| Author | Message | ||
     Naked_basket Junior Artist Username: Naked_basket Post Number: 138 Registered: 09-2008 Posted From: 199.171.86.140 Rating: N/A |
I actually wanted to meet Akelroff and Stiglitz but those people were largely sought after by the local fed bank here... But yeah it was very very humbling to meet those people with such fertile ideas and original takes on a broad spectrum of things. | ||
| One Junior Artist Username: One Post Number: 448 Registered: 09-2008 Posted From: 66.67.114.55 Rating: N/A |
ladhu mama... 300 points.....money chala vundi market lo......puts vunayi anuko... | ||
| Onlytruth Megastar Username: Onlytruth Post Number: 20872 Registered: 01-2007 Posted From: 193.200.150.23 Rating: N/A |
index dropped 150 points since bail out bill passed...lol Sahajeevanam raajyangaparam ga , samajikam ga tappu kaadhu - Prajarajyam No.2 Mithra | ||
| Jackjill Side Hero Username: Jackjill Post Number: 4746 Registered: 03-2008 Posted From: 206.243.134.73 Rating: N/A |
wow This is serious wow .. meeting Noble prize winners .. a definet wow ..  | ||
| Naked_basket Junior Artist Username: Naked_basket Post Number: 137 Registered: 09-2008 Posted From: 199.171.86.140 Rating: N/A |
Tinku, No I dont attend B school. As a matter of fact, I dont like the nature of MBA programs. There is 2 much hand waving to my discomfort. I am very interested in Game theoretic approaches to resource allocation and hence my interest for Macro economics is more at a mathematical level. In precise I seek optimal and quasi optimal solutions where information complexity is multi fold. | ||
| Naked_basket Junior Artist Username: Naked_basket Post Number: 136 Registered: 09-2008 Posted From: 199.171.86.140 Rating: N/A |
I think this was a very comprehensive elucidation of the underlying malady and I couldn't help but thinking about how policy regulation will only make the incentives for agent based economic models more fairly available than the largely skewed distr as of now. I had the good fortune to talk to Myron Scholes and Bill sharpe along with Kenneth rogoff and Mike spence yesterday. It was a great piece of colloquium. | ||
| Savage Side Hero Username: Savage Post Number: 3584 Registered: 02-2008 Posted From: 148.129.71.53 Rating: N/A |
OT how r u? | ||
| Editor Moderator Username: Editor Post Number: 52 Registered: 04-2008 Rating: N/A |
Warning to Maverick & Onlytruth | ||
| Naked_basket Junior Artist Username: Naked_basket Post Number: 135 Registered: 09-2008 Posted From: 199.171.86.140 Rating: N/A |
The decisions that will be made this weekend matter not just to the prospects of the U.S. economy in the year to come; they will shape the type of capitalism we will live in for the next fifty years. Do we want to live in a system where profits are private, but losses are socialized? Where taxpayer money is used to prop up failed firms? Or do we want to live in a system where people are held responsible for their decisions, where imprudent behavior is penalized and prudent behavior rewarded? For somebody like me who believes strongly in the free market system, the most serious risk of the current situation is that the interest of few financiers will undermine the fundamental workings of the capitalist system. The time has come to save capitalism from the capitalists. | ||
| Basky_indya Hero Username: Basky_indya Post Number: 10010 Registered: 10-2007 Posted From: 65.30.78.134 Rating: N/A |
 Praja Rajyam Party | ||
| Naked_basket Junior Artist Username: Naked_basket Post Number: 134 Registered: 09-2008 Posted From: 199.171.86.140 Rating: N/A |
