Top 10 Biggest Financial Collapses

admin — Mon, 21 Sep 2009 17:19:13 +0000

1. Losing Lehman

Of all the decisions made by Hank Paulson and Ben Bernanke, the one to let Lehman go under stands as the most pivotal. And the most controversial. The Federal Reserve and Treasury decided to let Lehman fail and set a “moral hazard” example: from now on, you can’t rely on Uncle Sam to bail you out. Make a deal, raise some capital or call your bankruptcy lawyers.

Funny how that didn’t apply to Bear Stearns, which the Feds at least sold for a couple of bucks to JP Morgan. Instead of stopping the financial meltdown, letting Lehman go down amplified it. Any confidence in the market was undermined, and financial stocks began to head south in a hurry. Not only was the U.S. forced to step up to save AIG, it was soon on the hook for $700 billion in bailout money to faltering financial institutions.

2. AIG’s Credit Default Swaps

What’s a mild-mannered insurance company doing selling exotic derivatives to everyone in sight? Merely setting the stage for a $100 billion bailout by the U.S. government and becoming the poster child of the meltdown. From its London branch office, AIG’s CDS chief Joseph Cassano minted money for the company for a couple of years, and garnered huge payouts for himself, by basically selling everyone in the world insurance that the Titanic wouldn’t sink.

What were the odds of that happening? Instead of Titanic, insert CDOs, short for collateralized debt obligations. You get the picture. As the value of those contracts plummeted, AIG found itself facing insolvency. And taxpayers found themselves paying the bill.

3. The Detroit Three

After 30 years of incompetence, the American auto companies and their obstreperous union finally closed the quality gap with foreign competitors and narrowed the manufacturing cost differential to within inches. Nice try.

The credit market freeze ensured that average Joes who love Fords and Chevys couldn’t possibly get the loans they need to buy them. So sales were off more than 30% in October and November, pushing GM and Chrysler close to insolvency. When the auto bosses pleaded their case to Congress for $34 billion in loans to tide them over, they got treated as if they manufacture smallpox.

4. The Citigroup Colossus

Too big to fail but one big failure nonetheless. When it was assembled by Sandy Weill 10 years ago, Citi was positioned to be the world’s biggest financial services supermarket, with everything from stocks to insurance and a little banking in between. Today Citi is a one-bank depression. This year it has announced 75,000 job cuts, sold off divisions, and blew the acquisition of equally troubled Wachovia, which was whisked away by Wells Fargo.

It’s been forced to take a $20 billion handout from the U.S. government to shore up its capital base, which took a huge hit because of its exposure to CDOs and other toxic assets. The government also agreed to back more than $300 billion of those assets to keep it from collapsing. Citi stored much of that garbage in off-the-books Structured Investment Vehicles (SIVs).

But now that the mortgage game is over, Citi has been forced to take the SIVs back, writing down billions in the process. Its share price is less than $10, at one point falling 90% from its peak.

No wonder, as its slogan says, the Citi never sleeps.

5. Freddie Mac and Fannie Mae Shareholders

The quasi-government backed mortgage buyers had the perfect structure to ride out any financial storm: the two entities were sponsored by the U.S. government, and loaded with former pols pulling down fat salaries and stock options. But Fannie and Freddie got caught in the downdraft.

By being among the last outfits to jump into the business of crap mortgages, Fannie and Freddie basically loaded their balance sheets with more dry brush than California in August. When the market match struck, they went up in a hurry. And while Washington wasn’t about to let the twin enterprises go under, no one in the Bush Administration was prepared to prevent the equity holders from being wiped out.

6. Supposedly “Safe” Securities

Auction-rate securities, the Reserve Fund, CDOs. Auction rate notes gave municipalities, universities, museums and other issuers a vehicle to borrow long, but pay a shorter term interest rate. The mechanism was an auction, and investors looking to get a better short return on their money ate these auctions up. Until their money wasn’t returned. Money market funds were supposed to be ultra safe, always maintaining an asset value of $1 per share and always investing in rock solid government bonds to maintain liquidity.

