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Attachments: $700B Bailout Plan Discussions...
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$700B Bailout Plan Discussions...

  • #101
  • Sep 27, 2008 3:10pm Sep 27, 2008 3:10pm
Quoting hard1head1
Trickle up theory. Simple.... Take that fricking 770,000,000,000 and give every family $100,000.00 and we will spend our way out of this mess. Our economy will be up and running in a heartbeat. Screw Wall Street
  • #102
  • Sep 27, 2008 3:10pm Sep 27, 2008 3:10pm
If it is not obvious to you, JP Morgan is chosen as the new king of American banking, destined to absorb more than Bear Stearns and WaMu.

The other is Goldman, the clues are Paulson having 650,000 warrants, and Warren Buffet getting a sweet deal worth nearly 20% per year for Berkshire Hathaway. Buffet should be put in charge to represent the taxpayers, on the 700B bailout negotiations. Having Paulson is putting the wolves in charge of the sheep, and Wall st continues to feast.

Wachovia seems to be next for Washington to deal out.

McCain seems to be interested only in how he can get what he wants, and it should backfire. Can these money carnivores stop fighting over the carcass, and show some respect and morality for the tax payer?
  • #103
  • Sep 27, 2008 3:10pm Sep 27, 2008 3:10pm
Quoting cesarnc
Forget balances, man. It's all about check these days. A $700 billion one
Why don't we make it $800 billion...I could use some extra change in my pocket!!

HOLLA
  • #104
  • Sep 27, 2008 3:50pm Sep 27, 2008 3:50pm
Quoting roro53
Can anyone offer several headline points over the consequences of a potential outcome one way or the other?

There is a Greenspan plea in Friday's WST, but that was fairly vague and held no detail other than support for some bill/any bill necessary to save the world as we know it.

Along with all of the other experts' opinions there seems to be an incredible lack of any kind of detail.

Let's try for the simplest common denominator and where the pain will be felt most accutely and most quickly; is it a possibility to expect US firms to have difficulty to meet September 30 payrolls if this deal does not pass Sunday or Monday?
And don't forget the US Civilians working for the government. In 1995, they were laid off overseas for 3-4 weeks!!

I worked in Accounting Finance for 20 years, we hated this time of year, trying to balance the books.

Quick secret........I never seen the government spend so much money in September to upgrade their offices!!

The problem in my tenure was always those vague a$$ regulations!!! Numerous of times I had debates with customers!

HOLLA
  • #105
  • Sep 27, 2008 3:52pm Sep 27, 2008 3:52pm
Quoting hard1head1
Trickle up theory. Simple.... Take that fricking 770,000,000,000 and give every family $100,000.00 and we will spend our way out of this mess. Our economy will be up and running in a heartbeat. Screw Wall Street


HOLLA
  • #106
  • Sep 27, 2008 4:03pm Sep 27, 2008 4:03pm
Quoting hard1head1
Trickle up theory. Simple.... Take that fricking 770,000,000,000 and give every family $100,000.00 and we will spend our way out of this mess. Our economy will be up and running in a heartbeat. Screw Wall Street
Good.. Then the people will buy $100K houses and get mortgages to buy $100K worth of shit, the banks will leverage it with mortgage backed securities, 2 years from now the next treasury secretary will be asking for a $70 trillion bailout
  • #107
  • Sep 27, 2008 4:09pm Sep 27, 2008 4:09pm
Quoting cesarnc
Good.. Then the people will buy $100K houses and get mortgages to buy $100K worth of shit, the banks will leverage it with mortgage backed securities, 2 years from now the next treasury secretary will be asking for a $70 trillion bailout
I'll give em 3 years.

HOLLA
  • #108
  • Sep 27, 2008 9:53pm Sep 27, 2008 9:53pm
We're not moving on any kind of artificial timeline," said Republican Representative Roy Blunt.
"We're moving toward the very best solution in the shortest period of time we can get to the very best solution."

Huh?????? WT_.............

You learn alot about people when sh-t hits the fan!!!

HOLLA
  • #109
  • Sep 27, 2008 10:25pm Sep 27, 2008 10:25pm
FAS 157 Could Cause Huge Write-offs
Banks may be on the hook for untold billions because the new rule makes it harder to avoid mark-to-market pricing of securities.

http://www.cfo.com/article.cfm/10097878/c_10098290

... The U.S. Financial Accounting Standards Board Rule 157, which is effective for fiscal years that begin after November 15, 2007, will make it harder for companies to avoid putting market prices on securities considered hardest to value, known as Level 3 assets ...

So it seems like the FED has until November 15th 2008 to get money for all the crap it is holding on their books or else they might become insolvent. They need Congress to authorize $700B worth of Treasury Bills pronto.

Consolidated Statement of Condition of All Federal Reserve Banks
http://www.federalreserve.gov/releases/h41/Current/
  • #110
  • Edited 11:00pm Sep 27, 2008 10:48pm | Edited 11:00pm
How wonderful? Who pays for the Bailout; we all do! Just another money GRAB for the RICHEST of all Corporations! Whatever happened to helping the American People from all going Bankrupt? Well your elected officials will now SLAP another TAX on you to help. I wonder just how many can actually see the truth here? This is nothing but a money Grab by the FedD for their friends! Plain & simple. Won't be long now until we are a third world economy! I know the truth hurts.


