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My Comments (1204 so far…)

Happy Birthday, U.S. Constitution! What amendment is most important to you?

Freedom of speech here, too. As I mentioned on Jane Wagner’s column, given recent developments, I also am a proponent of a slightly altered second amendment - the right to arm bears. Polar bears, in particular.

Mother Earth Care-toons: The Campaign Trail

I am now a proponent of a slightly altered 2nd amendment - the right to arm bears.

Financial Crisis Reader Forum

Hi Maizie, I, too, have high regard for Alan Greenspan. But keep in mind that his policy of holding interest rates low, thereby facilitating low rate mortgages, was a significant contributor to the problems we face today. Also, he was Fed Chairman when the problems at FNMA/FHLMAC started, and while his job is full employment and price stability, he had every opportunity to use his bully pulpit to point out the growing risk of derivatives, and did not. Your corporate bond is investment grade, Maizie. The ratings are - INVESTMENT GRADE (highest to lowest) AAA, AA, A, BBB - JUNK - BB, B, C DEFAULT - D If you provide the name of the issuer, I can give you a link that will give you more information.

Financial Crisis Reader Forum

Hi Patrice, Are you referring to the program with Lawrence Summers, Josh Rosner, Andrew Ross Sorkin, Nouriel Roubini and Charlie Gasparino? I thought they all agreed that the financial problems were rooted in taking on too much debt and the inability to price mortgage backed securities. I heard mention of hubris and ego, but didn’t catch any accusations of greed or lies. Do you remember who said that?

Financial Crisis Reader Forum

Hi Patty, http://www.nytimes.com/2005/03/29/business/29insure.html?_r=1&oref=slogi… That may give you some insight as to why AIG was uninterested in Hank’s offer.

Liz Peek: Wall Street Blowup - What's Behind It?

Hi again Diana, That’s Hank Greenburg. I need some coffee.

Financial Crisis Reader Forum

I’m confused. Morgan Stanley posted profits that beat Wall St expectations handily.

Liz Peek: Wall Street Blowup - What's Behind It?

Hi Diana, I agree that it’s not over (see comment to Phyllis below). You may want to check Herb Greenburg’s background before you put a lot of stake in his analysis. My colleagues in the insurance business thought he was a snake. The whole issue of deleveraging (your example of the 95/5/5 mortgage) is interesting, isn’t it? I agree that debt is the root of this whole problem. What did you think about what Larry Summers said, if I may ask?

Liz Peek: Wall Street Blowup - What's Behind It?

Hi Phyllis, I think the conclusions you drew are well founded; i.e., it’s overwhelming and it will be an enormous job for the next president. I hope you’re wrong about taking years to get back on track, but I fear you’re right. It seems to me that the quick (and painful) solution is to mandate pricing for the derivatives - a difficult process because who knows how many packaged loans are bad? This will not be done, however, because it would drive so many institutions into bankruptcy. Over time, given the ability to work out these loans, I think we’ll find that about 30% of those made from 2007 forward are bad. The market’s probably priced this in, and may be overdone on the low side. Time will tell. I thought the guests were great. As you know, I’m a big Summer’s fan, and Josh Rosner from Graham Fisher is a smart guy. I find Andrew Ross Sorkin (NY Times) more interested in selling his book that doing economic analysis, and Nouriel Roubini’s nickname is well founded - but it’s necessary to have somebody give the disaster senario. I was just a little concerned that Roubini seemed to be the one most talked about. His position is pretty extreme. What did you think about what Larry Summers said?