Greenspan- You’ve got to be kidding!

[drunkle]

“they will have to reply this week to a request by U.S. banks that the banks each provide a $5 billion credit line for the fund.”

big. fat. lol. talk about extortion, i can’t imagine what the conditions of the “request” are…

edit:
the article is not on bloomberg’s site; your link is dead.

[Eugene]

Actually this statement is taken out of context.
Here’s what he is saying.

* Home prices must go down and housing sell-off must exhaust itself before this credit crisis resolves
* Government should not directly interfere with workings of free markets and must allow the system to cleanse itself
* IF there is a desire to reduce the stress among troubled homeowners, fiscal solution (giving away cash, presumably via tax cuts) is preferable to messing with free markets

[Eugene]

Actually this statement is taken out of context.
Here’s what he is saying.

* Home prices must go down and housing sell-off must exhaust itself before this credit crisis resolves
* Government should not directly interfere with workings of free markets and must allow the system to cleanse itself
* IF there is a desire to reduce the stress among troubled homeowners, fiscal solution (giving away cash, presumably via tax cuts) is preferable to messing with free markets

[Eugene]

Actually this statement is taken out of context.
Here’s what he is saying.

* Home prices must go down and housing sell-off must exhaust itself before this credit crisis resolves
* Government should not directly interfere with workings of free markets and must allow the system to cleanse itself
* IF there is a desire to reduce the stress among troubled homeowners, fiscal solution (giving away cash, presumably via tax cuts) is preferable to messing with free markets

[Eugene]

Actually this statement is taken out of context.
Here’s what he is saying.

* Home prices must go down and housing sell-off must exhaust itself before this credit crisis resolves
* Government should not directly interfere with workings of free markets and must allow the system to cleanse itself
* IF there is a desire to reduce the stress among troubled homeowners, fiscal solution (giving away cash, presumably via tax cuts) is preferable to messing with free markets

[Eugene]

Actually this statement is taken out of context.
Here’s what he is saying.

* Home prices must go down and housing sell-off must exhaust itself before this credit crisis resolves
* Government should not directly interfere with workings of free markets and must allow the system to cleanse itself
* IF there is a desire to reduce the stress among troubled homeowners, fiscal solution (giving away cash, presumably via tax cuts) is preferable to messing with free markets

[trex]

Are modest bailouts so bad?

I think most people should face the music.

But at some point, could it be so damaging for the economy, that we are all better off if *some* homeowners get a little help? I don’t mean that we pay off the mortgage for the receptionist who falsified documents and said s/he makes $300k/year. But if someone can afford a fixed rate with a little help, it might not be so bad.

If there is a TOTAL meltdown, we will ALL feel it.

[trex]

Are modest bailouts so bad?

I think most people should face the music.

But at some point, could it be so damaging for the economy, that we are all better off if *some* homeowners get a little help? I don’t mean that we pay off the mortgage for the receptionist who falsified documents and said s/he makes $300k/year. But if someone can afford a fixed rate with a little help, it might not be so bad.

If there is a TOTAL meltdown, we will ALL feel it.

[trex]

Are modest bailouts so bad?

I think most people should face the music.

But at some point, could it be so damaging for the economy, that we are all better off if *some* homeowners get a little help? I don’t mean that we pay off the mortgage for the receptionist who falsified documents and said s/he makes $300k/year. But if someone can afford a fixed rate with a little help, it might not be so bad.

If there is a TOTAL meltdown, we will ALL feel it.

[trex]

Are modest bailouts so bad?

I think most people should face the music.

But at some point, could it be so damaging for the economy, that we are all better off if *some* homeowners get a little help? I don’t mean that we pay off the mortgage for the receptionist who falsified documents and said s/he makes $300k/year. But if someone can afford a fixed rate with a little help, it might not be so bad.

If there is a TOTAL meltdown, we will ALL feel it.

[trex]

Are modest bailouts so bad?

I think most people should face the music.

But at some point, could it be so damaging for the economy, that we are all better off if *some* homeowners get a little help? I don’t mean that we pay off the mortgage for the receptionist who falsified documents and said s/he makes $300k/year. But if someone can afford a fixed rate with a little help, it might not be so bad.

If there is a TOTAL meltdown, we will ALL feel it.

[bsrsharma]

if *some* homeowners get a little help?

Actually, for anyone with that kind of financial distress, the best help is U.S. Bankruptcy Code that helps to wipe the slate clean and start all over. It is legal, humane and protects taxpayers. It mainly hurts stupid investors. The ex-homeowner gets out fairly unscathed. With millions of bankruptcies, it has already lost much of its stigma. It will almost become "fashionable", if another, say, 10 million people file.

BTW, that Bloomberg link works for me { but I use Linux! }

[bsrsharma]

if *some* homeowners get a little help?

Actually, for anyone with that kind of financial distress, the best help is U.S. Bankruptcy Code that helps to wipe the slate clean and start all over. It is legal, humane and protects taxpayers. It mainly hurts stupid investors. The ex-homeowner gets out fairly unscathed. With millions of bankruptcies, it has already lost much of its stigma. It will almost become "fashionable", if another, say, 10 million people file.

BTW, that Bloomberg link works for me { but I use Linux! }

[bsrsharma]

if *some* homeowners get a little help?

Actually, for anyone with that kind of financial distress, the best help is U.S. Bankruptcy Code that helps to wipe the slate clean and start all over. It is legal, humane and protects taxpayers. It mainly hurts stupid investors. The ex-homeowner gets out fairly unscathed. With millions of bankruptcies, it has already lost much of its stigma. It will almost become "fashionable", if another, say, 10 million people file.

BTW, that Bloomberg link works for me { but I use Linux! }

[bsrsharma]

if *some* homeowners get a little help?

Actually, for anyone with that kind of financial distress, the best help is U.S. Bankruptcy Code that helps to wipe the slate clean and start all over. It is legal, humane and protects taxpayers. It mainly hurts stupid investors. The ex-homeowner gets out fairly unscathed. With millions of bankruptcies, it has already lost much of its stigma. It will almost become "fashionable", if another, say, 10 million people file.

BTW, that Bloomberg link works for me { but I use Linux! }

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