My Photo

Search the blog

  • Google

    WWW
    rodrik.typepad.com

« Syncretic Zoellick | Main | Larry Bartels responds »

April 06, 2008

Comments

Allison

For which personal characteristics is "grandma" a shorthand?

Yves Duel

Here is the most brillant paper for your mother, on a part of this mess --Im not kidding !

http://economistes.blogs.liberation.fr/chiffrage/2008/03/bear-stearns-co.html#more

(pity she doesnt like french !)

terence

This VoxPop essay by John Lancaster (for the London Review of Books) is great: interesting and a very enjoyable read:
http://www.lrb.co.uk/v30/n01/lanc01_.html

tomslee

What Allison said.

Please, no more of this idea that older women are stupid. I know you didn't mean it - it seems part of the Internet culture - but please try to avoid it in future.

Alex

Hi Dani,

It would be really nice if you could tell us what you think about the argentinian govnt taxing 40% of its exports.

It's a measure that has been criticized by so many economists, but maybe you have a different point of view?

Yours,

Alex

markusdav

Try this for grandma:

http://www.inthesetimes.com/article/3275/tranche_warfare/

Dominic

This is the best explanation I've found. Not only simple to understand in less than 3 minutes, but makes you laugh out loud.

The Subprime Primer:
http://docs.google.com/TeamPresent?docid=ddp4zq7n_0cdjsr4fn&skipauth=true&pli=1

Really. Read it.

Alexander

This is actually the same thing as Dominic posted but also translated into Russian.

http://superinvestor.ru/sub/index.htm

crack

Obviously it's shorthand for stupid old women because Dani is a misogynist.

Or it's for people who have a lifetime of experience dealing with a system that has changed dramatically in the last 5 years. Yet are still curious and interested in how these changes relate to the system they'd used their whole lives but are merely as sophisticated as former Treasury Secretarys(1).

Grandpa is shorthand for the same person less the curiosity.

(1)
Robert Rubin, the former Treasury secretary and current Citigroup executive, has said that he hadn't heard of "liquidity puts," an obscure kind of financial contract, until they started causing big problems for Citigroup.

http://www.nytimes.com/2008/03/19/business/19leonhardt.html?_r=2&hp&oref=slogin&oref=slogin

Per Kurowski

Some fifteen years ago in Basel bank regulators fed up with having to work on banking crisis came up with the idea that these could be avoided if banks put up capital in accordance to the default risk of each credit; the so called minimum capital requirements for banks.

Now, since no one would ever trust some bureaucrats with measuring the credits, they outsourced that responsibility to the credit rating agencies and sold the idea that the market was fully at work.

Little by little, having been appointed by the regulators and having all the banks following their criteria, the credit rating agencies developed an aura of invincibility; that was not even tarnished by cases like Parmalat, Enron and Argentina since two of them were fraudulent cases and the other just Argentinean.

Banks started to dismiss credit analyst in banks since “why bother when we still have to obey their criteria”; and financial entrepreneurs argued themselves into some very good ratings on some paper they developed, since what real opposition can a little credit rating officer give some real entrepreneurs.


And so the credit rating agencies, like the Pipers of Hamelin, one day led the investors over a precipice, in this case the subprime mortgage precipice.

And now everyone wonders whether we are going to quit using the credit rating agencies or whether we are going to insist on going over an even larger precipice in the future, just because some bank regulators cannot admit they were stupidly wrong.

Perhaps not all grandmothers do understand my explanation, but I bet many of them intuitively understand the foolishness of following just a few.

And by the way are there not many more risks for the society related to the financial sector than their possible default and crisis? Where banks not also supposed to help development and growth…at least that is what they told us when we were young.

Now you can discuss this back and forth but the only real unavoidable fact that stands out is that the securities collateralized by truly junky subprime mortgages would have traveled nowhere, had it not been for the prime wings furnished to them by the credit rating agencies.

