Comments on: Good TV http://jeffnolan.com/wp/2007/08/06/good-tv/ Jeff Nolan's take on investment, innovation, entrepreneurship and the technology industry Mon, 06 Feb 2012 06:44:37 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Jeff http://jeffnolan.com/wp/2007/08/06/good-tv/comment-page-1/#comment-153548 Jeff Mon, 06 Aug 2007 21:56:06 +0000 http://jeffnolan.com/wp/2007/08/06/good-tv/#comment-153548 <p>Two points Vinnie:</p> <p>"Should our monetary/fiscal policy be only driven by their interests?"</p> <p>Those traders are trading investor money and that means you and I through everything from direct investments to 401k funds to our health insurance (the money that back insurance companies).</p> <p>Second issue, to paraphrase, "should the Feds bail out people who took on mortgages they can't afford. </p> <p>Simple, NO! But this is about much more than homeowners now. The problem that the Street has is the the instability being caused by CDOs is now causing a bigger liquidity crunch that is affecting everyone who is borrowing money, and that includes a lot of perfectly stable companies who borrow in the normal course of business. The blast radius on CDOs is widening and we are seeing companies fail as a result. </p> <p>The Fed has to get ahead of this avalanche before it widens any further. We saw them step in when Long Term Capital failed for no other reason than to ensure the markets remained liquid. Greenspan was certainly not an activist Fed chief but he was more assertive of Fed policy than Bernanke has been and that's why a lot of people are calling Bernanke an academic who doesn't appreciate what is happening on the ground in the markets.</p> Two points Vinnie:

“Should our monetary/fiscal policy be only driven by their interests?”

Those traders are trading investor money and that means you and I through everything from direct investments to 401k funds to our health insurance (the money that back insurance companies).

Second issue, to paraphrase, “should the Feds bail out people who took on mortgages they can’t afford.

Simple, NO! But this is about much more than homeowners now. The problem that the Street has is the the instability being caused by CDOs is now causing a bigger liquidity crunch that is affecting everyone who is borrowing money, and that includes a lot of perfectly stable companies who borrow in the normal course of business. The blast radius on CDOs is widening and we are seeing companies fail as a result.

The Fed has to get ahead of this avalanche before it widens any further. We saw them step in when Long Term Capital failed for no other reason than to ensure the markets remained liquid. Greenspan was certainly not an activist Fed chief but he was more assertive of Fed policy than Bernanke has been and that’s why a lot of people are calling Bernanke an academic who doesn’t appreciate what is happening on the ground in the markets.

]]> By: viinnie mirchandani http://jeffnolan.com/wp/2007/08/06/good-tv/comment-page-1/#comment-153522 viinnie mirchandani Mon, 06 Aug 2007 20:42:04 +0000 http://jeffnolan.com/wp/2007/08/06/good-tv/#comment-153522 I saw it over weekend and I thought we were going to see a heart attack on TV...something though gnawed at me...when he says people call him on their way home...I presume he means traders who are losing their shirt. Should our monetary/fiscal policy be only driven by their interests? Most American home owners did not take advantage of any of the exotic mortgages that came out in last few years. Should they bail out the ones who knew they had the risk of increased interest rates. of course, I do not want the economy to go in to a tail spin, but these home owners took those risks with eyes open.. I saw it over weekend and I thought we were going to see a heart attack on TV…something though gnawed at me…when he says people call him on their way home…I presume he means traders who are losing their shirt. Should our monetary/fiscal policy be only driven by their interests?

Most American home owners did not take advantage of any of the exotic mortgages that came out in last few years. Should they bail out the ones who knew they had the risk of increased interest rates. of course, I do not want the economy to go in to a tail spin, but these home owners took those risks with eyes open..

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