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Huge Bailout Proposal--$700 billion--Suck the bad debt out of the financial system

Discussion in 'Politics & Religion' started by earlpearl, Sep 20, 2008.

  1. LogicFlux

    LogicFlux Peon

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    #261
    Do you get a McCain/Palin 08 bumper sticker with your pre-clinton loan?
    [​IMG]
    SEMrush
     
    LogicFlux, Oct 4, 2008 IP
    SEMrush
  2. homebizseo

    homebizseo Peon

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    #262
    Very funny.


    I don't think this has to do with McCain or Obama.
     
    homebizseo, Oct 4, 2008 IP
  3. PioneerGold

    PioneerGold Well-Known Member

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    #263
    Banks sure do care about what's best for the US taxpayer.

    And...

    this bailout is a great example of using money to help the people of this country and not the banks.

    What is with you always making everything about "race"?
     
    PioneerGold, Oct 4, 2008 IP
  4. bogart

    bogart Notable Member

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    #264
    The bubble started in 1997 during Clinton. As long as home prices kept going up there wasn't a problem. However, prices have reached the point where there is a complete disconnect with economic fundametals. Prices in many bubbles areas have increased 3x '1997 par value'. Homes are overvalued and the return on rent is negative on many homes bought at the height of the bubble.
     
    bogart, Oct 4, 2008 IP
  5. earlpearl

    earlpearl Well-Known Member

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    #265
    I have a hard time believing a banker, discussing loans is going to invoke Clinton's name. I doubt I've ever discussed a loan where a President's name was mentioned.

    In the meantime, Bogart, I think that formula of comparing price and rents is totally valid. Of course interest rates need to factor in.

    Cripes if you can get houses at 25,30,35% of where they were recently, you could be in good shape. On the other hand, don't think I'd buy houses in a down soft residential area, with lots of foreclosure empty houses expecting to rent it up. The only way to do that is to get houses at rock bottom prices then offer discounted rents.
     
    earlpearl, Oct 4, 2008 IP
  6. pizzaman

    pizzaman Active Member

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    #266
    ROYAL Bank of Scotland is to be one of the biggest beneficiaries of the economic bail-out in the US due to its significant business interests across the Atlantic. The bank will be able to offload billions of dollars worth of dodgy loans and assets as part of the Troubled Asset Relief Programme (TARP).
    http://news.scotsman.com/scotland/Royal-Bank-of-Scotland-could.4536331.jp
     
    pizzaman, Oct 4, 2008 IP
  7. earlpearl

    earlpearl Well-Known Member

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    #267
    Just heard that a friend of mine bid in partnership w/ someone else on about 5-600 houses at a Fannie Mae auction. I believe they bid around $2,000/house on about 5-600 houses in and around a midwestern city.

    We have very different styles. If he landed it, I know they would hire folks and have others do the work. I'd want to fly out there and oversee/hustle it myself.

    I suspect they are taking a wild shot on this. I don't think they looked at this hard.

    In any case there are definite values to be made in this market. I know at $5 k profit a house on that deal there is a couple of $million to be made.

    I did this stuff once before and personnally worked it. Its a lot of work, but it can pay off.

    There are a lot of opportunities out there.
     
    earlpearl, Oct 4, 2008 IP
  8. bogart

    bogart Notable Member

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    #268
    The $700 billion dollar bailout passed as a $850 billion bailout after all the pork and earmarks were added.

    The bank bailout will also allow the government to buy bad credit card debt as well. The House passed HR 5244 to regulate the credit card industry but it died in the Senate.

    We have serious economic problems coming and were spending up money that we will need 6 months from now.

