Bailout doubters may want to read this

[SD Realtor]

The more articles I read like this, the more I believe our tax money will be used to bailout the mess… By the time it is all said and done I believe 12 figures.

Very interesting WSJ article.

http://online.wsj.com/article/SB120536045253831681.html?mod=yahoo_hs

[cashflow]

Best quote in this, ‘what’s unthinkable today may be seen the best of bad alternatives tomorrow’. Doesn’t that summerize the situation!

I think this is the biggest unknown in housing today; what is the government going to do and how will it impact the market? They will do everything they can to intervene in bank collapse or total market collapse (like the piggs on here are all predicting is possible). They have many more tools than they did in the depression era…so depression, just don’t see it…recession definitely. Implementing these type of bailout programs seems to be even trickier than inventing them. All I know is this type of rhetoric came too late for many many homeowners who have already been kicked out or are in the process…just doesn’t seem like they can implement anything fast enough (gov. isn’t known for it speed and agility to react).

[SD Realtor]

I pretty much share your assessment. It just bums me out for alot of reasons. I agree that this will not stop the cycle but it may indeed slow things down and it may provide an artificially induced floor. As someone who has been working hard to save alot of money this irritates me. Oh yeah and watching my tax money get split up between bailout wall street lenders, and FBS, well that is just a cherry on top of the sundae.

SD Realtor

[SD Realtor]

I pretty much share your assessment. It just bums me out for alot of reasons. I agree that this will not stop the cycle but it may indeed slow things down and it may provide an artificially induced floor. As someone who has been working hard to save alot of money this irritates me. Oh yeah and watching my tax money get split up between bailout wall street lenders, and FBS, well that is just a cherry on top of the sundae.

SD Realtor

[SD Realtor]

I pretty much share your assessment. It just bums me out for alot of reasons. I agree that this will not stop the cycle but it may indeed slow things down and it may provide an artificially induced floor. As someone who has been working hard to save alot of money this irritates me. Oh yeah and watching my tax money get split up between bailout wall street lenders, and FBS, well that is just a cherry on top of the sundae.

SD Realtor

[SD Realtor]

I pretty much share your assessment. It just bums me out for alot of reasons. I agree that this will not stop the cycle but it may indeed slow things down and it may provide an artificially induced floor. As someone who has been working hard to save alot of money this irritates me. Oh yeah and watching my tax money get split up between bailout wall street lenders, and FBS, well that is just a cherry on top of the sundae.

SD Realtor

[SD Realtor]

I pretty much share your assessment. It just bums me out for alot of reasons. I agree that this will not stop the cycle but it may indeed slow things down and it may provide an artificially induced floor. As someone who has been working hard to save alot of money this irritates me. Oh yeah and watching my tax money get split up between bailout wall street lenders, and FBS, well that is just a cherry on top of the sundae.

SD Realtor

[cashflow]

Best quote in this, ‘what’s unthinkable today may be seen the best of bad alternatives tomorrow’. Doesn’t that summerize the situation!

I think this is the biggest unknown in housing today; what is the government going to do and how will it impact the market? They will do everything they can to intervene in bank collapse or total market collapse (like the piggs on here are all predicting is possible). They have many more tools than they did in the depression era…so depression, just don’t see it…recession definitely. Implementing these type of bailout programs seems to be even trickier than inventing them. All I know is this type of rhetoric came too late for many many homeowners who have already been kicked out or are in the process…just doesn’t seem like they can implement anything fast enough (gov. isn’t known for it speed and agility to react).

[cashflow]

Best quote in this, ‘what’s unthinkable today may be seen the best of bad alternatives tomorrow’. Doesn’t that summerize the situation!

I think this is the biggest unknown in housing today; what is the government going to do and how will it impact the market? They will do everything they can to intervene in bank collapse or total market collapse (like the piggs on here are all predicting is possible). They have many more tools than they did in the depression era…so depression, just don’t see it…recession definitely. Implementing these type of bailout programs seems to be even trickier than inventing them. All I know is this type of rhetoric came too late for many many homeowners who have already been kicked out or are in the process…just doesn’t seem like they can implement anything fast enough (gov. isn’t known for it speed and agility to react).

[cashflow]

Best quote in this, ‘what’s unthinkable today may be seen the best of bad alternatives tomorrow’. Doesn’t that summerize the situation!

I think this is the biggest unknown in housing today; what is the government going to do and how will it impact the market? They will do everything they can to intervene in bank collapse or total market collapse (like the piggs on here are all predicting is possible). They have many more tools than they did in the depression era…so depression, just don’t see it…recession definitely. Implementing these type of bailout programs seems to be even trickier than inventing them. All I know is this type of rhetoric came too late for many many homeowners who have already been kicked out or are in the process…just doesn’t seem like they can implement anything fast enough (gov. isn’t known for it speed and agility to react).

