Comments on: A Quick Note on Bank Liabilities

By: ‘ THE NEW MASTERS OF THE UNIVERSE ‘ FROM WWW. BASELINESCENARIO. COM « Want Less Blog

Thu, 02 Apr 2009 08:29:37 +0000

[...] government policy. I’ve already written about the importance of bondholders in dealing with the financial sector. This week we are seeing their power over the auto [...]

By: Michael McKay

Michael McKay — Thu, 02 Apr 2009 02:30:13 +0000

Mark,

How right you are that no one will acknowledge the elephant in the room that you call attention to. Notice how there are no replies to your post other than the one giving three false choices.

People simply continue to discuss the minutia, as in all the following posts; much as generals plotting with their war toys, missing the big picture.

It is just not much fun being reminded that the game being played is nothing but a game, an end in itself.

By: The New Masters of the Universe « The Baseline Scenario

The New Masters of the Universe « The Baseline Scenario — Wed, 01 Apr 2009 16:39:08 +0000

[...] policy. I’ve already written about the importance of bondholders in dealing with the financial sector. This week we are seeing their power over the auto [...]

By: Potential Constitutional Obstacles to Nationalization and the Economic Rescue Plan « The Baseline Scenario

Wed, 25 Mar 2009 17:02:55 +0000

[...] moot. Perhaps this is the reason why the Obama Administration had previously adopted the wait-and-see/just-in-time approach to bank [...]

By: ‘ READER QUESTIONS: NATIONALIZATION ‘ FROM THE WWW. BASELINESCENARIO. COME. GREAT READ! « Want Less Blog

Mon, 23 Mar 2009 07:52:16 +0000

[...] think market freakout depends on the form of the takeover. As I have written (maybe since you sent this email), the main determinant of market freakout will be how creditors [...]

By: Reader Questions: Nationalization « The Baseline Scenario

Reader Questions: Nationalization « The Baseline Scenario — Sun, 22 Mar 2009 16:19:38 +0000

[...] think market freakout depends on the form of the takeover. As I have written (maybe since you sent this email), the main determinant of market freakout will be how creditors [...]

By: Why Bail Out AIG’s Creditors? « The Baseline Scenario

Why Bail Out AIG’s Creditors? « The Baseline Scenario — Fri, 20 Mar 2009 17:50:01 +0000

[...] situation today. Many people now believe that the government may decide to let bank creditors lose some of their money. As Bebchuk says, instead of continually giving AIG taxpayer money that is effectively used to bail [...]

By: Anonymous

Anonymous — Fri, 20 Mar 2009 07:31:50 +0000

sodhi

By: Some clarity on the nationalization debate « Managing Uncertainty by Nicholas Davis

Mon, 16 Mar 2009 10:51:19 +0000

[...] The big divide is not between A1 (Rajan) and A2 (Simon and me). In both cases, you end up with a healthy banking system, at significant taxpayer expense. (A2 should be somewhat cheaper because it wipes out the shareholders, but I agree with Rajan that it is dramatically cheaper only if the government is willing to restructure some of the liabilities.) [...]

By: ‘NATIONALIZATION AND CAPITALISM’ BY SIMON JOHNSON AT WWW. BASELINESCENARIO. COM « Want Less Blog

Sun, 15 Mar 2009 01:50:22 +0000

By: Waiting on the Government to Act | Robert Salomon's Blog

Waiting on the Government to Act | Robert Salomon's Blog — Thu, 12 Mar 2009 20:47:43 +0000

[...] The Baseline Scenario (see Quick Note on Liabilities): …the government has been doing everything it can to imply that bank creditors (at least for [...]

By: ‘ BUT ARE THEY BUYING IT?’ , THE BASELINE SCENARIO ABOUT THE BOND LANDSCAPE. WILL THE FEDS INSIST THEY TAKE BIG HITS AS WELL AS STOCKHOLDERS? « Want Less Blog

Thu, 12 Mar 2009 00:46:08 +0000

[...] Second, the administration could take over the banks; in that case, the regulator might decide not to pay back all of the bondholders - but it certainly could decide to pay them back. It’s just a question of whether losses are [...]

By: But Are They Buying It? « The Baseline Scenario

But Are They Buying It? « The Baseline Scenario — Wed, 11 Mar 2009 15:23:24 +0000

[...] Second, the administration could take over the banks; in that case, the regulator might decide not to pay back all of the bondholders – but it certainly could decide to pay them back. It’s just a question of whether losses are [...]

By: M.G. in Progress

M.G. in Progress — Mon, 09 Mar 2009 11:38:07 +0000

Well, well, let me see, if only governments would like…:
Besides hitting banks in the stock markets, market participants could stop lending to insolvent banks and depositors start transfer their funds. A kind of collective action which will signal to governments that time is over…If then public and private investors will set up in parallel brand new banks or strengthen existing good ones, business will move from the insolvent banks “too big too fail” very rapidly here you get a run on them…

By: Top Posts « WordPress.com

Top Posts « WordPress.com — Mon, 09 Mar 2009 00:09:16 +0000

[...] A Quick Note on Bank Liabilities I want to pick up on a theme Simon discussed in his last two posts: the recent panic over bank debt, particularly [...] [...]