I like my headline compared to Ft.com’s: “Risk appetite surges on Dubai bail-out.”
Who wouldn’t want to lend to Dubai now that Abu Dhabi has confirmed it will play market sucker? This isn’t moral hazard – this is a licence to print money out of the oil wells of the Middle East.
The solution? For Abu Dhabi to reign in Dubai’s excesses and slow down the debt-deals that are clearly killing the region. Circuses have got to stop – sustainable farming has got to replace the mad casinos.
Low IQ borrowers meet sharp London bankers. The mix is never good.
It appears the rats left the sinking ship a little earlier than previously thought.
You’ve got to be quick to catch fleeing rats. The vaults have already been emptied, and they appear to have stolen US bonds, art, jewellery, gold and luxury houses.
The prime choices for all the world’s embezzlers.
That means they’ll actually have to do their jobs – assess risk, take losses where they’ve lent too much and negotiate with debtors when they default.
It’s been so long since they’ve actually had to do their jobs, rather than being bailed out 100 cents in the dollar by corrupt sycophantic governments, do they even remember how to talk to a debtor?
The U.S. Treasury is urging U.S. banks to follow through on mass cramdowns.
Once the price mechanism in housing has been so distorted via embezzling Ponzi-bwankers, there is no solution. Cramdowns won’t help.
But it’s so funny watching the banks trying to get out of the mess they’re in!
Mass cramdowns are bad karma for banks. It’s a toxic, fetid swampland you wouldn’t want your worst enemy to have to escape from.
I’m quietly praying the same thing happens in Australia. That will be sweet!
Don’t ever say I’m not generous. Well, it is a Friday…
Yes, this is the only way to appropriately reduce risk.
But sometimes coming to the right policy can take so long, and the policy makers can be so slow and so stupid, the patient is already terminal and the cancer has reached advanced stages. Applying remedies that would have worked 10 years ago cannot work today. This is one of those occasions for both the US and the UK. And, perhaps, Australia.
“It’s too late baby, yeah it’s too late, though we really did try to make it. Something has died inside and I just can’t hide and I just can’t fake it…”