[cashflow]

Best quote in this, ‘what’s unthinkable today may be seen the best of bad alternatives tomorrow’. Doesn’t that summerize the situation!

I think this is the biggest unknown in housing today; what is the government going to do and how will it impact the market? They will do everything they can to intervene in bank collapse or total market collapse (like the piggs on here are all predicting is possible). They have many more tools than they did in the depression era…so depression, just don’t see it…recession definitely. Implementing these type of bailout programs seems to be even trickier than inventing them. All I know is this type of rhetoric came too late for many many homeowners who have already been kicked out or are in the process…just doesn’t seem like they can implement anything fast enough (gov. isn’t known for it speed and agility to react).

[capeman]

This won't happen…

 

There are two very relevant statements in there that contradict the argument and put a nail in the idea.

1) The Fed is trading some U.S. Treasurys for mortgage-backed securities to arrest the decline in prices that is pushing up mortgage-interest rates.

These are only temporary trades or swaps. The Fed cannot permanently trade U.S. Treasuries representing it's own assets for junk securities. The bond market would make them pay dearly for this. The swap occurs since the U.S. Treasuries need to be traded back to the Fed at maturity and then the Fed can reinitiate the trade again (likely accepting securities backed by assets of even less value).

2) One big caveat: This works only if assets truly are worth more tomorrow than they'll fetch today.

Who at this point thinks that any lending banks assets will be worth more in the near future than they are today? (Hint: That's why the S&P and Banking Index have been doing so well over the last year!) An even bigger and easier question at this point… Who thinks that the assets backing all of this paper being passed around will be worth more tomorrow than currently? Anyone looking at an ABX, CMBX or CDO spread chart or Case/Schiller HPI can answer this… actually I don't think anyone even has to look anymore!!

The Fed and the Govt' cannot bailout the housing and credit markets at this point without BKing both entities and causing post WWI German-style inflation. Not going to happen! 😉

 

 

[capeman]

This won't happen…

 

There are two very relevant statements in there that contradict the argument and put a nail in the idea.

1) The Fed is trading some U.S. Treasurys for mortgage-backed securities to arrest the decline in prices that is pushing up mortgage-interest rates.

These are only temporary trades or swaps. The Fed cannot permanently trade U.S. Treasuries representing it's own assets for junk securities. The bond market would make them pay dearly for this. The swap occurs since the U.S. Treasuries need to be traded back to the Fed at maturity and then the Fed can reinitiate the trade again (likely accepting securities backed by assets of even less value).

2) One big caveat: This works only if assets truly are worth more tomorrow than they'll fetch today.

Who at this point thinks that any lending banks assets will be worth more in the near future than they are today? (Hint: That's why the S&P and Banking Index have been doing so well over the last year!) An even bigger and easier question at this point… Who thinks that the assets backing all of this paper being passed around will be worth more tomorrow than currently? Anyone looking at an ABX, CMBX or CDO spread chart or Case/Schiller HPI can answer this… actually I don't think anyone even has to look anymore!!

The Fed and the Govt' cannot bailout the housing and credit markets at this point without BKing both entities and causing post WWI German-style inflation. Not going to happen! 😉

 

 

[capeman]

This won't happen…

 

There are two very relevant statements in there that contradict the argument and put a nail in the idea.

1) The Fed is trading some U.S. Treasurys for mortgage-backed securities to arrest the decline in prices that is pushing up mortgage-interest rates.

These are only temporary trades or swaps. The Fed cannot permanently trade U.S. Treasuries representing it's own assets for junk securities. The bond market would make them pay dearly for this. The swap occurs since the U.S. Treasuries need to be traded back to the Fed at maturity and then the Fed can reinitiate the trade again (likely accepting securities backed by assets of even less value).

2) One big caveat: This works only if assets truly are worth more tomorrow than they'll fetch today.

Who at this point thinks that any lending banks assets will be worth more in the near future than they are today? (Hint: That's why the S&P and Banking Index have been doing so well over the last year!) An even bigger and easier question at this point… Who thinks that the assets backing all of this paper being passed around will be worth more tomorrow than currently? Anyone looking at an ABX, CMBX or CDO spread chart or Case/Schiller HPI can answer this… actually I don't think anyone even has to look anymore!!

The Fed and the Govt' cannot bailout the housing and credit markets at this point without BKing both entities and causing post WWI German-style inflation. Not going to happen! 😉

 

 

[capeman]

This won't happen…

 

There are two very relevant statements in there that contradict the argument and put a nail in the idea.