Justin Rietz

Here's a humorous yet oddly imformative look at the subprime crisis from a British tv show

http://willfulblindness.net/?p=149

jobo

Here is a credit crunch explanation, more for granddaugther than grandma:

http://www.interfluidity.com/posts/1205997488.shtml

rolex watches

This is clearly replica watches the job for our legal fraternity to engage the establishment to necessary breitling watches steps by filing petitions in various courts. IF one fails another should be cartier watches filed taking every one to task. It is rolex watches useless to suggest ways and means to solve tag heuer watches the day to day problem to well paid employees tissot watches of government controlled establishments. Only active omega watches judiciary will resolve this problem.
http://www.watchvisa.com
http://www.watchvisa.com/breitling-watches.html
http://www.watchvisa.com/cartier-watches.html

rado watches

Why is everyone just montblanc watches willing to accept power cuts? Don't you think that patek philippe watches having continious power is your right? If people aren't going to demand rado watches 24X7 power, don't expect anything zenith watches to change. The government needs to look at other sources parmigiani watches of power generation. The only solution is more power panerai watches production. Nothing less.
http://www.watchvisa.com/montblanc-watches.html
http://www.watchvisa.com/patek_philippe-watches.html
http://www.watchvisa.com/rado-watches.html
http://www.watchvisa.com/tudor-watches.html

bvlgari watches

They should take up building BVLGARI Watches dams for power generation. We should FRANCK MULLER watches learn from china. They have the world's largest dam for power CHANEL Watches production, it alone produces 22,000 MW of LONGINES Watch power. So, unless the government opens up the economy more for iwc watches foreign investors, this power cut problem is a life long disease every hublot-watches india will need to face.
http://www.watchvisa.com/bvlgari-watches.html
http://www.watchvisa.com/chanel-watches.html
http://www.watchvisa.com/franck_muller-watches.html

rolex watches


People usually say :"Seeing is believing." http://www.tt88times.com
Each attempt has a corresponding gain, in part or obvious, or vague. At least we have the kind of satisfaction After I bought this watch ,in a sense,it means a great deal to me. http://www.fashionhairfu.com

lachou

I like these articles , democratic countries formulate policies are both team and the interests of the people of power, but the undemocratic countries rarely for the interests of the people, http://www.jerseysky.com it is the sorrow of many democracy, I like the western and northern state policy.
http://www.cheapsaleing.com
http://www.nikeairmaxshoe.ocm

lv handbags

They should take up building BVLGARI Watches dams for power generation. We should FRANCK MULLER watches learn from china. They have the world's largest dam for power CHANEL Watches production, it alone produces 22,000 MW of LONGINES Watch power.


jordan shoes

I am happy to find this post very useful for me, as it contains lot of information. I always prefer to read the quality content and this thing I found in you post. Thanks for sharing.

cheap jordans

Very interesting issue that after a very successful. Nicely written article good work ! Thanks for the great piece of sharing.

jordan shoes

I’ve seen progression in every post. Your newer posts are simply wonderful compared to your posts in the past. Keep up the good work!

air jordan 13

This is a good article. I agree, if there is a method of saving costs then I am all for it. The last place I would have thought to notice a disease was in the eyes.

Account Deleted

We at Savers Point provide opportunity to our visitors to become smart buyer since buying smartly is not just buying cheap but buying the best at the right time from right place at right price.

Dubai Computer

Account Deleted

raf

Thanks for sharing.

Ron Looker

columbus injury lawyer
I always enjoy reading your posts and I look forward to your next one.

Account Deleted

Raf
raf

Thanks to you ...

Account Deleted

Many places and centers offer business and trade promotions to both buyers and supplier.What about the differences in skill intensities across industries? The job losses in the relatively unskilled-labor intensive battery industry should have little effect on the relatively skilled-labor intensive machinery
sexshop
sexyshop
sexshop online
alongador peniano

Verify your Comment

Previewing your Comment

This is only a preview. Your comment has not yet been posted.

Working...
Your comment could not be posted. Error type:
Your comment has been posted. Post another comment

The letters and numbers you entered did not match the image. Please try again.

As a final step before posting your comment, enter the letters and numbers you see in the image below. This prevents automated programs from posting comments.

Having trouble reading this image? View an alternate.

Working...

Post a comment

Your Information

(Name is required. Email address will not be displayed with the comment.)