It's Possible

Care4all said:
heard it needed to get done before the open of the Asian market on sunday from some financial guru???

i am one that is not sold on the bailout super.... i just can not comprehend how $700 billion can even possibly save the entire world's economy? or what is really happening here....????

i also do not understand why bailing homeowners out of their adjustables in to conventionals taking the hit on only the devaluation amount, wouldn't solve the whole mess, only TRICKLE UP to the banks by having fewer homes foreclosed thus the MBS's are worth something again and the trading and loaning begins again?

though i'm not necessarily for that bailout either! :(

care
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Yes, ideally it would get done prior to their open. As they are getting very very very nervous and may soon pull the trigger and start dumping US assets.

The theory behind this deal is that the Fed can buy up this bad debt, unwind it and ride it out if necessary. The banks/brokerages cannot. If people continue to see one bank after another fail... there will be a run on ALL banks. Which sends us straight to economic hell.

By allowing the banks to clean up their balance sheets it restores confidence with the masses. By making sure that it is the shareholders and not the taxpayers that take the hit on this, the public is also reassured that the idiots running these financial institutions aren't 'getting away with their mistakes'.

The biggest thing this plan should do is get money FLOWING again. Right now, even those with good credit are finding it hard to borrow money. Banks are not lending to each other as they have gone into a 'I am hording my capital because I don't want to be the next to go under' mode.

Businesses are seeing their lines of credit drying up... which in hard times can force them to start laying off employees and potentially going out of business.... which in turn further exacerbates the problem.... as more people out of work leads to more foreclosures which leads to more banks blowing up etc...

If this is done right... inflation will be high for the next year or so. The Fed will pump additional billions into the market to try to get credit flowing again. As long as we put credit lending standards into this plan, it should get the capital flowing again in a responsible manner.

As consumers, we are all going to take a hit on higher commodity prices, higher energy bills etc... a steep price, but a better option to a complete meltdown.
 
Dungheap said:
Actually, I think we could. We just wouldn't know it until a few months from now.
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I thought the definition of a recession was at least 2 or 3 consecutive months of downturn, and a depression was more months than that of downturn ?

At least that is what those on the right have hammered at me for years.
Toppy especially.
 
Superfreak said:
Yes, ideally it would get done prior to their open. As they are getting very very very nervous and may soon pull the trigger and start dumping US assets.

The theory behind this deal is that the Fed can buy up this bad debt, unwind it and ride it out if necessary. The banks/brokerages cannot. If people continue to see one bank after another fail... there will be a run on ALL banks. Which sends us straight to economic hell.

By allowing the banks to clean up their balance sheets it restores confidence with the masses. By making sure that it is the shareholders and not the taxpayers that take the hit on this, the public is also reassured that the idiots running these financial institutions aren't 'getting away with their mistakes'.

The biggest thing this plan should do is get money FLOWING again. Right now, even those with good credit are finding it hard to borrow money. Banks are not lending to each other as they have gone into a 'I am hording my capital because I don't want to be the next to go under' mode.

Businesses are seeing their lines of credit drying up... which in hard times can force them to start laying off employees and potentially going out of business.... which in turn further exacerbates the problem.... as more people out of work leads to more foreclosures which leads to more banks blowing up etc...

If this is done right... inflation will be high for the next year or so. The Fed will pump additional billions into the market to try to get credit flowing again. As long as we put credit lending standards into this plan, it should get the capital flowing again in a responsible manner.

As consumers, we are all going to take a hit on higher commodity prices, higher energy bills etc... a steep price, but a better option to a complete meltdown.
Click to expand...

Bettrer to prolong the agony for the working class than to have a meltdown ? Perhaps, but no one will learn much.
 
Superfreak said:
because investors believe this deal will get done at this point. Money is flowing out of financials still, but there are a LOT of great buying opportunities elsewhere.
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so the market is just based on specualtion vs reality ?
The only value in the market is perception of value ?
 
Dungheap said:
Just for giggles let's check this out every so often today:

b


Since the bailout deal has been scuttled by the House Republicans (and John McCain) the market will likely tank today. Bigtime.

The over-under on the DJI is -400 points. I'm taking the over (i.e., it will be down more that 400 points at the close of business). Anyone else?
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I guess I got my -400 day today instead of Friday.
 
Darla said:
I’m surprised John McCain hasn’t parachuted in and fixed this mess? I thought that he had gotten the R’s to go along, and thank God he suspended his campaign, blah blah blah.
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He was on the stump today in OH, and he spent a lot of time on that very thing. He was really bragging, and slamming Obama for "monitoring the situation" from afar.

Oops.
 
Darla said:
I’m surprised John McCain hasn’t parachuted in and fixed this mess? I thought that he had gotten the R’s to go along, and thank God he suspended his campaign, blah blah blah.
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Well, if Nancy Pelosi hadn't delivered that speech . . .
 
Obama should hammer McCain - "how can he lead the free world when he can't lead his own party?" - that kind of thing...
 
Onceler said:
Obama should hammer McCain - "how can he lead the free world when he can't lead his own party?" - that kind of thing...
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agreed.... this election is over. No way does Obama lose at this point. McCain just hosed himself. How the fuck could he not deliver those votes? Idiots.

I hope the Reps get blown out of every friggin Congressional seat they are up for. They friggin deserve it.
 
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