Why the bailout wont work

[jpinpb]

So the banks don’t take a loss. The taxpayers do. This I understand. But what does it mean for housing prices? Further declines or stablization? Is the inventory the banks are holding on to going to be released to the market? Are the banks going to negotiate down loans and people will get to stay and diminish the inventory by keeping the people in them?

[barnaby33]

More than likely it means prices keep declining, but more slowly. We get Japan style decade plus of declining prices as the govt slows the pace of prices. Ripping of the band-aid hurts but price discovery occurs. This is an attempt to stop price discovery and prop up the banking system.

As a previous poster said, the banks aren’t going to charge back in and lend liberally again (without the cattle prod of govt up their asses.) That means for new purchases lending will continue to be tight. Maybe not as tight as it is right now, but not enough to stop the decline in prices.

[barnaby33]

More than likely it means prices keep declining, but more slowly. We get Japan style decade plus of declining prices as the govt slows the pace of prices. Ripping of the band-aid hurts but price discovery occurs. This is an attempt to stop price discovery and prop up the banking system.

As a previous poster said, the banks aren’t going to charge back in and lend liberally again (without the cattle prod of govt up their asses.) That means for new purchases lending will continue to be tight. Maybe not as tight as it is right now, but not enough to stop the decline in prices.

[barnaby33]

More than likely it means prices keep declining, but more slowly. We get Japan style decade plus of declining prices as the govt slows the pace of prices. Ripping of the band-aid hurts but price discovery occurs. This is an attempt to stop price discovery and prop up the banking system.

As a previous poster said, the banks aren’t going to charge back in and lend liberally again (without the cattle prod of govt up their asses.) That means for new purchases lending will continue to be tight. Maybe not as tight as it is right now, but not enough to stop the decline in prices.

[barnaby33]

More than likely it means prices keep declining, but more slowly. We get Japan style decade plus of declining prices as the govt slows the pace of prices. Ripping of the band-aid hurts but price discovery occurs. This is an attempt to stop price discovery and prop up the banking system.

As a previous poster said, the banks aren’t going to charge back in and lend liberally again (without the cattle prod of govt up their asses.) That means for new purchases lending will continue to be tight. Maybe not as tight as it is right now, but not enough to stop the decline in prices.

[barnaby33]

More than likely it means prices keep declining, but more slowly. We get Japan style decade plus of declining prices as the govt slows the pace of prices. Ripping of the band-aid hurts but price discovery occurs. This is an attempt to stop price discovery and prop up the banking system.

As a previous poster said, the banks aren’t going to charge back in and lend liberally again (without the cattle prod of govt up their asses.) That means for new purchases lending will continue to be tight. Maybe not as tight as it is right now, but not enough to stop the decline in prices.

[Anonymous]

Money will be made on both ends of the deal, but not by you or me or any taxpayers. We as a nation were just bent over a table so fast most people don’t realize how badly we were raped and lied to by our government.

While it sounds good to tell people that they might even make money when this is all over but the writing is on the wall. We are going broke and going broke fast. How people can trust any member of this government after this is beyond me, but trust them they will.

It’s time to vote the bastards out, all of them. But they won’t. People will happily argue as to who is the better candidate, McCain or Obama, when the truth is that neither one matters. The system is broken and beyond repair.

You are witnessing the vultures picking scrapes off the carcass of a dying economy.

[Anonymous]

Money will be made on both ends of the deal, but not by you or me or any taxpayers. We as a nation were just bent over a table so fast most people don’t realize how badly we were raped and lied to by our government.

While it sounds good to tell people that they might even make money when this is all over but the writing is on the wall. We are going broke and going broke fast. How people can trust any member of this government after this is beyond me, but trust them they will.

It’s time to vote the bastards out, all of them. But they won’t. People will happily argue as to who is the better candidate, McCain or Obama, when the truth is that neither one matters. The system is broken and beyond repair.

You are witnessing the vultures picking scrapes off the carcass of a dying economy.

[Anonymous]

Money will be made on both ends of the deal, but not by you or me or any taxpayers. We as a nation were just bent over a table so fast most people don’t realize how badly we were raped and lied to by our government.

While it sounds good to tell people that they might even make money when this is all over but the writing is on the wall. We are going broke and going broke fast. How people can trust any member of this government after this is beyond me, but trust them they will.

It’s time to vote the bastards out, all of them. But they won’t. People will happily argue as to who is the better candidate, McCain or Obama, when the truth is that neither one matters. The system is broken and beyond repair.

You are witnessing the vultures picking scrapes off the carcass of a dying economy.

[Anonymous]

Money will be made on both ends of the deal, but not by you or me or any taxpayers. We as a nation were just bent over a table so fast most people don’t realize how badly we were raped and lied to by our government.

While it sounds good to tell people that they might even make money when this is all over but the writing is on the wall. We are going broke and going broke fast. How people can trust any member of this government after this is beyond me, but trust them they will.

It’s time to vote the bastards out, all of them. But they won’t. People will happily argue as to who is the better candidate, McCain or Obama, when the truth is that neither one matters. The system is broken and beyond repair.

You are witnessing the vultures picking scrapes off the carcass of a dying economy.

[Anonymous]

Money will be made on both ends of the deal, but not by you or me or any taxpayers. We as a nation were just bent over a table so fast most people don’t realize how badly we were raped and lied to by our government.

While it sounds good to tell people that they might even make money when this is all over but the writing is on the wall. We are going broke and going broke fast. How people can trust any member of this government after this is beyond me, but trust them they will.

It’s time to vote the bastards out, all of them. But they won’t. People will happily argue as to who is the better candidate, McCain or Obama, when the truth is that neither one matters. The system is broken and beyond repair.

You are witnessing the vultures picking scrapes off the carcass of a dying economy.

[Author]

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