As during the Great Depression and in many debt restructurings, it makes sense in the current contingency to mandate a partial debt forgiveness or a debt-for-equity swap in the financial sector. It has the benefit of being a well-tested strategy in the private sector and it leaves the taxpayers out of the picture. But if it is so simple, why no expert has mentioned it? The major players in the financial sector do not like it. It is much more appealing for the financial industry to be bailed out at taxpayers’ expense than to bear their share of pain. Forcing a debt-for-equity swap or a debt forgiveness would be no greater a violation of private property rights than a massive bailout, but it faces much stronger political opposition. The appeal of the Paulson solution is that it taxes the many and benefits the few. Since the many (we, the taxpayers) are dispersed, we cannot put up a good fight in Capitol Hill; while the financial industry is well represented at all the levels. It is enough to say that for 6 of the last 13 years, the Secretary of Treasury was a Goldman Sachs alumnus. But, as financial experts, this silence is also our responsibility. Just as it is difficult to find a doctor willing to testify against another doctor in a malpractice suit, no matter how egregious the case, finance experts in both political parties are too friendly to the industry they study and work in. | ||
| Naked_basket Junior Artist Username: Naked_basket Post Number: 133 Registered: 09-2008 Posted From: 199.171.86.140 Rating: N/A |
If debt forgiveness benefits both equity and debtholders, why do debtholders not voluntarily agree to it? First of all, there is a coordination problem. Even if each individual debtholder benefits from a reduction in the face value of debt, she will benefit even more if everybody else cuts the face value of their debt and she does not. Hence, everybody waits for the other to move first, creating obvious delay. Secondly, from a debtholder point of view, a government bail-out is better. Thus, any talk of a government bail-out reduces the debtholders’ incentives to act, making the government bail-out more necessary. | ||
| Dhaarkaar Side Hero Username: Dhaarkaar Post Number: 3399 Registered: 02-2008 Posted From: 198.204.133.208 Rating: N/A |
Db ki kothala vunnav..aa kottukuntunaa valllo okkaru MOD, okkariki Mod sharing.. | ||
| Onlytruth Megastar Username: Onlytruth Post Number: 20868 Registered: 01-2007 Posted From: 193.200.150.23 Rating: N/A |
OT, MAV....mari chinna poragalla type loo ee lolli yendi? >>>>>>>>>>>> Thread chusi cheppu evadu first kelikaado....nee maate final naaku opposite ga cheppinaa.. kelukutaadu... jjakko gaadu emanna ante edustaadu Sahajeevanam raajyangaparam ga , samajikam ga tappu kaadhu - Prajarajyam No.2 Mithra | ||
| Coolkool Junior Artist Username: Coolkool Post Number: 352 Registered: 02-2008 Posted From: 75.126.79.100 Rating: N/A |
Mods ban these 2 guys for 15 mins everything will be okay.  | ||
| Onlytruth Megastar Username: Onlytruth Post Number: 20867 Registered: 01-2007 Posted From: 193.200.150.23 Rating: N/A |
Nagaphani gaadi doola buddhi ki classic example ee thread........elaa doori dobbinchukuntunado chudandi Sahajeevanam raajyangaparam ga , samajikam ga tappu kaadhu - Prajarajyam No.2 Mithra | ||
| Coolkool Junior Artist Username: Coolkool Post Number: 351 Registered: 02-2008 Posted From: 75.126.79.100 Rating: N/A |
chaadastam increases by age. | ||
| Maverick Side Hero Username: Maverick Post Number: 7013 Registered: 01-2008 Posted From: 192.146.101.24 Rating: N/A |
poddune db ki vastadu jc gadu..pettinchukuntadu..inkodu navvite edustadu mada gadu  | ||
| Chiru_fan Comedian Username: Chiru_fan Post Number: 1526 Registered: 04-2008 Posted From: 170.22.76.10 Rating: N/A |
OT, MAV....mari chinna poragalla type loo ee lolli yendi? Mera puranaa naam...Idlebrain_fan | ||
| Jackjill Side Hero Username: Jackjill Post Number: 4745 Registered: 03-2008 Posted From: 206.243.134.73 Rating: N/A |
ehe economy meedha thread lo mee jugalbandhi enti ehe .. | ||
| Onlytruth Megastar Username: Onlytruth Post Number: 20865 Registered: 01-2007 Posted From: 193.200.150.23 Rating: N/A |
Nagaphaniiiiiiiiiiiiiiiiiii BAILOUT BILL PASSED , panche paiki laakkoni chal ee thread nunchi ika  Sahajeevanam raajyangaparam ga , samajikam ga tappu kaadhu - Prajarajyam No.2 Mithra | ||