The Reserve Fund didn’t just follow that principal, its founder, Henry B. R. Brown, created the whole business, with Reserve started in 1970. Money market funds, which unlike bank accounts are not guaranteed by the FDIC, had a practically unassailable record for safety, until Reserve decided to invest in Lehman’s highly rated bonds. Investors running for the exits will be lucky to get 98 cents on the dollar. The same kind of security was supposed to have been attached to Collateralized Debt Obligations, those ultimately toxic assemblages of different mortgages that helped sink Wall Street. After all, many were given the AAA seal of approval by the ratings agencies, and we know how reliable they are

7. Rating Agencies’ Credibility

Moody’s, Standard & Poors and Fitch stood by their AAA top ratings for Collateralized Debt Obligations (CDOs), which are based in part on pools of subprime mortgages. Some of that stuff was indeed top drawer, but the bottom tranches were filled with junk. So how do you make the call? The agencies, looking backward at the accumulated data, continued to give their top rating to securities that were piling up risk as each week went by and the real estate markets started to wobble.

And did we mention that the agencies get paid by the issuers of the CDOs to make their supposedly objective rating? When it all went south — propelled in part by the same folks, who suddenly started slapping bad grades on already fragile firms like AIG — the agencies said their ratings were merely opinions. In our opinion, they’re useless.

8. Exploding Hedge Funds

Don’t feel so bad if you find the stock market perplexing. Hedge fund managers, who are supposed to be geniuses about these things, demonstrated a spectacular penchant for making vast amounts of money disappear this year.

There was Citadel’s Ken Griffin, arguably the smartest guy in the business, puking up 47% of its main fund through November and professing to being completely flummoxed by the market’s behavior. At least Citadel is still in business. Others, such as Ospraie Fund and Centaurus Capital, chose to close funds after a bad performance sent investors scampering for redemptions. Rich people have no patience for people who fail to make them richer. Tudor Investment and Fortress Investment Group, on the other hand, have barred the door by preventing investors from leaving, hoping to buy some time to fashion a rebound.

There will be no such thing at what is arguably the biggest hedge fund bust, if not the biggest financial fraud ever — the $50 billion collapse of the semi-exclusive fund run by legendary investor Bernie Madoff, who it turns out, had done so well all those years because he had created his double digit returns out of thin air. Only a select few funds, such as Paulson & Co, made a bundle by shorting banks stocks and securities tied to the mortgage industry.

9. Greenspan’s Reputation

The Ayn Rand enthusiast was nearly branded the God of Money. As Fed Chairman, his easy money policy after the dotcom collapse in 2000 seemed like the perfect policy prescription for what ailed us. And it was. Until the chairman refused to do what Fed Chairmen are supposed to: take away the punch bowl just when the party’s getting good.

By not raising rates quickly enough in a real estate bubble, Easy Al helped let the money flow to every high-risk, no document loan applicant extant. The former Fed Chairman was forced to admit that he was completely wrong about the risks in the system from subprime mortgages and the bonds sold against them. The man famous for his expository obfuscation was forced to admit: I screwed up.

10. Iceland Goes Belly Up

Three major banks, 300,000 people and zero liquidity. It’s not often that the wealth of an entire country is wiped out. But Iceland almost managed that when its currency, the kroner, got caught in a freefall created when investors bailed. Its billions of dollars of Euro-denominated foreign debts became unpayable. Caught in the middle: depositors in Great Britain and Germany, who were lured by rich rates being offered by Kaupthing Bank hf, Landsbanki and Glitnir Bank hf.

The IMF is providing a $2.1 billion loan while Finland, Sweden, Norway and Denmark will provide a further $2.5 billion. German also coughed up a couple hundred million, which will be used to make German depositors whole. Iceland is even talking to the Russians for help. Iceland is broke, but it’s got geothermal heating, so at least no one will freeze to death.

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Unread 108 Name of Lord Ganesha

admin — Sat, 22 Aug 2009 14:45:56 +0000

Shree Ganesha… Ganapati bappa Morya. !!!!!!!
Ohm Vighneswaraya Namah ! Vinayakaya Namah !
Ganapathaye Namah !
Gajamughaya Namah ! Parvati nandanaya Namah !
Mushika vahanaya Namah ! Kailasa Putraya Namah !

