Bailout Bonanza

[chequita guevara]

Originally posted by Oerdin
I don't like the bailout as written since it lacks consumer/home owner protections but we do need some kind of bailout as right now we're in a credit crunch which will cause lots of economic problems.

So re-establish the Bank of the United States. It can provide the necessary credit and let the gamblers who lost their money go down on the Titanic. No need to lock the lower classes below decks.

[Jon Miller]

Originally posted by Comrade Snuggles


So re-establish the Bank of the United States. It can provide the necessary credit and let the gamblers who lost their money go down on the Titanic. No need to lock the lower classes below decks.

I actually think this is the best plan. If you don't like the idea of a Bank of the United States, than give it a limited time frame... like 10 years or 5 years.

JM

[Zkribbler]

Originally posted by Krill
Are house prices going to fall? And by how much, if they are?

Housing prices will fall because it will be more difficult to get home loans, which will impact demand.

[GePap]

What re the current price-earning ratios for stocks? Aren't they still way above historical averages?

As for home values, homes were certainly not at prices in which the Average american could afford a house without going into a huge amount of debt compared to their income.

[Krill]

Well, that can play into my hands...

[aneeshm]

Originally posted by Zkribbler


Housing prices will fall because it will be more difficult to get home loans, which will impact demand.

It's an accelerating downward spiral from here on, isn't it?

[DanS]

The S&P finally settled down 8.79%.

[Impaler[WrG]]

So re-establish the Bank of the United States. It can provide the necessary credit and let the gamblers who lost their money go down on the Titanic. No need to lock the lower classes below decks.

The Fed is the US central Bank, its private just like the BUS was. The problems were facing stem from management failures or possibly intentional mismanagement by the Fed. Fixing or abolishing the Fed is whats needed.

[Kidlicious]

I say let the banking system fall and rebuild the economy on something else. What else, I'm not sure, maybe manufacturing and other services.

[DanS]

Originally posted by Colonâ„¢
Oh ****, this is a monumental mistake.

It may prove to be a monumental mistake, but Paulson and Bernanke sometimes appear to be overmanaging this deleveraging phase.

After all, the stock market isn't even down 30% from its highs. Meanwhile, the banking system is working through its issues using the rules put in place during the Great Depression.

[Jon Miller]

My congressman voted against it. He might get my vote in November (he is a republican).

JM

[mrmitchell]

Bailout fails! Dow down 7%! Spend all your money while it's still worth anything!

After all, the stock market isn't even down 30% from its highs

Will be tomorrow. S&P500 and NASDAQ are right under and right over 30% down from their 52wk highs.

It's very hopeful to believe that yes, they will push some kind of bailout through no matter what, but recent Congresses haven't set a good track record for doing the smart thing. In my eyes this is about as close as you can get to all bets being off. The free market will "correct" itself and, looking ahead, the carnage doesn't look Depression-scale, but enough to make us all feel it.

But it would contribute to the problem if we all actually ran out and panicked. I have faith in any assets me or my family is involved in. But it's about time for anybody in power right now to do something courageous. (And by courageous, I don't mean a thinly veiled grab for power.)

[Colonâ„¢]

Originally posted by DanS


It may prove to be a monumental mistake, but Paulson and Bernanke sometimes appear to be overmanaging this deleveraging phase.

After all, the stock market isn't even down 30% from its highs. Meanwhile, the banking system is working through its issues using the rules put in place during the Great Depression.

Compare the crisis to a firestorm. What the present "overmanagement" has been amounting to is that they dose the flames in one corner, only to see it expand elsewhere. Paulson's plan may hardly have been perfect but it was an attempt to put out the fire in a systematic approach. As it stands now the firestorm needs to get a low worse before such an approach will be adopted, which implies the costs will be much higher as well.
$700 billion or 5% of GDP, assuming this would have been the ultimate net costs (which was improbable), is actually fairly cheap compared to the costs of resolving bank crises elsewhere in the past. Japan spend a quarter of its GDP to get things back in order, exactly because it put off action for so long.

[Jon Miller]

What was long for Japan? 5 days? 7 days? 40 days?

I am interested.

JM

[OneFootInTheGrave]

more like 10 years

but I think a (hopefully better) plan will be here if not tomorrow, than by the end of the week...