1) The Fed is trading some U.S. Treasurys for mortgage-backed securities to arrest the decline in prices that is pushing up mortgage-interest rates.

These are only temporary trades or swaps. The Fed cannot permanently trade U.S. Treasuries representing it's own assets for junk securities. The bond market would make them pay dearly for this. The swap occurs since the U.S. Treasuries need to be traded back to the Fed at maturity and then the Fed can reinitiate the trade again (likely accepting securities backed by assets of even less value).

2) One big caveat: This works only if assets truly are worth more tomorrow than they'll fetch today.

Who at this point thinks that any lending banks assets will be worth more in the near future than they are today? (Hint: That's why the S&P and Banking Index have been doing so well over the last year!) An even bigger and easier question at this point… Who thinks that the assets backing all of this paper being passed around will be worth more tomorrow than currently? Anyone looking at an ABX, CMBX or CDO spread chart or Case/Schiller HPI can answer this… actually I don't think anyone even has to look anymore!!

The Fed and the Govt' cannot bailout the housing and credit markets at this point without BKing both entities and causing post WWI German-style inflation. Not going to happen! 😉

 

 

[capeman]

This won't happen…

 

There are two very relevant statements in there that contradict the argument and put a nail in the idea.

1) The Fed is trading some U.S. Treasurys for mortgage-backed securities to arrest the decline in prices that is pushing up mortgage-interest rates.

These are only temporary trades or swaps. The Fed cannot permanently trade U.S. Treasuries representing it's own assets for junk securities. The bond market would make them pay dearly for this. The swap occurs since the U.S. Treasuries need to be traded back to the Fed at maturity and then the Fed can reinitiate the trade again (likely accepting securities backed by assets of even less value).

2) One big caveat: This works only if assets truly are worth more tomorrow than they'll fetch today.

Who at this point thinks that any lending banks assets will be worth more in the near future than they are today? (Hint: That's why the S&P and Banking Index have been doing so well over the last year!) An even bigger and easier question at this point… Who thinks that the assets backing all of this paper being passed around will be worth more tomorrow than currently? Anyone looking at an ABX, CMBX or CDO spread chart or Case/Schiller HPI can answer this… actually I don't think anyone even has to look anymore!!

The Fed and the Govt' cannot bailout the housing and credit markets at this point without BKing both entities and causing post WWI German-style inflation. Not going to happen! 😉

 

 

[TheBreeze]

I think the bailout has already begun. The Federal Home Loan Banks now have $822 billion in crappy mortgages:

http://emac.blogs.foxbusiness.com/2008/02/25/the-richie-riches-of-the-housing-mess/

Supposedly, the mortgages are just being held as collateral, but somehow I think the taxpayers are going to end up eating those puppies in the end.

Add the $800 billion to the $200 billion the Fed is willing to take in and we’re well on our way to a trillion dollar bailout. What the hell, we’re on pace to blow a couple trillion in Iraq, why not blow a couple trillion more to artificailly inflate housing prices?

The dollar’s down another percent or so and gold’s up again:

http://www.cnbc.com/id/15839171/site/14081545/

It looks like we’re going to go through a pretty nasty period of stagflation. When all is said and done, savers will be punished again (with the dollar collapse) and the speculators will blow another bubble (it looks like commodities this time). Good times.

At least we can take solace in the fact that that Scholes guy that the government appears to be listening to was the father of what got us into this mess in the first place (portfolio insurance):

http://www.portfolio.com/news-markets/national-news/portfolio/2008/02/19/Black-Scholes-Pricing-Model

And to top it all off, the one thing you’d think would be in infinite supply (internet addresses) are supposedly going to be all gone by 2010:

http://it.slashdot.org/article.pl?sid=08/02/22/1348210

What a wacky, wacky world we live in.

[kewp]

And to top it all off, the one thing you’d think would be in infinite supply (internet addresses) are supposedly going to be all gone by 2010:

Who would think there are an infinite supply of 32 bit integers?

[TheBreeze]

Who would think there are an infinite supply of 32 bit integers?

Allow me to re-phrase: Who woulda’ thunk that we couldn’t just add more internet addresses as needed? I mean, certainly Internet addresses are easier to create than say something like oil right? All you do is add a few more bits, right? If you’d have bet the inventor of the Internet (Al Gore or that other guy) back in the mid-90s that we’d run out of Internet addresses before we ran out of oil, what kind of odds do you think you would have gotten?

In any event, I thank you for the hubris.

[patientlywaiting]

So far I agree with capeman. The Fed can’t bailout the banks on its own. It will take an act of Congress for that. They’ll have to create RTC#2. We’re not there yet. We may get there later.

Perhaps a re-nationalization of Fannie Mae. Shareholders will be slaughtered.

