into Depression" (Harvard University Press).


http://online.wsj.com/article/SB124165301306893763.html

The Wall Street Journal, 7 May 2009, page A17.


Joe Gwinn

Fascinating...

Perhaps, but it's largely nonsensical and in some instances, just
innacurate.
Posner apparently doesn't understand what constitutes a "demand deposit"
account.

He's right about one thing, at least. What we are seeing in the worlds of
finance and economics coldn't have happened without the active and
passive assistance of government.

JC

John (et al),

At what point does it become possible to "just say no" to government
involvement?

I'm not sure I understand your question but Tim Geithner spelled out
Treasury's position fairly well yesterday.
http://www.charlierose.com/view/interview/10278

He seems to be finding his legs, so to say, in public appearances.

JC

"John R. Carroll" wrote:

He seems to be finding his legs, so to say, in public appearances.

I think he could use a few good nights sleep. This is a non-political observation.

Wes

On Thu, 07 May 2009 21:22:49 -0500, cavelamb
wrote:

John R. Carroll wrote:
"cavelamb" wrote in message
m...
Joseph Gwinn wrote:
The title is the thesis. About the author:

Mr. Posner is a federal circuit judge and a senior lecturer at the
University of Chicago Law School. He is the author of the just-published
"A Failure of Capitalism: The Crisis of '08 and the Descent into
Depression" (Harvard University Press).

http://online.wsj.com/article/SB124165301306893763.html

The Wall Street Journal, 7 May 2009, page A17.
Joe Gwinn
------
Fascinating...

Perhaps, but it's largely nonsensical and in some instances, just
innacurate.
Posner apparently doesn't understand what constitutes a "demand deposit"
account.

He's right about one thing, at least. What we are seeing in the worlds of
finance and economics coldn't have happened without the active and passive
assistance of government.

JC
-------

John (et al),

At what point does it become possible to "just say no" to government involvement?
------
When you are not depending on the government to keep your
businesses from collapsing, your buildings from burning down,
etc.

The banks (commercial and investment), quasi banks, brokerages,
insurance companies, credit card companies, etc. created this
entire asset bubble problem, putting the world on the verge of an
uncontrolled deflation/depression and now everyone is paying the
price.

The "stress test" results are out, but the single most important
comment/observation IMNSHO is that "Together, the 19 firms that
took the test hold two-thirds of the assets and half the loans in
the U.S. banking system."
http://news.yahoo.com/s/ap/20090508/...1bIdjmK yBhIF

Note that one of the 19 is GMAC which is now a bank [now wholly
owned by Cerberus]. GMAC is expected to play a key role is the
financing of both Chrysler and GM vehicle purchases and leasing,
but was heavily involved in sub prime lending under Diatech
Funding and ResCap [Residential Capital]. By all objective
standards GMAC is bankrupt, but is likely to get another big wad
of taxpayer cash.

for complete report [and free eye test] see
http://static.reuters.com/resources/...r_20090507.pdf
also for Reuters analysis see
http://www.reuters.com/article/ousiv...5463T820090508


Unka' George [George McDuffee]
-------------------------------------------
He that will not apply new remedies,
must expect new evils:
for Time is the greatest innovator: and
if Time, of course, alter things to the worse,
and wisdom and counsel shall not alter them to the better,
what shall be the end?

Francis Bacon (1561-1626), English philosopher, essayist, statesman.
Essays, "Of Innovations" (1597-1625).

Timothy Geithner's interview (thanks John) was most interesting.

Rethinking the way things ought to work...

One thing he said that I thought made sense was "the only reason
that one penny was given to these banks is to keep the people who
depend on them from (going under).

But in the end it's a "confidence game" (maybe in BOTH senses).

But mostly...

Do you have confidence in this recovery?
Do you have confidence in this economy?

George said:

The "stress test" results are out, but the single most important
comment/observation IMNSHO is that "Together, the 19 firms that
took the test hold two-thirds of the assets and half the loans in
the U.S. banking system."

All my emerging confidence just evaporated again...

Mr. Posner is a federal circuit judge and a senior lecturer at the
University of Chicago Law School. He is the author of the
just-published
"A Failure of Capitalism: The Crisis of '08 and the Descent into
Depression" (Harvard University Press).

http://online.wsj.com/article/SB124165301306893763.html

The Wall Street Journal, 7 May 2009, page A17.
Joe Gwinn
------
Fascinating...

Perhaps, but it's largely nonsensical and in some instances, just
innacurate.
Posner apparently doesn't understand what constitutes a "demand
deposit"
account.

He's right about one thing, at least. What we are seeing in the worlds
of
finance and economics coldn't have happened without the active and
passive
assistance of government.

JC
-------

John (et al),

At what point does it become possible to "just say no" to government
involvement?
------
When you are not depending on the government to keep your
businesses from collapsing, your buildings from burning down,
etc.

The banks (commercial and investment), quasi banks, brokerages,
insurance companies, credit card companies, etc. created this
entire asset bubble problem, putting the world on the verge of an
uncontrolled deflation/depression and now everyone is paying the
price.

The "stress test" results are out, but the single most important
comment/observation IMNSHO is that "Together, the 19 firms that
took the test hold two-thirds of the assets and half the loans in
the U.S. banking system."

http://news.yahoo.com/s/ap/20090508/...1bIdjmK yBhIF

Note that one of the 19 is GMAC which is now a bank [now wholly
owned by Cerberus]. GMAC is expected to play a key role is the
financing of both Chrysler and GM vehicle purchases and leasing,
but was heavily involved in sub prime lending under Diatech
Funding and ResCap [Residential Capital]. By all objective
standards GMAC is bankrupt, but is likely to get another big wad
of taxpayer cash.

GMAC is not owned by Cerberus. At one time it had more than a 50% stake in
the company but now it's ownership has been reduced to 9.9% as part of the
deal. So things are constantly in flux. As for more government money, that
may come. But if it means credit will keep flowing and it will allow people
to buy, and more importantly, to finance new car purchases that will be a
good thing. Bottom line is that as bad as the financial situation was the
new administration is taking the necessary steps to fix the problems. But no
matter how well they do it for some folks it will never be good enough and
they will never give them the credit they deserve. By the way, those folks
are called republicans and they are the people who created the mess Obama
has to clean up.

Hawke