Jump to content
[[Template core/front/custom/_customHeader is throwing an error. This theme may be out of date. Run the support tool in the AdminCP to restore the default theme.]]

The Bailout


CaP'N GRuNGe
 Share

Recommended Posts

1) Faith in the financial system is very (VERY) low. The system is entirely backed by faith. There is no reason that piece of paper in your pocket should be able to buy you lunch, except for the fact that the guy at the deli thinks he can use it to by some more salami ... which can happen because the meat packer thinks he can use that money to pay the electric bill. Faith.

 

2) More mortgages are expected to go into delinquency, default and foreclosure in coming months as option ARM mortgages reset to much higher interest rates.

[devilsadvocate] then why don't these companies NOT reset the ARM much higher since that is what is causing the delinquency/foreclosures [devilsadvocate]

Link to comment
Share on other sites

  • Replies 382
  • Created
  • Last Reply

Top Posters In This Topic

[devilsadvocate] then why don't these companies NOT reset the ARM much higher since that is what is causing the delinquency/foreclosures [devilsadvocate]

 

Because they were resold to investors who are expecting the increase in cash flow...

 

I guess the banks could kick in the extra money in the interim ... :wacko: ...

Link to comment
Share on other sites

WASHINGTON (Reuters) - The House of Representatives on Monday held open its vote on a $700 billion financial rescue plan well after the allotted time had expired with a majority already having cast votes against the bill.

 

If those votes hold and the chamber gavels the vote to a close, the bill will die. At 1:55 p.m., 226 lawmakers had voted against the bill and 207 had voted in favor.

 

Ruh roh. :wacko:

Link to comment
Share on other sites

This vote will have huge implications on the election this fall. If nothing passes in its place and the economy really tanks, you can bet that alot of those voters who called Washington upset that they were bailing out Wall Street will be just as upset at the loss of their retirement funds, jobs, etc.

 

Right?

Link to comment
Share on other sites

I'm actually surprised the House had the stones to put the brakes on. Right or wrong, I didn't think they had it in them.

Stones?!? They have no stones. They were just scared about having to go back to their constituents and explain why they voted for the plan. "Economy, be damned... I'm not losing votes."

Link to comment
Share on other sites

Stones?!? They have no stones. They were just scared about having to go back to their constituents and explain why they voted for the plan. "Economy, be damned... I'm not losing votes."

 

Bingo. Better to do nothing than be wrong and held accountable. Politicians being politicians.

Link to comment
Share on other sites

Stones?!? They have no stones. They were just scared about having to go back to their constituents and explain why they voted for the plan. "Economy, be damned... I'm not losing votes."

I don't see it that way at all. The House has now taken on the massive responsibility for what comes next. I think now they've got a lot more to be scared about then just losing votes.

Link to comment
Share on other sites

So the clock on the wall is still ticking, people here are still working and as far as I can see the company is still functional. Assuming there is no bailout, what happens next?

I'd expect mass hysteria from the world's financial markets for a couple days. But there will almost certainly be another bailout effort, and the Presidential election just got a whole lot weirder. I'd also expect significant inflation if the markets remain mired.

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

 Share

  • Recently Browsing   0 members

    • No registered users viewing this page.

×
×
  • Create New...

Important Information