So did CS officially fail now?
> So did CS officially fail now?
Define "fail".
Did they fail their shareholders?
Did they fail their creditors?
Did they fail their clients?
And if so the latter, which category?
Credit Suisse’s $17B of Risky Bonds Are Now Worthless
61–70 of 120 posts
Re: Credit Suisse’s $17B of Risky Bonds Are Now Worthless
#62If the casino always wins, why is it so hard to identify who owns this[1] casino? [1] Not CS, but the entire "serious" financial system.
Well don’t keep us guessing! What’s the secret cabal owning the financial system, according to your research, and how do they manage to own both the „serious“ business and the funny pages?
My vote goes to the Rockefellers (who are actually psychic mushroom people first discovered in caves about halfway into the hollow earth. This is why they use that last name. The first people they encountered referred to them as "them rock fellers" before they were psychically controlled.)
Re: Credit Suisse’s $17B of Risky Bonds Are Now Worthless
#63Earlier quoted context omitted.
You wouldn't want a central authority to control the size of your money supply this would certainly lead to abuse oppression and a dystopia.
but in the end, an authority (usually centralised) does actually control the money supply. This is simply the case because our economic system is based around the idea that someone will punish those who do not play by the rules of this system, otherwise we would not even have any kind of financial system to speak off. Money is only worth something because of the rule of law, and the rule of law is only worth somethin…
I am referring to the usa and creation of money supply. As another person pointed out one entity does not control the supply of money. The private banks are responsible for loaning(creating) new money. The fed just ensures those banks have the means to do so if market forces warrant it.
Although I agree with your point, a large imposing centralized force will ultimately lead to a controlling singular entity over time in such a system. But won't go sk far to say thats the way it has to be.
Re: Credit Suisse’s $17B of Risky Bonds Are Now Worthless
#64If the casino always wins, why is it so hard to identify who owns this[1] casino? [1] Not CS, but the entire "serious" financial system.
Why are you presupposing that the entire financial system is owned by one entity?
Seems like a rather ridiculous assumption.
Re: Credit Suisse’s $17B of Risky Bonds Are Now Worthless
#65If the casino always wins, why is it so hard to identify who owns this[1] casino? [1] Not CS, but the entire "serious" financial system.
US federal historical government spending is an exponential growth graph. As are unfunded liabilities that politicians at some point promised to pay people. EU seems pretty much the same. More gov spending, more social spending. Repeat ad infinitum. Of course, all of this wealth has to come from some place. Not the rich, because they have enough influence and connections to avoid it.
Re: Credit Suisse’s $17B of Risky Bonds Are Now Worthless
#66Earlier quoted context omitted.
The problems with the gold standard is we had one and everyone lied about how much gold they had, Causing the lost decade in the 70s/80s. Maybe BRICS will propose a solution that uses Blockchain to verify gold ledgers.
How could blockchain verify anything physical?
I'm not talking about physical verification but the idea that having a public ledger of each countries gold would add transparency. Whenever gold is moved it would be reflected on the ledger for all other central banks to see.
The problem with the gold standard era was countries, particularly the USA, claiming it had a lot more gold than it did and you just had to take them at their word. It wasn't until Charles de Gaulle called them out and demanded the physical transfer.
Re: Credit Suisse’s $17B of Risky Bonds Are Now Worthless
#67Earlier quoted context omitted.
The problems with the gold standard is we had one and everyone lied about how much gold they had, Causing the lost decade in the 70s/80s. Maybe BRICS will propose a solution that uses Blockchain to verify gold ledgers.
The ledger is verified but how do you know the gold is really there?
You ask for the counterparty to send it.
Historically, the dollar was the ledger and redeemable in gold. Which the USA printed a lot more than it said it did. A ledger would stop this kind of abuse.
Re: Credit Suisse’s $17B of Risky Bonds Are Now Worthless
#68If the casino always wins, why is it so hard to identify who owns this[1] casino? [1] Not CS, but the entire "serious" financial system.
US federal historical government spending is an exponential growth graph. As are unfunded liabilities that politicians at some point promised to pay people. EU seems pretty much the same. More gov spending, more social spending. Repeat ad infinitum. Of course, all of this wealth has to come from some place. Not the rich, because they have enough influence and connections to avoid it.
No, it's incredibly flat, if you consider it to be in percent of GDP.
Re: Credit Suisse’s $17B of Risky Bonds Are Now Worthless
#69I was initially surprised about this because AT1 notes are supposed to rank higher than equity. It seems that almost no one saw this coming (CS AT1 bonds traded higher this weekend before the write-down announcement), and traders presumed that bondholders should be made whole if equity holders get something. However then I looked at the information memorandum of these AT1 bonds (e.g. https://www.credit-suisse.com/med…
Between this and Janet Yellen's shaky answer to the Senate regarding deposit flight from community banks on Thursday, I think regulators are prolonging this crisis. Each solution seems designed to address the localized problem but does not consider systemic effects. 1: With this weekends actions in Europe, how will the AT1 bond market react tomorrow? 2: With Yellen's uninspiring answer on Thursday regarding deposits…
Everyone's trying to prop the banks up enough, but not too much; there's a fundamental tension between preventing a panic and ensuring that those who were prudent or otherwise are fairly compensated.
Re: Credit Suisse’s $17B of Risky Bonds Are Now Worthless
#70Earlier quoted context omitted.
A fixed supply with growing markets is deflationary. Cryptocurrency advocates wrongly insist thid is a good thing out of motivated reasoning.
When describing the currency itself, bitcoin is strictly not deflationary as the supply of it is never reduced, it's actually inflationary for the next hundred years or so until the full 21 million is mined. It might create a deflationary economy in that everything gets cheaper over time, priced in bitcoin. What is so wrong with that? Why can't you expect to purchase more goods in the future than today with the same…
> It might create a deflationary economy in that everything gets cheaper over time, priced in bitcoin. What is so wrong with that?
Because then investment ceases to be about trying to capture a share of the growing pie, and more a zero sum game which the small minority of people holding most of the financial wealth have little incentive to participate in, and so the mechanism by which stuff gets cheaper over time, priced in Bitcoin, isn't economic growth but just increasing desperation of people without Bitcoin to obtain it.
So all the worst parts of capitalism and none of the actual good parts, though I appreciate the idea is more appealing to people who imagine themselves as being the minority of idle rich.
For related reasons, the world would not adopt a deflationary currency for very long...