We have learned from historical experience with severe financial crises that if government intervention comes only at a point at which many or most financial institutions are insolvent or nearly so, the costs of restoring the system are greatly increased. This is not the situation we face today. The Congress and the Administration chose to act at a moment of great stress, but one at which the great majority of financial institutions have sufficient capital and liquidity to return to their critical function of providing new credit for our economy. The steps being taken now to restore confidence in our institutions and markets will go far to resolving the current dislocations in the markets. I believe that the bold actions taken by the Congress, the Treasury, the Federal Reserve, and other agencies, together with the natural recuperative powers of the financial markets, will lay the groundwork for financial and economic recovery.

FRB: Speech--Bernanke, Current Economic and Financial Conditions--October 7, 2008

When is Google Finance going to flip their favico?

Question of the Day

Up to 10,000 staff at the New York office of the bankrupt investment bank Lehman Brothers will share a bonus pool set aside for them that is worth $2.5bn (£1.4bn), Barclays Bank, which is buying the business, confirmed last night.

Sick.

Fury at $2.5bn bonus for Lehman's New York staff - Business News, Business - The Independent

Best 2 day the Dow has seen since 1929 -- and how'd that work out for ya?

The Big Picture | Industrials: Biggest 2 day rally since 1929

Bernard Connolly, global strategist at Banque AIG, said the Fed and the Treasury were doing too little, too late, to stave off disaster.

"Unless there is a very rapid change of mind, depression - with all its horrors and consequences - will be inevitable..." he said.

"We fear that a virtual nationalisation of the financial system will now be necessary," he said....

Albert Edwards, global strategist at Société Générale, said Washington's serial bail-outs are the inevitable result of the credit bubble of preceding years. "This was all baked in the cake long ago. What we have seen so far is just a dress rehearsal for the deep recession that is coming. America is going to be losing 500,000 jobs a months. That is when we will see interest rates go to zero. The deficit will be covered with printed money as it was in Japan. The endgame will be helicopters full of cash dropped by Ben Bernanke," he said.

Jesus

naked capitalism: The Great Unwind Has Begun

Satow interviews the above quoted former SEC director, and he spits out the blunt truth: The current excess leverage now unwinding was the result of a purposeful SEC exemption given to five firms.

You read that right -- the events of the past year are not a mere accident, but are the results of a conscious and willful SEC decision to allow these firms to legally violate existing net capital rules that, in the past 30 years, had limited broker dealers debt-to-net capital ratio to 12-to-1.

Instead, the 2004 exemption -- given only to 5 firms -- allowed them to lever up 30 and even 40 to 1.

Who were the five that received this special exemption? You won't be surprised to learn that they were Goldman, Merrill, Lehman, Bear Stearns, and Morgan Stanley. 

As Mr. Pickard points out that "The proof is in the pudding — three of the five broker-dealers have blown up."

The Big Picture | How SEC Regulatory Exemptions Helped Lead to Collapse

Purewire has some startup money and is one of many examples that Atlanta’s Internet security industry is thriving despite a sour economy. New technologie s combined with a growing group of cyberthieves continue to create opportunities for new research and new companies.

“Atlanta is a good place to start a security company,” Judge said. It has enough companies and educational assets to attract talent, but not as many companies as in Silicon Valley, where job-hopping can be excessive. “There’s more loyalty, and you can focus on building a company.”

Atlanta is rising star in field of Internet security | ajc.com

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What is it? Fun, dynamic phone calls, in the voice of stars and customized to the individual characteristics of each fan. Our technology allows you to speak directly to your fans - and have your brand go viral so that fans market you to others.

I wish Jello good luck with his new startup!

Star Caller - Home Page

"We're very confident that we have the capital base now that we need to go forward in 2008." January 18, 2008.

"...Today I can say that we will not need additional funds. These problems are behind us. We will not return to the market." March 8, 2008

"We have more capital than we need, so we can say to the market that we don't need more injections. We can confirm that we have tackled the problem." March 16, 2008

Regrettable Comments by Bank CEOs - Portfolio.com

This is a data-heavy presentation from two economists at CIBC World Markets. You'll have to make your own soundtrack. See how China dominates the growth in demand for natural resources. See how much is accomplished by Americans' purchase of hybrid vehicles, in the face of massive market growth in Russia and China. Watch how gasoline hits US$7/gallon by 2012. Watch ethanol peter out and energy capacity fall short. Watch the Case/Shiller HPI continue to plummet as delinquencies soar. And so much more!

The Age of Scarcity