[kev374]

This is why we DO NOT need democrats in the white house. They will have a huge bailout and tax those of us who have worked hard to earn the money that we richly deserve. Tax the responsible and hand it to the bums who not only chose to live beyond their means but then complain that they are not continuing to get the free ride that they have recieved in the past 2-3 yrs of their 0 down negAm mortgages!

[jpinpb]

Not too smart w/this kind of thing, but aren’t Dems for the little poor people and not big business. I would think the Reps will want to save big business banks and try to come out of it smelling good b/c they’re helping all those people losing their homes.

[jpinpb]

Not too smart w/this kind of thing, but aren’t Dems for the little poor people and not big business. I would think the Reps will want to save big business banks and try to come out of it smelling good b/c they’re helping all those people losing their homes.

[jpinpb]

Not too smart w/this kind of thing, but aren’t Dems for the little poor people and not big business. I would think the Reps will want to save big business banks and try to come out of it smelling good b/c they’re helping all those people losing their homes.

[jpinpb]

Not too smart w/this kind of thing, but aren’t Dems for the little poor people and not big business. I would think the Reps will want to save big business banks and try to come out of it smelling good b/c they’re helping all those people losing their homes.

[jpinpb]

Not too smart w/this kind of thing, but aren’t Dems for the little poor people and not big business. I would think the Reps will want to save big business banks and try to come out of it smelling good b/c they’re helping all those people losing their homes.

[patientlywaiting]

I disagree kev374. Republicans aren’t any better.

I personally would rather bail-out the FBs than bail-out the executives who made the bad decisions, and the shareholders who made the bad decisions to buy into companies run by bad executives.

We need to bail out the financial system to protect the American way of life. But shareholders and executives need to pay the financial price for their bad decisions. It’s moral hazard, stupid! (just the expression, don’t mean to say you’re stupid).

I don’t see a problem with Warren Buffett buying companies for pennies on the dollar or nationalizing Fannie Mae as the shareholders get wiped-out. That’s how Capitalism is supposed to work.

The FB homebuyers are at the bottom of the totem pole. Besides, if we don’t find a way to let the consumers consume again, then who will drive the economy?

Don’t worry, the FBs who opt for the bail-out programs to remain in their homes, will be paying for it for the next 30 years. It’s poetic justice.

[sdnerd]

I think at this point it’s obvious the government is going to do something, and that great unknown as to exactly what is unsettling.

Debt forgiveness, re-negotiating rates, major foreclosure prevention, etc. There are a lot of possible scenarios that could keep people in their homes, and create a pricing floor.

So while they can’t stop the train, and those who have already been run over are toast, I can see the government stepping in to slow it down.

If they are able to manage that, it could end up helping the more desirable locations, and higher end homes the most since they will be the last to have heavy decline in most markets. Lower and middle class get steamrolled, upper class gets saved in the nick of time? (Even though in many cases people buying these homes can’t wildly afford them)

And the part that has me concerned is, as a saver – keeping liquid funds these days is getting harder & harder. Where do you put it? Interest rates keep getting cut, stock market is volatile, and inflation is going up. The 5% high interest accounts are quickly going away, and soon it’ll be 2-3%. Once you tax that, and factor in inflation – say goodbye to the money.

Maybe we’ll all be on this board 5 years from now.. still waiting for those significant price declines in the nicer parts of town, watching our savings get eaten away, while a lot of people who overstretched live beyond their means via government intervention. Life isn’t fair and all that?

Maybe not – who knows. Someone wake me up when CV, RSF, La Jolla, or any of the other commonly desired locations has anything significant of a price drop that doesn’t get multiple offers the next day.

[sdnerd]

I think at this point it’s obvious the government is going to do something, and that great unknown as to exactly what is unsettling.

Debt forgiveness, re-negotiating rates, major foreclosure prevention, etc. There are a lot of possible scenarios that could keep people in their homes, and create a pricing floor.

So while they can’t stop the train, and those who have already been run over are toast, I can see the government stepping in to slow it down.

If they are able to manage that, it could end up helping the more desirable locations, and higher end homes the most since they will be the last to have heavy decline in most markets. Lower and middle class get steamrolled, upper class gets saved in the nick of time? (Even though in many cases people buying these homes can’t wildly afford them)

And the part that has me concerned is, as a saver – keeping liquid funds these days is getting harder & harder. Where do you put it? Interest rates keep getting cut, stock market is volatile, and inflation is going up. The 5% high interest accounts are quickly going away, and soon it’ll be 2-3%. Once you tax that, and factor in inflation – say goodbye to the money.

Maybe we’ll all be on this board 5 years from now.. still waiting for those significant price declines in the nicer parts of town, watching our savings get eaten away, while a lot of people who overstretched live beyond their means via government intervention. Life isn’t fair and all that?

