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US finances, a mess - 3/14/2008 10:41:00 AM

pahunkboy

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http://news.yahoo.com/s/nm/20080314/bs_nm/bearstearns_dc;_ylt=ArmxlUBCvX2.W614pKwzHNVv24cA

bailing out Bear Sterns.   What does this say for un-regulated markets? Friday is a good day to tune in to investment TV channels.

Bush wants better mortgage disclosure- and the powers that be are fighting it. How pathetic- IMO truthful disclosures are good. the consumer must know the details of any loan. to fight this is ,,, greed, and typical of the razzle dazzle big banks that got us here.

it is no ones fault, no one wants to eat the loss- cos it isnt their fault. so somehow somewhere the money will come out of the till.

free markets, do they work? if they did, would we be in this mess?   the unbridled greed makes us no better then the comunists. it is getting so heated- and confusing it is hard to know what to post.

we wont see the bottem until summer.   if we are lucky this is temporary...if we are lucky.

so my question, how does the lone person, stay good. stay as least effected as possible.

[collective jaw drops]

?

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RE: US finances, a mess - 3/14/2008 8:41:13 PM

Muttling

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Bailing out Bear Sterns was a no brainer. If we let liquidity problems bankrupt them over night it would send the entire ecomoy into a tail spin. That said, they aren't getting a cash hand out. They are getting cheap loan that they have to pay back. If they crash at a later date, other companies will have had time to cover their exposure and the crash won't cause an economic wipe out. The Federal government will be out it's loan money, but that's a cheap price given the cost of letting them die.

Free markets are a GREAT thing at the highly competative level. When you get into monopolized sectors it is a real problem. Just ask the hog farmers how they feel about free markets right now. Also ask the cattle farmers what they are looking at as the meat packing industry is starting to become monopolized by the top innovator who is dominating the industry at the moment.

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RE: US finances, a mess - 3/14/2008 10:56:03 PM

Real0ne

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quote:

ORIGINAL: Muttling

Bailing out Bear Sterns was a no brainer. If we let liquidity problems bankrupt them over night it would send the entire ecomoy into a tail spin. That said, they aren't getting a cash hand out. They are getting cheap loan that they have to pay back. If they crash at a later date, other companies will have had time to cover their exposure and the crash won't cause an economic wipe out. The Federal government will be out it's loan money, but that's a cheap price given the cost of letting them die.

Free markets are a GREAT thing at the highly competative level. When you get into monopolized sectors it is a real problem. Just ask the hog farmers how they feel about free markets right now. Also ask the cattle farmers what they are looking at as the meat packing industry is starting to become monopolized by the top innovator who is dominating the industry at the moment.

Which is precisely what needs to happen.   As long as we are here to bail out the corps the corps will set themselves up to fail knowing we will save the day. What you say gives them incentive to gamble to their hearts content.

That and since when does the federal gov pay taxes to themselves?

That loan money is MINE AND YOURS my friend!   NOT the feds and I say let them fucking die so people wake up and change it!!!

Can I get a bailout now too?   OOps no one there to catch me if I fall!!

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RE: US finances, a mess - 3/15/2008 12:07:00 AM

Real0ne

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Pa, you wwant a perfect example of how fucking ignorant people are?

Ok so butt head gets us into a war.

He uses up all and any funds and soon has to start borrowing money.

Meantime the inflation is increasing to nearly doubling since 2001 reducing the value of the money to nealry 50% of what it was in 2001.

Now the greater majority of borrowed money is at the inflated rates!! Which is to say using the inflation rate of 2001 we would only be in for 5trillion and not 10 trillion.

So the number we borrow is twice what it would have been to buy the same goods etc.

NOW what are they going to do?

Now those buttheads are going to get inflation in check.

The problem is will that invoice number of 10 trillion automatically be reduced by deflation? NO

We will pay off the inflated number as the economy gets inflation back into check.

So we get double the number to start with then dropping inflation say to the 2001 levels would mean we are actually paying 4 times as much or 40trillion bucks at the 2001 levels when this bullshit all settles out. The reality is closer to 30 trillion if they take it back down to the 2001 levels.

We are so taking it in the ass and everyone out here will vote the same shit right back into office to perpetuate it.

Thats what they did the last time anyway.

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"We the Borg" of the us imperialists....resistance is futile

Democracy; The 'People' voted on 'which' amendment?

Yesterdays tinfoil is today's reality!

"No man's life, liberty, or property is safe while the legislature is in session

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RE: US finances, a mess - 3/15/2008 5:21:21 AM

pahunkboy

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Wall street makes these abera cadabera financial instruments- that make the books imposible to read, then people loose confidence in the book keeping.

so now the fed bails out bear sterns. why doesnt morgan stanley loan the money? they know the books.

so we reward the smoke and mirrors- wall street fighting new mortgage disclosure rules that bush wants.

i watched several experts on Friday. the experts cant read the books!!!

one expert had it right, "junk economics"

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RE: US finances, a mess - 3/15/2008 10:57:24 PM

Real0ne

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its a catch 22.

unfortunately nothing will be done till the system falls on its ass and the government makes damn ssure it does not so nothing gets done.

Nothing gets fixed that we can just throw money at and it goes away. (at least till a few years later and the next round of scandals and payouts)

Ever notice that presidents take turns in this shit regardless of party? Keeps us hating the other party and closing our eyes to our own. ALWAYS a catch 22 with plenty of suckers to eat it up!

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"We the Borg" of the us imperialists....resistance is futile

Democracy; The 'People' voted on 'which' amendment?

Yesterdays tinfoil is today's reality!

"No man's life, liberty, or property is safe while the legislature is in session

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RE: US finances, a mess - 3/15/2008 11:29:02 PM

Real_Trouble

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I will step in here with some brief historical context:

In the wake of the stock market crash of 1929, for the most part, the Fed tightened their monetary policy and reduced the money supply. There are any number of papers suggesting this deepened the hurt, and that overall, there could have been a rather negative effect as a result of this action.

In the wake of the doldrums of the early 70s, the fed began trying to soften the blow of the recessions by loosening their monetary policy and expanding the money supply. There are any number of papers suggesting this led to stagflation, and that overall there could have been a rather negative effect as a result of this action.

Or, in short, I am not sure there is compelling evidence (as I can dredge up many more examples) of what the right course of action is; on one hand, we appear to be moving towards higher inflation and a potential recession / slowdown at the same time. On the other hand, letting large banks fail might be good in terms of redistributing the capital of the bank and ridding the financial markets of poor or inefficient practices, but it might also bankrupt any number of unwitting counterparties who are doing, overall, a relatively decent job and would be the collateral damage of letting Bear be without collateral.

I doubt there is an easy answer here.

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RE: US finances, a mess - 3/16/2008 5:24:52 AM

pahunkboy

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at age 44 it gets- stale- the greed run-a-muck- the we did not know

i was thinking the mortgage i have- will be like 1/2 price now. the money i pay is in cheaper dollars.

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