Disclaimer
In November will be a year of historic peaks of the American and Spanish stock exchange. The anniversary coincides with a stock market and financial crisis that has led many states to use public money to try to resolve the situation. Right in between those dates to April 2007 - came news that seems forgotten today: The G7 posed an ultimatum to the banking system by which gave them 100 days to emerge all of their losses. That same G7 decided that these days, along with other economic institutions and policies, go to the aid of those same banks that ignored the ultimatum.
They say that there was a need, it is possible, but these banks are still the same directors and managers leading a policy so dire that have needed enormous amounts of public money to survive. How is it possible to be a blank check to solve this to those who badly managed and also ignored the warnings?
Looking back a few links:
- February 2007: already talked about the subprime ...
http://www.elconfidencial.com/noticias/noticia.asp?id=21602&edicion=16/02/2007&pass - And less than two months after it happened and the first major bankruptcy of a financial specialist in mortgage loans, the now forgotten New Century:
http://www.adnmundo.com/contenidos/economia/new_centuty_quiebra_compania_ec030407.html - On May 30 2007 and there was talk of a market awash with liquidity with too much debt:
http://www.cincodias.com/articulo/mercados/cigarra-nada-liquidez/20070530cdscdimer_4/cdsmer/ - Mc Coy on the same day as talk of the bubble of liquidity:
http://www.cotizalia.com/cache/2007/05/30/98_busca_culpable_burbuja_liquidez_alguien_donde_metido_greenspan.html - In April and talked about the crisis in Iceland:
http://www.elmundo.es/mundodinero/2008/04/17/economia/1208427177.html - and in June 2007 had already anticipated the figures that real estate crisis:
http://www.elconfidencial.com/cache/2007/06/20/86_caida_consumo_cemento_anticipa_frenazo_construccion_viviendas_partir.html
This could be very long but is easily summarized: The FED lowered rates in the late summer of 2007 thereby delaying the solution to the crisis and the stock exchanges in November (both the SP500 as the Ibex) touched historic highs, in a movement of blindness total on economic reality. Falls from January to be blamed "mad trader" and from June to a storm of summer ... and have needed the collapse of these days to finally act together.
Hopefully it is true that it is not too late but I think it took too much. And of course what we consider unacceptable is not rolling heads. Many people have been complicit and active-passive-from the current crisis, but one who spent 120% of their income on credit and relied on an expectation wrong in their meat is suffering the consequences. And many innocent, too. The companies closed or poorly managed change their management teams, but what happens to the treasurers of banks, managers of pension funds, what happens to the political system, what happens with the ratings agencies, and the recommendations of Analysts?
In April this year was very famous video of the CNBC in which he interviewed Meredith Whitney, an analyst at Oppenhaimer, and suddenly asked about the survival of Lehman and she, logically thought that would end up bankrupt, spent several seconds without knowing what say, between hesitating whether to tell the truth or not cause any "mistrust" was his famous "mmm". She and her bank has been among the few who have months and months recommending selling in banks and announcing that they rebajarían dividend and raise capital, something that managers of these banks refused and returned to deny. Now the "totem" is to be given confidence, that means not telling the truth? Or stay with the comment made by the same dates one of the most prestigious analysts Spaniards among Internet users: "I recommend buying the stock exchange because years ending in 8 when in January he has behaved badly, they tend to go up very strongly about everything from the first quarter, so a year that ends in 8, which in January has behaved very badly, it is very likely to rise by 30% since the minimum in the first quarter. "
But this is anecdotal when compared to what happens to the head: Why is it that has not resigned after Paulson stressed many times the financial strength of Bear Stearns, Freddie Mac and Fannie Mae among others? And Bernanke, how was not affected by its mismanagement of the crisis? Where are the resignations among ratings agencies that ensured the financial strength of many entities fall? Why do governments have not demanded purges of personnel responsible for the banks which injected capital? How is it possible to continue in the same place as AIG and also wasted?
It can not be that the ordinary citizen who has been affected by a crisis that barely understands is the only one who suffers the consequences and will use the money from their taxes for those who have led us to the crisis and all its accomplices continue in his Seat. Do you have to recover confidence? True, but that there is nothing better than sincerity and responsibility. Let us tell the truth once and did not commit the revenue for the state in some managers who have brought us to this, it does not foresee nor knew how to fix. Without accountability monetary, political and even criminal if need be, I believe that it will not be a lack of confidence in the system.
Written by Droblo on October 23, 2008 with 240 points.
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# 1, jdx
shocking but true .... I hope that once it is sufficient, and not create more precedents