| Naked_basket Junior Artist Username: Naked_basket Post Number: 132 Registered: 09-2008 Posted From: 199.171.86.140 Rating: N/A |
Since we do not have time for a Chapter 11 and we do not want to bail out all the creditors, the lesser evil is to do what judges do in contentious and overextended bankruptcy processes: to cram down a restructuring plan on creditors, where part of the debt is forgiven in exchange for some equity or some warrants. And there is a precedent for such a bold move. During the Great Depression, many debt contracts were indexed to gold. So when the dollar convertibility into gold was suspended, the value of that debt soared, threatening the survival of many institutions. The Roosevelt Administration declared the clause invalid, de facto forcing debt forgiveness. Furthermore, the Supreme Court maintained this decision. My colleague and current Fed Governor Randall Koszner studied this episode and showed that not only stock prices, but bond prices as well, soared after the Supreme Court upheld the decision. How is that possible? As corporate finance experts have been saying for the last thirty years, there are real costs from having too much debt and too little equity in the capital structure, and a reduction in the face value of debt can benefit not only the equityholders, but also the debtholders. | ||
| Maverick Side Hero Username: Maverick Post Number: 7012 Registered: 01-2008 Posted From: 192.146.101.24 Rating: N/A |
jc gadu i dont know what exactly it is | ||
| Rebel Side Hero Username: Rebel Post Number: 2718 Registered: 02-2008 Posted From: 151.151.73.169 Rating: N/A |
cool down guys...bill pass aindi...it's a confusion...CNBC channel lo chupinchindi nenu cheppanu... | ||
| Onlytruth Megastar Username: Onlytruth Post Number: 20864 Registered: 01-2007 Posted From: 193.200.150.23 Rating: N/A |
Doola ga doori kelakoddhu ra , emanna ante edusthaavu nagaphani ga ani cheptaanu ...vinadu.....jjakko bathukki sigguntegaa vongunnadu vochiSahajeevanam raajyangaparam ga , samajikam ga tappu kaadhu - Prajarajyam No.2 Mithra | ||
| Onlytruth Megastar Username: Onlytruth Post Number: 20863 Registered: 01-2007 Posted From: 193.200.150.23 Rating: N/A |
Nagaphani gaadu bochu peekudaam ani vochi erri puvvu ayyaadahooooooooooooooo Sahajeevanam raajyangaparam ga , samajikam ga tappu kaadhu - Prajarajyam No.2 Mithra | ||
| Maverick Side Hero Username: Maverick Post Number: 7011 Registered: 01-2008 Posted From: 192.146.101.24 Rating: N/A |
jc gadu pacchi pros laa behaving | ||
| Maverick Side Hero Username: Maverick Post Number: 7010 Registered: 01-2008 Posted From: 192.146.101.24 Rating: N/A |
JC gadiki blood boil podduna nunchi.. | ||
| Onlytruth Megastar Username: Onlytruth Post Number: 20862 Registered: 01-2007 Posted From: 193.200.150.23 Rating: N/A |
malli aadamunda laaga edusthaavu nenekkada kelikaanu ani nagaphani ga...........doola baaga teerindhaa ? Sahajeevanam raajyangaparam ga , samajikam ga tappu kaadhu - Prajarajyam No.2 Mithra | ||
| Maverick Side Hero Username: Maverick Post Number: 7009 Registered: 01-2008 Posted From: 192.146.101.24 Rating: N/A |
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| Jackjill Side Hero Username: Jackjill Post Number: 4744 Registered: 03-2008 Posted From: 206.243.134.73 Rating: N/A |
http://biz.yahoo.com/rb/081003/business_us_financial1.html | ||
| Maverick Side Hero Username: Maverick Post Number: 7008 Registered: 01-2008 Posted From: 192.146.101.24 Rating: N/A |
enta pani chesav kkd | ||
| Onlytruth Megastar Username: Onlytruth Post Number: 20860 Registered: 01-2007 Posted From: 193.200.150.23 Rating: N/A |
Kodiguddu meedha bochu peekudaam ani pancha egesukuntaa vochaadu , __ ayyi veltunnadu nagaphaani............koooooooooooooooooooooooo Sahajeevanam raajyangaparam ga , samajikam ga tappu kaadhu - Prajarajyam No.2 Mithra | ||
| Onlytruth Megastar Username: Onlytruth Post Number: 20859 Registered: 01-2007 Posted From: 193.200.150.23 Rating: N/A |
