Oops, time for another Trillion $ bailout with every left wing organization in America getting 70% and the rest going to the world wide hedge funders, who hate America.
Posted on 10/06/2008 7:07:18 AM PDT by icwhatudo
DJIA just prior to House defeat of bailout: 10843
DJIA close the day after House defeat of bailout: 10850
DJIA just prior to Senate approval of bailout: 10831
DJIA close the day after Senate approval of bailout: 10482
DJIA just prior to House approval of bailout: 10679
DJIA close the day after House approval of bailout:??? 9999 and dropping
(Excerpt) Read more at finance.google.com ...
Oops, time for another Trillion $ bailout with every left wing organization in America getting 70% and the rest going to the world wide hedge funders, who hate America.
Only solution (snicker).
“Three things to consider about the Dow falling:
1) Quarterly earnings.
2) Economic uncertainty.
2) The Obama factor.”
Guess my typo is misleading.
One other factor to consider: Insider trading.
The so-called “bailout” (its not) is aimed at stabilizing the credit markets after so called toxic debt is taken off of many institutions’ balance sheets, so that the commercial paper and repo markets open up again. It was never intended as an overnight remedy.
I have no idea whether it will work, but it better. If it does, it will take many months because trillions of former AAA bonds are scattered about the world, and no one knows how to value this stuff, except that some is now clearly worthless. If it doesn’t work, I think we will witness a free market correction that will tank many, many people and businesses.
Gotta shake my head listening to the CEO of Lehman now testifying before Congress. It’s a day of humiliation for him.
I just turned it on (cspan) and the detestable Waxman is doing the grilling- I want to hear how a GOP guy treats him.
I’ll bet there is one thing you don’t wonder about. Your conscience and the fact that you can live with yourself and that you have done your best.
Those who serve and try to do the right thing never have to doubt that they made the right choices even if others don’t appreciate it or don’t follow through on it.
Yes, and too many people also don't realize that the credit/bond markets are a leading indicator for the equity markets. The trouble has been increasing for 18 months -- remember the SIVs and early rumblings about MBS bonds in the summer of 2007?
Buying equities on dips these days is pure speculation, IMO. How do you value a company when traditional balance sheet valuation metrics do not capture the risk of CDS and other mispriced financial assets that can blow up seemingly strong institutions books on very short notice?
Rough road. My son who recently served in combat has the same questions ..
Dead on. And thank you for the reminder/lesson that the bond markets lead equity markets. It seems I constantly need reminding that the serious money is in the bond markets.
Great post.
NO! they can’t lose faith. It is worth it. Doing what is right is always worth it and is not subject to the ignorant masses whose popular opinion is often wrong. Oh, it is always hard as well. But it is always worth it. Easier said than done, when I think how often I have hypocritically taken the easy way out.
The economy never went into a recession. (market says we will now) This is a fact, and their talking did not affect anything, with the exception of public opinion. Public opinion rarely has much in common with reality in regard to financial affairs, and the so called recession at the end of Bush 41's term was never a recession at all! (case in point) yet the public opinion is that there was one and the truth has never been able to overcome that erroneous opinion.
The reason is, that the media is the primary disseminator of public information and they continue to distort the truth.
The media, to include all of the media as a general rule, has distorted the opinion of the Conservatives as well as the Lib's, and I can't do a damn thing to fix that, except to point it out, which I have done repeatedly..
The stock market responses to the bailout plan was real. They sent a message that the plan was necessary, the message was heard, and now the market is back to looking at the global trade markets which have been the only bright spot in our economy for the last two years. The market is saying that in the next six months, the global GDP is going to fall dramatically and this will affect the US exporters, and be a drag on the entire economic situation and recovery potential.
The thing is, that all this is true. The bailout plan, now passed has yet to be implemented, but when it is, you will not see a recovery! You will not see a change. It is what you won't see that is the indicator of success or failure of the plan. If the credit markets don't crash, and the entire system does not seize up and fail, causing over half of the U.S business sector to fail and a resulting 30%+ unemployment, the bailout will be a success!
The bailout will not cause a recovery, it simply stops a disaster that was in progress, and still is to some degree but to a lesser degree since passage on the expectations that it will work when implemented to avoid total breakdown.
This is what the media is not telling you, or me, or anyone, because they either don't understand it, or don't want to.
Not sure what trillion dollars you are talking about. There are a half dozen actions already done by Congress that do add up to about a trillion dollars, and they are things like the stimulus packages and mortgage programs designed to help at the tail end of the financial system. A trillion dollars is but a small percentage of the whole Quadrillion dollar investment market, and it's but a bit of bandage on a gaping wound. There will be a lot more that will be needed. The 700B package is only a targeted response aimed at the root supports that are holding the entire structure up and the number is dwarfed by the size of the entire structure.
In short, we know from history that doing nothing is not the right option, and we also know that trying to repair it at the tail section is not productive and only makes it worse, so we must do what we are doing and we will be doing more as necessary until the problem begins to dissipate. In any case, we will be in for a rough ride. The length of that ride will depend on success's by the Fed and the return of confidence in the public sentiment..
Can't help you about your cable.Mine was fritzy yesterday as well.
Looks like the public is now casting their vote on the bailout/rescue bill.
And it’s a clear “NO!”.
It’s almost fun to watch tortured, sensitive Dick Fuld (of Lehman Brothers)
testifying before Waxman’s House committee.
I don't know what good it does to kick a dead horse, but Lehman committed suicide by hubris. It was not forced to fail.
As to the ignorant public opinion, I have been trying to address that with no success. The public is simply being manipulated, and now cannot seem to be able to get out of it's own way. If this country goes down for the count, it will be largely due to government responding to public opinion. That has not yet happened to the degree necessary to crash the economy, but it is coming very close and may yet fall over the cliff.
Although it's understandable that some would leap to that conclusion, from what I understand, they tried to prevent it, yet Lehman made it impossible by repeated refusals of legitimate offers that the Fed had negotiated, and in the end, they stepped back and let it go.
Then the opposite occurred with WaMu where WaMu and the Fed worked together and tried like hell to find a private solution yet none came forward as they simply waited for the inevitable.
I had a investment in WaMu.(unfortunately)
Thanx. Alot of people have been attacking me recently. I’m just a doofus, but I spent over 20 years working in the fixed income markets, and can tell you for sure that alot of what is being said and written (sadly, including here on FR) is a bunch of hooey.
Yes, it was.
At least that’s how its proponents sold it and its how they justified their votes. The media went so far as to track stocks on wall sreet side by side with the votes. Suggesting if it didn’t pass stocks would crash.
Now you can argue it was never meant to be a “bailout” or have immediate effect but that’s not what the people on capitol hill were arguing just one week ago. It’s passage was supposed to save our 401k’s and stop a slide into a recession and other such nonsense.
You’ve missed the entire point. The point being our politicians and media did their best to sell this bill on a false premise. We’re calling them on it now and we’ll keep on doing so.
Better a pro-free market, anti-bailout “nutcase: than the socialist ticket, McBama.
I know what it is being called, a “bailout.” Its unfortunate that misleading inaccurate language was used to sell this financing scheme.
Which point, exactly, did I miss? If some congress critters were arguing just one week ago that it would have immediate effect, that was just more political hooey from Washington. I’ve heard other politicians, including Bush and Sec. Paulson say that these problems would take months to solve.
Anyone who thought this would solve these massive problems overnight is simply a fool.
FYI, Arnold Schwarzenegger is a Republican.
He may not act like one, but he ran as one and still self-identifies as one, as far as I know.
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