what you get for $850 billion

i understand and accept the moral hazard theory, but i also believe the banks would have gambled with other people's money in the absence of government interference too, and we'd all be paying for it when they crashed the global financial system...they are the primary culprits in this mess

factcheck is an objective source of information, but i find it curious that they didn't mention any of george bush's legislation and policies in the years leading up to the crisis...instead, brooks jackson blamed bill clinton who "pushed for less stringent credit and downpayment requirements for working- and middle-class families."...what about george bush who literally legislated less stringent credit and downpayment requirements for low income homebuyers, and hosted conferences with mortgage giants, pushing them to issue more loans to low income families, and sent his HUD secretary to pressure fannie and freddie to issue $440 billion in mortgages to low income families? george bush had way more responsibility for this than clinton, but dubya only gets blamed for not having enough regulatory oversight, which according to allan greenspan, would not have prevented the subprime crisis anyway


"Investors of all stripes pressed securitizers for more MBS. Securitizers, in turn, pressed lenders for mortgage paper with little concern about its quality. As a consequence underwriting standards collapsed, and mortgage originations and securitizations rose to far greater heights than would have occurred without securitization. Even with full authority to intervene, it is not credible that regulators would have been able to prevent the subprime debacle."
- Allan Greenspan, 2008

Quote:

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Originally Posted by maladroit

a 30 point gain in the dow jones index

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It was not about raising the Dow... In all reality, the S&P is a more broad index, therefore gives you a better indication on the economy as a whole. The market will continue to slump until the correction has taken course. We just needed lending to continue because there are people who can make their payments. Default is in the neighbor hood of 5%-10% tops. Watch that number top off when home values begin increasing.

it was all about the dow a few days ago when wall street brokers were blaming the rapid freefall of the dow jones index on the US gov't hesitancy on passing the bailout

YouTube - Democrats Covering up the Fannie Mae, Freddie Mac and Economic Crisis

i didn't watch the video, but i agree the dems are covering up their significant involvement in the economic crisis, and i think they will interfere with the investigation of the crisis...it will be the first bipartisan act of the obama administration

they are trying to cover it up because some of the same people to blame are the people coming up with this "solution."

Good damn, looks like its headed to another 700 point loss today. Looks like THATS what 850 billion will buy.....oh and even BEFORE the bailout, feds have pumped close to 2 trill into the system so far this year, before the bailout....

the truth is , there is no amount of money that can fix this. kinda scary.

the $900 billion listed below is auctioned without congressional oversight, and it doesn't include the $500+ billion bailout of fannie/freddie/AIG/bear stearns, or the $700 billion bailout package...those ingrates will be begging the next president for another handout if we don't lock them up first



Fed to double cash auctions to banks, up to $900 billion
Bloomberg News
Published: October 6, 2008

WASHINGTON: The Federal Reserve said Monday that it would double its auctions of cash to banks to as much as $900 billion and is considering further steps to unfreeze short-term lending markets as the credit crunch deepens.

"The Federal Reserve stands ready to take additional measures as necessary to foster liquid money-market conditions," the central bank said in a statement. Fed and Treasury officials are "consulting with market participants on ways to provide additional support for term unsecured funding markets," the statement said.

The steps follow a hoarding of cash by banks that sent the premium on the three-month London interbank offered rate over the Fed's benchmark interest rate to a record. Industrial companies are also finding it harder to raise cash after the market for commercial paper shrank to a three-year low as investors flee even borrowers with few links to mortgages.

"It is pretty much all out war," said Christopher Rupkey, chief financial economist at Bank of Tokyo-Mitsubishi UFJ, New York. "They are pulling out all the stops to try and get borrowers and lenders to meet and do transactions once again."

Implementing part of last week's emergency legislation to shore up the financial industry, the Fed said that it would begin paying interest on the cash reserves banks hold at the central bank. The step should give Fed officials greater power to inject cash into banks without interfering with their benchmark interest rate, which stands at 2 percent.

I bet we hit 2 trillion in bailouts this year. We're already over one and half trillion.
2,000,000,000,000
300,000,000 ÷
--------------------------
6,666.66666666666666 =
$6,666. for every man, woman and child in America. And thats just for this year. Anti up suckers.

I know it's considered bad form to quote oneself.
BUT !

Quote:

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Originally Posted by psychocat

I am but a simple man but !

The US goverment proposes to bail out private financial institutions after the said businesses made incredibly stupid mistakes and lost untold amounts of money.
They then plan on employing the same money men to manage the money all over again ???????
WTF ????
Am I the only one who can see the fatal flaw in that plan.
By bailing out these businesses the goverment is saying "it's okay to fuck yourselves to the tune of billions of dollars because we will come to your rescue.
Do you think I could get them to back me for the next European Poker Tournament. :thumbsup:

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I still think it's insane. :wtf: