Bailout question . . .

[captquest]

Re: Bailout question . . .

and it's a hard, it's a hard, it's a hard
it's a hard rain a gonna fall.
Bob dylan

what's your 401 worth today?

 

[Vlad D Impeller]

Re: Bailout question . . .

It's kinda sad when some folks can stare into a mirror and never ever see their reflection.

 

[Skinnywater]

Re: Bailout question . . .

The Fed threw $630 billion into the market before the vote today, and yet the S&P 500 was down 40 handles anyway, and in fact tanked after the vote.

Paulson's plan was $700 billion, and Bernanke spent $630 billion, almost the entire amount proposed but failed to fix the problem.

Did Bernanke inadvertently prove Paulson's plan was bankrupt?

 

[seven up]

Re: Bailout question . . .

Wall Street had to have their tantrum.

If the "Street" hadn't been over leveraged(in debt) to such a humongous state then the reality of the mortgage fallout would not have been as financially painful. New regulations coming.

All of the biggest names in investment banks are either gone or been cheaply gobbled up by slightly healthier corporations.

Mortgage backed securities are like the friggin plague now. Like waiting and watching for their value to fizzle down to zilch.

The Fed is going to bailout the failing big corporations anyway. Each bailout will be handled individually.

 

[SnappingTurtle]

Re: Bailout question . . .

Joe and the lender both behaved irresponsibly, so both should take the loss. Neither should be "bailed out" if that bailout frees them of the consequences of bad decisions.

The President's plan, however improved, simply cuts the losses. Everybody loses who took irresponsible gambles but the credit market and our economy are rescued from total collapse.

Responsible citizens and responsible lenders will not be hurt as long as they pay what they agreed to pay.

If the market value of your home has dropped it is irrelevant unless you have depended on a plan to reap profits by selling or refinancing. Then you are hurt by losing a gamble. People who lose at gambling are victims only of their own decisions.

"Equity" is meaningless unless and until sold. Keep your home, pay your mortgage and you will be okay.

You can count me in, on agreeing with everything you said in this post JB.

I once had a partner who planned his finances & spending, based on the best month we had a year. I tried to plan based on our worst month. I planned for survival in the hard times that were to come. He planned for ever expanding financial bubbles.

He got mad once because I would not take out personal loans to help cover his prior business debts.

We split because of this. His mistakes, his problem.

Several years later & he owes money all over the world, and will spend the rest of his life running from these debts. Did he learn from this, no.

He came by last week to proudly show of his newly leased $100,000+ Mercedes company car.

How did he get it?

He sold controlling interest in his small company to his last and only client, while remaining responsible for all the companies prior debts. He now has no hope of paying these debts back, the client now sets the prices he will now pay for services rendered, and has lost control of his (once ours) company, but once again found a way to look successful. At least for the short term.

He asked if I would do some "free" consulting/freelance work for him. He can't pay the people he has been using. No thank you, I'll think I will pass.

He can literately barely feed his kids now, but man, doesn't he look good in that new Mercedes.

Living on borrowed time.

 

[chrisg]

Re: Bailout question . . .

The terms of your mortgage do not (or cannot) change just because the note is sold. Which in essence is what is happening when someone bails out WaMu.

Cool, so I'll just go back to fishing. ( unless my company lays me off) Sounds like being a wal-mart greeter may be in the plans for retirement---
There's always Mexico!

 

[SnappingTurtle]

Re: Bailout question . . .

Cool, so I'll just go back to fishing. ( unless my company lays me off) Sounds like being a wal-mart greeter may be in the plans for retirement---
There's always Mexico!

They guy across the hall from me, just showed me last week a letter he had received in the mail informing him, in a threatening way, that they, a new company, had just purchased his “Stock Market” account.

He had a contract with the old company/bank that promised lifetime, no charge, management of this account, as part of a complete financial package he set up with them years ago. The new company wanted to charge him now, a monthly fee, for the part of the package they bought in a partial take over. They were demanding the first months payment, and his banking details for automatic monthly withdrawal of this payment.

I told him to write them back, and say no way, his contract is legally binding, new bank owner, or not. He threatened to sue, his idea, not mine.

They replied this morning that there would be no charge, all would remain as before, and they were thrilled to have him as a new client.

They can try to convince you otherwise with empty threats, but they don't have a legal leg to stand on.

 

[MikDee]

Re: Bailout question . . .

