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LadyT

LadyT

JPP Modarater
Contributor
I'm confused and I can't seem to find any details on what will comprise this $700B deal. Can someone point me to something?
 
I'm confused are they planning on buying up overvalued CDO's/CMO's at a premium? Where's the upside inthat for the tax payers?

And what happened to the $80B loan that was going to be disbursed? Can't we go back to that plan?
 
it is all fluid and being fussed over as we type. CNN seems to be covering it somewhat. Have CNN going on my laptop.
 
Well, I'm just curious as to where the money is actually going. And quite frankly I have no clue. There are billions in bad mortgages that will have to written down. We're going to knowingly take the hit on the bad securities?

WTF?
 
LadyT said:
Well, I'm just curious as to where the money is actually going. And quite frankly I have no clue. There are billions in bad mortgages that will have to written down. We're going to knowingly take the hit on the bad securities?

WTF?
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We will buy the bad debts for a premium price and sell them back to the companies cheap once things settle down.
 
CNN has streaming video right now on their website. But right now I don't know that there is any nuts and bolts on this, it is more ethereal than that.
 
Damocles said:
Not at a premium, as far as I understood it they will purchase it at dimes to dollars...
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I guarantee a premium price all things considered. Apparently no one else will buy them for that price ? If they did why would a bailout be needed ?
 
Well, if its dimes to the dollar, then I'm not so worried. If we're paying anything over $0.6 on the dollar they are foolish.
 
Damocles said:
Not at a premium, as far as I understood it they will purchase it at dimes to dollars...
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prob like 20-30cents on the dollar if they are lucky.. we may be able to get in on that action as well. not sure how yet but im looking. I want some of that 700B.
 
Chapdog said:
prob like 20-30cents on the dollar if they are lucky.. we may be able to get in on that action as well. not sure how yet but im looking. I want some of that 700B.
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If this hits it will prop up prices for a time. Housing will remain stagnant for a long time. If you have AIM accounts in RE makes sure it is only Commercial RE...
 
LadyT said:
I'm confused are they planning on buying up overvalued CDO's/CMO's at a premium? Where's the upside inthat for the tax payers?

And what happened to the $80B loan that was going to be disbursed? Can't we go back to that plan?
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No, they are looking to buy the CDO's/SIVs/CMO's at a discount (at least this is what is being proposed by Congress from what I can tell). They HAVE to be repriced prior to buying them. That is the only way the taxpayer can benefit from this.

At most they should be paying 55-60% of face value for the debt. This gives them plenty of leeway for defaults and would allow them room to refinance the debt at lower rates to help prevent foreclosures. Which would benefit those in trouble as well as increase the chances of the debt being paid back.... which could result in a gain for taxpayers.

I hate the fact that this bailout is necessary. But the government is the only one with the time an resources to unwind the mess.

That said... on top of the debt, the government should get equity ownership for the taxpayers in any and every bank/brokerage that wants to participate in this debt purchase plan. That way the taxpayer benefits when they inevitably recover.

All golden parachutes should also be nixed as a part of the deal.
 
Socrtease said:
CNN has streaming video right now on their website. But right now I don't know that there is any nuts and bolts on this, it is more ethereal than that.
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It is certainly a ways from being finalized. The Congressional plan (led by Dems) is a ways off from the Bush plan. As usual, Bush is wrong on this. He needs to step back and look at the Congressional plan.... they have the right idea.
 
lets not forget the 2 investment banks converting to reg banks so they can get all the benefits. Wish I could change status like that. Could I just change to over 67 for the benefits ?
 
well knowing the govt they will offer some rediculous refinancing deals to all the irresponsible people.. yet again rewarding the ones that should be left out to beg via there own stupidity.
 
Chapdog said:
well knowing the govt they will offer some rediculous refinancing deals to all the irresponsible people.. yet again rewarding the ones that should be left out to beg via there own stupidity.
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I just wanna know can I get a sweet deal too on my mortgage or will I have to pay what I agreed to pay?
 
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