Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Shock Forced Paulson's Hand - <i>A Black Wednesday on Credit Markets; 'Heaven Help Us All'</i>
Wall Street Journal ^ | 9/19/2008 | Deborah Solomon, Liz Rappaport, Damian Paletta and Jon Hilsenrath

Posted on 09/19/2008 5:52:08 PM PDT by politicket

When government officials surveyed the flailing American financial system this week, they didn't see only a collapsed investment bank or the surrender of a giant insurance firm. They saw the circulatory system of the U.S. economy -- credit markets -- starting to fail.

Huddled in his office Wednesday with top advisers, Treasury Secretary Henry Paulson watched his financial-data terminal with alarm as one market after another began go haywire. Investors were fleeing money-market mutual funds, long considered ultra-safe. The market froze for the short-term loans that banks rely on to fund their day-to-day business. Without such mechanisms, the economy would grind to a halt. Companies would be unable to fund their daily operations. Soon, consumers would panic.

(Excerpt) Read more at online.wsj.com ...


TOPICS: Business/Economy; Front Page News; Government; News/Current Events
KEYWORDS: banks; economicpolicy; economy; govwatch; housingbubble; paulson; stockmarket; treasury; wallstreet
Navigation: use the links below to view more comments.
first previous 1-20 ... 141-160161-180181-200201-217 next last
To: politicket

Patently insane. Liberalism is indeed a dangerous mental disorder. The idiot liberals are playing with fire. Socialism or no, whether or not it works, RTC II® is trying to stop the panic in the markets that will lead to a crash and GD II, the Sequel™. In their infinite idiocy, the LibComDems are doing their best to insure RTC II® doesn’t work. My god, they just don’t get it and they never will!


161 posted on 09/19/2008 11:43:54 PM PDT by Freedom_Is_Not_Free
[ Post Reply | Private Reply | To 112 | View Replies]

To: what's up

But the ponzi part is not inconsequential. And that is MY point. The announcement should not be used to put the masses of sheeple back to sleep, but that is the effect. Like a light switch, the masses have gone from “on” (panic) to “off” (all is well). MY point is the announcement should be taken as a dimmer switch. There is plenty of uncertainty and danger in the markets and fear is warranted, just not irrational panic.


162 posted on 09/19/2008 11:51:15 PM PDT by Freedom_Is_Not_Free
[ Post Reply | Private Reply | To 142 | View Replies]

To: politicket

Don’t get me wrong. My hope for RTC II is wishful in nature, not expectant. You have concluded that RTC II won’t work, or even be in place by the time it is needed to stop the crisis of confidence. I am still in the middle left wondering if it will work or no. I am not optimistic or pessimistic. I am undecided. I do however, fully appreciate your viewpoint and lean in your direction. But I am still undecided. I still believe there is a chance RTC II could work.


163 posted on 09/19/2008 11:54:25 PM PDT by Freedom_Is_Not_Free
[ Post Reply | Private Reply | To 149 | View Replies]

To: politicket
The U.S. should just grab the Saudi oil fields.

It would be long overdue.

That will solve all these financial problems ...

... and terrorism will disappear.

Now, if we could only get over our reverence for property rights, this would be politically possible.

164 posted on 09/19/2008 11:56:07 PM PDT by Praxeologue
[ Post Reply | Private Reply | To 1 | View Replies]

To: politicket
Why isn't incompetency like this met with derision and a swift boot out the door as it should be. Maybe one of Bush's most lasting legacies will be the incredible damage done by the corrupt, incompetent boobs he surrounded himself with.

God help us all.

165 posted on 09/20/2008 12:00:01 AM PDT by Prokopton
[ Post Reply | Private Reply | To 1 | View Replies]

To: Chaguito
http://www.investmentrarities.com/09-02-08.html
Gold? So far, that little number has not done me much good.<<
and it wont either till the manipulation stops..

but don't worry...I'm sure the FED will bail out any small investor loses like they do the big banks that caused the problem... (sarc/off)

166 posted on 09/20/2008 12:13:39 AM PDT by M-cubed (Why is "Greshams Law" a law?)
[ Post Reply | Private Reply | To 5 | View Replies]

To: AndyJackson
Say, has anyone heard from Greenspan in the last 24hrs.<<

No....His last legitimate comments were 40some yrs ago
http://www.321gold.com/fed/greenspan/1966.html

167 posted on 09/20/2008 12:29:36 AM PDT by M-cubed (Why is "Greshams Law" a law?)
[ Post Reply | Private Reply | To 27 | View Replies]

To: Almondjoy

U dont understand much about efficient markets do u?


168 posted on 09/20/2008 12:41:07 AM PDT by M-cubed (Why is "Greshams Law" a law?)
[ Post Reply | Private Reply | To 47 | View Replies]

To: what's up
Many of those buyers you saw the last couple days now have hope <<<

Yup!...another “HOPE” salesman!
(I bet u hope u tit the lottery too...huh?)