Nagaphani ______ ayyaavaa ? inkaa moosukuni ellu.. Sahajeevanam raajyangaparam ga , samajikam ga tappu kaadhu - Prajarajyam No.2 Mithra | ||
| Chantodu Side Hero Username: Chantodu Post Number: 3420 Registered: 07-2007 Posted From: 12.34.246.7 Rating: N/A |
OT tamud h r u | ||
| Maverick Side Hero Username: Maverick Post Number: 7007 Registered: 01-2008 Posted From: 192.146.101.24 Rating: N/A |
kkd baaga ettadu podduna jc ki | ||
| Rebel Side Hero Username: Rebel Post Number: 2717 Registered: 02-2008 Posted From: 151.151.73.169 Rating: N/A |
CNBC vade confuse ayyadu adi senate amendment or actual voting ani... adi pass aindi..but dow down autandi... | ||
| Rebel Side Hero Username: Rebel Post Number: 2716 Registered: 02-2008 Posted From: 151.151.21.107 Rating: N/A |
vellu bill pass chesina stock market rally ayetattu ledu ee roju..endo ee lolli | ||
| Maverick Side Hero Username: Maverick Post Number: 7006 Registered: 01-2008 Posted From: 192.146.101.24 Rating: N/A |
not sure savage.considerable gane taggachu | ||
| Onlytruth Megastar Username: Onlytruth Post Number: 20857 Registered: 01-2007 Posted From: 193.200.150.23 Rating: N/A |
HOUSE PASSES BAIL OUT BILL IS THE OFFICIAL BREAKING NEWS ON MSNBC Sahajeevanam raajyangaparam ga , samajikam ga tappu kaadhu - Prajarajyam No.2 Mithra | ||
| Onlytruth Megastar Username: Onlytruth Post Number: 20856 Registered: 01-2007 Posted From: 193.200.150.23 Rating: N/A |
Nagaphani ki navvenduku vachindhi ? Sahajeevanam raajyangaparam ga , samajikam ga tappu kaadhu - Prajarajyam No.2 Mithra | ||
| Savage Side Hero Username: Savage Post Number: 3582 Registered: 02-2008 Posted From: 148.129.71.53 Rating: N/A |
Marv auto insurance lo spouse good student ani edithe insurance approximatly yenta tagutundi? | ||
| Onlytruth Megastar Username: Onlytruth Post Number: 20855 Registered: 01-2007 Posted From: 193.200.150.23 Rating: N/A |
CNBC lo chudu...senate amendment voting idi... >>> watching MSNBC.....Motion on senate amendments motion ... Sahajeevanam raajyangaparam ga , samajikam ga tappu kaadhu - Prajarajyam No.2 Mithra | ||
| Tinku Junior Artist Username: Tinku Post Number: 446 Registered: 08-2008 Posted From: 98.192.74.63 Rating: N/A |
Bailout passed! | ||
| Maverick Side Hero Username: Maverick Post Number: 7005 Registered: 01-2008 Posted From: 192.146.101.24 Rating: N/A |
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| Rebel Side Hero Username: Rebel Post Number: 2713 Registered: 02-2008 Posted From: 151.151.21.107 Rating: N/A |
CNBC lo chudu...senate amendment voting idi... | ||
| Onlytruth Megastar Username: Onlytruth Post Number: 20854 Registered: 01-2007 Posted From: 193.200.150.23 Rating: N/A |
ita not actual bailout vote...its senate amendment vote. >>>>>>> CNN vadu house voting now on Bail Out annaadu...channel lo soostha unte vote count undhi ani post chesthunnaa...i do not know what exactly it is Sahajeevanam raajyangaparam ga , samajikam ga tappu kaadhu - Prajarajyam No.2 Mithra | ||
| Tinku Junior Artist Username: Tinku Post Number: 445 Registered: 08-2008 Posted From: 98.192.74.63 Rating: N/A |
This is not the actual vote.Just a vote on the senate ammendments. | ||
| Onlytruth Megastar Username: Onlytruth Post Number: 20853 Registered: 01-2007 Posted From: 193.200.150.23 Rating: N/A |
151 - 79 4 minutes remaining...will it get required 280 or 270 ? Sahajeevanam raajyangaparam ga , samajikam ga tappu kaadhu - Prajarajyam No.2 Mithra | ||
| Rebel Side Hero Username: Rebel Post Number: 2711 Registered: 02-2008 Posted From: 151.151.21.107 Rating: N/A |
tammi ita not actual bailout vote...its senate amendment vote... bailout bill voting deeni tarvatha untundi... | ||
| One Junior Artist Username: One Post Number: 445 Registered: 09-2008 Posted From: 66.67.114.55 Rating: N/A |
143 76 | ||
| Onlytruth Megastar Username: Onlytruth Post Number: 20852 Registered: 01-2007 Posted From: 193.200.150.23 Rating: N/A |