I predict this BAILOUT charged to the American people will do absolutely nothing for their welfare and the economy. Yes this will hasten the demise of the dollar. Yes I expect the markets to continue to tank, until the FedD has plucked everything from us. The FedD caused this & and only they can fix it by making money available to homeowners. Oh but the squeeze of the money supply is on, and will remain in place until the dollar is dead. Oh sure the AMERO will then save us all. The Gov. will finally stop spending and stop taxing the American people! lol Won't happen! O when will A sleeping Dog BARK loud enough to be heard?

IMO
  • #111
  • Sep 27, 2008 11:37pm Sep 27, 2008 11:37pm
Here is an aricle from Bloomberg dated Novemebr 2007 re: Level 1, 2, 3 Assets.

http://www.bloomberg.com/apps/news?p...58Q&refer=home

Skip to the investment banks named as having 159% and 154% of euity in Level 3 assets - this was written almost a year ago.

"Under FASB terminology, Level 1 means mark-to-market, where an asset's worth is based on a real price.

Level 2 is mark-to- model, an estimate based on observable inputs which is used when no quoted prices are available.

Level 3 values are based on ``unobservable'' inputs reflecting companies' ``own assumptions'' about the way assets would be priced.

ABX indexes, which investors use to track the subprime-bond market, are showing ``observable levels'' that would wipe out institutions' capital if the benchmark's prices were used to value their Level 3 assets.


The indexes have tumbled this year (as of Nov 7, 2007) because investors expected rising numbers of borrowers to default on home loans, cutting the cash flowing to the bonds that package the mortgages.


Lehman has the equivalent of 159 percent of its equity in Level 3 assets, and Bear Stearns has 154 percent.......dated November 7, 2007.
  • #112
  • Sep 28, 2008 6:35am Sep 28, 2008 6:35am
Lawmakers reached a breakthrough on the Wall Street bailout around midnight Saturday night/Sunday morning, Senate Majority Leader Harry Reid said. An announcement is expected on Sunday.
  • #113
  • Sep 28, 2008 8:25am Sep 28, 2008 8:25am
A FED Rate Cut is due to happen in October.

This is a forecast and a statement both.

Mark my words.
  • #114
  • Sep 28, 2008 9:22am Sep 28, 2008 9:22am
Sunday Hot Sunday

Lawmakers are expected to sign off on a $700 billion Wall Street bailout bill sometime Sunday after reaching a deal late Saturday. House Republicans won support for a provision that would create a privately-funded insurance program for mortgage-backed securities.
  • #115
  • Sep 28, 2008 10:27am Sep 28, 2008 10:27am
700 Billion to bail out wall street and now another 650 Billion to keep the government running for the rest of the year and some other pet pork barrel projects. Senate sends big spending bill to Bush to sign
Same Whore .... Different Dress
  • #116
  • Sep 28, 2008 10:48am Sep 28, 2008 10:48am
If the markets are a zero-sum game someone made a boatload of money from this mess. Would it be a stretch to say that some of them may have broken the law. Why not hunt them down and get at least some of the money back? It might reduce the load on the taxpayer, a little bit anyway. It's sure a melluvahess we gotten ourselves into this time.
Hej.
  • #117
  • Sep 28, 2008 11:34am Sep 28, 2008 11:34am
Quoting johnedoe
700 Billion to bail out wall street and now another 650 Billion to keep the government running for the rest of the year and some other pet pork barrel projects. Senate sends big spending bill to Bush to sign
I've got to be honest with you all here... I have simply NO IDEA what a $1.3 trillion means... It's way beyond my intelectual reach, I'm sorry....

I already had NO IDEA what is a $700billion. No idea.. I couldn't tell, for instance the size of a pile made out of $100 bills.

I don't think those figures can be fully understood by the vast majority of the human race...

It's already looking like a poker tournament's final table on the heads-up. One trying to bet the crap out of the opponent by simply speaking unbelievably crazy figures
  • #118
  • Sep 28, 2008 11:53am Sep 28, 2008 11:53am
the crash of 33 & 87 both happened in october..
who's taking bets that we get one this year

I'm wiling to put up 700billion
  • #119
  • Sep 28, 2008 1:34pm Sep 28, 2008 1:34pm
I can smell it!! I can smell it!! The deal is coming!!!
  • #120
  • Sep 28, 2008 1:39pm Sep 28, 2008 1:39pm
Here is the summary sentence of Roubini's opinion vis a vis the Paulson bailout.

Agree with Roubini or not, at least Roubini expresses an opinion that can be intelligently argued.

RGE Monitor, September 28/07 ;

"Thus, the Treasury plan is a disgrace: a bailout of reckless bankers, lenders and investors that provides little direct debt relief to borrowers and financially stressed households and that will come at a very high cost to the US taxpayer. And the plan does nothing to resolve the severe stress in money markets and interbank markets that are now close to a systemic meltdown. It is pathetic that Congress did not consult any of the many professional economists that have presented - many on the RGE Monitor Finance blog forum - alternative plans that were more fair and efficient and less costly ways to resolve this crisis. This is again a case of privatizing the gains and socializing the losses; a bailout and socialism for the rich, the well-connected and Wall Street. And it is a scandal that even Congressional Democrats have fallen for this Treasury scam that does little to resolve the debt burden of millions of distressed home owners."
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