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Holy Notionals, Batman! This Market is Fucked

chicago dyke's picture

notional

Dood, I don't know anything about Teh Economies, but this doesn't look good to me. IIRC the US GDP is ~13 trillion. Those numbers above kind of dwarf that.

A reader named Bex and the Agonist crew are having a really good discussion where I found that graph. He wonders: if all these people are losing all this money, who is making it? Where is it going? And I'd add: what expectations will those people have politically, now that the financial power is shifting so graphically and rapidly?

Yes, some of the money "lost" is little more than overvalued things becoming properly valued by those who own them. But I think Bex is right to remind us that at least some people are/will make a killing before this bloodbath is over. Who are those people, and what should I expect from them in terms of their political participation?

You just know anyone who makes a lot of money off of this mess isn't going to be a champion of progressive regulation of the markets, that's all I'm sayin.

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John Paulson. He made, per the Wall Street Journal, 3-4 Billion off of the collapse of the housing market.

http://online.wsj.com/public/article/SB1...

Either he's got a twisted sense of humor or he's feeling a little conflicted about his big score -

"Mr. Paulson has tried to keep a low profile, saying he's reluctant to celebrate while housing causes others pain. He has told friends he'll increase his charitable giving. In October, he gave $15 million to the Center for Responsible Lending to fund legal assistance to families facing foreclosure. The center lobbies for a law that would let bankruptcy judges restructure some mortgages."

Seems like things are going just fine as far as he's concerned.

A quick search at Open Secrets shows that a John Paulson of NY, NY gave the max to Arlen Specter and Giuliani in 2008.

I just finished reading a long story in the Feb issue of Harper's magazine about the economy titled, appropriately enough, "The next bubble: Priming the markets for tomorrow's big crash".

You might like it -

http://harpers.org/archive/2008/02/0081908

chicago dyke's picture
Submitted by chicago dyke on

i'll try to get to that soon, harper's is always worth a close read, i've found.

Xenophon's picture
Submitted by Xenophon on

We talked about this. Obama is up to his neck in this with his ties to big energy, banking and real estate. Hillary with insurance and pharmaceuticals. Only Johnny Boy is out there saying it's wrong. We are headed for a depression. Technically we've already had a stock market crash (a decline of 15%). Even headline infaltion is out of control and all the big boys are out the door. We talked about it here:

Death of the dollar

Hedge Funds

David Walker

Carry Trade