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Another Bailout Coming?


Savage Beatings
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I'm guessing that sometime in the next month, we'll have a proposal for another bailout bill, with politicians saying that the first one didn't go far enough. Would you support another couple hundred billion dollars to help heal the credit crunch?

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I'm guessing that sometime in the next month, we'll have a proposal for another bailout bill, with politicians saying that the first one didn't go far enough. Would you support another couple hundred billion dollars to help heal the credit crunch?

 

You assume I supported the first couple hundred billion?

 

:wacko:

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You assume I supported the first couple hundred billion?

 

:wacko:

 

Nah, I'm not making any assumptions... just wondering if people would support another one if/when it comes.

 

And I have no idea whether this would happen or not really... I'm just making an educated guess based upon the way that Washington works.

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Assuming the objective behind all of the actions this year (starting with the Bear Stears transaction in March) is to keep the USA out of a massive recession...

 

I would say that the possibility of needing "another bailout" is more than 50%.

 

Why? The first one wasn't big enough and didn't get enacted fast enough.

 

However, I'd bet that whatever the "next bailout" is will look lots different than the one that just passed.

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Yeah, as long as they double the amount of pork added to this one from 140 Billion to 280 billion. I don't want my lawmakers half assing their rape of the American public anymore!

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I'm guessing that sometime in the next month, we'll have a proposal for another bailout bill, with politicians saying that the first one didn't go far enough. Would you support another couple hundred billion dollars to help heal the credit crunch?

 

Was the first one effective?

Did we do anything to attack the source of the problem (the foreclosures).

 

These are the questions that will need to be asked.

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Assuming the objective behind all of the actions this year (starting with the Bear Stears transaction in March) is to keep the USA out of a massive recession...

 

I would say that the possibility of needing "another bailout" is more than 50%.

 

Why? The first one wasn't big enough and didn't get enacted fast enough.

 

However, I'd bet that whatever the "next bailout" is will look lots different than the one that just passed.

I pretty much agree with all of this.

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However, I'd bet that whatever the "next bailout" is will look lots different than the one that just passed.

 

Why is that? Are they gonna give us a "reach around" next time or are you saying they won't use any lube next time?

Edited by millerx
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Why is that? Are they gonna give us a "reach around" next time or are you saying they won't use any lube next time?

 

I'm saying that recent legislation focused on (imo) two things ... (i) the ability to buy assets directly from financial insitutions and (ii) the Federal Reserve pay interest to member banks for their deposits made at the Fed.

 

New legislation may be something very different, like:

1) $1T dedicated to buying freshly issued equity in any publicly traded company with more than _______ employees, $____ million in market capitalization or $____ million in revenue ... with a cap of 20% of the current market value of the company and a minimum purchase of $_____ ... first come, first served ... regardless of industry ... overseen by the Federal Reserve and US Treasury Department ... where the funds used can be used to retire existing indebtedness, among other things.

 

2a) Establishment of the Bank of Settlements to act as counterparty to all existing credit default swaps written against companies based in the USA, for anyone that will pay a 'fee' to the BoS for acting as the central clearing house. Existing CDS's are allowed to remain in force until they are set to contractually expire. New legislation requires that the CDSs written against a comapny can only be issued by the BoS and are only available for origination up to an amount equal to the total outstanding debt (including accounts payable), so that Company X won't have $100 million of debt, but $500 million of CDSs written against its viability (as is often times the case today as there are no caps on the potential notional value of CDSs written against a single issuer).

 

2b) BoS acts as the operating entity for the merged Fannie Mae and Freddie Mac, AIG, plus any other failed financial institution that is taken over by the FDIC, the Federal Reserve and/or the US Treasury, allowing the netting of CDS related exposure amongst failed institutions, minimizing the contagion risks.

 

3) Establishment of the Global Asset Solvency Trust (or somesuch), funded by the USA, developed Europe, developed Asia, India, Brazil, Russia and China, and anyone else that wants in, proportional to each countries' GDP (in US dollar terms) allowing for the coordinated 'nationalization' of large financial institutions in countries that are smaller than the failing financial institutions (i.e., Bigass Belgian Bank is taken over by the governments included in the GAST), with the intention of winding down it's operations in a coordinated fashion, minizing fall-out across the financial system.

 

4) Elimination of Social Security Benefits to anyone under the age of ______.

 

5) Drilling on federal lands by the newly created US Energy Trust, where the USET is owned by federal government.

 

6) ...etc...

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I'm saying that recent legislation focused on (imo) two things ... (i) the ability to buy assets directly from financial insitutions and (ii) the Federal Reserve pay interest to member banks for their deposits made at the Fed.

 

New legislation may be something very different, like:

1) $1T dedicated to buying freshly issued equity in any publicly traded company with more than _______ employees, $____ million in market capitalization or $____ million in revenue ... with a cap of 20% of the current market value of the company and a minimum purchase of $_____ ... first come, first served ... regardless of industry ... overseen by the Federal Reserve and US Treasury Department ... where the funds used can be used to retire existing indebtedness, among other things.

