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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. wisdomtool

    wisdomtool Moderator Staff

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    #141
    It is the biggest at the moment, but I fear more will come and they will come in bigger sizes and far more intensive damages. WaMu used to be such a fantastic growth story that was widely used as an MBA textbook case. Sad to see this happening.


    SEMrush
     
    wisdomtool, Sep 26, 2008 IP
    SEMrush
  2. Firegirl

    Firegirl Peon

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    #142
    We are definitely watching history in the making. Wonder if I will be telling my kids about this years from now? You kinda have to wonder, though, if this situation is totally being blown out of proportion (or we are overreacting) because it's an election year?
     
    Firegirl, Sep 26, 2008 IP
  3. browntwn

    browntwn Illustrious Member

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    #143
    It is probably just a big conspiracy. I don't think any banks actually failed. The government can fake foreclosures - they are just numbers on a ledger.
     
    browntwn, Sep 26, 2008 IP
  4. Firegirl

    Firegirl Peon

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    #144
    Firegirl, Sep 26, 2008 IP
  5. debunked

    debunked Prominent Member

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    #145
    And that doesn't account for inflation. If a lot of money is printed causing even more inflation and everything than costs more that 17,000 will become 34,000.
     
    debunked, Sep 27, 2008 IP
  6. debunked

    debunked Prominent Member

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    #146
    I think firegirl made some valid points. Maybe if it wasn't so close to an election they would let the banks go bankrupt and move on.

    You sure are getting sarcastic in your old age brown.
     
    debunked, Sep 27, 2008 IP
  7. earlpearl

    earlpearl Well-Known Member

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    #147
    I think an emergency intervention of some sort is called for, election or not.

    Financing failures have been hitting across the board. The big threat is that it hits everyone's pocketbooks and access to cash.

    Late last year, Florida suffered a run on a fund that was used to support the payrolls of many local school districts...http://www.tcpalm.com/news/2007/nov/29/state-stops-run-local-governments-troubled-investm/. This was directly a result of the subprime crisis.

    Subsequent to that another Florida school district didn't have access to funds when auction markets collapsed.

    Recently a theme park in South Carolina closed its doors and one of the nation's largest chicken producers made severe cutbacks. This is all the result of rolling financing agreements that aren't being renewed.

    At the very least it means loss of jobs. At worse it means you can't get access to your funds.

    There are strong smaller local banks around the nation. They maintained more conservative lending habits. Many of them are now swimming in funds and have an excellent ability to lend. They are picking up funds removed from the troubled institutions.

    The system is teetering. It needs help IMHO.
     
    earlpearl, Sep 27, 2008 IP
  8. browntwn

    browntwn Illustrious Member

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    #148
    I wish we would just let them go bk. The stronger banks will buy their assets and the American people would be better off. And yeah, I have been a little cantankerous lately - must be the election season bs getting to me from every side.
     
    browntwn, Sep 27, 2008 IP
  9. bogart

    bogart Notable Member

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    #149
    bogart, Sep 27, 2008 IP
  10. homebizseo

    homebizseo Peon

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    #150

    Browntown may be right. Let them go bankrupt and other banks will give the bailout instead of taxpayers.

     
    homebizseo, Sep 27, 2008 IP
  11. LogicFlux

    LogicFlux Peon

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    #151
    There aren't buyers for them all. I don't think anyone could find a buyer for Lehman. I heard Jamie Dimon, when asked about the low price payed for Bear Stearns, say something to the effect of "There's a difference between buying a house and buying a house that's on fire".
     
    LogicFlux, Sep 27, 2008 IP
  12. robjones

    robjones Notable Member

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    #152
    Yeah, with this much bait out there you had to know every special interest group on the planet is gonna try to get their pet pork hardwired into this thing for a little "free" funding at the expense of the taxpayer. If we want to fund a war people would support someone oughta suggest we call an airstrike on DC. There appear to be more communists there than in Moscow.