169 posted on 09/20/2008 12:53:36 AM PDT by M-cubed (Why is "Greshams Law" a law?)
[ Post Reply | Private Reply | To 86 | View Replies]

To: what's up
It will interesting to say the least to see what the NY AG investigation turns up regarding the short selling lately.<<<
yeah.....especially in the silver and gold market!...lol....Oh but wait!...the FED is the one who is sponsoring it!
http://www.investmentrarities.com/09-02-08.html
170 posted on 09/20/2008 1:00:00 AM PDT by M-cubed (Why is "Greshams Law" a law?)
[ Post Reply | Private Reply | To 88 | View Replies]

To: what's up
sometimes its better to remain silent and be thought a fool then to open your mouth and be proved one... (Hey..he got ya...get over it!)
171 posted on 09/20/2008 1:26:41 AM PDT by M-cubed (Why is "Greshams Law" a law?)
[ Post Reply | Private Reply | To 126 | View Replies]

To: what's up

would u mind telling us all what your invested in now???...what u bought yesterday?


172 posted on 09/20/2008 1:31:40 AM PDT by M-cubed (Why is "Greshams Law" a law?)
[ Post Reply | Private Reply | To 132 | View Replies]

To: politicket
Do u believe the PM market is being manipulated?
(seems in a free market they would have spiked on the news)
173 posted on 09/20/2008 1:37:17 AM PDT by M-cubed (Why is "Greshams Law" a law?)
[ Post Reply | Private Reply | To 136 | View Replies]

To: Freedom_Is_Not_Free
The VAST VAST majority of breathing human beings walking the streets of America have absolutely no clue what is really happening in the economy or how painful the future could or will be. Absolutely no clue.

Well, the Fed, Treasury, and the Congress are working overtime to make sure it stays that way - the game falls apart if the rubes figure out what's going on. All this cash flying around is to preserve the illusion of normalcy, and it's working pretty well - notice how many FReepers (who ought to know better) are popping up with anecdotal evidence about how well the restaurant at the local mall is doing, therefore the economy is fine and this talk is all a Soros/Obama plot to steal the election.

174 posted on 09/20/2008 4:03:27 AM PDT by Mr. Jeeves ("One man's 'magic' is another man's engineering. 'Supernatural' is a null word." -- Robert Heinlein)
[ Post Reply | Private Reply | To 150 | View Replies]

To: Kennard
The U.S. should just grab the Saudi oil fields.

Ultimately, the dollar is backed by the full faith and credit of the United States Marine Corps. Overwhelming military superiority is the final trump card - buy into the US economy or bad things just might happen to you.

If we ever do grab the Saudi oil fields, it will mark the end of the republic and the formal beginning of the empire.

175 posted on 09/20/2008 4:08:01 AM PDT by Mr. Jeeves ("One man's 'magic' is another man's engineering. 'Supernatural' is a null word." -- Robert Heinlein)
[ Post Reply | Private Reply | To 164 | View Replies]

To: M-cubed

Give me a piece of your genius then.


176 posted on 09/20/2008 7:45:08 AM PDT by Almondjoy
[ Post Reply | Private Reply | To 168 | View Replies]

To: politicket

Derivatives is a four-letter-word. The dot com crash was also littered with them.

The role of regulation by the government in capitalism is to keep greed under control so that enlightened self interest can drive the market. Derivatives have nothing behind them an are uncontrolled greed. They should be regulated out.

Just my humble opinion.


177 posted on 09/20/2008 7:45:32 AM PDT by Chaguito
[ Post Reply | Private Reply | To 131 | View Replies]

To: politicket

How are they piling up on one side?

If the stock is going for 40 and you want to pay 30 you put in an order to buy for 30.

Pretty simple.


178 posted on 09/20/2008 7:46:06 AM PDT by Almondjoy
[ Post Reply | Private Reply | To 61 | View Replies]

To: what's up

But the whole concept defies logic.

You are borrowing an asset to sell it on the market. The only place in the world you can do that is the stock market.

What other asset do you sell but hope to buy it back later at a lower price?

Just because you can make a market out of something doesn’t make it practical or as someone else put it.. efficent.


179 posted on 09/20/2008 7:48:22 AM PDT by Almondjoy
[ Post Reply | Private Reply | To 49 | View Replies]

To: Prokopton
Maybe one of Bush's most lasting legacies will be the incredible damage done by the corrupt, incompetent boobs he surrounded himself with.

Folks need to get used to the fact that Bush's model hireling was not Roberts or Alito, done in the light of day with the world watching, but Harriet Miers, an inside good ol gal. As near as I can tell every appointee, major or minor fits this mold. Possible exception is Robert Gates, who was a Bush 1 man and not a Bush 2 man.

180 posted on 09/20/2008 8:04:21 AM PDT by AndyJackson
[ Post Reply | Private Reply | To 165 | View Replies]


Navigation: use the links below to view more comments.
first previous 1-20 ... 141-160161-180181-200201-217 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson