Readings of the dayComment by Anonymous:
It has now become somewhat clear to any reader that thinks beyond the print a bit, that Satyam was a black-money laundering machine for various Hyderabad politicians.
Question: could there be other companies doing the same? Software is notoriously hard to audit. no export invoices etc. all vaporware (software). Maybe wireless telephony (eg airtel, spice etc) could be in the same boat?
Signs of a thaw?Comment by JD:
Comment by Anonymous:
For recovery of the financial markets, there are events that would lead the credit spreads e.g. willingness of banks to repay TARP. They do have to be used carefully. While Goldman pretends eagerness for financial freedom, it is only asking to repay what it doesn't like. See comment in barrons on TLGP for more details.
thanks for the link on NYTIMES about the "great election". So True. Also, it must be pointed out, that having a demographically "young" country is very stupid to live in if you are a thinking person.
All movies are teeny bopper dandy dating oriented. All "news" is hype. There is no national "dialogue" at all. Period. Just a dinner at McD! This is the electorate. And their doting parents obsessed with their offspring are too tired to do anything else.
In short India is braindead. Except where passing stodgy exams to get "great" 12 hour jobs crunching spreadsheets in an MNC with chance to go abroad.
Fallout of hostility towards bonuses to AIG employeesComment by Duke Nukem
Besides the FDIC bond guarantees, banks in general have been 'bailed' out via AIG. The govt. effectively gave them a new counterparty instead of AIG for free!
AIG financial products group were in the business of 'insuring' (via CDS) tranches of ABS CDOs that banks held and needed to reduce regulatory capital requirements. Sure they didn't pump money directly to the rest - and the cost of this 'bailout' will only be known once the CDS portfolio in AIG matures.
Now if they didn't capitalize, or left AIG insolvent, imagine what happens then when you have major banks looking for capital at the same time - further killing the interbank market - and this just after the Lehman episode.
To me this is a bail-out of the financial sector, but one which was needed to prevent a general economic meltdown which would then hurt households.
But naturally I think it is right to be disgruntled when you have people at Goldman Sachs offering to repay TARP funds, saying they didn't need them at the time and acting like everything would have also been cool for them if AIG was not 'bailed' out.