1. Akhurath One who has Mouse as His Charioteer
2. Alampata Ever Eternal Lord
3. Amit Incomparable Lord
4. Anantachidrupamayam Infinite and Consciousness Personified
5. Avaneesh Lord of the whole World
6. Avighna Remover of Obstacles
7. Balaganapati Beloved and Lovable Child
8. Bhalchandra Moon-Crested Lord
9. Bheema Huge and Gigantic
10. Bhupati Lord of the Gods
11. Bhuvanpati God of the Gods
12. Buddhinath God of Wisdom
13. Buddhipriya Knowledge Bestower
14. Buddhividhata God of Knowledge
15. Chaturbhuj One who has Four Arms
16. Devadeva Lord of All Lords
17. Devantakanashakarin Destroyer of Evils and Asuras
18. Devavrata One who accepts all Penances
19. Devendrashika Protector of All Gods
20. Dharmik One who gives Charity
21. Dhoomravarna Smoke-Hued Lord
22. Durja Invincible Lord
23. Dvaimatura One who has two Mothers
24. Ekaakshara He of the Single Syllable
25. Ekadanta Single-Tusked Lord
26. Ekadrishta Single-Tusked Lord
27. Eshanputra Lord Shiva’s Son
28. Gadadhara One who has The Mace as His Weapon
29. Gajakarna One who has Eyes like an Elephant
30. Gajanana Elephant-Faced Lord
31. Gajananeti Elephant-Faced Lord
32. Gajavakra Trunk of The Elephant
33. Gajavaktra One who has Mouth like an Elephant
34. Ganadhakshya Lord of All Ganas (Gods)
35. Ganadhyakshina Leader of All The Celestial Bodies
36. Ganapati Lord of All Ganas (Gods)
37. Gaurisuta The Son of Gauri (Parvati)
38. Gunina One who is The Master of All Virtues
39. Haridra One who is Golden Coloured
40. Heramba Mother’s Beloved Son
41. Kapila Yellowish-Brown Coloured
42. Kaveesha Master of Poets
43. Krti Lord of Music
44. Kripalu Merciful Lord
45. Krishapingaksha Yellowish-Brown Eyed
46. Kshamakaram The Place of Forgiveness
47. Kshipra One who is easy to Appease
48. Lambakarna Large-Eared Lord
49. Lambodara The Huge Bellied Lord
50. Mahabala Enormously Strong Lord
51. Mahaganapati Omnipotent and Supreme Lord
52. Maheshwaram Lord of The Universe
53. Mangalamurti All Auspicious Lord
54. Manomay Winner of Hearts
55. Mrityuanjaya Conqueror of Death
56. Mundakarama Abode of Happiness
57. Muktidaya Bestower of Eternal Bliss
58. Musikvahana One who has mouse as charioteer
59. Nadapratithishta One who Appreciates and Loves Music
60. Namasthetu Vanquisher of All Evils & Vices & Sins
61. Nandana Lord Shiva’s Son
62. Nideeshwaram Giver of Wealth and Treasures
63. Omkara One who has the Form Of OM
64. Pitambara One who has Yellow-Coloured Body
65. Pramoda Lord of All Abodes
66. Prathameshwara First Among All
67. Purush The Omnipotent Personality
68. Rakta One who has Red-Coloured Body
69. Rudrapriya Beloved Of Lord Shiva
70. Sarvadevatman Acceptor of All Celestial Offerings
71. Sarvasiddhanta Bestower of Skills and Wisdom
72. Sarvatman Protector of The Universe
73. Shambhavi The Son of Parvati
74. Shashivarnam One who has a Moon like Complexion
75. Shoorpakarna Large-Eared Lord
76. Shuban All Auspicious Lord
77. Shubhagunakanan One who is The Master of All Virtues
78. Shweta One who is as Pure as the White Colour
79. Siddhidhata Bestower of Success & Accomplishments
80. Siddhipriya Bestower of Wishes and Boons
81. Siddhivinayaka Bestower of Success
82. Skandapurvaja Elder Brother of Skand (Lord Kartik)
83. Sumukha Auspicious Face
84. Sureshwaram Lord of All Lords
85. Swaroop Lover of Beauty
86. Tarun Ageless
87. Uddanda Nemesis of Evils and Vices
88. Umaputra The Son of Goddess Uma (Parvati)
89. Vakratunda Curved Trunk Lord
90. Varaganapati Bestower of Boons
91. Varaprada Granter of Wishes and Boons
92. Varadavinayaka Bestower of Success
93. Veeraganapati Heroic Lord
94. Vidyavaridhi God of Wisdom
95. Vighnahara Remover of Obstacles
96. Vignaharta Demolisher of Obstacles
97. Vighnaraja Lord of All Hindrances
98. Vighnarajendra Lord of All Obstacles
99. Vighnavinashanaya Destroyer of All Obstacles & Impediments
100. Vigneshwara Lord of All Obstacles
101. Vikat Huge and Gigantic
102. Vinayaka Lord of All
103. Vishwamukha Master of The Universe
104. Vishwaraja King of The World
105. Yagnakaya Acceptor of All Sacred & Sacrficial Offerings
106. Yashaskaram Bestower of Fame and Fortune
107. Yashvasin Beloved and Ever Popular Lord
108. Yogadhipa The Lord of Meditation

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