Maybe not – who knows. Someone wake me up when CV, RSF, La Jolla, or any of the other commonly desired locations has anything significant of a price drop that doesn’t get multiple offers the next day.

[sdnerd]

I think at this point it’s obvious the government is going to do something, and that great unknown as to exactly what is unsettling.

Debt forgiveness, re-negotiating rates, major foreclosure prevention, etc. There are a lot of possible scenarios that could keep people in their homes, and create a pricing floor.

So while they can’t stop the train, and those who have already been run over are toast, I can see the government stepping in to slow it down.

If they are able to manage that, it could end up helping the more desirable locations, and higher end homes the most since they will be the last to have heavy decline in most markets. Lower and middle class get steamrolled, upper class gets saved in the nick of time? (Even though in many cases people buying these homes can’t wildly afford them)

And the part that has me concerned is, as a saver – keeping liquid funds these days is getting harder & harder. Where do you put it? Interest rates keep getting cut, stock market is volatile, and inflation is going up. The 5% high interest accounts are quickly going away, and soon it’ll be 2-3%. Once you tax that, and factor in inflation – say goodbye to the money.

Maybe we’ll all be on this board 5 years from now.. still waiting for those significant price declines in the nicer parts of town, watching our savings get eaten away, while a lot of people who overstretched live beyond their means via government intervention. Life isn’t fair and all that?

Maybe not – who knows. Someone wake me up when CV, RSF, La Jolla, or any of the other commonly desired locations has anything significant of a price drop that doesn’t get multiple offers the next day.

[sdnerd]

I think at this point it’s obvious the government is going to do something, and that great unknown as to exactly what is unsettling.

Debt forgiveness, re-negotiating rates, major foreclosure prevention, etc. There are a lot of possible scenarios that could keep people in their homes, and create a pricing floor.

So while they can’t stop the train, and those who have already been run over are toast, I can see the government stepping in to slow it down.

If they are able to manage that, it could end up helping the more desirable locations, and higher end homes the most since they will be the last to have heavy decline in most markets. Lower and middle class get steamrolled, upper class gets saved in the nick of time? (Even though in many cases people buying these homes can’t wildly afford them)

And the part that has me concerned is, as a saver – keeping liquid funds these days is getting harder & harder. Where do you put it? Interest rates keep getting cut, stock market is volatile, and inflation is going up. The 5% high interest accounts are quickly going away, and soon it’ll be 2-3%. Once you tax that, and factor in inflation – say goodbye to the money.

Maybe we’ll all be on this board 5 years from now.. still waiting for those significant price declines in the nicer parts of town, watching our savings get eaten away, while a lot of people who overstretched live beyond their means via government intervention. Life isn’t fair and all that?

Maybe not – who knows. Someone wake me up when CV, RSF, La Jolla, or any of the other commonly desired locations has anything significant of a price drop that doesn’t get multiple offers the next day.

[sdnerd]

I think at this point it’s obvious the government is going to do something, and that great unknown as to exactly what is unsettling.

Debt forgiveness, re-negotiating rates, major foreclosure prevention, etc. There are a lot of possible scenarios that could keep people in their homes, and create a pricing floor.

So while they can’t stop the train, and those who have already been run over are toast, I can see the government stepping in to slow it down.

If they are able to manage that, it could end up helping the more desirable locations, and higher end homes the most since they will be the last to have heavy decline in most markets. Lower and middle class get steamrolled, upper class gets saved in the nick of time? (Even though in many cases people buying these homes can’t wildly afford them)

And the part that has me concerned is, as a saver – keeping liquid funds these days is getting harder & harder. Where do you put it? Interest rates keep getting cut, stock market is volatile, and inflation is going up. The 5% high interest accounts are quickly going away, and soon it’ll be 2-3%. Once you tax that, and factor in inflation – say goodbye to the money.

Maybe we’ll all be on this board 5 years from now.. still waiting for those significant price declines in the nicer parts of town, watching our savings get eaten away, while a lot of people who overstretched live beyond their means via government intervention. Life isn’t fair and all that?

Maybe not – who knows. Someone wake me up when CV, RSF, La Jolla, or any of the other commonly desired locations has anything significant of a price drop that doesn’t get multiple offers the next day.

[patientlywaiting]

I disagree kev374. Republicans aren’t any better.

I personally would rather bail-out the FBs than bail-out the executives who made the bad decisions, and the shareholders who made the bad decisions to buy into companies run by bad executives.

We need to bail out the financial system to protect the American way of life. But shareholders and executives need to pay the financial price for their bad decisions. It’s moral hazard, stupid! (just the expression, don’t mean to say you’re stupid).