134 - 63 6 minutes remaining Sahajeevanam raajyangaparam ga , samajikam ga tappu kaadhu - Prajarajyam No.2 Mithra | ||
| Onlytruth Megastar Username: Onlytruth Post Number: 20851 Registered: 01-2007 Posted From: 193.200.150.23 Rating: N/A |
Bail-Out voting going on , as of now YES 117 no 49 Sahajeevanam raajyangaparam ga , samajikam ga tappu kaadhu - Prajarajyam No.2 Mithra | ||
| Tinku Junior Artist Username: Tinku Post Number: 444 Registered: 08-2008 Posted From: 98.192.74.63 Rating: N/A |
Do u attend b-school? | ||
| Naked_basket Junior Artist Username: Naked_basket Post Number: 131 Registered: 09-2008 Posted From: 199.171.86.140 Rating: N/A |
If banks and financial institutions find it difficult to recapitalize (i.e., issue new equity) it is because the private sector is uncertain about the value of the assets they have in their portfolio and does not want to overpay. Would the government be better in valuing those assets? No. In a negotiation between a government official and banker with a bonus at risk, who will have more clout in determining the price? The Paulson RTC will buy toxic assets at inflated prices thereby creating a charitable institution that provides welfare to the rich—at the taxpayers’ expense. If this subsidy is large enough, it will succeed in stopping the crisis. But, again, at what price? The answer: Billions of dollars in taxpayer money and, even worse, the violation of the fundamental capitalist principle that she who reaps the gains also bears the losses. Remember that in the Savings and Loan crisis, the government had to bail out those institutions because the deposits were federally insured. But in this case the government does not have do bail out the debtholders of Bear Sterns,AIG, or any of the other financial institutions that will benefit from the Paulson RTC. | ||
| Naked_basket Junior Artist Username: Naked_basket Post Number: 130 Registered: 09-2008 Posted From: 199.171.86.140 Rating: N/A |
The obvious answer is that we do not have time; Chapter 11 procedures are generally long and complex, and the crisis has reached a point where time is of the essence. If left to the negotiations of the parties involved this process will take months and we do not have this luxury. However, we are in extraordinary times and the government has taken and is prepared to take unprecedented measures. As if rescuing AIG and prohibiting all short-selling of financial stocks was not enough, now Treasury Secretary Paulson proposes a sort of Resolution Trust Corporation (RTC) that will buy out (with taxpayers’money) the distressed assets of the financial sector. But, at what price? | ||
| Naked_basket Junior Artist Username: Naked_basket Post Number: 129 Registered: 09-2008 Posted From: 199.171.86.140 Rating: N/A |
When a profitable company is hit by a very large liability, as was the case in 1985 when Texaco lost a $12 billion court case against Pennzoil, the solution is not to have the government buy its assets at inflated prices: the solution is Chapter 11. In Chapter 11,companies with a solid underlying business generally swap debt for equity: the old equity holders are wiped out and the old debt claims are transformed into equityclaims in the new entity which continues operating with a new capital structure. Alternatively, the debtholders can agree to cut down the face value of debt, in exchange for some warrants.Even before Chapter 11, these procedures were the solutions adopted to deal with the large railroad bankruptcies at the turn of the twentieth century. So why is this well established approach not used to solve the financial sectors current problems? | ||
| Naked_basket Junior Artist Username: Naked_basket Post Number: 128 Registered: 09-2008 Posted From: 199.171.86.140 Rating: N/A |
This is the transcript of Luigi Zingales last evening talk at the B school. This is my personal transcript so please be informed of the possibility of some errors: |
