Dow Below 10,000 Thank goodness for the bailout

:sarcasm:

that is close to election time, will he call martial law because of the financial dilemma.

Do you seriously think any recapitalization of the banks has happened since Friday?

Something is wrong with both of those items. We need to fix one by getting Obama in office then he will fix the other.

and it has not begun yet. You should have paid closer attention to what Paulson was saying before Congress.

.. but what worries...isn't today the day that there has to be FANNIE and FREDDIE settlements? i.e. all CMO's come back to Fannie/Freddie today and are marked to market... like being at a restaurant when the waiter brings you the check. What happens if there is not enough money in the account to pay off creditors? Im not a financial whiz and these CDO's and Default Swaps are very complicated transactions.... but I do know when TSHTF (the shit hits the fan).

Remember three days ago?

Remember how passing the bill was going to give the markets confidence and bring the LIBOR rate down? Yeah, that didn't happen, did it?

Now the apologists have to trot out "oh, it'll take time ...."

You guys haven't been right about a single thing, and this ain't your day to break that trend.

If I was pro-bailout I would think that the markets would have restored some confidence in the markets and wall street would responded positively to the bill, not drop 500 points.

to pay people who are cashing out. Most hedge funds are going to fail as people cash out their high risk investments.

That's why stocks and commodities are on the skids right now and it's why it's worldwide.

It's just 6 days late, dagnabbit. I lost the "under 10000" dead pool.

I was close, though. You've got to admit that.

http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=389&topic_id=4131241

And now you're one? Make up your mind. Is the sky falling or what? :eyes:

and until I see otherwise I'll continue to make fun of them.

:thumbsup:

I don't support the bail out.

Umm... Looks like the stock market isn't collapsing

Stocks are rebounding.

Oh my god you mean this isn't the end of the world.

For all you doom sayers looks like you've been had!





So which is it? Is it doing well or not?

It looks like the bailout is exasperating the problem. Perhaps if congress passed competent legislation to address the core problem then the markets would be fairing better.

and how those countries government are handling their own economic recoveries. Which again points to, if congress had passed a competent bailout plan the markets would have faired better.

IMHO this bailout plan was bad for the tax payer, bad for the investor and bad for the overall global markets.

The bailout plan that the markets wanted was the original proposal by Bush and Paulson. Public pressure forced things into the bill that the banks didn't want, e.g. executive compensation limitations and taxpayer equity. The reasons these are "bad" for the market is that it will discourage some banks from participating in the reverse auctions that Paulson detailed in his bailout testimony before Congress. So the bill had to balance the demands by the tax payers to the desires of the banks with the toxic mortgage derivatives.

or limits on CEO compensation?

the bailout hasn't even started yet. I'm not saying it ever will work.. just saying right now would be impossible.

That's what Paulson said he could spend at the most for the bailout. So the $700 billion would take at least 14 months to implement. This is clearly a long-term financial strategy that will last over a year, not a quick fix that will solve the problem this week.

I'll let you find it yourself. :rofl:

nt

It was kind of infuriating. I don't remember the link for it, but if I find it I'll send it to you. :hi: (hope you don't mind my snark earlier :hug: )

The article was actually talking about how some of the banks were thinking about just toughing it out so that they didn't have to deal with some of the stipulations in the bailout, specifically citing some of the Congressional oversight as well as executive pay limitations.

Paulson, during his testimony before Congress, estimated that he would be able to spend at most $50 billion a month with the reverse auctions that are the core of his plan. So it's clear that this is something that is meant to soften the blow to the economy over a period of many months. I think I also saw during a Rules Committee meeting Barney Frank mention that Paulson had told him in another meeting that it would take at least another 10 days to finish getting the staff together to work on the bailouts.

The Dow Jones is really not the important indicator here, it's more of like a symptom that doesn't track completely with the illness. The REAL problem is LIBOR. It stands for London Interbank Offered Rate. That is the interest that certain banks charge to lend to other banks. The rates they charge consumers start off at this rate and only goes up. That rate has been increasing a lot lately. I think it's somewhere around 7% right now, which is very high.

:hug:
I can be a bit snarky too.

I guess its because I'm feeling somewhat immune to this economic downturn and see it somewhat as a re-adjustment in the market. Though I'm afraid so many others will loose allot of what little wealth they have. I know many here have personal assets at stakes and they were/are really hopeful that this bill will help mitigate the problem and that is why they strongly supported the bill.

it was to ease the credit crunch and stop a tsunami of bank failures.

I've seen lucid arguments for both sides. The pragmatists seemed to want it and the idealogues didn't. It will be a while before we see who was right, if it can ever be proven.

:rofl:

Yes sir. That bailout was just what the economy needed.

But when you're Charlie Brown, you've got to do it.