Comments on: Some ballpark math on the US financial sector (i.e. just how big is $700b?)

By: Corporate Turnaround – Business Debt Management And Relief. « Wicked Blogging

Fri, 31 Jul 2009 07:48:43 +0000

[...] Brad Setser: Follow the Money » Blog Archive » Some ballpark math … [...]

By: Geo-Graphics » Blog Archive » Wall Street Bailout

Geo-Graphics » Blog Archive » Wall Street Bailout — Tue, 31 Mar 2009 22:16:18 +0000

[...] What’s the True Cost? Setser: Math on the Financial Sector Wolf: Paulson’s Plan Soros: Paulson Can’t be Allowed a Blank Cheque Gross: How Main Street Will [...]

By: surplus inventory

surplus inventory — Wed, 15 Oct 2008 17:20:15 +0000

surplus inventory…

. The term is used colloquially for any kind of Linkback. This is similar to comment spam but avoids some of the safeguards designed…

By: bsetser

bsetser — Fri, 26 Sep 2008 02:34:09 +0000

the upper limit on outstanding mortgages — from the flow of funds — is $15 trillion. that is the sum of commercial mortgages as well as residential mortgages.

By: Ben C

Ben C — Thu, 25 Sep 2008 20:26:59 +0000

There’s an article on SeekingAlpha which throws out similar numbers (http://seekingalpha.com/article/96826-do-paulson-and-bernanke-really-understand-what-s-going-on). The thing is, that article says many of the losses will come from non-subprime mortgages and corporate debt, which he estimates at 20 trillion with perhaps a 5% default rate.

Is he just making up this 20 trillion number? It doesn’t seem to jive with your numbers. What do you think of his analysis?

By: flow5

flow5 — Wed, 24 Sep 2008 21:16:35 +0000

$700 bill to finance EXISTING property??? This has to exert a depressing effect on the economy.

Why not $700 bill to finance NEW/REAL investment (plant & equipment), etc.

Screw the gamblers.

By: UPDATE #2: Calculated Risk Continues his Thoughts on the TARP (or his version of TARP) « … And the cow goes moo

Wed, 24 Sep 2008 18:41:13 +0000

[...] Krugman and Brad Setser seem to agree with my suspicion that even paying ‘fair’ market prices will be a problem [...]

By: John D Crowder

John D Crowder — Wed, 24 Sep 2008 16:28:42 +0000

interesting analysis but;

No one seems to know anything “for sure”.

Apparently all the King’s horses and all the King’s men really don’t know how to construct anything – only destruct.

So let’s let “the market” play out this lethal scenario and take our hits when/where they occur.

We may still have to face the music regardless of bailing out the losers.

By: Alan von Altendorf

Alan von Altendorf — Wed, 24 Sep 2008 13:46:46 +0000

I would like to be shown that I’m wrong. Maybe it’s my skewed view of the world from Houston. Companies have cash. Capitalists like Buffett and Pickens have cash. FT says the S&P 500 have $500+ billion on hand or in short-term notes. Wells Fargo, JPM, Bank of America, Wachovia are well capitalized and solvent. So who’s in trouble? The brokers and hedge funds who placed OTC side-bets and leveraged x 30. They deserve to go out of business. Period.

The crisis “will create a real winner takes all environment,” said Jason Trennert, chief investment strategist at Strategas Research Partners. “Well-run companies not dependent upon credit markets will take market share from companies which aren’t well run and are [dependent on credit].”

http://www.nakedcapitalism.com/2008/09/corporate-america-sits-on-its-cash.html

By: a

Wed, 24 Sep 2008 12:43:47 +0000

“And last week, those came within a hairs breath of collapsing before Treasury came in and gave a FDIC-like guarantee to them.”

I see you read the New York Post.