Not buyin it!
Posted on 09/27/2008 9:38:40 PM PDT by BurbankKarl
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.
Officials close to Paulson are privately painting a far bleaker portrait of the fragility of the global economy than that advanced by President George W Bush in his televised address last week.
One Republican said that the message from government officials is that “the economy is dropping into the john.” He added: “We could see falls of 3,000 or 4,000 points on the Dow [the New York market that currently trades at around 11,000]. That could happen in just a couple of days.
“What’s being put around behind the scenes is that we’re looking at 1930s stuff. We’re looking at catastrophe, huge, amazing catastrophe. Everybody is extraordinarily scared. It’s going to be really, really nasty.”
Investors fretted about contagion into Europe, where Fortis, which was part of the consortium that bought ABN Amro last year, fired its chief executive after liquidity concerns pushed shares down more than 20pc to a 14-year low. Holland’s ING and BNP Paribas are looking at buying the bank this weekend.
London investors have warned that the FTSE could suffer falls of as much as 1,000 points - a fifth of its value, if the deal falls through.
(Excerpt) Read more at telegraph.co.uk ...
Run for the hills!
Hey, who’s liquidity can we steal? Is it too late to raid the Iraqi dollar fields?
I’ve also read where the 700B isn’t going to do diddly squat. (Is that a racist term? :)
Not buyin it!
Yeah I’m terrified that a bunch of liberal, millionaire Wall Street types won’t get their seven figure bonuses and corrupt left wing groups like ACORN won’t get tons of grants...
NOPE! I am not going to scared into getting fleeced!
If create a website of all who voted for this and encourage people to vote them out, is there any campaign finance issues I might incure?
I want a list so we know who needs to be kick out of congress.
Euros? Telling us how to run our economy? HAH! When we were establishing the greatest Representative Republic in history, they were defending the Divine Rights of Kings, burning witches at the stake, and starting Pogroms against Jews.
Bullsh1t. If 4-5% of all home mortgages (the ones that should never have been made but the liberal dems wanted to give blacks housing loans) fail and THIS causes the collapse, then let it collapse.
It’s this compounded with the banks packaging this crap into bundles and a couple of them getting too heavy into them and dying because of it. Let them die. Everyone else is making their home payments.
F@ck the bailout. Let the banks that made crappy decisions go down. Let the FDIC do its job and protect people’s accounts. Give the necessary monies to protect account holders’ accounts, don’t bailout the banks.
And then go after all these assholes who bailed on their mortgages. Don’t let them declare bankruptcy. Go after their assets. They got loans they knew they shouldn’t have, living beyond their means.
Soros paid well for that article. Kerry, too. And Buffet.
Highlights:
2. There is no panic on Main Street and in sound financial institutions. The problems are in high-risk financial institutions and on Wall Street.
3. While all financial intermediaries are being impacted by liquidity issues, this is primarily a bailout of poorly run financial institutions. It is extremely important that the bailout not damage well run companies.
4. Corrections are not all bad. The market correction process eliminates irrational competitors. There were a number of poorly managed institutions and poorly made financial decisions during the real estate boom. It is important that any rules post “rescue” punish the poorly run institutions and not punish the well run companies.
5. A significant and immediate tax credit for purchasing homes would be a far less expensive and more effective cure for the mortgage market and financial system than the proposed “rescue” plan.
6. This is a housing value crisis. It does not make economic sense to purchase credit card loans, automobile loans, etc. The government should directly purchase housing assets, not real estate bonds. This would include lots and houses under construction.
You know, I just heard in the office on Friday of some scheme using VHA loans to buy up a bunch of forclosed houses on some golf course in bumfart California. I couldnt believe someone would actually be wanting to try to speculate in this environment.
Instead of a bailout, take the 700 billion and give it back to the taxpayers.
that was my plan....$10,000 to everyone who pays taxes.
I thought the saying was “S-— Happens” not “S-— gets bailed out.”
When housing prices were going through the roof here in California, I always thought, how can the banks rely on these new valuations to make loans, they’re so astronomically high?
When silver hit $50 an ounce in 1980, the silver refiners all said “We’re not going to buy, the price is ridiculous.” The price dropped overnight. It was oilman Hunt and a handful of Arabs that sought to control the market.
The banks could have done the same thing—acted more prudently in the face of ridiculous overvaluations that a little building boom was sure to correct. Tough luck being incompetent.
History is being made this weekend, and the old saying “If you don’t stand for something, you’re bound to fall for anything” has never been more appropriate for this situation.
Show me in the US Constitution where it empowers either the president or congress to bail out lousy businessman.
And BTW, the Chase takeover of WAMU? That would have been done prior to the FDIC takeover, but the parties were waiting to see if they could get a better deal out of the gubmint.
I remember when the con men at Enron panicked everyone in California by creating some blackouys, the whole purpose of which was to get then gov Gary Davis to sign a long term electric rate structure that was grossly overpriced.
I live near a freeway. Weren’t no slowdown in traffic Friday, won’t be on Monday either. (Bad grammer for emphasis, or maybe I’m just an idiot.)
demoskowitz,
That is why I want hearings. You KNOW there is going to be a sacrificial lamb or two (Chris Cox is toast) but the public needs to know what the hell went on!
Did you actually read the article?
"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. "
"Officials close to Paulson are privately painting a far bleaker portrait of the fragility of the global economy than that advanced by President George W Bush in his televised address last week.
"One Republican said that the message from government officials is that "the economy is dropping into the john." He added: "We could see falls of 3,000 or 4,000 points on the Dow [the New York market that currently trades at around 11,000]. That could happen in just a couple of days."
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