$700 B Bailout

[BleedBurgundy]

I know we have some economists on this site. Educate me. Pros, cons...

Personally, I'd love nothing more than to let every single one of the affected companies fail. But the ripple effect pretty much removes that as an option. I can't see this actually doing anything but postponing the inevitable though. If less than half of this bailout ends up in personal bank accounts, I'll be shocked.



*I know this was touched on in other threads, but I thought it was worthy of its own.

[dmek25]

quick fix to keep the credit line moving. might work, might not. something did need done. this administration probably shouldn't have waited until all the animals were out of the barn, before closing the door. i would like nothing more then these high priced C.E.O's going down with the ship, but that only hurts non players in the end

[FRPLG]

I don't understand why we have to BUY all the bad loans. Why can't the gov't just insure the bad loans? Seems like that'd be more cost effective?

[dmek25]

i think they are looking at it as an investment, not a bailout.

[BleedBurgundy]

Not sure if there are any Easterbrook fans here, but this article does a great job summarizing things in a very general way. This country is going to hell. I love the fact that all of those responsible have profited hugely and will bare no accountability in this mess.

[saden1]

This whole thing is so stupid it's unbelievable.

In fact, some of the most basic details, including the $700 billion figure Treasury would use to buy up bad debt, are fuzzy.

"It's not based on any particular data point," a Treasury spokeswoman told Forbes.com Tuesday. "We just wanted to choose a really large number."

The level of audacity breathtaking.

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.

[BleedBurgundy]

Originally Posted by dmek25

quick fix to keep the credit line moving. might work, might not. something did need done. this administration probably shouldn't have waited until all the animals were out of the barn, before closing the door. i would like nothing more then these high priced C.E.O's going down with the ship, but that only hurts non players in the end

You are so from Lancaster. lol.

[BleedBurgundy]

Originally Posted by saden1

This whole thing is so stupid it's unbelievable.



The level of audacity breathtaking.

What's truly ridiculous is that every quote looks like it should come from the Onion. But no, that's our government, people.

[12thMan]

Originally Posted by FRPLG

I don't understand why we have to BUY all the bad loans. Why can't the gov't just insure the bad loans? Seems like that'd be more cost effective?

Well one of the issues they're having is actually pricing the bad loans. In other words determining how much they're worth or how worthless they are. So from an accounting standpoint it's tough to add that type of asset to your sheets.

Their are all types of challenges with this crap.

[firstdown]

What I don't understand is how this whole thing has gone so far and unnoticed by so many people. You have the president, congress, all the other people in Washington but then more shocking is all the people on Wall Street which did not see this coming. I'm not talking about the people who profitted from this but all the annalist who study this stuff day after day.

[BleedBurgundy]

On CNN they are reporting that the house and senate have announced agreeing upon the principles of the bail out. Amazing how fast these clowns can start working together when money is involved.

[dmek25]

Originally Posted by firstdown

What I don't understand is how this whole thing has gone so far and unnoticed by so many people. You have the president, congress, all the other people in Washington but then more shocking is all the people on Wall Street which did not see this coming. I'm not talking about the people who profitted from this but all the annalist who study this stuff day after day.

everyone, and i mean everyone, was making money( and tons of it) ill bet you cant find one member of congress that had not taken money from Fannie or Freddie. everybody getting paid, who is going to be the hero? none of those clowns that we've elected.

[firstdown]

Originally Posted by dmek25

everyone, and i mean everyone, was making money( and tons of it) ill bet you cant find one member of congress that had not taken money from Fannie or Freddie. everybody getting paid, who is going to be the hero? none of those clowns that we've elected.

I'll bet take that bet about congress taking loans from Fannie or Freddy. How much?

[BleedBurgundy]

What kills me is the ZERO Accountability that has been observed in this situation. Everybody just talking about what a crisis this is and no one wants to go after those responsible. The only plausible reason for that is that our legislators ARE some of the ones responsible, either by direct intervention or inaction due to lobbying.

[firstdown]

Originally Posted by BleedBurgundy

What kills me is the ZERO Accountability that has been observed in this situation. Everybody just talking about what a crisis this is and no one wants to go after those responsible. The only plausible reason for that is that our legislators ARE some of the ones responsible, either by direct intervention or inaction due to lobbying.

What laws where broken. Just because someone did a poor job and gave out a bunch of bad loans does not make it illegal. Is your stock broker breaking laws when he invest your money in poor stocks an you loss money? No. Have laws been broken? At this point we don't know but I'm sure we as tax payers will pay for a big long investigation into al of this.