Bailout Bonanza

[Colonâ„¢]

A current ad by Fortis:



...

[Colonâ„¢]

This just couldn't have been more fitting!

The Ramones - Here Today, Gone Tomorrow lyrics

Oh oh oh, oh oh oh
I love you
Oh oh oh, oh oh oh
I love you
I do, I do

But I told her why we just can't make it
I want you still but just can't take it
The time has come we oughta break it
Someone has to pay the price

Oh oh oh, oh oh oh
It's over
Oh oh oh, oh oh oh
It's true, it's true

And I think of times we were together
As time went on it seemed forever
But times have changed
Now things are better
Someone had to pay the price

[Zkribbler]

Originally posted by Kidicious
Yeah, I think that if this passes in any form, that it will be the last bailout, especially if the taxpayers don't get their money back, which I think is a real possibility.

It depends upon what you mean by "getting their money back."

They sure to get some money back because some of the mortages are worth something. There is a question as to how many are worth something and how much are they worth.

The Washington Post's financial expert Stepher Pearlstein guesstimates that the payback to the U.S. taxpayer will be plus-or-minus $200 billion. That is, we make make $200 billion on the original deal, or we may lose $200 billion -- or somewhere in between.

Since Pearlstein said that, a provision was inserted which grants the U.S. warrants in the companies using the deal. That way, if they go up in price, the U.S. can buy a chunk of the company for cheap.

There's no guaratee we'll break even (or better) on this deal. But there's a reasonable chance.

The prospects that way are a lot better than watching the credit markets grind to a halt and act like an anchor to the American & world economies.

[Kidlicious]

Originally posted by Zkribbler


It depends upon what you mean by "getting their money back."

They sure to get some money back because some of the mortages are worth something. There is a question as to how many are worth something and how much are they worth.

The Washington Post's financial expert Stepher Pearlstein guesstimates that the payback to the U.S. taxpayer will be plus-or-minus $200 billion. That is, we make make $200 billion on the original deal, or we may lose $200 billion -- or somewhere in between.

Since Pearlstein said that, a provision was inserted which grants the U.S. warrants in the companies using the deal. That way, if they go up in price, the U.S. can buy a chunk of the company for cheap.

There's no guaratee we'll break even (or better) on this deal. But there's a reasonable chance.

The prospects that way are a lot better than watching the credit markets grind to a halt and act like an anchor to the American & world economies.

I don't think a lot of people want to own failing corporations. Also, as a communist I hate to be the one to say this but I don't trust my government to make good investments in the private economy. They've already shown bad judgement.

I think you're wrong to assume that we are going to get a fair deal here. They aren't going to be tough with these guys. They aren't business people.

[Zkribbler]

Originally posted by Kidicious


I don't think a lot of people want to own failing corporations. Also, as a communist I hate to be the one to say this but I don't trust my government to make good investments in the private economy. They've already shown bad judgement.

I think you're wrong to assume that we are going to get a fair deal here. They aren't going to be tough with these guys. They aren't business people.

We are NOT going to get a fair deal. The decision here is whether the keep the credit markets moving, or to let credit dry up.

Business today runs on credit. A lot of individuals depend upon credit -- especially in buying cars, houses and other big-ticket items. We can let things shut down -- that's certainly an option -- but I don't wanna.

[Japher]

I thought a lot of larger companies you financial paper and other short term debt instruments to help cover operating expenses, like wages. That could be bad news for companies that aren't all to liquid with large workforces.

[chequita guevara]

Originally posted by Zkribbler
We are NOT going to get a fair deal. The decision here is whether the keep the credit markets moving, or to let credit dry up.

Business today runs on credit. A lot of individuals depend upon credit -- especially in buying cars, houses and other big-ticket items. We can let things shut down -- that's certainly an option -- but I don't wanna.

Sooner or later the piper has to be paid. The longer we wait to fix, and not paper over like the bailout does, the problem, the worse it's going to be when the bill comes due.

[Kidlicious]

Originally posted by Zkribbler


We are NOT going to get a fair deal. The decision here is whether the keep the credit markets moving, or to let credit dry up.

Business today runs on credit. A lot of individuals depend upon credit -- especially in buying cars, houses and other big-ticket items. We can let things shut down -- that's certainly an option -- but I don't wanna.

Sure but you've got to understand this is $700bn here. You can't just blow that off like it's nothing.

[Aeson]

I wonder what exactly the US Gov will be buying? It's not like it's spelled out. Remember that a lot of this crap are second mortgages... and they tend get jack **** in a foreclosure. I wouldn't put it past Paulson and his banker buddies to package up and dump all the zero's on the US Gov, keeping the performing assets and those with recoverable collateral for themselves.

It's not like they didn't already essentially rob shareholders of BSC, LEH, WM, WB, ect by not bailing them out, letting other firms (like GS, which just happens to be where Paulson was CEO...) take over assets for pennies (or less) on the dollar, and now saying it's going to be worth face value...

You don't hand $700bn to a thief or incompetent stooge... it really doesn't matter which way you look at it... and tell them to figure out how to spend it for you.

[DanS]

The reports of the Dollar's demise have been seriously exaggerated, it seems. Up 2.7% today against the Euro.

Yahoo! Finance now lists the yields on both the 3-month and 6-month treasuries as "N/A."

[Dinner]

Originally posted by DanS
Again, your gov'ts sure are being generous.

Like the US isn't? Uncle Sugar is going to make sure no banker is left behind.

[MarkG]

Originally posted by DanS
Yahoo! Finance now lists the yields on both the 3-month and 6-month treasuries as "N/A."

not sure if civilization will exist at that time i suppose

[Berzerker]

1) Housing bubble
2) Loan to value ratios out of whack
3) Bad loans securitized and sold by loan originator

Thats according to some guy named Martin Feldstein, a prof at Harvard on Charlie Rose now.

[Berzerker]

This guy is a director at AIG

[MarkG]

benjamin in panick