thank you...
Posted on 09/13/2008 3:58:45 AM PDT by TigerLikesRooster
There would be institution which can't be bailed out. They will go under.
All these would lead to depression, whether U.S. gov could be bankrupt or not in a technical sense. Public debt is one of the problems. If government would shore up all failing institutions, it could go bankrupt. If not, institutions will go bankrupt, causing depression on its own.
If Fed allow unlimited lending for failing institutions, we could see huge inflation. We are boxed in. We are basically tapped out.
Sorry. Not buying into it. Feel free to worry on my behalf, though. :)
>>>FDIC will be called in
What does ‘called in’ mean?
With so much public and private debt, people still think that it will somehow all disappear after a couple of years of a run-of-the-mill recession.
It is the same kind of attitude which ran Bear Stearns, Fannie and Freddie, and Lehman into the ground. You may escape this problem but lots of others won't.
But in this case we are telling imprudent people that it's OK to be that way and denying them the chance to learn from this mistake.
Other foolish people are learning this lesson too. And obtaining the "too big to fail" status will now become a goal of all companies. Expect much poor reasoning to ensue.
Yes, that’s my plan. And I don’t know why others aren’t on board.
I chalk it up to Americans being uneducated, manipulated, financially over-extended sheep.
As I said, I certainly don’t wish any ill on my fellow Freepers, but it’s every wo/man for her/himself these days.
And that’s how it always SHOULD have been.
I, for one, am tired of pulling this wagon overloaded with liberal losers who contribute NOTHING, to quote their favorite slogan, “for the greater good.” ;)
Not an optimal choice, certainly, but a minimal federal government may not happen any other way.
Along with the estimated half-trillion deficit spending in 2008 and who knows what for 2009...
a billion here, a billion there, and pretty soon it’s real money.
Hey, how do you like paying your tax dollars to pay for Fanny/Freddie executive bonuses in 2007, when rampant fraud was occurring ? For myself, if taxpayers are being asked to foot the bill I want to see perp walks and jailtime.
I did know FDIC was the insurance. I just didn’t understand the expression, ‘called in’. Thanks!
Don’t pay attention to the naysayers on this site. Many of them were discounting the housing/subprime mess 3 years ago saying it would never be a problem....
Will you marry me?
Just remember: EVERY “expert” tagged the “S&L” bailout at more than $800 billion. Every one. It came in at half that, without (I might add) a real blip in the economy) and would have been 1/10th that if the banks had held onto their real estate just 2-3 years longer.
I know. According to them, we should not have subprime mess. Bear Stearns, Fannie Mae, Freddie Mac, and Lehman Brothers should be still flying high now. But Bear Stearns was absorbed by JP Morgan, Fannie and Freddie were nationalized, their stock worth less than a dollar per share. Lehman is facing break-up.
But the Democrats will save us. They will raise taxes, raise taxes and raise taxes. Those three things should give the 40% low income class, free College, “greener” jobs, etc,,,.
The “rich” won’t care that they will only take home 30% of their earnings. They will still have enough left to live on.
(Looks like “Grimm’s Fairy Tales” is back in vogue.)
thank you...
Anyone know how much the Fed has loaned out the windows starting with Bear-Sterns?
Not really. With the bailout (remains to be seen) of both Freddie and Fannie (trillions in assets/liabilities) bank closures, home foreclosures, and the House talking auto industry bailout, ... the Big D is possible. Our government cannot sustain these types of hits without significant increases in revenues (read: taxes). With increases in taxes, you get greater unemployment, less productivity, lower consumerism. Can we allow these industry giants to fold? Maybe. A good analogy are these new drugs comming to market... where the side effects are worst than the ailment.
My take is that this guy is trying to scare people into his Asia fund (which is apparently getting hammered).
That being said, I think the Government is on shakey ground with these massive bailouts. At some point, we will have to pay the piper and then all bets are off. We have adopted a “compassionate” philosophy where no one can feel and pain, so ultimately we will all end up with a hangover.
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