I don’t see a problem with Warren Buffett buying companies for pennies on the dollar or nationalizing Fannie Mae as the shareholders get wiped-out. That’s how Capitalism is supposed to work.

The FB homebuyers are at the bottom of the totem pole. Besides, if we don’t find a way to let the consumers consume again, then who will drive the economy?

Don’t worry, the FBs who opt for the bail-out programs to remain in their homes, will be paying for it for the next 30 years. It’s poetic justice.

[patientlywaiting]

I disagree kev374. Republicans aren’t any better.

I personally would rather bail-out the FBs than bail-out the executives who made the bad decisions, and the shareholders who made the bad decisions to buy into companies run by bad executives.

We need to bail out the financial system to protect the American way of life. But shareholders and executives need to pay the financial price for their bad decisions. It’s moral hazard, stupid! (just the expression, don’t mean to say you’re stupid).

I don’t see a problem with Warren Buffett buying companies for pennies on the dollar or nationalizing Fannie Mae as the shareholders get wiped-out. That’s how Capitalism is supposed to work.

The FB homebuyers are at the bottom of the totem pole. Besides, if we don’t find a way to let the consumers consume again, then who will drive the economy?

Don’t worry, the FBs who opt for the bail-out programs to remain in their homes, will be paying for it for the next 30 years. It’s poetic justice.

[patientlywaiting]

I disagree kev374. Republicans aren’t any better.

I personally would rather bail-out the FBs than bail-out the executives who made the bad decisions, and the shareholders who made the bad decisions to buy into companies run by bad executives.

We need to bail out the financial system to protect the American way of life. But shareholders and executives need to pay the financial price for their bad decisions. It’s moral hazard, stupid! (just the expression, don’t mean to say you’re stupid).

I don’t see a problem with Warren Buffett buying companies for pennies on the dollar or nationalizing Fannie Mae as the shareholders get wiped-out. That’s how Capitalism is supposed to work.

The FB homebuyers are at the bottom of the totem pole. Besides, if we don’t find a way to let the consumers consume again, then who will drive the economy?

Don’t worry, the FBs who opt for the bail-out programs to remain in their homes, will be paying for it for the next 30 years. It’s poetic justice.

[patientlywaiting]

I disagree kev374. Republicans aren’t any better.

I personally would rather bail-out the FBs than bail-out the executives who made the bad decisions, and the shareholders who made the bad decisions to buy into companies run by bad executives.

We need to bail out the financial system to protect the American way of life. But shareholders and executives need to pay the financial price for their bad decisions. It’s moral hazard, stupid! (just the expression, don’t mean to say you’re stupid).

I don’t see a problem with Warren Buffett buying companies for pennies on the dollar or nationalizing Fannie Mae as the shareholders get wiped-out. That’s how Capitalism is supposed to work.

The FB homebuyers are at the bottom of the totem pole. Besides, if we don’t find a way to let the consumers consume again, then who will drive the economy?

Don’t worry, the FBs who opt for the bail-out programs to remain in their homes, will be paying for it for the next 30 years. It’s poetic justice.

[kev374]

This is why we DO NOT need democrats in the white house. They will have a huge bailout and tax those of us who have worked hard to earn the money that we richly deserve. Tax the responsible and hand it to the bums who not only chose to live beyond their means but then complain that they are not continuing to get the free ride that they have recieved in the past 2-3 yrs of their 0 down negAm mortgages!

[kev374]

This is why we DO NOT need democrats in the white house. They will have a huge bailout and tax those of us who have worked hard to earn the money that we richly deserve. Tax the responsible and hand it to the bums who not only chose to live beyond their means but then complain that they are not continuing to get the free ride that they have recieved in the past 2-3 yrs of their 0 down negAm mortgages!

[kev374]

This is why we DO NOT need democrats in the white house. They will have a huge bailout and tax those of us who have worked hard to earn the money that we richly deserve. Tax the responsible and hand it to the bums who not only chose to live beyond their means but then complain that they are not continuing to get the free ride that they have recieved in the past 2-3 yrs of their 0 down negAm mortgages!

[kev374]

This is why we DO NOT need democrats in the white house. They will have a huge bailout and tax those of us who have worked hard to earn the money that we richly deserve. Tax the responsible and hand it to the bums who not only chose to live beyond their means but then complain that they are not continuing to get the free ride that they have recieved in the past 2-3 yrs of their 0 down negAm mortgages!

[patientlywaiting]

So far I agree with capeman. The Fed can’t bailout the banks on its own. It will take an act of Congress for that. They’ll have to create RTC#2. We’re not there yet. We may get there later.

Perhaps a re-nationalization of Fannie Mae. Shareholders will be slaughtered.

