There are currently 0 users and 321 guests online.
Paulson changes course on bailout
Submitted by R. Neal on Wed, 2008/11/12 - 1:21pm.
Treasury Secretary Paulson now says they won't use the $700 billion blank check from taxpayers to buy up bad mortgages and get them off the books of failing banks, and instead will buy equity and encourage them to use the cash to start lending again.
I don't understand half of what little I know about all this, but I'm not sure how this helps. If it's just a liquidity problem, isn't that what the Federal Reserve is for?
And do we really think consumers are going on another spending binge if easy credit suddenly becomes available again? Besides, anyone with credit can get credit. That's not the problem. Look at retail and auto sales. The only thing selling right now is guns.
The good news is that in 68 days the Obama administration can restructure the whole deal pretty much however he and his advisers think best, because the Bush administration got carte blanche to do whatever they want. I don't think people should expect any quick fixes, though. Looks to me like we are in for a long, rough ride and I don't even know what the fundamental problem is and I'm not sure anyone else does either.
Submitted by Stick Thrower on Wed, 2008/11/12 - 1:48pm.
That cat video is no longer available, and when you click on it it takes you to another page... Oh, wait, I get it. It's a metaphor for the bailout bait and switch.
Submitted by RayCapps on Wed, 2008/11/12 - 3:20pm.
As usual, Mr. Neal has the answer...
The only thing selling right now is guns.
All we have to do is get Fox and Rush and the others out there telling folks that "President Obama is going to ban automobile sales in order to combat global warming and promote mass transit. Personal transportation means personal freedom, and we all know how Obama feels about individual liberties! Oh, and don't you think for one second that your major appliances are safe. You WILL become dependant on your government to buy, store, prepare, and serve you your daily bread."
It doesn't help...unless you're an investor and have seen your investments tank. If that's the case, then this could give your investment a bump in price so you can sell.
It's a stock price support program, like the farm price supports that were used to bolster farm produce prices. Only this just gives the investment class some help. You know, that class of people that really need it right now.
The effects will only be temporary, because the bad debt that the banks hold is, well, so bad. And unless that debt is somehow cleared, it will continue to hurt.
Just one thing, don't expect the Fed to offer any equity to you and me so we can pay off or down our debt, maybe put some in the bank, and start buying again.
Paulson obviously isn't an historian on the Great Depression, and I'm beginning to wonder if Bernanke is. If he was, he would know that the key to ending it was to put "equity" in the hands of the masses.
The way our economy is all consumer spending, small businesses, and sevice oriented, that's the only way anything will help. There are only so many rich, and they can, and will, buy only so much.
That cat video is no longer available, and when you click on it it takes you to another page... Oh, wait, I get it. It's a metaphor for the bailout bait and switch.
Well done, sir. Well done.
Actually, no, but thanks for thinking I was that clever. Heh.
How about puppies instead?
bailout hard.
bank no make sense.
brain hurt.
kitty funny.
brain no hurt now.
As usual, Mr. Neal has the answer...
All we have to do is get Fox and Rush and the others out there telling folks that "President Obama is going to ban automobile sales in order to combat global warming and promote mass transit. Personal transportation means personal freedom, and we all know how Obama feels about individual liberties! Oh, and don't you think for one second that your major appliances are safe. You WILL become dependant on your government to buy, store, prepare, and serve you your daily bread."
Fox and Rush and the others out there
Ok, THAT was pretty funny. Hell, it would probably work!
but I'm not sure how this helps.
It doesn't help...unless you're an investor and have seen your investments tank. If that's the case, then this could give your investment a bump in price so you can sell.
It's a stock price support program, like the farm price supports that were used to bolster farm produce prices. Only this just gives the investment class some help. You know, that class of people that really need it right now.
The effects will only be temporary, because the bad debt that the banks hold is, well, so bad. And unless that debt is somehow cleared, it will continue to hurt.
Just one thing, don't expect the Fed to offer any equity to you and me so we can pay off or down our debt, maybe put some in the bank, and start buying again.
Paulson obviously isn't an historian on the Great Depression, and I'm beginning to wonder if Bernanke is. If he was, he would know that the key to ending it was to put "equity" in the hands of the masses.
The way our economy is all consumer spending, small businesses, and sevice oriented, that's the only way anything will help. There are only so many rich, and they can, and will, buy only so much.
Guns are selling because people are convinced that Obama is a gun-grabber.
Gee, that makes as much sense as a beehive upping honey production because they think that bears might be moving into the woods.
____________________________
Dirty deeds done dirt cheap! Special holidays, Sundays and rates!
Guns are selling because people are convinced that Obama is a gun-grabber
At least that's the spin and how it's being reported. I'm not so sure.
A church up the street has a big sign hung on the side of it: "The Rapture"
No other reference or context provided with the sign...
Maybe it's their equivalent of a "Going Out of Business" sign?
The cat is actually quite good (minimalist jazz/slasher soundtrack style) and cute as hell.
Am I the only one who thinks Paulson looks like a villain from a James Bond movie?
Now the bailout bill that got bum-rushed through Congress has a new name:
The George W. Bush Slush Fund
"Thanks 700 billion all you suckers still paying taxes!| - the voice of W if he were literate
"When the going gets weird, the weird turn pro."
Hunter S. Thompson
Post new comment