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Why do banks fail? Open discussion about the current economic situation
Recent Posts Tagged With 'finance'
Abu Dhabi does not allow England to buy more Barclays
The British government has found out that even if they want to help Barclays, by putting in more investment, they can’t. Turns out that a “clause inserted during the Abu Dhabi Royal Family’s investment in Barclays last October has made it pract...
England on a path with Stagnation
We have been talking about the United State printing money for some months now, but it looks like Britain has been drinking the same cool-aid. Someone will have to pay for these bailout outs. The Taxpayer. Â Regulation is needed, not protection, an...
Microsoft to layoff up to 5,000 jobs
Just in, Microsoft plans to eliminate up to 5,000 positions over the next 18 months. The news follows an 11% drop in net income. Â Revenue increased 2% to $16.63 billion (still not bad from my perspective, given the adoption issues with Vista, and wh...
Scariest 2 graphs on The Fed & Bank Borrowing
East Coast Economics posted an article, The Fed & Bank Borrowing. Â The point of the article is to illustrate the problems in the following 2 graphs. In this first graph, we can see the money borrowed by US banks from the Fed through December 200...
Europe tries again, bailout part two
After the earlier efforts to stimulate leading have mostly failed in the United States and Europe, government across Europe are trying to “forcefully assure that bailed-out banks lend more money to offset the recession that has engulfed both contin...
Citi / Bank – Splitisville
The era of the super financial has come to an end, at least for Citibank.  Citigroup Inc will split into two companies. Citicorp and Citi Holdings, reverting back to running a banking business.  “The new structure will have the bank operating ...
$825 Billion Stimulus package – keep printing Uncle Sam
Turns out the bailout of the nations banks is not enough. We now are going to inject cash directly into the hands of, well everyone expect the people who need it. Â We at Whybanksfail have our own stimulus plan, called; Give the money back to the t...
Foreclosures Almost double, 81% higher then 2008
The burst of the housing bobble is what started this crisis. Chances are that until housing is stabilized there is little chance of getting out of the crisis, but to do that people need jobs, and they need access to reliable credit. But to get jobs a...
A good thing is never enough, Bank of America to get more Bailout dollars
Buy low, sell high. It’s the mantra of smart investing. But how do you know something is at its bottom. In the financial crisis of 08/09, I would not want to be making those bets. The problem is that money is getting thrown around, and good money ...
Banks Fail, Paulson Wins
John Paulson profited more than anyone else (that we know of) during the depression/recession/crash of 2008.  He is a hedge fund manager.  Before we were talking about $7 billion in bailout funds, he had already cashed in a $3.7 billion payday in...
Semyon Dukach, MIT Blackjack Team: On the Financial Industry
Semyon Dukach has posted on his site, Semyon.com a comparison of the modern financial industry instruments to generate revenue with the strategies used in blackjack in The real cause of the financial crisis. Â Specifically he focuses on the Martingal...
Nortel Networks Files for Chapter 11 Bankruptcy
Nortel Networks filed for Chapter 11 today. Â No doubt the drop in spending affected them, after retail sales fell 2.7% in December. Nortel Networks is under pressure by a $107 million payment on interest due tomorrow. Stock prices (TSE:NT) are down...
Naming Names – TARP – who’s watching your money
What’s the best place to put a secret? In plan sight.  The funny thing about information is that if you make it available and don’t trying to hide it behind some veil, people general are to accepting that they don’t even realize that somethi...
Continued changes in bank ownership (International)
United Kingdom In England, Lloyds TSB and takeover target HBOS have walked away from a pari of rights issues, which is now leaving the Bank of England with the bill, a staggering 17 billion pounds, which is needed to rebuilding the banks capital. Â...
The Breakup - Citigroup
Citigroup’s Smith Barney and Morgan Stanley’s Brokerage operation are close to deal. This move would create the largest retail brokerage company, surpassing that of Bank of American who became number one with mergers this year.  As the financi...
Short Squeeze: How Porsche hacked the financial system and profited
Want to know how to make money? Lets say you’re a high end automative producer, Porsche for example. Â Do you: Appeal to a broader demographic, create lower end vehicles leveraging technology in higher end cars Take advantage of lower wages an...
TARP not working – Big Surprise
Well folks, can’t say we did not say so, but it seems that the President Elect might be reading Whybanksfail (WE WISH). Looks like TARP is really CARP, sorry CRAP.  “Barack Obama’s economic team is considering an overhaul of the $700 bil...
11 Million Americans out of work
In an earlier article today entitled: $10 Million for a job poorly done, we discussed how two ousted Dell Senior manager where giving huge payouts to leave, well now we have to add them to the unemployment numbers for 2009. I am sure their going to w...
$10 Million for a job poorly done.
In another example on why it’s better to do your job poorly Dell is paying its Michael Cannon, president of global operations $10 million  Breakdown: ·         Cash severance payment ·         $5 million paid on or before ...
Financial gods falling from the sky, literally
In a series of articles entitled: Greenspan’s Body Count: our friends at blog: W.C. Varones have detailed all of the major financial players who have taken their lives recently. Â While their articles seem to put most of the blame on Greenspa...
England cuts rates – Everyone wants to print money
In move that aligns it self closer to other modern economies including Japan, US, and Europe, the Bank of England has cut its benchmark rate by half a percentage point. The move is seen as an effort to help the struggling economy and provide further ...
Decreased exports cause larger deficit in US trade
Weakening Global demand has caused the third consecutive drop in exports, showing more signs that the US economy is shrinking faster then estimated.  Breakdown: ·         Deficit up 1.1% ·         $57.2 billion from a revis...
It’s because they need the money… or so they say.
An article featured on Forbes.com by Dan Gerstein, Chrysler’s Hidden Coffers, highlights the real story behind Chrysler’s begging. The Big Three are asking for a bailout to prevent shutting down. Â They want to prevent job loss, and prove...
New Name - Why American Car Companies fail
Recently we have thought about changing our name to reflect what ever the current industry in crisis was, but since that just about everyone, we will stick to Whybanksfail. Â It looks like GMAC, which was trying to get additional bailout funds by c...
US Automakers React - new models in January
Related Posts October 14, 2008 — Slap Your Co-Worker Day - October 14th (1) December 9, 2008 — How the Stock Market Works (0) October 23, 2008 — Wall Street Terminology Refresher Course (0)...
How the Stock Market Works
A post on Your Debt Free Info, called “How the Stock Market Works” has a quick story that I’ve never heard before, we have pasted it below: “Once upon a time in a village, a man appeared and announced to the villagers that he ...
New Mortgages Not Helping Homeowners
Boston.com posted an article today, Reworked mortgages not working, about how more than half of delinquent borrowers who had their mortgages reworked earlier this year to avoid foreclosure were behind on their new loan payments after just six months....
Are American cars worth $125 billion?
What will the final cost be to fix Detroit’s Three automakers?  A comprehensive bailout for General Motors, the Ford Motor Company and Chrysler could cost as much as $125 billion, and even the companies themselves are hard pressed to dispute that...
The death of credit. Credit cards reach their limits.
Across the county people are starting to see the effect of the economic down turn. If they have not seen their job disappear they are at least starting to see their credit cards disappear. Credit card companies have over $5 trillion dollars of possib...
Dow Chemical to cut 5,000 full time jobs
The AP announced recently, Dow Chemical to cut 5,000 jobs, close 20 plants. Â That equates to 11% of the company’s total workforce. Â We should change the name of the site to Why Jobs Get Cut … there have been so many job cuts recently....
