Does anyone agree with the $700 bailout?

[Bonestorm]

As I stated before, yes it certainly depends on how the final deal is structured. But if you look at the default rates among sub primes... if the top range is 60-65 (for the record I support lower... but the top of these subprimes are selling around 65-70 right now) and the bottom trash (which is pricing 15-30 cents) is picked up around market rates, they will be hard pressed to lose.

As for the equity... as you mentioned earlier, profitting here also depends on the valuations used for the equity ownership or the warrants. But both provide the ability for the goverment to make money off of this.

If they do this correctly, the shareholders take the hit... not the taxpayers. That said... yes, I am assuming the idiots in DC understand enough about pricing that they don't get shafted. Big assumption... I admit that.

I suppose we'll have to wait and see.

 

[Cancel 2016.2]

Super, I hear what you're saying about there not being enough private available capital out there to buy this and that's why it's not happening, but shouldn't we be seeing some more private capital buying some of this than we have, like at least $100 billion?

I think you will see more flow into positions like Buffetts... but that is it for now. Once the government unwinds this debt to the point that they can determine WHAT they are actually holding... THEN you will likely see auctions for that debt going to private investments.

That is why Dungs point is critical. They cannot overpay for this debt, yet they also cannot put pricing so low that no one participates in the plan. My GUESS is that the worst of it will be picked up around 30 cents on the dollar. The rest will range from there up to around 60 cents (if what I am hearing from DC is correct).

Obviously we won't know until the deal is done and banks start participating.

 

[Obfuscate]

I like how private buisiness has no interest in it because they know it's a losing deal yet Congress will take it and somehow run it more efficiantly than the private banks would have. Sure, good theory SF.

 

[Cancel 2016.2]

I suppose we'll have to wait and see.

True.

 

[Cancel 2016.2]

So far Superfreak has told me on this site that Inflation has to do with gas prices {same theory as unions cause inflation} and now he's trying to argue that the Government will make money buying the worse debt no one wants a part of. What a economic powerhouse you are.

you really are a moron. I said OIL prices are inflationary. You just cannot grasp the difference between inflation and inflationary. If oil prices go up, it leads to higher costs to consumers.

Also... you can make money from damn near ANY asset... provided you do not overpay for it to begin with.

It is not that people don't WANT to take the chance on the worst portions of the debt... it is that they CAN'T. for the final time twit... they DO NOT HAVE THE CAPITAL to do so. NOR do they have the TIME and resources to unwind the debt.

But again... continue acting like a true chickenshit by ducking out of answering the two yet again. That shows us all how economically astute you are.

 

[Cancel 2016.2]

I like how private buisiness has no interest in it because they know it's a losing deal yet Congress will take it and somehow run it more efficiantly than the private banks would have. Sure, good theory SF.

translation: "I still refuse to admit that I don't know what the fuck I am talking about. So I will continue to ignore the fact that the private sector does not have the CAPITAL or TIME to hold these securities. Nor do they have the governments ability to put more money into the market place.. Instead I will continue to act the part of a petulent child. Because thats all I got."

 

[Obfuscate]

We'll see who knows what there talking about when the tax payer losses shit loads.

The Capital markets are tight because of excess credit, print more money so they can make more credit!!

 

[Kamala Trump]

translation: "I still refuse to admit that I don't know what the fuck I am talking about. So I will continue to ignore the fact that the private sector does not have the CAPITAL or TIME to hold these securities. Nor do they have the governments ability to put more money into the market place.. Instead I will continue to act the part of a petulent child. Because thats all I got."

Shithead. You still have not explained how these dogshit holdings will suddenly become valuable. You gave a scenario with made up numbers and that's it. So please, just stfu.

 

[Obfuscate]

Asshat, bookmark this thread and we'll pull it up in a year when inflation is higher, the dollar is weaker, house values are still declining and guys like Buffet are still getting richer off it.