    The bailout doesn't really do anything to provide more lending. Wall Street has already figured this out and the Dow was -157 on Friday.
     
    bogart, Oct 4, 2008 IP
  9. pizzaman

    pizzaman Active Member

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    #269
    Why doesn't the old man maverick make the names public?
     
    pizzaman, Oct 4, 2008 IP
  10. soniqhost.com

    soniqhost.com Notable Member

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    #270
    The Dow fell because of concerns about the future economy and not because the bailout will not increase lending, it will.
     
    soniqhost.com, Oct 4, 2008 IP
  11. bogart

    bogart Notable Member

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    #271
    The Dow is now -481 and at the lowest level Oct 2004

    Bernake and Paulson thought that they could stop the slide in the market with the bailout. It hasn't worked.

    Their concern is that money market funds will 'break the buck' and cause further declines in liquidity.
     
    bogart, Oct 6, 2008 IP
  12. GRIM

    GRIM Prominent Member

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    #272
    Yeah watching it right now, almost 600 down now!
     
    GRIM, Oct 6, 2008 IP
  13. PHPGator

    PHPGator Banned

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    #273
    I think most people realized that this wasn't an absolute quick fix. Based on my understanding, the funds are probably still sitting in an account somewhere waiting to be distributed properly. Am I wrong on this? Have the banks already received the money or are we still waiting on a trickle down effect?
     
    PHPGator, Oct 6, 2008 IP
  14. earlpearl

    earlpearl Well-Known Member

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    #274
    The bailout has not started. You gotta hire people to get this thing rolling.

    They aren't just giving banks money. They will be buying specific packages of real estate loans.

    Implementation is the key. It will be important to get this thing up fast and work hard to get it done right.

    I bet they'll be scrutinizing the first couple of purchases like a hawk to refine their buying efforts and characteristics, and understanding the status of the loans.

    The bailout was not done to "save" the stock market or "just give" money to banks.

    The goal is to suck the bad debt out of the lending world. Get inter bank lending working again so that the normal flow of lending keeps the economy going, and ultimately try and put a bottom to the real estate fall out.

    We will see how it goes.

    Expect more problems for a while, until this thing kicks off. Then expect more problems. This is a monumental mess.
     
    earlpearl, Oct 6, 2008 IP
  15. bogart

    bogart Notable Member

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    #275

    California is saying that they can't get credit and need a $7 billion loan from the Fed
     
    bogart, Oct 6, 2008 IP
  16. Divisive Cottonwood

    Divisive Cottonwood Peon

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    #276
    It's nearly at the end of trading here in London and the FTSE 100 is 8% down!

    This is getting scary now as we are nearing complete crash - the point where investors give up all hope and sell all their shares at any price
     
    Divisive Cottonwood, Oct 6, 2008 IP
  17. bogart

    bogart Notable Member

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    #277
    On October 9, 2002, the DJIA bottomed out at 7,286.27 (intra-day low 7,197.49), its lowest close since October 1997.
     
    bogart, Oct 6, 2008 IP
  18. earlpearl

    earlpearl Well-Known Member

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    #278
    This will be a bad and wild ride. If you are spending a lot of time day trading, I'd get out of a lot of sh!t and stay off the markets for a bit. I suspect there will be a lot of ugliness out there for a period of time.
     
    earlpearl, Oct 6, 2008 IP
  19. LogicFlux

    LogicFlux Peon

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    #279
    I think this was good advice like 10 months ago.
     
    LogicFlux, Oct 6, 2008 IP
  20. Divisive Cottonwood

    Divisive Cottonwood Peon

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    #280
    All this debt, debt, debt...

    And while the West fell into debt... the East was accumulating...

    China in particular, but also Russia and the Middle East.

    If China had the will they could buy out the entire US banking system... a situation that would have been unthinkable even just a few years ago...

    I wonder if this is the point that China decisively changes the global power balance.

    The point that the British Empire faded, and America rose as a superpower, was immediately after the Second World War.

    Britain may have been on the winning side, but economically it was ruined - something that the US took full advantage of.

    It's difficult to get a perspective at the moment as we're in the middle of it but it feels like the world before and after this crisis will be as fundamentally different as the world before and after WW1.
     
    Divisive Cottonwood, Oct 6, 2008 IP