[patientlywaiting]

So far I agree with capeman. The Fed can’t bailout the banks on its own. It will take an act of Congress for that. They’ll have to create RTC#2. We’re not there yet. We may get there later.

Perhaps a re-nationalization of Fannie Mae. Shareholders will be slaughtered.

[patientlywaiting]

So far I agree with capeman. The Fed can’t bailout the banks on its own. It will take an act of Congress for that. They’ll have to create RTC#2. We’re not there yet. We may get there later.

Perhaps a re-nationalization of Fannie Mae. Shareholders will be slaughtered.

[patientlywaiting]

So far I agree with capeman. The Fed can’t bailout the banks on its own. It will take an act of Congress for that. They’ll have to create RTC#2. We’re not there yet. We may get there later.

Perhaps a re-nationalization of Fannie Mae. Shareholders will be slaughtered.

[TheBreeze]

Who would think there are an infinite supply of 32 bit integers?

Allow me to re-phrase: Who woulda’ thunk that we couldn’t just add more internet addresses as needed? I mean, certainly Internet addresses are easier to create than say something like oil right? All you do is add a few more bits, right? If you’d have bet the inventor of the Internet (Al Gore or that other guy) back in the mid-90s that we’d run out of Internet addresses before we ran out of oil, what kind of odds do you think you would have gotten?

In any event, I thank you for the hubris.

[TheBreeze]

Who would think there are an infinite supply of 32 bit integers?

Allow me to re-phrase: Who woulda’ thunk that we couldn’t just add more internet addresses as needed? I mean, certainly Internet addresses are easier to create than say something like oil right? All you do is add a few more bits, right? If you’d have bet the inventor of the Internet (Al Gore or that other guy) back in the mid-90s that we’d run out of Internet addresses before we ran out of oil, what kind of odds do you think you would have gotten?

In any event, I thank you for the hubris.

[TheBreeze]

Who would think there are an infinite supply of 32 bit integers?

Allow me to re-phrase: Who woulda’ thunk that we couldn’t just add more internet addresses as needed? I mean, certainly Internet addresses are easier to create than say something like oil right? All you do is add a few more bits, right? If you’d have bet the inventor of the Internet (Al Gore or that other guy) back in the mid-90s that we’d run out of Internet addresses before we ran out of oil, what kind of odds do you think you would have gotten?

In any event, I thank you for the hubris.

[TheBreeze]

Who would think there are an infinite supply of 32 bit integers?

Allow me to re-phrase: Who woulda’ thunk that we couldn’t just add more internet addresses as needed? I mean, certainly Internet addresses are easier to create than say something like oil right? All you do is add a few more bits, right? If you’d have bet the inventor of the Internet (Al Gore or that other guy) back in the mid-90s that we’d run out of Internet addresses before we ran out of oil, what kind of odds do you think you would have gotten?

In any event, I thank you for the hubris.

[kewp]

And to top it all off, the one thing you’d think would be in infinite supply (internet addresses) are supposedly going to be all gone by 2010:

Who would think there are an infinite supply of 32 bit integers?

[kewp]

And to top it all off, the one thing you’d think would be in infinite supply (internet addresses) are supposedly going to be all gone by 2010:

Who would think there are an infinite supply of 32 bit integers?

[kewp]

And to top it all off, the one thing you’d think would be in infinite supply (internet addresses) are supposedly going to be all gone by 2010:

Who would think there are an infinite supply of 32 bit integers?

[kewp]

And to top it all off, the one thing you’d think would be in infinite supply (internet addresses) are supposedly going to be all gone by 2010:

Who would think there are an infinite supply of 32 bit integers?

[kewp]

dupe deleted

[kewp]

dupe deleted

[kewp]

dupe deleted

[kewp]

dupe deleted

[kewp]

dupe deleted

[TheBreeze]

I think the bailout has already begun. The Federal Home Loan Banks now have $822 billion in crappy mortgages:

http://emac.blogs.foxbusiness.com/2008/02/25/the-richie-riches-of-the-housing-mess/

Supposedly, the mortgages are just being held as collateral, but somehow I think the taxpayers are going to end up eating those puppies in the end.

Add the $800 billion to the $200 billion the Fed is willing to take in and we’re well on our way to a trillion dollar bailout. What the hell, we’re on pace to blow a couple trillion in Iraq, why not blow a couple trillion more to artificailly inflate housing prices?

The dollar’s down another percent or so and gold’s up again:

http://www.cnbc.com/id/15839171/site/14081545/

It looks like we’re going to go through a pretty nasty period of stagflation. When all is said and done, savers will be punished again (with the dollar collapse) and the speculators will blow another bubble (it looks like commodities this time). Good times.

