I hope it’s ineptitude. The other interpretation is that they are deliberately trying to destroy the economy.
LOL...the gov won’t invest in the market due to perceived risk, but will soak up every bad investment they can find...incredible!
oh no Obama what will u do now???
More corporate welfare. More rewarding of the incompetent.
latest rp on this....
http://gunnyg.wordpress.com/2008/09/18/ron-paul-blasts-secret-government-running-economy/
My country ‘tis of thee
Sweet land of entities....
LOL...the gov won’t invest in the market due to perceived risk, but will soak up every bad investment they can find...incredible!
We’re starting to look like our buddy Hugo down yonder. Guess we’ll just nationalize all of the problem children.
So now the government is going to own a bunch of houses?
(shaking head)
This doesn’t even sound constitutional.
????
Boy..the democrats will love this turn of affairs. Now they can just promise folks ‘a house for a vote’...literally.
Can ‘forty acres and a mule’ be far behind?!
(eye roll)
Goodbye Capitalism, it was nice knowing you, come back soon.
Hello Socialism. Hope you enjoy you’re stay.
Another great big bail-out with the taxpayers’ money. A further slide to socialism away from capitalism.
I hate government intervention as much as anyone, but we basically have two choices: assume the debts, or let them be deflated away.
What you have to remember is that we are dealing with panic here. These mortgages are backed by real property so the down-side risk is minimized. The problem is that people can’t refinance (even though mortgage rates have come down) because the market has no liquidity. Because they can’t refinance, they are stuck in high rate mortgages that they can’t afford leading to more foreclosures.
The key here as always in a business cycle is “knowledge” and “confidence”. The absence of both is a recipe for another Great Depression.
May you live in interesting times....
The Chinese have our gonads in their hands. They own so much of our monetized debt, they have essentially a majority stockholder position on our economy. They are calling in the note.
From the article:
(snip)
“If there’s an RTC-like entity, “it’s going to take a lot of the bad debt off the balance sheets of these companies,” said Scott Fullman, director of derivatives investment strategy for WJB Capital Group in New York. That would alleviate many of the pressures causing the credit crisis, he said, and open up the credit markets again.”
(end snip)
In other words, it takes it off the balance sheets of these companies that are failing and puts it in the ‘balance sheet’ of the federal government.....leaving them free to start the process all over again with ‘new credit’?
I don’t know much about the financial industry, but this looks like insanity!!
These POS. What next a trust for Student loans, credit card debt? These Mother...
IN the end, the Resolution Trust Corporation worked.
If we can do this like we did that, it’s not a bad solution.
Of course, there are no details.
The government surely helped greatly in causing this problem with loose money, requirements of lenders to loan to people who didn’t deserve it, servicing Fan and Fred’s house of cards, and bad accounting rules.
That the Government then has to clean up a mess that big is probably inevitable.
But will they learn?
No. Get ready. Money is loose again, and the next bubble is being inflated somewhere right now.
Another RTC...oh boy! Those on the “inside” are gonna acquire a ton of properties for peanuts....and guess who’s gonna hafta pay the piper.
Pure socialism. Banks will then be requried to be run according to government rules, regulations, and perhaps even employees.