Comments on: TDI Podcast 78: Barry’s Big Picture http://www.thedisciplinedinvestor.com/blog/2008/10/12/tdi-podcast-78-barry-ritholtz-big-picture/ Investment Disciplines and Timely Advice. Fri, 10 Feb 2012 21:15:03 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: VPro http://www.thedisciplinedinvestor.com/blog/2008/10/12/tdi-podcast-78-barry-ritholtz-big-picture/comment-page-1/#comment-4344 VPro Sun, 02 Nov 2008 00:49:11 +0000 http://www.thedisciplinedinvestor.com/blog/?p=1006#comment-4344 Vlad, It's not as simple as just mortgage defaults, because most of the junk is wrapped in worthless CDOs and the derivatives market that no one knows or wants to admit the lack of value of them. Also, you must understand that the bailout had nothing, I repeat nothing, to do with protecting taxpayers or preventing a depression, but rather to bailout the banks, both US and foreign. Former Goldman Sachs CEO Henry Paulson is now running "Government Sachs" with fellow GS alumni Kashkari. Gee, shortly after :ehman Brothers failed, GS borrowed money from Warren Buffet and became a holding company. Could it be they too were going down and Paulson would have to explain why he let Lehman fail but would step to save GS? Hint: The answer is yes! Vlad,
It’s not as simple as just mortgage defaults, because most of the junk is wrapped in worthless CDOs and the derivatives market that no one knows or wants to admit the lack of value of them.

Also, you must understand that the bailout had nothing, I repeat nothing, to do with protecting taxpayers or preventing a depression, but rather to bailout the banks, both US and foreign.

Former Goldman Sachs CEO Henry Paulson is now running “Government Sachs” with fellow GS alumni Kashkari.

Gee, shortly after :ehman Brothers failed, GS borrowed money from Warren Buffet and became a holding company. Could it be they too were going down and Paulson would have to explain why he let Lehman fail but would step to save GS? Hint: The answer is yes!

]]> By: Andrew Horowitz http://www.thedisciplinedinvestor.com/blog/2008/10/12/tdi-podcast-78-barry-ritholtz-big-picture/comment-page-1/#comment-4184 Andrew Horowitz Wed, 15 Oct 2008 11:58:43 +0000 http://www.thedisciplinedinvestor.com/blog/?p=1006#comment-4184 Vlad: While on paper that may work, it would be an enormous undertaking, administratively... Andrew Vlad:

While on paper that may work, it would be an enormous undertaking, administratively…

Andrew

]]> By: Vlad http://www.thedisciplinedinvestor.com/blog/2008/10/12/tdi-podcast-78-barry-ritholtz-big-picture/comment-page-1/#comment-4182 Vlad Wed, 15 Oct 2008 05:16:08 +0000 http://www.thedisciplinedinvestor.com/blog/?p=1006#comment-4182 I don't understand this. Banks are undercapitalized, because the mortgage papers they are holding lost a lot of value. So the natural cure in my view would be for the federal government to guarantie all mortgages, and if some fail, just take over the forclosed property. That would put the value of all the toxic paper back to 100%. For the amount of money we are commiting to spend, we could buy almost all mortagages in US. What am I missing? I don’t understand this. Banks are undercapitalized, because the mortgage papers they are holding lost a lot of value. So the natural cure in my view would be for the federal government to guarantie all mortgages, and if some fail, just take over the forclosed property. That would put the value of all the toxic paper back to 100%. For the amount of money we are commiting to spend, we could buy almost all mortagages in US. What am I missing?

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