So, As I see it, once we do the bailout (because the genie is outta the bottle now ) We won't have to pay taxes anymore, because of the profits!,,, Right?

 

[Philthyphil]

Re: Bailout question . . .

Generally i would step in a thread such as this and flame away at the core issue

In this instance i will try to gently wade in here and make a small and very simple comment....Our government is working....maybe.... the USA is working...but pay attention here the global Econ is not.... and our people in the house seem to be of the same voice...this time the USA will not bail out the world..

And that is the problem the world econ... the one world dream is in deep trouble...

Dont like this comment ....watch the next few weeks of google how the asian's are nationalizing European banks...That's right Asia is buying Europe..[/QUOTE

And they are buying your country as well, especially if you don't pull together and work as a team. Plus the reason the Euro banks and pension funds and all other kinds of institutions all over the world are in trouble is because of the US. Your countrys fininacial instititions sold them billions and billions of worthless ABC Paper, and your countrys investment rating services gave that Asset Backed Commerical Paper a tripple A rating. The credability of your whole banking system is at stake here. As is the american idea of a free rein market economey. Lack of regs let the robber barons of the 1800's almost own the country, let the crash of 29 happen and caused this crises. Don't pull a Herbert Hoover on us guys. Get together and save your country. It isn't socialism it's teamwork.

 

[modernrocketry]

Re: Bailout question . . .

I think many of you feel like I do. Confused.

I guess I'm okay with a bailout -- if they suffer for a while first. I really want it to hurt.

But more over, I want someone to explain it to me. I'm a rather educated guy, hell, I even have an MBA and I also completely understand how we got here. I just don't understand what 700BB will do to solve the problem.

 

[i386]

Re: Bailout question . . .

1. Watch the Fed.
2. Watch the Fed.
3. Watch the Fed.

 

[salty87]

Re: Bailout question . . .

this is really just a big margin call. as with any margin call, there's no guarantee that there won't be another if the situation deteriorates further. everyone who's ever gotten a margin call knows that this is the bottom, right? haha

bailout is a name that doesn't really apply. nobody will be suddenly off the hook, they aren't bailed out when $700B gets delivered. it may not even be enough money.

while wall st. faces the prospect of more closings, layoffs, bankruptcies, etc. the package is an attempt to keep money available. as far back as anyone can remember, a business having excess cash on hand is a bad thing. that money should be working, creating the need for most businesses to use short-term financing to cover their expenses. these are the people that will feel the pain first. next will be consumers who can't consume if there's limited business availability. this means a general stalling of the economy. there's no way one very large part of the economy can suffer through this by themselves, we'll all feel it.

wall st facilitated this mess, pushed it on a greedy american public. we ate it up like a pizza buffet. wall st deserves a lot of the 'credit'...so does anyone who took advantage of the situation. lots of americans cashed-in on the future of the country too.

as someone who didn't buy too big of a house, didn't use financing that i didn't understand, didn't try to be a real estate flipper....i'm appalled that people feel the need to be saved from their obligations just as much as i'm appalled that the govt was implicit in this problem.

 

[SnappingTurtle]

Re: Bailout question . . .

I think we have to do something, just not with, or for, the “bozo's” that once again got us all into yet another mess at the Helm.

If we all have to bite the bullet awhile to get rid of them for ever, then so be it.

U.S.A. Financial Stability & Rescue Plan. Yes

International Banking Bailout Plan. No

The rest of the world can wait on us to do something, if they want. The U.S. (I mean the people, not the government, and not the corporation) should start to think about itself first, and the others can figure out how to get themselves out of this new, in a long line of, “International Finance Crashes”, or as I heard a German banker repeat again today, “Course Corrections”.

We have everything under control, he said.


P.S. By the way, if you missed it on the news, the German Chancellor demanded, yes demanded, that the States approve this bailout plan now! Today! Not tomorrow. Not next week. Today!


P.S.S. Now everybody stop buying stuff you can't afford and pay off your debts!

 

[Philthyphil]

Re: Bailout question . . .

1. Watch the Fed.
2. Watch the Fed.
3. Watch the Fed.

Your not wrong there. They have already given guarantees to money market funds and to say again that deposits are guaranteed. They can and I think will do more and they don't need congress. Under their mandate they can do a fair bit of intervention, and in a non political way. As a couple of others have mentioned, you must keep the lines of credit open.

 

[JB]

Re: Bailout question . . .

Getting to be a political squabble, guys. Locked.