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It seems that way.
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Were you replying to my question Oerdin?Long time member @ Apolyton
Civilization player since the dawn of timeComment
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My best GUESS is no. The purpose of the rescue bill is to free up [presumably] our banks of illiquid assets [i.e. these stupid mortgage packages], so they can begin lending again. So I would think the bill will be targetted only at assets of U.S. banks.Originally posted by Lancer
Thanks Zkrib.
Is our tax money going to bail out foriegn banks that bought debt in the US?Comment
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Off course you will be bailing out everyone
95bn£ (just short of 200bn USD) just held by UK banks
I am pretty sure your taxpayer money is right now (or will be by the end of next week) subsidizing all the reckless investors in the world who invested in US toxic waste... this is the biggest pay off for mismanagement ever.. quite impressive
so banks/institutions which were risk averse and did not grow as much/produce as much profits over the last 10-20 year will now effectively be told that well... **** it - you should have done the same as well and Uncle Sam would buy waste from you... there are taxpayers after all who can pay it all off... this is the biggest state subsidiary ever... but in an egalitarian way US is subsidizing the whole world including us in Europe, (even the French) I am sure that no self-respecting Eurocom expected such generosity, of the Americans paying off our own incompetence
1990's we had real growth based on IT boom, than in 2001 the assets were artificially inflated via non existant rates to keep the bubble growing... now US is directly injecting 700bn (can bet will grow well over a trillion, or few, as it's a 10+ trillion market, if the value reduction is 10% or more... you foot the bill eventually... what is few % between friends, especially with the blank check Paulson is about to receive
) to continue... but eventually (I'll be generous and give it a decade) even the mighty US taxpayer will not be good enough to keep the castle standing... so instead of letting it crash in the natural cycle and recover... we are leaving it for later when the bubble will be even greater and wipeout stronger... ah well...
I'll be really suprised if this "rescue" will not hang around US future growth like a stone around the neck of a swimmer... stalling progress and slowly but surely drowning the economy...Socrates: "Good is That at which all things aim, If one knows what the good is, one will always do what is good." Brian: "Romanes eunt domus"
GW 2013: "and juistin bieber is gay with me and we have 10 kids we live in u.s.a in the white house with obama"Comment
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"My nation is the world, and my religion is to do good." --Thomas Paine
"The subject of onanism is inexhaustable." --Sigmund FreudComment
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:yes:Originally posted by Lancer
Were you replying to my question Oerdin?Try http://wordforge.net/index.php for discussion and debate.Comment
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Lots of good political theater this evening.
I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891Comment
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No one will answer my questions from post #27? Does that mean no one knows?
Try http://wordforge.net/index.php for discussion and debate.Comment
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WaMu (the largest savings and loan in the US) fails and is seized by the FDIC. JP Morgan to take over the bank.I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891Comment
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AP
NEW YORK -- The Wall Street Journal is reporting that JPMorgan Chase & Co. has struck a deal to acquire the deposits and some of the branches of Washington Mutual Inc., which has been battered by soured mortgages.
The paper, citing people familiar with the matter, says the deal brokered by the government will not impact the FDIC insurance fund.
The Seattle-based thrift, the nation's largest, has roughly $310 billion in assets and was searching for a lifeline after a credit-rating downgrade further raised questions about its future.
Calls to JPMorgan and WaMu spokesmen and federal regulators were not immediately returned.
Try http://wordforge.net/index.php for discussion and debate.Comment
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It is unclear at this time how it will not impact the FDIC insurance fund. I guess the bond holders will be the ones to take the full brunt of this failure.I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891Comment
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Seems to be a sale and not a failure. A distress sale but a sale none the less.Try http://wordforge.net/index.php for discussion and debate.Comment
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No, it's a failure, since liabilities are greater than assets. Since JP Morgan isn't making up the difference and the FDIC isn't making up the difference, I assume that means the bondholders are making up the difference -- by bankruptcy sooner or later.I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891Comment
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I would like to
create new, inflation adjusted, marginal tax rates:
45% at $300,000
50% at $500,000
75% at $10,000,000“It is no use trying to 'see through' first principles. If you see through everything, then everything is transparent. But a wholly transparent world is an invisible world. To 'see through' all things is the same as not to see.”
― C.S. Lewis, The Abolition of ManComment
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OK, listening to the press conference on Bloomberg...
JP Morgan is buying the bank, not the holding company. The holding company has $20 billion in unsecured liabilities and preferred stock. Left unsaid is what will happen with those liabilities, but you can bet that there is a bankruptcy in the offing for WaMu the holding company, with those liabilities and stock worthless.
JP Morgan will sell $8 billion in common stock in the morning.
Edit: JP Morgan is marking down WaMu's loan portfolio by $31 billion. So that means that WaMu was under water by $51 billion ($20 billion in the holding company plus $31 billion from the bank).
Last edited by DanS; September 25, 2008, 21:42.I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891Comment
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