Comments on: MnIndy interview: Doug Henwood on Lehman, AIG, Gray Monday, and the economy http://minnesotaindependent.com/9075/mnindy-interview-doug-henwood-on-lehman-aig-gray-monday-and-the-economy News. Politics. Media. Wed, 30 Nov 2011 23:48:28 +0000 hourly 1 http://wordpress.org/?v=3.1 By: Elydog http://minnesotaindependent.com/9075/mnindy-interview-doug-henwood-on-lehman-aig-gray-monday-and-the-economy/comment-page-1#comment-12210 Elydog Fri, 19 Sep 2008 00:46:02 +0000 http://www.minnesotaindependent.com/?p=9075#comment-12210 I don't think they rescue firms based on 'like' or 'dislike.' The collateral damage of BS failing was higher than Lehman. That said, the consquences of AIG failing, along with Fan Mae/Fred Mac, were the greatest. AIG was heavily involved in credit default swaps. FM/FM were the major players in mortgages. So they use working class taxpayer money to save the CDO/CDS market, making the federal government the biggest derivative player (!), instead of perhaps 'canceling' the debts, or some of them. I understand with this spate of takeovers, the Fed Govt now owes $900Bn more. BofA has swallowed two other firms, Countrywide and ML now, without knowing the risk at all. Agree, this will be a long, drawnout, slowly falling domino situation. Also don't think it's much of a stretch to call this a recession. Minus useless military spending, we are deep in a recession. Will Obama reinstate Glass Steagal? Is he a Clintonite or a Rooseveltian? Will he cancel some of the debts taken on by mortgage holders or the government? Will he reverse Gramm-Leach, or at least repeal the "Commodities Futures Act" authored by Gramm and Lugar in late 2000? Really, the 'free' market has ended for a time with a bang, not a whimper. I don’t think they rescue firms based on ‘like’ or ‘dislike.’ The collateral damage of BS failing was higher than Lehman. That said, the consquences of AIG failing, along with Fan Mae/Fred Mac, were the greatest. AIG was heavily involved in credit default swaps. FM/FM were the major players in mortgages. So they use working class taxpayer money to save the CDO/CDS market, making the federal government the biggest derivative player (!), instead of perhaps ‘canceling’ the debts, or some of them. I understand with this spate of takeovers, the Fed Govt now owes $900Bn more. BofA has swallowed two other firms, Countrywide and ML now, without knowing the risk at all. Agree, this will be a long, drawnout, slowly falling domino situation.

Also don’t think it’s much of a stretch to call this a recession. Minus useless military spending, we are deep in a recession. Will Obama reinstate Glass Steagal? Is he a Clintonite or a Rooseveltian? Will he cancel some of the debts taken on by mortgage holders or the government? Will he reverse Gramm-Leach, or at least repeal the “Commodities Futures Act” authored by Gramm and Lugar in late 2000? Really, the ‘free’ market has ended for a time with a bang, not a whimper.

]]> By: french commentator http://minnesotaindependent.com/9075/mnindy-interview-doug-henwood-on-lehman-aig-gray-monday-and-the-economy/comment-page-1#comment-12180 french commentator Thu, 18 Sep 2008 15:03:15 +0000 http://www.minnesotaindependent.com/?p=9075#comment-12180 "It’s going to be very, very difficult to generate any prosperity out of this for a considerable period of time." Is that what it's all about? "generating prosperity"? Because, if what we saw prior to the crisis was a good goal, then i'd rather prefer a crisis! Prosperity for 0.1% of the country, and poverty for the rest...What a wonderful world it will be, after such a crisis... “It’s going to be very, very difficult to generate any prosperity out of this for a considerable period of time.”

Is that what it’s all about? “generating prosperity”? Because, if what we saw prior to the crisis was a good goal, then i’d rather prefer a crisis! Prosperity for 0.1% of the country, and poverty for the rest…What a wonderful world it will be, after such a crisis…

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