Comments on: California: Obama says no to aid http://www.creditwritedowns.com/2009/06/california-obama-says-no-to-aid.html a finance news and opinion site Sun, 21 Mar 2010 15:11:29 +0000 hourly 1 By: Edward Harrisonhttp://www.creditwritedowns.com/2009/06/california-obama-says-no-to-aid.html#comment-8478 Edward Harrison Fri, 19 Jun 2009 17:08:56 +0000 http://www.creditwritedowns.com/2009/06/california-obama-says-no-to-aid.html#comment-8478 aitrader, interesting thesis. this is indeed a first test for the ECB. Obviously, anything could happen but your expectation of centralization is as good a theory as any. I just linked out to an FT article which reminds us that the British and others are going to be very resistant to that sort of thing. If we do get any centralization, you can count the Brits out. aitrader, interesting thesis. this is indeed a first test for the ECB. Obviously, anything could happen but your expectation of centralization is as good a theory as any. I just linked out to an FT article which reminds us that the British and others are going to be very resistant to that sort of thing. If we do get any centralization, you can count the Brits out.

]]> By: Edward Harrisonhttp://www.creditwritedowns.com/2009/06/california-obama-says-no-to-aid.html#comment-8479 Edward Harrison Fri, 19 Jun 2009 17:08:56 +0000 http://www.creditwritedowns.com/2009/06/california-obama-says-no-to-aid.html#comment-8479 aitrader, interesting thesis. this is indeed a first test for the ECB. Obviously, anything could happen but your expectation of centralization is as good a theory as any. I just linked out to an FT article which reminds us that the British and others are going to be very resistant to that sort of thing. If we do get any centralization, you can count the Brits out. aitrader, interesting thesis. this is indeed a first test for the ECB. Obviously, anything could happen but your expectation of centralization is as good a theory as any. I just linked out to an FT article which reminds us that the British and others are going to be very resistant to that sort of thing. If we do get any centralization, you can count the Brits out.

]]> By: Edward Harrisonhttp://www.creditwritedowns.com/2009/06/california-obama-says-no-to-aid.html#comment-5610 Edward Harrison Fri, 19 Jun 2009 11:08:56 +0000 http://www.creditwritedowns.com/2009/06/california-obama-says-no-to-aid.html#comment-5610 aitrader, interesting thesis. this is indeed a first test for the ECB. Obviously, anything could happen but your expectation of centralization is as good a theory as any. I just linked out to an FT article which reminds us that the British and others are going to be very resistant to that sort of thing. If we do get any centralization, you can count the Brits out. aitrader, interesting thesis. this is indeed a first test for the ECB. Obviously, anything could happen but your expectation of centralization is as good a theory as any. I just linked out to an FT article which reminds us that the British and others are going to be very resistant to that sort of thing. If we do get any centralization, you can count the Brits out.

]]> By: Edward Harrisonhttp://www.creditwritedowns.com/2009/06/california-obama-says-no-to-aid.html#comment-5556 Edward Harrison Fri, 19 Jun 2009 10:08:56 +0000 http://www.creditwritedowns.com/2009/06/california-obama-says-no-to-aid.html#comment-5556 aitrader, interesting thesis. this is indeed a first test for the ECB. Obviously, anything could happen but your expectation of centralization is as good a theory as any. I just linked out to an FT article which reminds us that the British and others are going to be very resistant to that sort of thing. If we do get any centralization, you can count the Brits out. aitrader, interesting thesis. this is indeed a first test for the ECB. Obviously, anything could happen but your expectation of centralization is as good a theory as any. I just linked out to an FT article which reminds us that the British and others are going to be very resistant to that sort of thing. If we do get any centralization, you can count the Brits out.

]]> By: aitraderhttp://www.creditwritedowns.com/2009/06/california-obama-says-no-to-aid.html#comment-5538 aitrader Wed, 17 Jun 2009 17:00:04 +0000 http://www.creditwritedowns.com/2009/06/california-obama-says-no-to-aid.html#comment-5538 I live in the EU and would add that I have very little faith in its cohesion to dampen this "downturn" with any substance when the choices become "which countries can we save and which must we cut loose."<br><br>Ireland and Spain may make the "save" list. I suspect most of the recent EU additions in further East will not.<br><br>The EU was always first and foremost about economics and an internal free-trade zone. The politics are really a corollary and modeled loosely on fuzzy European view of the U.S. To date no real test of the ECB has occured, this being the first. If I were a betting man my money would not be wagered on the ECB or even the EU union itself surviving this - or at least surviving as we understand the EU today. <br><br>I believe it will either move toward more central control, just as the US did after its Articles of Confederation failed, or - more likely - it will splinter and cede much of its current centralzed control to the member countries, some of whom will no longer <i>be</i> EU members after the dust settles. I live in the EU and would add that I have very little faith in its cohesion to dampen this “downturn” with any substance when the choices become “which countries can we save and which must we cut loose.”

