Posted on 09/22/2008 4:54:27 PM PDT by Praxeologue
Problem is you are dead wrong - it didn’t happen on a “republican watch” - Remember who has been in charge of the House and Senate the last 2 years? Remember who dreamed up the CRA? Remember who has been protecting Fannie and Freddie from any investigations or even basic oversite functions?
McCain is throwing us under the bus.
The housing bubble has not caused a recession. I have no reason to believe it alone could cause another Great Depression. What could cause a depression is pumping more credit down the sinkhole. You do not recover from a speculative bubble by expanding credit. That’s like trying to extinguish a fire by throwing more fire on it.
“The U.S. government is likely to make a profit from these actions.”
Oh boy. Does that mean they’ll stop taxing us and just invest money they print from now on?
The Masters of the Universe have leveraged us into oblivion.
Paying taxes to bail out failed banks is the patriotic thing to do. LOL
I wonder about this myself.
If the market can say these things are worth full price and be wrong, it is entirely possible that the market can say they are worth 22 cents on the dollar and be wrong.
Very possibly, the guys who paid 22 cents to Merrill Lynch will make a handsome profit.
The problem with the government buying them is that they’ll be too soft-hearted to realize full market value by throwing out the existing mortgagee and selling the property at a market-clearing price.
Yes, of course. But the business people I have spoken to today, real estate developers, are "offended as taxpayers" by this "bailout of Wall Street types". One said "If I am upset, how do you think a the little guy feels." McCain needs to to out there helping the avaerage person understand what is happening. It is not a class thing, but that is how many are seeing it.
Which is why McCain must win. Otherwise this will become a left-wing slush fund for the next twenty years.
Which is why McCain must win. Otherwise this will become a left-wing slush fund for the next twenty years.
If these investments were ultimately going to make someone a big profit would the lending institutions be so eager to offload them?
Instead of a bailout wouldn't they be content with a bridge loan to get them by until the big profits start rolling in?
Let's be honest - congress and the wall street fat cats have run our financial system into the red and this is nothing but a scam to bail them both out.
There is no pot of gold waiting for taxpayers - in fact, if some serious changes aren't made the only thing waiting for us down the road will be another bailout.
Instead of crafting plans to do congress's dirty work for them President Bush should be publicly pressuring them to make changes to stop the hemorrhaging and to remedy the problem without giving away money our children and grandchildren will be earning.
Buahahahahhahahha!
A win -win to the tune of about $24,000 dollars per US taxpayer ( those of us who actually pay taxes.)
Yep! Thats a real win all right!
I haven't paid a cent yet and already I want my money back!!!!! I'll take stock from AIG for bailing it out, thank you very much.Issue the shares in my name: John Q. Public.
The people you are talking to just had their toys taken away, and they need to blame someone. They're not helping, you know, because they were just as much part of the problem as those evil "wall street types".
Bottom line: I have to contribute at least $7000 to this bailout.
F that S.
When I paid the last payment on my house I thought I was done. Boy was I wrong.
It won't, but demanding that Wall Street take another $700 billion hit, even in the short term, on top of the $500 billion they already ate over the last year, will. It won't cover the (quotational) losses, either. We still eat those.
When Lehman failed it brought down larger banks within days. Each of those was doing the same to the next couple. A run had already started on money funds, at a rate of $160 billion per day. Nobody has that kind of liquidity. Nobody. The Fed either makes it or every bank fails.
And that would (1) still leave us with the loss, wearing out "taxpayers funding the FDIC" hat. Or we could repudiate that too, and then (2) we still take the loss, while wearing our "depositer" hat.
This isn't about housing any more. It is about whether the beggar thy neighbor to heck with them all attitudes so far deployed to deal with the housing bubble bursting, are allowed to destroy the US financial system, or not.
But we take the hit, regardless. Nobody else has it. There is no blood in stones.
“But we take the hit, regardless.”
You’re right. Bad investments simply must be liquidated. My point was that there’s no reason to assume a Great Depression need follow. If the credit contraction is swift and short, we’ll recover promptly. If we throw more money at the problem, we’ll make things worse. The bubble-burst alone cannot cause a Great Depression. bank failures alone cannot cause a Great Depression. Not allowing the market to correct itself will.
....and I guess the Martians are going to bail out the US gubbmn’t?
Idiot is talking out his donkey. The essence of the problem is a perfect storm of highly leveraged debt, with a even more leveraged provided through a tightly interlocked system of derivatives to ensure that a snowball in one sector turns into an avalanche that takes down the whole mountain. That is why Bernanke and Paulson are panicking, and not because some folks might lose their homes.
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