Credit markets to Washington: Bailout isn't enough

financial blackmail

Socialize the losses? Then socialize the gains.

 

I'm shocked. Just shocked. Good thing we stuck with the administration's plan and did it NOW!

But don't mind me... I'm a provincial idiot who knows nothing about the fancy world of finance.

 

2 trillioin is the number being thrown around. I think though they've got to think of more creative ways to make it happen, IF that's possible.

 

Yeah its all the "administrations plan" and the Democrats were just forced to go along with it despite them being the ones pushing the deal as hard as possible.

 

I'm pissed at everyone.

 

LOL yeah the dow dropping another 1000 points yesterday would have made things MUCH BETTER!

 

Nothing unexpected here. This is exactly what we thought the bailout was.

I like how they buried the fact that the LIBOR overnight rate plunged below 2% on Friday deep in the article.

Nobody claimed the bailout bill was a cure-all. It's not going to prevent the recession, which has already started. But at least it looks like it will prevent a bad situation from turning into a catastrophe.

 

Say it ain't so Joe! only idiots thought it would be signed and a rainbow would appear. but then again alot of people thought palin did well in the debates. (shoutout to everyone in humble high! ya get extra credit for reading this)

the point of this bill is to stem fear and create liquidity. that couldn't be done the isntant it was signed. it has to be allocated and dispensed before that can happen. as you pointed out, the LIBOR coming down was a good sign. however, there were multiple reasons for that decline with the bailout only being a portion. Let's hope that by mid-week we begin to see the wheels loosen up and start moving.

 

No, but a better plan would have...

Instead, you're left holding the bag for an ineffective plan that is already failing, one that will take massive amounts of contractors (the same people who screwed it up in the first place) to implement, one that will pump billions into the bank accounts of Wall Street through those same contracts and fees, one that won't even begin to make an impact (for better or worse) for weeks... and one that will be administered by the Bush administration.

Every article I've read since passage has some bit in it about Wall Street being done with that and focusing on the other issues with the economy, leading to further declines. WTF? Couldn't they look at those before it got to this point?

You're too close to it... your normally excellent political antennae have been malfunctioning.

 

Oh what better plan is that?

This is the plan that we need to debate and enact several months from now while more banks fail right?

Well I'm interested to hear it. And precisely how it will spur the credit markets

Yeah I hate to break it to you but the Obam administration is not exactly going to go to a commune and bring in some esperanto-speaking vegans to administer this plan - rather they will use evil wall street types.

Last week you were arguing that the crisis was overblown and that people were exaggerating the impact of the seizure of the credit markets. Now you are arguing that the plan is ineffective and the seizure of the credit markets are going to doom us anyway. Pick a side.

 

"It doesn't take a great actor to recognize a bad one. " - Jason Nesmith

I don't need to be a great economist to be concerned and have severe issues with this bailout and how it is implemented.

Rocket River

 

Dem stewardship of Congress has been abysmally mediocre even under Bush shadow.

They deserve to be reamed over this fiasco.

 

I love how people have already decided whether the plan is or isn't a success after one day.

 

I was going to say this after Obama was elected, but even with Bush in office it still doesn't matter with the passage of this bill.

Welcome to the USSA

 

I am so disappointed for my children and their children.

People just don't get it.

The root of the problem is the FED and the debt economy.

Bailouts only make it worse, either short term or long term but a bail out is the worst thing to throw at an economy drowning in debt.

Anyone who thought the credit was going to flow, that liquidity would flow, that there would be some slow down to the melt down just doesn't get it... including every congressman who voted yes and every pundit who said the sky was falling and every greeding person who was hoping they could somehow rescue their 401 k

We have lost touch with reality.

I have 8 credit cards that have limits around $20,000.00 on each. I can go load them all up tomorrow but I won't be able to pay them off. No bank or govt. will bail me out or you either and shouldn't.

The only way out is for our economy to become productive and valued.

You cannot borrow your way to wealth and value.

There is nothing wrong with finanical institutions going belly up, 401 k's losing half their value and credit becoming tight; these are all natural market consequences to too easy credit, bad loans and poor investing.

If the FED and the government keep intervening with more debt then the landing is going to go from crash to burn.

All the bailout has done is let rich bankers off the hook financially for bad loans at our expense.

I think president Obama will do a good job of expaining the coming suffering and I think he has the charisma to make us all want to perservere. He certainly didn't have the independence to suggest the right solution.

He will leave the FED alone and navigate us through this cycle so the bankers can rape our grandchildren of what wealth they end up with.

I feel better now.

Maybe after a little bounce back in the market on Monday I will be able to speak positive about this last bailout/theft our govt. endorsed. Come on buyers get bullish and help me out Monday.

 

It's a stupid ass plan. We haven't changed any of the business practices that have gotten us here in the first place. This is like trying to rebuild a house before you stop the gas leak that blew it up in the first place.

Secondly, if there are assets to be bought and they aren't being bought, then those assets are overpriced. I'd rather those assets be devalued and the private sector buy them up. Now if the US government is the only entity with the capital to buy them up then we should consider if we should just inject the liquidity into the markets ourselves with the US government guaranteeing loans or guaranteeing the solvency of banks that already meet a certain level of financial health. This way we're not buying a bunch of overpriced crap and we're freeing up capital for everyone to continue business. This allows the markets to move without letting some of these jerkoffs off the hook for how they've run their businesses.

I also want to say I totally agree with most of what rimrocker has said about this ridiculous blank check. No responsible government on Earth would hand over $700 billion to the same corporate elite that screwed the country with their greed and incompetence to being with. This is insane.

Additionally, all Americans should immediately call for the resignation of Barney Frank. He's a smart guy and I generally approve of him but his incompetence in the oversight of Fannie and Freddy is a disgrace. He's certainly not the only one who should lose his seat because of this situation but he's a good start. We cannot tolerate this kind of nonsense from our leaders any longer, regardless of party.

 

That's because a lot of them don't exist anymore.

The market for asset-backed securitizations is pretty down. And by down I mean completely gone.

 

Agree the primary problem is debt.....we have to balance the budget first then start running a surplus to pay down our national debt.

DD

 

Well if there are not going to be any new regulations that come from this then this is will be worse than I thought.

How about capital requirements for one? Is that not one of if not the main reason we're stuck with frozen credit markets?