Ireland and Spain may make the “save” list. I suspect most of the recent EU additions in further East will not.

The EU was always first and foremost about economics and an internal free-trade zone. The politics are really a corollary and modeled loosely on fuzzy European view of the U.S. To date no real test of the ECB has occured, this being the first. If I were a betting man my money would not be wagered on the ECB or even the EU union itself surviving this – or at least surviving as we understand the EU today.

I believe it will either move toward more central control, just as the US did after its Articles of Confederation failed, or – more likely – it will splinter and cede much of its current centralzed control to the member countries, some of whom will no longer be EU members after the dust settles.

]]> By: TheTradingReport » Blog Archive » How the Homeowner Could Be Protectedhttp://www.creditwritedowns.com/2009/06/california-obama-says-no-to-aid.html#comment-5537 TheTradingReport » Blog Archive » How the Homeowner Could Be Protected Wed, 17 Jun 2009 15:41:08 +0000 http://www.creditwritedowns.com/2009/06/california-obama-says-no-to-aid.html#comment-5537 [...] treatment elsewhere. Chrysler and GM (GMGMQ.PK) were forced into bankruptcy and, more recently, California was denied aid. The preponderance of evidence suggests that President Obama views the banking industry as [...] [...] treatment elsewhere. Chrysler and GM (GMGMQ.PK) were forced into bankruptcy and, more recently, California was denied aid. The preponderance of evidence suggests that President Obama views the banking industry as [...]

]]> By: Why not protect the homeowner? - Credit Writedownshttp://www.creditwritedowns.com/2009/06/california-obama-says-no-to-aid.html#comment-5536 Why not protect the homeowner? - Credit Writedowns Wed, 17 Jun 2009 12:55:40 +0000 http://www.creditwritedowns.com/2009/06/california-obama-says-no-to-aid.html#comment-5536 [...] treatment elsewhere.  Chrysler and GM were forced into bankruptcy and, more recently, California was denied aid.  The preponderance of evidence suggests that President Obama views the banking industry as [...] [...] treatment elsewhere.  Chrysler and GM were forced into bankruptcy and, more recently, California was denied aid.  The preponderance of evidence suggests that President Obama views the banking industry as [...]

]]> By: Edward Harrisonhttp://www.creditwritedowns.com/2009/06/california-obama-says-no-to-aid.html#comment-5535 Edward Harrison Wed, 17 Jun 2009 10:10:28 +0000 http://www.creditwritedowns.com/2009/06/california-obama-says-no-to-aid.html#comment-5535 aitrader, you point out something that I initially was not thinking about: this shows yet again differential treatment for financial services and everyone else. I agree that California's problems will domino via the muni market and via the knock-on effect on employment and housing.<br><br>Another question is: will the EU do the same i.e. let Ireland or Greece implode if and when they have the same types of problems. I reckon the Ireland question is going to present itself eventually given the course they are presently on. aitrader, you point out something that I initially was not thinking about: this shows yet again differential treatment for financial services and everyone else. I agree that California's problems will domino via the muni market and via the knock-on effect on employment and housing.

Another question is: will the EU do the same i.e. let Ireland or Greece implode if and when they have the same types of problems. I reckon the Ireland question is going to present itself eventually given the course they are presently on.

]]> By: aitraderhttp://www.creditwritedowns.com/2009/06/california-obama-says-no-to-aid.html#comment-5532 aitrader Wed, 17 Jun 2009 07:13:49 +0000 http://www.creditwritedowns.com/2009/06/california-obama-says-no-to-aid.html#comment-5532 Amazing - the top ten banks and AIG are "too big too fail" and get whatever funding they ask for, but the world's tenth largest economy teetering on the brink of insolvency gets the federal government's figurative middle digit.<br><br>Just how is it that Obama & company calculates California's solvency crisis won't domino? Amazing – the top ten banks and AIG are “too big too fail” and get whatever funding they ask for, but the world's tenth largest economy teetering on the brink of insolvency gets the federal government's figurative middle digit.

Just how is it that Obama & company calculates California's solvency crisis won't domino?

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