Does anyone agree with the $700 bailout?

Hi Guys!

I agree with Super.

You will not like what this country looks like if we dont shore up the money markets.

This can work but it has to come with some regulations to keep this from being a blank check for Paulson.
 
AssHatZombie said:
SF has yet to explain how investements nobody wants suddenly become profitable. How does this work. WHat is the "unwinding" process you speak of?
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When the housing market is in the shape its in right now, the foreclosures are worthless.

But I doubt there is anyone who thinks that is permenant. When the economy revitalizes, the houses will be worth money again.
 
Desh said:
Hi Guys!

I agree with Super.

You will not like what this country looks like if we dont shore up the money markets.

This can work but it has to come with some regulations to keep this from being a black check for Paulson.
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Don't participate in this fearmongering.
 
Desh said:
Hi Guys!

I agree with Super.

You will not like what this country looks like if we dont shore up the money markets.

This can work but it has to come with some regulations to keep this from being a blank check for Paulson.
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I don't think I'm going to like what this country looks like either way. But it's good to have you back desh.
 
Solitary said:
When the housing market is in the shape its in right now, the foreclosures are worthless.

But I doubt there is anyone who thinks that is permenant. When the economy revitalizes, the houses will be worth money again.
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SO magic. essentially. You're relying on magic and hope.

Classic circular reasoning, solitary. Pathetic.
 
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AssHatZombie said:
Don't ignore me, sf, you lying piece of shit bastard. You explain how these investments turn a profit when people in the business of recognizing profit do not want to touch them with a ten foot pole.

The taxpayers are not the personal piggy bank of wallstreet fuckups. And you can take your threats of calamity and shove them. You make me sick.
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We are buying the entire thing, the good debt along with the bad debt.
80 % of the debt is the mortgages of people like me who can pay their mortgages no problem.
 
you guys should read more about this. i dont think some of you understand the magnitude of the situation.. and are just writing this off as fear mongering for expansion of govt.
 
Darla said:
I don't think I'm going to like what this country looks like either way. But it's good to have you back desh.
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It aint going to be pretty but this needs to be done and if its done correctly it means a ressesion instead of a depression.

with the full faith of the government behind them the markets will recover and we have a good chance to have at least most of the bill paid for in the end.
 
Darla said:
You obviously weren't watching Morning Joe this morning!

If the government is broke, there's no money for many things, and we'll be told we have to make "painful decisions" none of which will hurt anyone but average citizens.

I'm sorry, I'm dead set against this. I am not against giving them some money, but then there needs to be a cooling off period. Not 1 trillion dollars, and with the AIG bailout, and the bear stearns bailout and the Freddie Mae Fanny Mac debacle, how much has this cost us already?

Meanwhile SF, these mortgage defaults have spread past the subprime market. People are losing their jobs and have been for some time. Credit card delinquencies are going to be racheting up. There is much worse to come.

Frankly, the worse thing about this plan? It's not going to work.
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The government is not broke. They have the ability to print as much money as they want. This plan will MAKE them money. Some of it in the short term.

Once the balance sheets are clean the equity stakes in these firms will rise. The Fed can then turn and sell their positions for a profit.

The acquisitions of Freddie and Fannie will end up MAKING the Fed money. As will their equity stake in AIG. Less than a year ago AIG was over 30 times what it is today.

People are losing jobs, credit card debt is rising... so what do you do? How about getting the credit problem resolved so that banks will once again start loaning money to small/mid/large businesses. Businesses that need their lines of credit to function. Without which MORE people lose their jobs and the spiral continues downward.

The resulting inflation is a bullet we have to bite for the next year or so. Unless someone wants to suggest an alternative????

...and no, short term stop gaps are not going to solve the problem. They will simply delay having to deal with it for a bit.
 
AssHatZombie said:
SO magic. essentially. You're relying on magic and hope.
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No, not magic. Do you think the population growth is stopping? Where will those people live? They will have to buy houses.

And the bulk of it is people who pay their bills, but the organizations holding the paper on their houses have been totally mismanaged.

A house is a physical asset that is not going to go away. It WILL be worth money. The problem is the time needed to get things back upright. And this provides that time.
 
Chapdog said:
you guys should read more about this. i dont think some of you understand the magnitude of the situation.. and are just writing this off as fear mongering for expansion of govt.
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Chap just becasue I'm not ready to jump at the solution presented, doesn't mean I believe there is no problem. I am quite certain that I do not trust anyone in this adminstration to tell the truth about that situation however. My goodness if we listen to John McCain, last Monday the fundementals of the economy were sound, and now this Monday we could be in a Depression!

Sounds a lot like "we don't want the smoking gun to be a mushroom cloud".
 
The expansion of government is the crisis and the underlying reason there is a lack of responsibility in making investments.
 
This whole situations KILLS forever the idea of the Market will take care of its self.

Sound regulations have to be applied to the market to keep this from being an ever repeting cycle.

Just like any street Wall street has to have laws and cops.
 
Superfreak said:
The government is not broke. They have the ability to print as much money as they want. This plan will MAKE them money. Some of it in the short term.

Once the balance sheets are clean the equity stakes in these firms will rise. The Fed can then turn and sell their positions for a profit.

The acquisitions of Freddie and Fannie will end up MAKING the Fed money. As will their equity stake in AIG. Less than a year ago AIG was over 30 times what it is today.

People are losing jobs, credit card debt is rising... so what do you do? How about getting the credit problem resolved so that banks will once again start loaning money to small/mid/large businesses. Businesses that need their lines of credit to function. Without which MORE people lose their jobs and the spiral continues downward.

The resulting inflation is a bullet we have to bite for the next year or so. Unless someone wants to suggest an alternative????

...and no, short term stop gaps are not going to solve the problem. They will simply delay having to deal with it for a bit.
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I'm a bit concerned about those first two bolded sentences.

My goodness.

But that is not what you told me when we discussed health care?
 
Desh said:
We are buying the entire thing, the good debt along with the bad debt.
80 % of the debt is the mortgages of people like me who can pay their mortgages no problem.
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Who said? These deals are not inked yet. If you believe companies will sell healthy assets at a loss, you're fucked in the head.
 
AssHatZombie said:
You investment fucks will say anything to keep your private cocaine party going.
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I am not part of the cocaine party. You were just asking why assets that look like shit today will be worth something later on.

And I answered.
 
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