Posted on 09/24/2008 10:34:43 AM PDT by HAL9000
Breaking News - Republican officials say the Bush administration will accept executive-pay curbs as part of the bailout. President Bush plans to address the nation Wednesday at 9:01 p.m. EDT on the financial crisis.
And socialism.
Watch for more scare tactics to sway the people.
Next up?
"If we don't take your money, you starve, lose your job, retirement, your home, you'll be eating out of dumpsters, and all your pets will die".
I believe it is the lesser of evils. However whatever these turkeys do I want heads on a platter of those that created this mess.
Very well said!
The worst scenario for you is that they call in their loans, but how fast they can do that depends how the contract(s) are written.
Why should the amount of the initial down payment matter? If someone has paid 90% of a loan that started out with zero down, why should they be any less protected than someone who has paid off 90% of a loan that started with 20% down?
Thank you, Dawn. That's good to know.
sw
There are other issues your friend ignored though, the American people were also asleep at the switch.
We’ve allowed idiots in congress to ignore, and in too many cases, be a part of, this mess.
Look at Charlie Rangel! He’s going to get a slap on the wrist and get re-elected for his misdeeds!
And now, we’ve allowed the govt to get so entangled that we can’t get out of this by merely punishing the bad guys without cutting our own throats.
This is why we hear these bast@rds like Chucky Schumer say it’s “complicated”.
(Yet another @sshole that’ll get re-elected.)
We continually hear from the left and bambi that everyone deserves a piece of the AMerican dream and so forth...
recently I heard somewhere is going to allow a failing grade oin school to be set at 50%
50% !!!!!!!!!!
We tolerate failed govt schools we tolerate failed liberals in govt...
in essence, we’ve become a country that tolerates failed liberalism.
Either full transparency/accountability for those responsible... or no bail out.
If the economy is hurt by this, so be it...at the very least it will more than likely flush out the crooks. If we bail them out they go quietly into the night, looking for yet another pyramid scheme to fleece the suckers down the road.
On CNBC and other business channels they have been talking about the mortgage problem for years...why all the sudden everything hits the fan last week and we have "DAYS to save ourselves"?
Something doesn't pass the smell test.
Well if I were a gold bug then I would not be worried about inflation. Inflation happens to dollars.
This bailout is not going to make America a better place for more than a very short period of time. Wait and see. I feel sorry for the children who are going to be a slave to all this debt. And in the case that the US defaults...Then you are going to see a Depression like you have never seen. And it could lead to worse things than that as a few other countries would like to take advantage of us in a time of such weakness. The bankers having been made whole by the taxpayer ahead of time will swoop in to profit from the misery. It used to be called Usery. We have been used.
If that plan is successful, then things will bump along pretty much as is. If the proposed plan, or some other plan acceptable to the market place, is not implemented, there will likely by disruption in the economy, which will include a slowdown, higher unemployment, etc.
Some may disagree, but that's the way I see it.
On a broader scale, having the corrupt politicians with their hands directly involved in a greater share of the economy will have significant adverse effects on the country, not just the economy, over the long term.
If we’re buying these things at current market prices, that’s no bailout for anyone. In fact, it seals the fate of most of these banks. If we’re going to buy them at hold-to-maturity, well, there’s no way in hell we see a sizable profit for many many years. And with inflation factored in, what will that profit actually amount to?
I picked that up too. If we buy at firesale prices, I'm not as opposed to this - but that can't happen as it's essentially forcing a marked low price on all those currently "unknown value" (read that as nearly worthless) securities and that's what the banks are desperately trying to avoid as it will render them insolvent.
A huge game of "hide the sausage" is going on and if those securities are bought at anything but the hold-to-maturity price the game is over and the banks are toast. And if we as taxpayers buy them at the hold to maturity price WE'RE toast, as it may take them 100 years to recover that much value.
I listened to the hearings both days at work and one other thing really scared me - Bernanke was talking about buying 2nd mortgages as one of the asset classes. Due to the tankage of the home prices, those things ARE WORTHLESS. And I think the debt on a 2nd is subordinated to the primary loan, meaning the primary gets paid off first in case of a bankruptcy. And they want us to pay face value on that crap?
No thanks, I'll take my chances with the financial apocalypse.
LQ
It also puts those who didn’t overspend originally in a dangerous situation... of needing to be bailed out.
Thanks for posting about Hong Kong facing a bank run. Don’t think some peole understand our economy and banking are tied globally and if we crash the other markets/banks crash around the world.
This has been building for a long time and didn’t happen overnight. When Clinton took the safeguards off it was going to happen sooner or later. Senator McCain and others kept yelling about Fannie Mae and Freddie Mac and the Dems kept right on going along fat, dumb, and happy.
Well, you use to have investments and savings!
If the plan does not in clear and specific terms indicate that CDSs are going to be unwound and deflated, rather than propped up by injecting cash into the marketplace, I see no reason to believe we aren't going to have a complete credit/liquidity/banking collapse within the next 30 years. Putting off the collapse will require an exponentially increasing injection of capital and will accomplish nothing except to make some crooks even richer.
Correct. 2nd mortgages get nothing in foreclosure. They’re totally worthless
“That was ALL it took for them to deny him. No problem???”
Your friend needs to go somewhere else. Like a credit union. Once banks stop making loans in the long term, they go out of business.
“Stealing tax dollars from competent people that didn’t overspend to bail out those that did (and their enablers) isn’t an investment - it’s THEFT!”
Our tax dollars are stolen anyway...as long as the borders are open and illegals are considered citizens. What is the difference?
Do you know what a strategic zero is? It is when you purposely let something not so great happen so something worse does not happen. Like the O.
A collapse is inevitable. The only way that spending $700bn+ to delay it would make sense would be if there would be no future after the collapse. I'd rather figure that there will be a future, in which case it would be far better not to inflate things worse than they are.
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