I heard an analyst also say tonight that all the banks are playing poker in a sense…they don’t want to tip their hands how much of this bad debt they have on the books in fear of killing their stock. This new “bad bank” the govt is setting up allows all the banks to lay down their bad hands at the same time.
[QUOTE=Charlotte2002;343304]I wouldn’t say those people are getting off free, their credit is in ruins and they are probably not so well off financially.
The people who knowingly gave out bad loans are the ones who got away with it all and will not face the consequences like everyone else.[/QUOTE]
Part of the problem is people taking advantage of the system. A lot of people COULD pay their mortgages they just are choosing not to because now their house is worth a lot less than their mortgage so they are just walking away from it. In California people are buying a house for half of what they paid for their house and just walking away from their house.
Food for thought… the “bailouts” are also investments by the Gov’t.
The AIG deal very well might be a cash cow when its all said and done. The latest deal might/should be viewed as the worlds biggest hedge fund. There is potential to make $$ on these mortagages.
Food for thought... the "bailouts" are also investments by the Gov't.That’s great for the government but I want a clear plan on how it’ll benefit you and me. The devaluation of the dollar to pay for this blows because of the effect it has on commodities.The AIG deal very well might be a cash cow when its all said and done. The latest deal might/should be viewed as the worlds biggest hedge fund. There is potential to make $$ on these mortagages.
It sucks. That’s the explanation of the economy.
Gov’t. buys banks bad debts.
Banks get profitable.
Gov’t. goes under, & we become a damn 3rd world country.
Also, if we bail out these finance companies, they’ll do it again because they figure they’ll be rescued again because “they’re too big to fail.” A little econ. collapse now might ensure responsibility by banks that would make a good econ. for the next 100-200 years.
I’m against all handouts. But this BS of handing $ to trillion $ companies w/ $100 million Ceo’s is crap.
Better to grade people on a basis of $75K-$125K depending on spouse & kids. Everyone below gets free federal taxes, free health-care, free college for them & their kids, free social security & medicare, free mortgage, & for Srs. a free reverse mortgage, but their beneficiaries keep the house.
Better to bail-out the poor & middle class than to bail-out the super-super-super rich.
Hell I might have to just totally sell-out & vote for the Communist, Socialist, or Social Worker’s Party candidate for President. McCain & Obama are both corporate welfare socialists like Bush.
[QUOTE=NLP;344030]That’s great for the government but I want a clear plan on how it’ll benefit you and me. The devaluation of the dollar to pay for this blows because of the effect it has on commodities.[/QUOTE]
That is exactly where I am at.
See todays oil price surge.
[QUOTE=metro;343341]I heard an analyst also say tonight that all the banks are playing poker in a sense…they don’t want to tip their hands how much of this bad debt they have on the books in fear of killing their stock. This new “bad bank” the govt is setting up allows all the banks to lay down their bad hands at the same time.[/QUOTE]
Metro. Trust me a lot of these guys have NO CLUE how much exposure they have which complicates the problem even more. For example the mortgage on your house might have been sliced and diced so many times that 30 different entities(including foreign govt.'s) might have an interest in if you pay or not. When the derivaties came into play only a handful of people on Wall Street undertood them but being good investment bankers they realized they could make a lot of money off of them.
What is funny to me is Paulson saying we are a few days from the abyss and we need to act fast and keep it clean but some Wall Street firms balking today at the thought of capping executive compensation/ golden parachutes. Are we at the abyss or not if you are holding on to overcompensation?
Just keep in mind that “big business” employs a hell of a lot of people, “big banks” lend tremendous sums of $$… They need both need to be healty to have a storong middle class I don’t like it much either, but their health has a serious trickle down effect.
Actually I care more about the economy than the election right now. Especially since both major candidates are more interested in trading blows than promoting policy.Agreed.
Just keep in mind that "big business" employs a hell of a lot of people, "big banks" lend tremendous sums of $$.. They need both need to be healty to have a storong middle class I don't like it much either, but their health has a serious trickle down effect.Agreed again.