[koraz]

I know everyone is talking with emotion right now but you really need to think about it. A foreign investor bought insured AAA assets at say $100. They will now be selling them back to the US government for $30. How is that a bailout?? They lost $70 on an investment that they had ever reason to expect to be secure due to the rating and insurance!!! Sure you can argue that they should have been smarter with their due diligence but you need to recognize that they have already taken a serious financial hit on these investments.

Also, people can’t seem to realize that the government can make a profit on this. Do you really think that houses sold for $100,000 are now worth less than $30,000? Keep the panic up and it will be. Allow the market to settle down and the government can turn it around and recover more than 30 cents on the dollar. That was exactly what happen with the RTC. THE GOVERNMENT MADE MONEY ON THE DEAL.

I realize that I may be barking up the wrong tree and that most of you refuse to listen. I will say it anyway in the case someone wants to be rationale about this.

[WorkerbeeCitizen]

A foreign investor bought insured AAA assets at say $100. They will now be selling them back to the US government for $30. How is that a bailout??

The taxpayer (thats us) lost $30.00 on that transaction.

[jd777]

insured AAA assets

Insured by whom?

[Notary Sojac]

A foreign investor bought insured AAA assets at say $100. They will now be selling them back to the US government for $30.

With all due respect, how the hell do you know this?

The so-called crisis supposedly stems from the fact that no one can determine the value of these assets.

If they were objectively worth $30, the bank would write them down to $30 (like every other business in America has to do with its bad debts) and life would go on.

Instead the banks get to unload them on the taxpayer at some indeterminate amount, probably less than face value but I bet a lot more than what they will finally be worth when the housing prices finish dropping to normal levels.

And please don't get me started on "AAA" asset ratings pulled out of somebody's AAAss.

[Flavius]

well i would like to be ahead of a next snow job, so what is the next scam that follows this one
REIT’s,
S & L, 80’s, 70’s, 00 subprime, what other financial vehicle can these ivy league morons package so that i can get ahead of the ponzi scheme any ideas

[Condor51]

A foreign investor bought insured AAA assets at say $100. They will now be selling them back to the US government for $30. How is that a bailout??

• A: That "foreign investor" didn't buy that AAA asset from the US government. They bought it from a Private Enterprise (Co or Corp). And within the definition of the term "investor" is an inherit thing called RISK.

• B: Just who do you think the US Government IS? And where do they get their money from? Hint; the US Government doesn't have any money. It's not a business and its purpose is not to 'make money'. We The People have the money that we 'give' to them to operate "The Government".

So, by the 'US Government' now buying that asset for $30 - with money that isn't theirs - they are definitely bailing out that foreign investor who SHOULD rightfully have lost everything.

When I bought some bone head stocks that went belly up 'The Government' wasn't at my door bailing me out for $.30 on the dollar -- or anything. I LOST everything on my "investment" in that stock. (Wanna buy a Gold Mine?)

And not that it apparently matters, but in my copy of the Constitution there's nothing about 'The Government' buying up foreign "investments" to maintain stability, or any reason. You can't even stretch the Commerce Clause that far.

[oblomov]

Why should the government be a buyer? Maybe the loans are only worth 10 cents on the dollar. If the government is willing to pay 30 then it is giving away money, i.e. a bailout. Governments pay no attention to price.

[Centurion2000]

I realize that I may be barking up the wrong tree and that most of you refuse to listen.

No, actually this is making sense. Correct me if I'm wrong but the last time we had an RTC the Japanese got royally burned on land deals. Is this something similar to that?

[Justa]

Thank you for a rational response.

[ecomcon]

Allow the market to settle down and the government can turn it around and recover more than 30 cents on the dollar. That was exactly what happen with the RTC. THE GOVERNMENT MADE MONEY ON THE DEAL.

Government is not supposed to make money on "deals".