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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Bill Cotter who wrote (94508)	2/15/2002 12:20:43 PM
From: Knighty Tin	Read Replies (1) \| Respond to of 132070

Bill, Thus the concept of "too big to fail." I have a problem with numbers when they say stuff like $29,643.52 and then have this little note that says (in $billions). Gimme the 52 cents worth, guys, and I'll say good things about you forever. <g> This isn't all scary, though. Most derivatives are great deals and the co. has been making money on them forever. Just as most loans are good deals. The big problem is that repossessing your car is one thing. Repossessing some big banks, what?, is a different problem. We have to hope for them to muddle through, as there seems to be little oversight. I have a problem with thinking that it is a zero sum game. If that is the case, there will be winners and losers and some of the losers may have their financial viability damaged. But perhaps good things happen to both sides in every case. And clicking your heels together is a faster way to get to Kansas than a 767. <g>

To: Bill Cotter who wrote (94508)	2/15/2002 4:43:11 PM
From: Tommaso	Read Replies (2) \| Respond to of 132070

It does look as if one little twitch and JPM could simply vanish. It might have already happened if the Fed had not kept adding money at accelerating rates for the last few months. What concerns me is whether the Fall of the House of Morgan, and everything that comes down with it, could conceivably mean that I wouldn't be able to collect for having bet that such a catastrophe could occur. I mean, someone is supposed to pay up if my calls on gold and my puts on the indexes become extremely profitable. I don't want to be the winner in a poker game where all the cash gets seized by the police. I suspect that the way out is good old inflation. Cut the real value of the dollar an average of about eight percent a year for five years and the public's general perception will simply be that prices are rising. Even a 1% per month CPI change does not cause instant hardship and allows time to make adjustments.