    Don't know what the best answer is, but if this thing passes with a shitload of unrelated pet projects in it I'll personally campaign against both Senators from Texas and already sent emails to both of them to that effect. They need to get their head outta their ass and deal with the problem instead of everyone thinking this is a taxpayer funded version of Christmas.

    Bureaucrats are idiots if they think they'll get re-elected after this horse-hockey. Congress passed the laws that got us here and took money from the assholes that ran our economy on the rocks. I will not vote for a single incumbent to that cesspool we call Congress. The entire lot let the American public down while feasting on the funds of the people we're about to bail out.
     
    robjones, Sep 27, 2008 IP
  13. homebizseo

    homebizseo Peon

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    #153
    But when you are buying a house on fire, why pay premium rates?
     
    homebizseo, Sep 27, 2008 IP
  14. LogicFlux

    LogicFlux Peon

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    #154
    Yeah, I know.
     
    LogicFlux, Sep 27, 2008 IP
  15. bogart

    bogart Notable Member

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    #155
    This is going to scare you. The $634 billion is only a spending bill.

    The $700 billion bank bailout hasn't passed Congress yet. The polls say that 45% are against it and 30% approve.

    The Dems are pushing it through. Pelosi, Frank, Schumer, Dodd are all on board. So this has to be a disaster pending. Dood has even received a lot of contribributions from Freddie/Frannie.

    I think that the dems have a hidden agenda where they will forgive the mortgages. Of course this will only entice more people to stop paying.

    The sad part is that the $700 billion bailout is not a solution. In 6 months the industry will be back for more. The US is heading into a recession and there are a lot more foreclosures to come. Unemployment is at 6.1% and first time claims last week hit 493,000 which is the highest since the 2001 recession.

    The problem is that people paid too much for homes and now they can't afford to make the payments.

    Housing prices have only fallen to 2005 levels and we are already in a crisis.

    Should housing prices fall to 2001 levels and unemployment top 7%, we are in for trouble. The 1991 recession unemployment was 7.7%. Most people under 30 don't even know what a recession is.
     
    bogart, Sep 27, 2008 IP
  16. robjones

    robjones Notable Member

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    #156
    I dont see any possible way to "forgive" mortgage debt in a government bailout. How could we structure it... reward people for defaulting by canceling their debt and giving them the house? If so we're penalizing anyone that hung on by the skin of their teeth... saying we'd have been happy to pay their house off if they'd just maybe had the foresight to spend the money on beer and whores instead of paying their own bills.

    That'd go down as the biggest travesty of economic policy in the history of the country.
     
    robjones, Sep 27, 2008 IP
  17. GRIM

    GRIM Prominent Member

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    #157
    I'm one of the 45% ;)
     
    GRIM, Sep 27, 2008 IP
  18. homebizseo

    homebizseo Peon

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    #158
    I don't think that poll is accurate. The bailout is being ripped apart on talk radio even by the bankers.
     
    homebizseo, Sep 27, 2008 IP
  19. GRIM

    GRIM Prominent Member

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    #159
    I wouldn't doubt if it's not accurate, simply saying I am one who does not support bailing out failed companies, especially as open ended as it appears to be.
     
    GRIM, Sep 27, 2008 IP
  20. bogart

    bogart Notable Member

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    #160
    Objection to the bank bailout is growing daily.

    If the bailout doesn't get passed by Sunday, it won't get passed. Congress is due to end the congressional session. Once Congressman go back to their districts and hear the objection, it's doubtful that the bailout will get passed.

    You hear Congress saying that 'We need to keep people from losing their homes' every day. Most of these people bought at the height of the market with little or no down payment ot took out substantional home equity loans.

    The US give out a $162 billion stimilus a few months ago so that people could "party like it's 1999". Giving people their homes will help stimulate the economy. Hell, giving me $1 billion will help stimulate the economy too :D
     
    bogart, Sep 27, 2008 IP