Best Of The Web
“In the years leading up to the financial crisis, Wall Street figured out how to spin relatively obscure activities into gold.
What resulted was a jumble of products designed to profit off of the relatively mundane business of mortgage lending. From the mortgages themselves to products created to bet on risk and credit worthiness, soon enough, Wall Street had created an extensive and complex array of securities with funky acronyms, in some cases magnifying the risks two- and three-fold.
Banks, insurance companies, hedge funds and others were hungry to partake, but what seemed like easy profit at first stopped working when borrowers stopped paying on their loans. Losses cascaded across the financial market, requiring massive intervention to prevent the banking system from failing.
On Sept. 19, 2008, days after the failure of Lehman Brothers and the government action to shore up American International Group, the Treasury announced its remedy in the form of its own acronym: the $700 billion TARP. The Troubled Asset Relief Program would buy the toxic securities from banks and infuse them with capital to get over the crisis. TARP ultimately bought $426 billion of these assets and recovered $441 billion for a profit of $15 billion.”
JJ Editor's Picks
"Venice's misfortunes never seem to stop. The popular tourist destination has been hit by the worst flooding in 50 years this week, resulting in damage worth hundreds of millions of euros. Italy's Prime Minister Giuseppe Conte said a state of..."
"Rep. Ilhan Omar (D-Minn.) must be feeling pretty good this week, if by "good" one means "proven right in an allegation anyone of good conscience must always hope will be proven wrong." Omar caught flak earlier this year for calling White House..."
"It was when I found myself perched on our rooftop at dawn in my pajamas, coating the asphalt shingles with Mongolian Hot Oil, that I first wondered whether I had lost perspective. The woodpeckers had forced my hand. Every morning that June, one..."
"Forty-nine years after she died of a heroin overdose at age 27, rock’s doomed diva is on the road again. “A Night With Janis Joplin,” a musical homage to the psychedelic era and its favorite blues singer, returned to its Bay Area roots in mid..."
"The Democratic candidates for President are promising a smorgasbord of new taxes, but why wait until 2021? Last week Maryland Senator Chris Van Hollen and Virginia Congressman Don Beyer unveiled the Millionaires Surtax Act, a plan to soak the..."
"The streaming wars were already heated, but a new combatant is entering the arena: the Walt Disney Company. Mickey Mouse may be a friendly corporate icon. But the new Disney Plus streaming service could have a decidedly unfriendly impact..."
"Netanyahu’s last resort in a bid to avoid facing a courtroom would be requesting a pardon from President Reuven Rivlin, pending the recommendation of the attorney general. A knowledgeable source close to the senior echelons of the state...."
"There’s a TikTok that’s just a boy saying, “I may be ugly, but at least I’m also … dumb and annoying.” Then he dances while Ariana Grande’s “Successful” plays. It’s extremely funny, and a little bit sad, and I think about it every day. Kids on..."