More bailouts, and the specter of financial Armageddon. What a dull weekend…
“[A]s the Fed chairman, Ben S. Bernanke, laid out the potentially
devastating ramifications of the financial crisis before congressional
leaders on Thursday night, there was a stunned silence at first…. Senator Christopher J. Dodd [said] the congressional leaders were told “that we’re literally maybe days away from a complete meltdown of our financial system, with all the implications here at home and globally.””
I think I will go watch the Ryder Cup.
The bail out of the elites leaves no room for the worker class defaulting on their homes. This means the lenders will not likely re-negotiate any loans with the borrowers. This will guarantee more defaults with the government and thus the tax payers picking up the losses instead of the few elitists with 99% of the wealth engineered to be preserved by the so-called democratically elected government. The whole shit just makes me sick.
Anyone see a copy of the LA times this morning? Front page:
A new $700,000,000,000 bailout is being proposed…
I wonder where the gov. is going to get that much money? Hrmm…last time I checked, the gov. doesn’t earn a paycheck, so…
This is end of game.
In order to be re-elected for his 2nd term, Bush re-finical American’s dream to the world.
This time for his 3rd term (McCain) , he re-finical American’s sole to the world.
Sec. 8. Review.
Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency.
–from Patrick.net
I usually prefer my kleptocracy with a little bit more subtlety.
-from eschatonblog.com
Is there any wonder why the credit market has dried up? It is probably the case where nobody wants to be another credit victim. I doubt it is the case where there is no money to lend. Or maybe it is just the case where nobody has money to lend Uncle Sam.
Whatever they do, it is just postponing the inevitable.
Its almost like a Coup d’état of America.
We will be serving a new Master. The Treasury
and its King are now in charge. 44 Days before a
National Election does seem more than a coinkydink does it not ?
Let it melt and save the Republic.
Call your congresscritters.
CR types are advocating go-slow protests on the highways, with signs. In California. Everywhere.
Nobody elected Paulson Dictator.
This all started when the market, and our society in general, abandoned “truth” as a basic and overriding foundation for doing business. IMHO, there is no hope of this situation ever having a long term and lasting correction until we return to that tenet.
We got an offer of 5% 30 year for a refi. More then 500K ( we don’t owe that much ). No cash out, no proof of income. I assume they’ll want at least 40% equity.
Now that the “jumbo’s” have gone up to 700K, it seems like rate for “low end” jumbos are dropping.
I’m gonna test the refi waters. If we can refi from 6.125 to 5 on a fixed that will be quite a good deal. We can prove our income with no problem.
Perhaps this is the benefit of the Gov. bailout… low interest rates that will support home prices back at an 03 price.
Of course, those sales in 06->07 with ADRs at teaser 1% are screwed.
Maybe the renters might be able to get into the market now. I mean, those “1 MIL ” homes should drop to 500K and with a 20% down, a 400K, 5% fixed 30 year loan should run about 2500 a month. That’s doable with an income of 100K.
I think I’ll wait, thanks.
They all should be fired, starting with Paulson & Cox. Nobody is going to save anybody.
3 pages of proposal from the president, it looks similar to the famous Paul’s Iraqi presentation before the war.. I hope the people’s congress men can speak out for its people, …OMG, what a reckless gov..
This kind of thing is unconstitutional anyway, I would guess. No oversight possible — but here is your $700 billion: spend it anyway that you want, with your banker friends. The guy is definitely a Bushie.
This bailout is the nail in coffin!
This Govt is trying to fix the roof when fondations need serious repairs. We need to drive our economy via industrilization and not via borrowd consumer spending. On the bailout of walstreet via tax $$, I got an alternate plan that does not take taxpayers into account.
Why should the entire taxpayers be on the hook for the bailouts of bad decisions or banks and others?
The plan as I understand, Govt. will buy bad assets from banks in Auction Sales where banks will compete and the lowest bidder will
get to sell. Who will monitor whether what’s being sold are apples or oranges? Sounds like a failed plan already! If the plan turns out to be with a one big purchase of the entire junk
portfolio at say 20 cents on a dollar, will that not result in massive write-down’s for all banks anyway? Whatever the plan does, write-down’s will
happen, so why doesn’t the Govt. force all banks to write-down the entire portfolio to current market valuation?
Alternate solution that will not involve taxpayer money:
1. Open up a private FED bad bank (all banks are children of FED anyway).
2. All banks markdown their debt to market value and sell to the FED bad bank, at this time, just collect the net asset value of portfolio. FED as we all understand is a central banks that is a make-up or large banks. Large banks can get vested stakes into this new bank and profit from it.
3. Do a mega IPO of this Bad Bank. Private investors who are willing to invest into the bad bank where actual assets are marked down 80-90%
of its values, folks get shares of this bad bank similar to as you get elsewhere.
4. Now, if market turns around, which it will some day for sure, the value of Bad bank grows, thereby increasing the share values. If FED thinks why would any bank or investor invest into this bad bank IPO, then we should ask the same question to the FED on why they think Govt. should keep it thinking its got value?
I think this will be a private market bailout where risk takers can bet and taxpayers are not on the hook for others deeds. Banks then
consolidate, weaker banks fail, and we get back to tighter lending standards. Good ones survive and bad ones go belly up! With Govt. becoming the bad bank and buying the entire trash, it appears that things are lot worse than they appear.
Do others have any other ideas that doesn’t involve taxpayer money to solve the crisis?
Republicans are taking advantage of the situation during election time leaving no room for negotiation. Pricks!
Ironically, IMHO, the best solution is to let other countries buy out C, MS, GS and any financial company while they are still has values.
This seems an extreme solution, but at least our next generation still has hope.
Bail out is the worst solution, it will cause even bigger damage, in two years you will see more blood. More wars and more company fade away.