Posted on 09/28/2008 12:30:41 AM PDT by xtinct
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I’m looking for information regarding the Acorn financing boondoggle, but see no reference to it...
I’m praying they got it dumped from this bill.
ditto on ACORN
ping
Acorn will not be dropped I bet. This is ROTTEN to the core. Why should anyone pay the mortgage on time? If you skip a few payments they will reduce the principle. Perfect liberal mortgage banking. Anyone who votes for this should be run out of office.
There ya' go.
And, I didn't see anything referring to ACORN.
We shall soon see...
I’m calling on some monetarists on Free Republic:
What happens in all of this to the velocity of money? I recall my undergraduate macroeconomics classes having this equation: MV = PQ, where M is the money supply, V is the velocity of money, P is the price level, and Q is real GDP.
My impression from all of the money multiplier stuff is that if lending went down, so would the velocity of money.
I’m not witnessing any massive change in M. So if V changes, does that mean we get deflation? Recession? Or is velocity somehow a constant through all of this?
acorn was probably added so that republicans would be so willing to accept all kinds of other junk just to get ACORN dropped
I think that the bailout money should only be used to shore up the mortgages for people who couldn't pay their mortgage due to job loss or major illness.
All the other maggots should fry especially the flippers.
Additionally, I think Barney Frank and Chris Dodd should retire effective immediately. They are obviously unfit to serve the taxpayers.
When you get your answer, please put it in terms those of us that skippped those classes will understand.
This is trouble. Now the Fed will have $700 billion worth of “bad debts” and is supposed to try to sell them back into the market over a period of years? I smell a boondoggle to come - more than one.
What incentive does the Fed have to try to make the best deal? To package a couple of dogs in with a bundle of winners? Some people will make out like bandits. A huge transfer of wealth for a few, courtesy of the Federal Reserve...
No coincidence that Goldman Sachs and Morgan Stanley just became bank holding companies. The SEC is useless to a street without brokerages... the Fed on the other hand will be their new best friend.
The velocity of money is still 38mph. That is unchanged by the current bailout.
You need to add S to your equation. For SCREWED. I am breaking out my Rebel Flag. Might as well go down fighting.
I heard that ACORN had been stripped out of the bill earlier today.
You are too kind.
But, alas, Congress has made their acceptance of bribes legal.
Sucks to be a rube.
I think the worry is that the flight to quality was becoming or in danger of becoming a big increase in money demand, ie decrease in velocity. This increase in liquidity in the market is likely an attempt too keep velocity from falling so much. [Maintaining confidence in financial markets gives people an incentive not to hoard money.
My worries pre-bill in terms of the quantity identity of exchange would be a slowdown in V with a constant M would lead at least in the short run to a reduction in Q, ie real GDP. Maybe there would be some deflation, ie P down, with this.
My post bill worries if this bill is enacted and signed would be the government has an addition incentive to inflate so possibly M rises more than V falls and this leads to a continuing rise in P, ie inflation.
I’m no expert but I don’t think you can answer the question without more details. Are they going to just fund the banks all at once, or slowly buy debts. The V will depend on how many times Treasury gives money to banks, and how many times banks loan that money back out, and get it redeposited. Remember the same money circulates so the fed gives bank A money, which loans it to homeowner B to buy the house from homeowner C who puts the money into bank D which loans it to homeowner E etc etc... the velocity will depend on how much and how often it circulates over time.
My fears are that the money will 1) be hoarded or 2) be lent to special clients only. I doubt we will see the easy credit we saw in the recent past. So I’m gonna venture a guess that the V will increase slightly from current levels but still remain way below the average over the past 7 years.
I have seen no reports yet that ACORN would be excluded. I don’t want to even see a hint that they’ll get $.05 from this bill even through other channels. To be honest I’d like to not see this bailout happen in this manner. Newt had the best plan and EVERYONE in Washington ignored him.
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