Posted on 09/26/2008 8:29:29 PM PDT by SeekAndFind
Let’s take this step by step.
>> Bank of America and JP Morgan have to pay 8% and up, with the Fed funds rate at 2%.
BofA and JPM have to pay WHO 8% for WHAT?
>> Paulson and everyone else said they wanted congressional oversight from the start
I don’t understand. You say Paulson (and, by extension, you) want congressional oversight.
Well, they’re getting it. Right now. At the earliest stages of implementation.
But Paulson (and, by extension, you) are unhappy with that.
So — either Paulson (and, by extension, you) VALUE the opinion of Congress as overseers, and so are happy to let Congress deliberate on the bailout, and then oversee it.
Or — you DON’T value or want Congressional input, which takes us back to the “no review” clause. And that, despite your claims, makes Paulson (and, by extension, you) a liar.
Which is it?
Paulson (and, by extension, you) can’t have it both ways.
Great article. Thanks for posting.
>> All that matters is a sound policy, and yours is not sound.
No, I’m sorry, that’s not fact, that’s rhetoric. From Paulson (and by extension, from you).
Of course you and Paulson believe your policy is sound.
But I disagree. I, and a lot of others that are just as well informed as you (and by extension, Paulson).
>> Bond holders or preferred holders to borrow capital.
Very good. Now...
How much must BAC borrow?
From whom?
Why?
Paulson would rule as a monarch.
WaMu replaces CEO, agrees to pact with regulators
"The New York Times reported that Fishman will receive a $10 million signing bonus from WaMu, of which $2.5 million will be a stock award based on performance."
Friday, September 26, 2008
CEO of failed WaMu could get millions
"WASHINGTON: The CEO of failed Washington Mutual Inc., on the job only a few weeks before the largest U.S. thrift was seized by the government and sold to JPMorgan Chase & Co., is entitled to more than $13 million in severance and bonus pay."
How's that for 3 weeks on the Job? Sorry, but this make my blood boil - MHO.
Give it up. You are not profiting from this crisis. The TAXPAYERS ARE. If we have to take our economy down so you get the HINT, so be it. Go ahead and make our day. We hold ALL the cards.
NO BAILOUT!
>> 2 trillion all told and change
Huh? I’m looking at the BAC balance sheet right now. Where do you get that number, as being how much they need to borrow at 8% interest? I think you’re high by a factor of 3.
Correction: you’re off by a factor of FIVE. Or more. I’m being generous with 5.
>> More specifically - $1.55 trillion
I call bullshit.
Where did you get that number?
and AIG is now controlled by the Fed, no matter what.
if WB and NCC have runs by depositors the way Wamu did, they might not either (WB is apparently working on selling itself over the weekend in any event).
they were not taken over by JPM - they were taken over by the FDIC, who then sold certain assets and (mainly) liabilities to JPM. Wamu is still a publicly traded company, destined very soon for the pink sheets with a big Q on it. Wamu bondholders are not happy either.
“It isn’t just Wachovia. National City today, 60% yield. Morgan Stanley, despite a large recent capital infusion from Asia for stock, 40% yield. Bank bonds are simply now traded as junk for any institution with default risk, as being essentially uncovered, because the depositors are senior and the FDIC has shown the bondholders will get nothing, if it is necessary to protect the FDIC.”
How much of this do you think is encouraged/caused by run-ups in cdswap prices? As I understand it, an increase in swap prices (by traders who often (or usually) do not even own the contra instrument they are hedging) does have an impact on this.
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