Our financial system is crumbling this week.

[Leroy]

so if someone (diddy) had some money to invest right now where are some good places to look?

In Dillagii's pocket.

Nobody wants in your pocket.

[Freed Roger]

so if someone (diddy) had some money to invest right now where are some good places to look?

In Dillagii's pocket.

I suggest a sighyoung hedge fund against losses from DiLLaGii's pocket.

at hard times like this, don't forget the charities -like The Roger Freed Memorial Fund

[Leroy]

Dow heading towards -700.

[G. Keenan]

NPR/This American Life is running a program right now that's a follow up to the excellent Giant Pool of Money episode. This one is dealing with the commercial paper market and credit default swaps. Very good stuff.

[Arthur Dent]

NPR/This American Life is running a program right now that's a follow up to the excellent Giant Pool of Money episode. This one is dealing with the commercial paper market and credit default swaps. Very good stuff.

They also do an excellent blog/podcast on the crisis here.

[G. Keenan]

NPR/This American Life is running a program right now that's a follow up to the excellent Giant Pool of Money episode. This one is dealing with the commercial paper market and credit default swaps. Very good stuff.

They also do an excellent blog/podcast on the crisis here.

Yeah, the Planet Money guys are all over this.

[Arthur Dent]

Right, but the fact that people are starting to buy homes out of foreclosure suggests that prices are nearing a bottom. Perhaps it is only the first wave of bargain hunters, and prices will fall more in certain fringe markets like Los Bandos, but the data suggests that perhaps we have reached an inflexion point. More foreclosures will almost certainly follow as borrowers and lenders start to get a sense of the true market value of the properties and many borrowers decide that their house is simply not worth buying at the price agree upon 1,2,3 years ago. But I view this as all part of the work out process that needs to occur to bring prices and demand back in line.

The Case-Shiller home price index from Los Angeles, San Fransisco, and San Diego only goes up to this July, but it seems to indicate that there is plenty of more room to fall. I imagine sales should pick up, especially on foreclosed properties, as prices near more reasonable levels, but a 65% annual increase doesn't seem reasonable. Maybe there was a freakishly low level of sales last September? Historically, real estate bubbles take years to collapse.

[Jocephus]

lewis kinski on the economy

[/youtube]

[greenback44]

A blogger at the Economist dug this up:

In a hearing today before the House Oversight Committee, the credit rating agencies are being portrayed as profit-hungry institutions that would give any deal their blessing for the right price.

Case in point: this instant message exchange between two unidentified Standard & Poor's officials about a mortgage-backed security deal on 4/5/2007:

Official #1: Btw (by the way) that deal is ridiculous.

Official #2: I know right...model def (definitely) does not capture half the risk.

Official #1: We should not be rating it.

Official #2: We rate every deal. It could be structured by cows and we would rate it.

EAT MOR CHIKIN.

[ghostrunner]

A blogger at the Economist dug this up:

In a hearing today before the House Oversight Committee, the credit rating agencies are being portrayed as profit-hungry institutions that would give any deal their blessing for the right price.

Case in point: this instant message exchange between two unidentified Standard & Poor's officials about a mortgage-backed security deal on 4/5/2007:

Official #1: Btw (by the way) that deal is ridiculous.

Official #2: I know right...model def (definitely) does not capture half the risk.

Official #1: We should not be rating it.

Official #2: We rate every deal. It could be structured by cows and we would rate it.

EAT MOR CHIKIN.

That's seriously creepy. Sounds like something out of a movie.