At least we can take solace in the fact that that Scholes guy that the government appears to be listening to was the father of what got us into this mess in the first place (portfolio insurance):

http://www.portfolio.com/news-markets/national-news/portfolio/2008/02/19/Black-Scholes-Pricing-Model

And to top it all off, the one thing you’d think would be in infinite supply (internet addresses) are supposedly going to be all gone by 2010:

http://it.slashdot.org/article.pl?sid=08/02/22/1348210

What a wacky, wacky world we live in.

[TheBreeze]

I think the bailout has already begun. The Federal Home Loan Banks now have $822 billion in crappy mortgages:

http://emac.blogs.foxbusiness.com/2008/02/25/the-richie-riches-of-the-housing-mess/

Supposedly, the mortgages are just being held as collateral, but somehow I think the taxpayers are going to end up eating those puppies in the end.

Add the $800 billion to the $200 billion the Fed is willing to take in and we’re well on our way to a trillion dollar bailout. What the hell, we’re on pace to blow a couple trillion in Iraq, why not blow a couple trillion more to artificailly inflate housing prices?

The dollar’s down another percent or so and gold’s up again:

http://www.cnbc.com/id/15839171/site/14081545/

It looks like we’re going to go through a pretty nasty period of stagflation. When all is said and done, savers will be punished again (with the dollar collapse) and the speculators will blow another bubble (it looks like commodities this time). Good times.

At least we can take solace in the fact that that Scholes guy that the government appears to be listening to was the father of what got us into this mess in the first place (portfolio insurance):

http://www.portfolio.com/news-markets/national-news/portfolio/2008/02/19/Black-Scholes-Pricing-Model

And to top it all off, the one thing you’d think would be in infinite supply (internet addresses) are supposedly going to be all gone by 2010:

http://it.slashdot.org/article.pl?sid=08/02/22/1348210

What a wacky, wacky world we live in.

[TheBreeze]

I think the bailout has already begun. The Federal Home Loan Banks now have $822 billion in crappy mortgages:

http://emac.blogs.foxbusiness.com/2008/02/25/the-richie-riches-of-the-housing-mess/

Supposedly, the mortgages are just being held as collateral, but somehow I think the taxpayers are going to end up eating those puppies in the end.

Add the $800 billion to the $200 billion the Fed is willing to take in and we’re well on our way to a trillion dollar bailout. What the hell, we’re on pace to blow a couple trillion in Iraq, why not blow a couple trillion more to artificailly inflate housing prices?

The dollar’s down another percent or so and gold’s up again:

http://www.cnbc.com/id/15839171/site/14081545/

It looks like we’re going to go through a pretty nasty period of stagflation. When all is said and done, savers will be punished again (with the dollar collapse) and the speculators will blow another bubble (it looks like commodities this time). Good times.

At least we can take solace in the fact that that Scholes guy that the government appears to be listening to was the father of what got us into this mess in the first place (portfolio insurance):

http://www.portfolio.com/news-markets/national-news/portfolio/2008/02/19/Black-Scholes-Pricing-Model

And to top it all off, the one thing you’d think would be in infinite supply (internet addresses) are supposedly going to be all gone by 2010:

http://it.slashdot.org/article.pl?sid=08/02/22/1348210

What a wacky, wacky world we live in.

[TheBreeze]

I think the bailout has already begun. The Federal Home Loan Banks now have $822 billion in crappy mortgages:

http://emac.blogs.foxbusiness.com/2008/02/25/the-richie-riches-of-the-housing-mess/

Supposedly, the mortgages are just being held as collateral, but somehow I think the taxpayers are going to end up eating those puppies in the end.

Add the $800 billion to the $200 billion the Fed is willing to take in and we’re well on our way to a trillion dollar bailout. What the hell, we’re on pace to blow a couple trillion in Iraq, why not blow a couple trillion more to artificailly inflate housing prices?

The dollar’s down another percent or so and gold’s up again:

http://www.cnbc.com/id/15839171/site/14081545/

It looks like we’re going to go through a pretty nasty period of stagflation. When all is said and done, savers will be punished again (with the dollar collapse) and the speculators will blow another bubble (it looks like commodities this time). Good times.

At least we can take solace in the fact that that Scholes guy that the government appears to be listening to was the father of what got us into this mess in the first place (portfolio insurance):

http://www.portfolio.com/news-markets/national-news/portfolio/2008/02/19/Black-Scholes-Pricing-Model

And to top it all off, the one thing you’d think would be in infinite supply (internet addresses) are supposedly going to be all gone by 2010:

http://it.slashdot.org/article.pl?sid=08/02/22/1348210

What a wacky, wacky world we live in.

[Author]

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