Ok, let's get serious here...
This subject deserves its own thread here, no?
Here's my view after the 2 days hearing in the Senate:
Paulson/Bernanke:
- Want $700 billion to wipe out toxic assets from Wall Street balance sheets.
- Say this way markets will get calm and credit will start flowing again
- Say psychology is important, that's why they are dismissing each and every proposal from the congress.
- Say it could cost less, as the idea is to buy the assets close to face value and sell them. Possibly taking losses, but the total expenditure would be less than $700B
- Say it could cost more as well. There is no guarantee that 2 years from now the next Treasury Secretary won't be in the same seat asking for another $700B
- Say the plan's ultimate beneficiary is the taxpayers.
- No details on how it will be done: methodology yet to be develped.
- "Plan not approved will be carnage"
Congressmen:
- Not selling the plan cheap - no blank check for Paulson.
- Maximizing the political capital - using "taxpayers" 15 times per sentence
- Afraid that 2 years from now the next Treasury Secretary will be in the same seat asking for another $700B
- Say the only beneficiaries are Wall Street tycoons
- They don't say it but they know it: there is no alternative other than signing the blank check.
The Market:
- In idle.
- It can the best buying opportunity for the next 5 years
- It can the best selling opportunity for the next 5 years
- Cramer: "Plan not approved US back to stone age"
Buffet:
- Comes out of the blue, stuffing $5 billion in Goldman Sachs right in the middle of the shooting spree
- What does he know that we don't?
- $20 as it was a coordinated move with Paulson/Bernanke.
- "Plan not approved will make last week the Nirvana"
2 days to go.
Thoughts?
This subject deserves its own thread here, no?
Here's my view after the 2 days hearing in the Senate:
Paulson/Bernanke:
- Want $700 billion to wipe out toxic assets from Wall Street balance sheets.
- Say this way markets will get calm and credit will start flowing again
- Say psychology is important, that's why they are dismissing each and every proposal from the congress.
- Say it could cost less, as the idea is to buy the assets close to face value and sell them. Possibly taking losses, but the total expenditure would be less than $700B
- Say it could cost more as well. There is no guarantee that 2 years from now the next Treasury Secretary won't be in the same seat asking for another $700B
- Say the plan's ultimate beneficiary is the taxpayers.
- No details on how it will be done: methodology yet to be develped.
- "Plan not approved will be carnage"
Congressmen:
- Not selling the plan cheap - no blank check for Paulson.
- Maximizing the political capital - using "taxpayers" 15 times per sentence
- Afraid that 2 years from now the next Treasury Secretary will be in the same seat asking for another $700B
- Say the only beneficiaries are Wall Street tycoons
- They don't say it but they know it: there is no alternative other than signing the blank check.
The Market:
- In idle.
- It can the best buying opportunity for the next 5 years
- It can the best selling opportunity for the next 5 years
- Cramer: "Plan not approved US back to stone age"
Buffet:
- Comes out of the blue, stuffing $5 billion in Goldman Sachs right in the middle of the shooting spree
- What does he know that we don't?
- $20 as it was a coordinated move with Paulson/Bernanke.
- "Plan not approved will make last week the Nirvana"
2 days to go.
Thoughts?
)
