Rescue Plan released; What does it mean?

[OneFootInTheGrave]

Originally posted by Imran Siddiqui

not at all true, perhaps on more unfavourable terms, or actually paying attention now to whom are they lending, but the commercial debt industry will not be stopping

What happens when a bunch of banks fail and the ones still standing don't have any money to lend? Likely they'll be VERY conservative and invest in stable growth devices. They likely won't be lending much to anyone at all. That means forget it for most people looking to get a mortgage loan or car loan. And don't even begin to ask for a loan if you are a business looking to grow.

Not at all, we do have the government, and the rest of the industries still ... where there are people making money there will be credit available, just back to what it was in 1990's or so... with decent checks and making sure you can actually repay...

Homes might truly crash, but when they come to 50k average (I highly doubt that low, but you get the idea), they will all be bought up, and there will be credit available in spades for such properties, and also people who >will< be able to afford them... this is just a matter of a bubble bursting (a huge one thanks to nonexistant rates for most time since 2001 to prolong the 1990's bubble)... it will all come back... yes more banks going bust than ever before, but not all US economy is about finance... I'd be more worried if I was Belgium ... but they will survive too... as I think we will be overall a lot more resilient, and focused/able to deal with the consequences than they were in 1930's...

700bn throwaway to perpetrators would just dig us in further, so what is happening is actually good, as it prevents even worse later...

but before all that there will be a new deal very soon, but lets just hope it will be better than current version

[Lorizael]

Originally posted by Imran Siddiqui
Basically don't try to get a house or car loan anytime soon

I was wondering about this. I was thinking of buying a new car some time in February 2009. Is there any way to predict how the credit situation will be then? Will we still be reeling from this?

[Imran Siddiqui]

700bn throwaway to perpetrators

But it's not a throwaway. In fact most economists and financial people are saying it may make the US money in the long run.

where there are people making money there will be credit available

So you think, but when the financial markets fail, it dries up for even those making money. If nothing is done, at best it'll resemble Japan with its liquidity crisis. That's at best.

[Jon Miller]

Most the people saying that it will make the US money in the long run are the ones who need it to happen for their own financial futures.

JM

[DirtyMartini]

Originally posted by Jon Miller
Most the people saying that it will make the US money in the long run are the ones who need it to happen for their own financial futures.

JM

I think that's your best post ever

[Kidlicious]

Originally posted by Imran Siddiqui

700bn throwaway to perpetrators

But it's not a throwaway. In fact most economists and financial people are saying it may make the US money in the long run.

Only an economist would say that.

Anyone else, with common sense, would know that it would be better to give us all the money.

[Ramo]

I think the Dems might get to work on a left wing bill. Nationalizing insolvent institutions or somesuch. I wonder how much support that'd get...

[Zkribbler]

Originally posted by Jon Miller
Most the people saying that it will make the US money in the long run are the ones who need it to happen for their own financial futures.

JM

The ones I've seen saying it have been financial reporters and pundits.

The Dow has closed with a loss of -777 points, the largest point drop in history, surpassing that of even 9/11. Oh, my poor retirement funds.

[Jon Miller]

http://www.rgemonitor.com/roubini-monitor/253783/is_purchasing_700_billion_of_toxic_assets_the_best_way_to_recapitalize_the_financial_system_no_it_is_rather_a_disgrace_and_rip-off_benefitting_only_the_shareholders_and_unsecured_creditors_of_banks

This guy makes a lot more sense than those who are proponents of this bailout. One thing is that this problem doesn't hurt real assets in a nonrecoverable for another couple of months, so we don't need to act all panicy and be stupid.

JM

[GePap]

Well, the problem with a unfettered market is that fear is allowed to run rampant. The idea that people always act in a rational, self-intersted that seeks to maximize possible returns while incurring reasonable risks when making economic decisions is a crock of ****. People are as emotional with their pocketbook as they are with their votes.

[Kidlicious]

The problem is that the financial industry has grown to over 20% of the economy and there's no way that can continue.

[Lancer]

Any truth to the rumor that just before the vote Pelosi got up in front of the House and blamed everything on the repugs virtually insuring the vote would fail?

[Zkribbler]

I haven't heard that, and it doesn't sound true. The woman is evil, not stupid.

[Ramo]

More importantly, when was the last time that floor speeches affected anything in Congress? Yeah, I'm going to vote against a $350 billion proposal because Pelosi's a meanie.

[Lancer]

Originally posted by Zkribbler
I haven't heard that, and it doesn't sound true. The woman is evil, not stupid.

I think you underestimate her credentials Zkrib.

http://news.yahoo.com/s/ap/financial_meltdown;_ylt=AhdXRlGZuDOPqVdNbn6ycECs0NUE

"Republicans blamed Pelosi's scathing speech near the close of the debate — which assailed Bush's economic policies and a "right-wing ideology of anything goes, no supervision, no discipline, no regulation" of financial markets — for the defeat.

"We could have gotten there today had it not been for the partisan speech that the speaker gave on the floor of the House," Boehner said.

Rep. Roy Blunt, R-Mo., the whip, estimated that Pelosi's speech changed the minds of a dozen Republicans who might otherwise have supported the plan. "