Posted on 09/27/2008 7:31:39 PM PDT by kc8ukw
The US stock market could suffer a devastating crash with shares losing a third of their value this week if Hank Paulson’s financial bailout plan fails, US Treasury officials have warned.
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The financial system could face a meltdown of 1929 proportions unless US politicians succeed in their efforts for a $700bn rescue scheme, experts added.
The warning came as Republicans and Democrats met in Washington for a rare weekend debating session to attempt to seal agreement on the contentious plan, aimed at preventing a long-lasting recession in the US.
(Excerpt) Read more at telegraph.co.uk ...
I’d say close the markets for 72 hours. Let it all rest and everyone take a breath. After 9-11 nothing flew for a week.
This is Pelosi’s big chance to “save the planet.” She don’t need no steenkin’ Republicans. Come on Nancy! You’ve got the votes. Do it! LOL!
Good and I will buy in and make $$$ as it recovers.
No problem, let the gamblers jump.
What a bunch of garbage.
Why do I get the feeling that Goldman Sachs execs are holding our Treasury hostage with a gun to our heads?
So does Jim Cramer, of MAD MONEY on CNBC. Cramer said that this week while congress had been haggling over this plan, that thousands of wealthy americans have been taking their money out of savings, annuities, money markets, etc and buying TBills. It’s a run on banks that is quiet and with election, debates it has been lost. He wanted people to call and get Bernanke to up the coverage on Money Markets, and other savings vehicles to stop the bleeding. That’s more capital out of banks, less credit lending.
Wachovia won’t last more than a few days without a merge with another bank or institution.
If this bail out goes thru or Obama wins, I’m pulling out of the market and going to gold and metals.
Why do I get the feeling that the public is being played big time. I mean, my goodness could they be hyping this thing any greater????
Glenn’s a financial wizard?
Maybe because nobody’s had the audacity to carry out a $700 billion heist before?
They should have thought of that before making all those garbage loans.
CRY me a river
NEW YORK, March 9 (Reuters) - Wachovia Corp. (WB.N: Quote, Profile, Research, Stock Buzz) said chief executive Ken Thompson was awarded $23.85 million of compensation for 2006, about 41 percent more than a year earlier, after the fourth-largest U.S. bank's profit rose 17 percent to a record.
Thompson received a $1.09 million salary, $17,208,830 of stock and option awards, $5.15 million of performance-based cash incentives and $397,552 of other compensation, according to the bank's proxy filing with the U.S. Securities and Exchange Commission.
This is Pelosi’s big chance to “save the planet.” She don’t need no steenkin’ Republicans. Come on Nancy! You’ve got the votes. Do it! LOL!
Queen Pelosi, as Henry Paulson treated her when he bent down on one knee (which is digusting in itself) is waiting to see which 100 sap GOPer’s will sign on to this charade.
Hank Paulson’s™ Financial Bailout Plan
Franklin Roosevelt did something similar with banks in 1933 right after his inauguration. Supposedly only the good banks which had been examined and passed by a federal regulator were allowed to re-open.
Now, how many banks were actually examined and passed in 1-3 days? Very few, but the point was people's confidence in those banks was high and that stopped the panic about banks collapsing.
Have you been reading a bunch of conspiratorial crap?
~~"Only Yesterday: An Informal History of the 1920’s" by Fredrick Lewis Allen
"There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved."
---Ludwig Von Mises
The Wisdom of Ludwig Von Mises (a few more pithy on-target quotes.)
Roosevelt made the Depression worse. He’s the reason it lasted so long. Hoover shares blame too.
I’ve read a couple articles, one from Kristol, and the journalists had been contacted by economists laying out the severity of the situation. I, personally, don’t believe it’s hype. That doesn’t mean I’m for Paulson’s bailout in it’s present form, but something better happen and happen quickly, IMHO, or we could see catastrophic results. And no one should believe they will be immuned from problems if the economy crashes...it won’t only affect Wall Street, it will affect us all. Whistling past the graveyard is not going to work for this situation.
Yeah, Paulson and Thain were never top GS execs. That’s all just conspiratorial crap.
Austrian economics. Finally some sanity.
Scare tactics.
If hard times are coming, so be it. American people are willing to sacrifice if need be, but not for bandits and common thugs.
NO BAILOUT!
Guess what. If a crash is coming, a bailout isn’t going to prevent it. Its just going to delay it.
Oh, don’t get me wrong, our entire financial system is in trouble, too.
The whole aim of practical politics is to keep the populace alarmed (and hence clamorous to be led to safety) by menacing it with an endless series of hobgoblins, all of them imaginary.
H. L. Mencken
Glenn’s been predicting this for the last year and a half. He is the first to say he’s not a financial wizard but he has earned credibility on this.
Three years later.
After most, if not all of, the shaky banks were already closed.
But, the point is, he gets credit for stopping the bank runs.
How is it going to do that with over 800 stocks on the no-short list?
Including such DJIA components as GE, GM, C, AXP, BAC, IBM...
Fall after the SEC order expires? Yes, that I can see, but until then... I have trouble seeing how enough sell-side volume could be generated to get the DJIA down to 8000. Sell off a few hundred points? Yes. 2000+ — now I’m straining to see how we get there by shorting the likes of Boeing, Cat, Dupont, Pfizer, etc...
True, but if a crash comes now, Obama is lock to be elected. Does anybody want that?
Fair enough. But bank runs wouldn’t exist with 100% reserve banking.
If the Fed then had injected Liquidity into the market there would have been no massive crash or Depression.
The banks would have been fine, Canada had not one bank failure during the Depression becuase it did the opposite of the US.
And when he tries to raise taxes and increase spending during a recession/depression, one can only hope he will be driven from office... and if not we’re already screwed.
The Economy of the United States is so huge that it’s really beyond my limited capacity to visualise it. Am I to understand that a failure of maybe 5-10% of one part of one part of one part of it will cause the whole thing to collapse? If we buy that 5-10% and give it to the government, with some extras, which congress will specify, that will make it better? Will Obama then provide prosperity to all who deserve it? What planet am I on?
It looks like Occam had his razor taken away at the airport or something.
Increasing the money supply only further inflates bubbles. Deflation was necessary. The reason the Depression was so long was because of big government trying to “solve” the issue.
Thank You.
“...Rebel Republicans - who see Paulson’s proposals as socialism by the back door - were warned they will be responsible for causing an “amazing catastrophe” if they continue to oppose the plans, ...”
I fail to see how this would be the case if the Dems control congress. Now the Telegraph is in on the blame game of Repubs even though the Repubs have no power ... interesting.
Neither would the internet, the personal computer, the cell phone, and so forth.
You want to see how your preferred money system works? Imagine Saudi Arabia without oil.
Huh?
There must be something else we could give Bush, Frank, Paulson, Dodd and their favored business partners.
What a remarkable polygamous incestual relationship they have engaged themselves in.
A gift of Money is so crass.
Isn’t there a gift registry for these folks?
And what should we get them?
They already have a featherbed.
They already have a cozy.
We should spare no expense for these hacks in love.
Pain now, or worse pain later if we bail out the jerks who caused this.
Let it go to 8, a depression will be good for us. All the illegals and other malcontents will leave due to the bad economy and we can start from scratch.
What's that old remedy for when a dog craps on the floor...
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