Why Bailouts Are Not the Answer

Seeking Alpha ^ | 2008-12-02 | Peter Schiff

[murphE]

BTTT

[sickoflibs]

THis one is very good!

[the invisib1e hand]

Asset Bubble. Bailout Bubble. Fugeddaboudit.

[alrea]

If that is true, we have dropped 5% in oil consumption

news today is that tax revenues in NC are lower because fuel demand is 5% below last year.

[TomasUSMC]

MO AND MO AND MO MONEY 4EVA

From ClusterStock, Dec. 10, 2008:

After all the money AIG’s had shoveled at it, why does it need another $10 billion? Because, as the Wall Street Journal reports, the money its gotten from the government are supposed to pay off its bad CDS bets — essentially, the money went to retiring the underlying CDO -— but it’s also stuck $10 billion on what were just bad bets, not necessarily designed to help clients manage risk.

The $10 billion in other IOUs stems from market wagers that weren’t contracts to protect securities held by banks or other investors against default. Rather, they are from AIG’s exposures to speculative investments, which were essentially bets on the performance of bundles of derivatives linked to subprime mortgages, commercial real-estate bonds and corporate bonds.