Posted on 09/26/2008 3:58:56 PM PDT by politicket
Excerpt...
The legislation the administration is promoting would allow the government to buy bad mortgages and other sour assets held by investors, most of them financial companies. That should make those companies more inclined to lend and lift a major weight off the national economy that is already sputtering. But a significant number of lawmakers, including many House conservatives, say they're against such heavy federal intervention.
Under their plan, the government would insure the distressed securities rather than buy them. Tax breaks would provide additional incentives to invest.
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(Excerpt) Read more at news.yahoo.com ...
Yep, they bet on repacked sh**. Buying bundles of credit card debt, was that smart? Banking on it all not going south was that smart? If you can’t take the risk, you shouldn’t place these kinds of derivative bets. Everyone was chasing the higher interest rates, the higher the rate of potential return the higher the risk. Didn’t they tell investors that?
What I know about derivatives was enough to steer me way clear of this casino regardless what the prospective returns were advertised as.
$62 trillion, that’s a whole lot of unpaid college loans. I doubt it’s anywhere near that, if it were, then how does $700 billion fix that. Maybe $5 trillion ... You know when the mortgage forecloses it isn’t worth zero, supposedly there is still a real house at the end of the mortgage, that is worth most of what the note was for.
Also, all the banks aren’t in dire straights, all the loans and mortgages didn’t forfeit, the vast majority are still being paid. At least they are according to my local friend the banker. The areas most effected locally by foreclosures seem to be those areas that have the highest illegal immigrant populations, imagine that.
Why is Barney Frank being allowed to pontificate about this crisis that he played such a large part in causing? Will no one in the media question that disgusting man?
Won’t happen by Sunday. Next week late at the earliest. Hopefully NEVER!!!
This just in: Barney Frank predicts no crisis with Freddie Mac and Fannie Mae (but he sure likes anything with the word “fannie” in the name).
It would seem to me that a judicious, but rapid overhaul of the tax treatment of income and payments related to CDS and derivative contracts could reduce the overall risk to the economy and the Treasury. If when a CDS' payment obligation was triggered, the party asserting it was due payment was taxed on the income at that time, regardless of whether the paying party was able to make the payment, then many holders of CDS' would no doubt re-negotiate the terms of the contracts. If the tax rate was high enough, say 50% or more, I'll bet that the total number of CDS contracts in effect would drop precipitously.
[That man has GOT to go.]
He suffers from dick in mouth disease.
[That man has GOT to go.]
He suffers from dick in mouth disease.
That's a very interesting idea. The problem is, the bomb has gone off. It is now a question of how large the mushroom cloud will be.
Here's a great article on the Delphi bankruptcy back in 2005, and the effect that Credit Default Swaps had on that. If you understand this article, you will understand exactly what has happened in this country - and why we are about to pay the price.
The Ballooning Credit Derivatives Market: Easing Risk or Making It Worse?
Bawney is a disgrace to the human race. He is a devil spawn.
People who vote for him are even worse.
You are so right!
If I posted what my husband yelled at the tv when Barney finally appeared, I would definitely be banned.
Oh right. That is just what we really need. For these banks to run out and make billions more in bad loans.
REFORM FIRST.
JAIL THE GUILTY. ESPECIALLY THOSE IN THE HOUSE AND SENATE.
Oh right. That is just what we really need. For these banks to run out and make billions more in bad loans.
REFORM FIRST.
JAIL THE GUILTY. ESPECIALLY THOSE IN THE HOUSE AND SENATE.
My advice - don't trust Barney - he's always trying to ram something through under the cover of darkness.
Maybe the Treasury should change the color of the dollar to red cause we sure aren’t in the green.
Of course they can't - he's gay, for cryin' out loud. That makes him special.
DON'T BUY!
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