 

2a) Establishment of the Bank of Settlements to act as counterparty to all existing credit default swaps written against companies based in the USA, for anyone that will pay a 'fee' to the BoS for acting as the central clearing house. Existing CDS's are allowed to remain in force until they are set to contractually expire. New legislation requires that the CDSs written against a comapny can only be issued by the BoS and are only available for origination up to an amount equal to the total outstanding debt (including accounts payable), so that Company X won't have $100 million of debt, but $500 million of CDSs written against its viability (as is often times the case today as there are no caps on the potential notional value of CDSs written against a single issuer).

 

2b) BoS acts as the operating entity for the merged Fannie Mae and Freddie Mac, AIG, plus any other failed financial institution that is taken over by the FDIC, the Federal Reserve and/or the US Treasury, allowing the netting of CDS related exposure amongst failed institutions, minimizing the contagion risks.

 

3) Establishment of the Global Asset Solvency Trust (or somesuch), funded by the USA, developed Europe, developed Asia, India, Brazil, Russia and China, and anyone else that wants in, proportional to each countries' GDP (in US dollar terms) allowing for the coordinated 'nationalization' of large financial institutions in countries that are smaller than the failing financial institutions (i.e., Bigass Belgian Bank is taken over by the governments included in the GAST), with the intention of winding down it's operations in a coordinated fashion, minizing fall-out across the financial system.

 

4) Elimination of Social Security Benefits to anyone under the age of ______.

 

5) Drilling on federal lands by the newly created US Energy Trust, where the USET is owned by federal government.

 

6) ...etc...

 

 

Are you f'n serious? So fedgov just becomes the next third reich, economically speaking? If this doesn't upset you, you're not paying enough attention.

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Yeah, as long as they double the amount of pork added to this one from 140 Billion to 280 billion. I don't want my lawmakers half assing their rape of the American public anymore!

That's just about the most intelligent thing I've heard this week and it couldn't be more to the point.......The middle class is gone for generations! I feel guilty thinking of the world my 4 year old will be left with.......What has happened to AMERICA?

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Are you f'n serious? So fedgov just becomes the next third reich, economically speaking? If this doesn't upset you, you're not paying enough attention.

 

Millerx asked what I thought may be next in line, as it regarded government intervention ... I was not asked if I was happy about it.

 

...other options include:

 

A complete overhaul of all banking, investment management and corporate finance activities under a single regulator with dramatically expanded scope and reach which would involve a (nearly) complete overturning of all current regulation and the launching of new oversight, restriction and penalties. Some of this will be very welcome (essentially the parts that get rid of conflicting overlaps), some will not (particularly the stuff that tells individual citizens what they can and cannot do with their money, primarily as it regards the suitability of certain investments).

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I'm saying that recent legislation focused on (imo) two things ... (i) the ability to buy assets directly from financial insitutions, and (ii) the Federal Reserve pay interest to member banks for their deposits made at the Fed, and the pork..

fixed.

 

Folks if you are not pissed off about our lawmakers slipping 140 BILLION dollars worth of pork into the bailout package then frankly, I'm quite ashamed that you are Americans. When the frak are you going to stand up and say STOP! When are you ever going to vote these jackasses out of office for fraking you like this! The bastages steal our fraking money and then treat us like a 6 year old, telling us that they did it for our own good. VOTE THEM OUT OF OFFICE!!!

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fixed.

 

Folks if you are not pissed off about our lawmakers slipping 140 BILLION dollars worth of pork into the bailout package then frankly, I'm quite ashamed that you are Americans. When the frak are you going to stand up and say STOP! When are you ever going to vote these jackasses out of office for fraking you like this! The bastages steal our fraking money and then treat us like a 6 year old, telling us that they did it for our own good. VOTE THEM OUT OF OFFICE!!!

sounds like we got a guy here who is gonna vote for the candidate who has "stopping pork and earmark spending" as a lead issue on his platform.

Edited by millerx
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sounds like we got a guy here who is gonna vote for the candidate who has "stopping pork and earmark spending" as a lead issue on his platform.

I'll not vote for either a Democrat or a Republican. Don't be so quick to try and put labels on things.

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sounds like we got a guy here who is gonna vote for the candidate who has "stopping pork and earmark spending" as a lead issue on his platform.

 

I wish John McCain, Sarah Palin, Barack Hussein Obama, and Joe Biden would all be caught in bed together so we could elect someone with just a small clue on how to run this country. Anyone fervently supporting any of these morons is a moron.

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I'll not vote for either a Democrat or a Republican. Don't be so quick to try and put labels on things.

I was just playin'... :wacko: , but I am sick of the pork myself, and any candidate that has that as at least one of their items, I will at least listen more intently to what the rest of the platform is. Basically, it is a good start.

 

I wish John McCain, Sarah Palin, Barack Hussein Obama, and Joe Biden would all be caught in bed together so we could elect someone with just a small clue on how to run this country. Anyone fervently supporting any of these morons is a moron.

I agree with the "fervently" discription.

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When are you ever going to vote these jackasses out of office for fraking you like this! The bastages steal our fraking money and then treat us like a 6 year old, telling us that they did it for our own good. VOTE THEM OUT OF OFFICE!!!

 

Do you think the people we vote into office would NOT commit the same egregious behavior? The entire system needs to be wiped out and started over from scratch. Unfortunately, that would require a full blown revolution, which I don't think is likely to happen.

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