Posted on 10/12/2008 9:08:51 AM PDT by Inkie
Last I read they are going to use a reverse auction where the securities offered at the lowest price will be bought first.
Heard a lot about this meltdown. Don’t undestand most of it myself but what I do know is that the people in charge don’t seem to understand either. It almost seems like there is no solution that can save us.
As the previous poster pointed out, it is to save "them" - the investment banks with the right political connections.
They will do so because people don't understand what's happening, they know they can get away with it, and they think they are too important to fail.
As far as they are concerned they are "America". The rest of us just happen to work for them.
They are desperately trying to make sure that equation remains true.
The $700 Billion Bailout Is A Sham and Stocks Plunge
DUH!
Some are talking about a ‘scorched earth’ market just to show them who is really in charge!
How about giving the $700B back to the taxpayers? They could pay off their mortgages, buy cars and other big ticket items and really boost the economy.
Step two. Bait and switch is bad for anyone looking to buy. Do not allow it. This calls for honest accounting.
Step three. Plan fir steps one and two to be ignored.
The "us" I refer to is the USA financial system.
Wouldn't put it past them. The Banksters won't have to worry about where the next meal is coming from. The difference between living on forty million a year versus ten is a matter of style and not much more.
It’s a good article. I’m glad to hear someone say the obvious:
The bail out caused stocks to crash.
More bail outs will crash the market more. George Bush is a moderate republican. Had he been conservative, he would never have proposed the bail out, stock markets would be high, and people could look forward to retirement. McCain is no better. (Obama is just awful.)
If not, kinda proves my point, doesn't it?
As the previous poster pointed out, it is to save "them" - the investment banks with the right political connections.
They will do so because people don't understand what's happening, they know they can get away with it, and they think they are too important to fail.
As far as they are concerned they are "America". The rest of us just happen to work for them.
They are desperately trying to make sure that equation remains true.
BINGO!!!!!
Did you bother to read the article?
Several points I’d like to make:
1. In bailout there is 100 million dollars for ACORN as proven last night is a post by a fellow freeper.
2. Obama has two bills that have passed the house and contain a whooping 1 trillion dollars for the UN.
If someone with $30,000/year income takes out a 110% LTV mortgage on a "$400,000" house that's really worth $100,000 (getting $40,000 cash back) how exactly can that mortgage going to be "enforced"? Throwing the "lender" in jail would be a good idea, and perhaps the borrower as well (if he gave his real name) but there's no way that paper is going to turn into $400,000.
Markets need rules to function. Good rules are best, but even bad-but-predictable rules are okay. Anarchy is petrifying.
The bail-out essentially says that the rules of the market place will be whatever Hank Paulson decrees them to be. If Paulson had a record of being a wise and benevolent--or even predictable--dictator, that might be tolerable. But the markets have no way of knowing what he'll do. Anyone who sells toxic paper to a competitor for pennies on the dollar risks being squashed like a bug if Paulson then buys the paper from that competitor at a much higher price. How can markets function in that environment?
So what you’re saying is there is no solution. And if that is what you’re saying, you’re right.
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