Massive financial bailout fails in the House

reply to post by StellarX


How are the companies going to afford to pump that oil out of the ground in russia with no credit? They have to raise capital constantly. How is the companies in china going to buy all this product to build these consumer products without credit?

Perhaps the problem is that we REALLY don't know the truth about this whole thing. I also think it's in part of greed and instead of them paying the price we the tax payer has to.........that's wrong.

It's not a for sure $700 billion is going to be enough money. I heard it should be more like 2 TRILLION.

LIES....LIES....and more LIES.

[edit on 29-9-2008 by merky]

reply to post by Bunch


I'm not saying this bill would have changed the system or changed anything. It would have bought this broken system some time, which we need. We don't have enough time, as it stands, to save our economy and our country. We need time to change the system.

The credit market will freeze over completely first.

edit: typo

[edit on 29-9-2008 by grimreaper797]

reply to post by grimreaper797


They don't need credit, they have capital.

Originally posted by jam321
reply to post by carewemust

 

because some members of Congress had said it would. Gullible they are I guess.

In addition both parties had said they had reached an agreement and usually they don't call a vote unless they know it will pass.

I guess that remark by Speaker Pelosi (blaming Bush and Repubs for
the financial crises) just before the vote really did make enough
Republicans angry enough to change their YES to a NO. Well, I'm sure
she didn't intend for her diarrhea of the mouth to get this rescue package
shot down today, but this is one time when her loose lips was good for
the country.

So...when is everything supposed to come crashing down and life
as we enjoy it coming to an end? After all, the Treasury guy Paulson
said last Wednesday that catastrophe was imminent!

reply to post by DeadFlagBlues


Really, do they have it readily avalible? I doubt it. Not for any length of time.

reply to post by carewemust


Well if you work for a large company that generally needs to borrow in between large projects to meet payroll then you may be kicked on the street with the bums.

This is the twilight zone! House republicans led the charge against this bill. Wow, Bush must really be feeling like a loser, as his own party has abandoned support for him on such a critical issue.

I guess we need banks for our economy, but we don't need those banks.

Originally posted by grimreaper797
reply to post by Bunch

 

I'm not saying this bill would have changed the system or changed anything. It would have bought this broken system some time, which we need. We don't have enough time, as it stands, to save our economy and our country. We need time to change the system.

The credit market will freeze over completely first.

edit: typo

[edit on 29-9-2008 by grimreaper797]

And I think the credit market is going to freeze regardless because institutions and investor are in a state of panic. The have forgotten what good bussiness practices are.

The underlying issue is TRUST.

You need to trust in order to lend, now these bussinesses don't trust each other and thats not going to change reagrdless how many billions are been pumped to the markets. The Treasury just pump more credit I think 600 billion, there is no takers!

Is a trust issue between bussinesses, between bussinesses and the government and they markets are going back to basics which is a good thing, even if it take us in a pretty rough ride for some time.

reply to post by Bunch


No, you need capital in order to lend and the value of all real capital is in question now.

Is it possible that this is all part of the plan, with the $700b not on the table it leaves the opportunity for the evil banks to gobble up all the other banks and such.. I fear for the web based companies now, I think if people are running out of money they're gonna pull their highest assets out and they are probably the web and tech companies.. Like the housing markets these are shares that aren't actually worth anything so I think they'll be going next...... Am I right??

Why should the credit market freeze if you still have the means to repay your debt? I would think they would quit lending to high risk people. Most companies still have good credit. And if I am not mistaking small businesses can still get loans with the help of the small business programs.

reply to post by Bunch


And trust will be restored, at least for now, with a bailout. That is the point. It will buy us time. That is what we need right now, time.

Originally posted by DeadFlagBlues
reply to post by grimreaper797

 

They don't need credit, they have capital.

The problem is that they have relied on credit for so long that they forgot to have enough capital on their reserves. Not nearly enough to cover all their operations.

WTF. The Web Projects were right about the economy fall. I'm freaked out
right now.

reply to post by jam321


Banks are already on the defensive. They cannot afford to extend themselves, so they stop lending. The market is too unstable to lend. Thats why the credit market will freeze, and come to a complete freeze within the next month or two.

That will cause a further destabilization.

Just to emphasize the global nature of this issue.
After today's American markets retreat, Asian market futures are now trading down 10% pre-opening.
One tenth of market value is unbelievable and unprecedented.
If China's markets drop at such a rate, who's loans do you think they're going to be calling?






[edit on 9/29/2008 by schrodingers dog]

Originally posted by redhatty
The Vote Roll

Thanks for posting that. I looked up my senate rep, learned he voted "no", and called his office. I spoke to a very polite man and left this message: for that reason alone, I will vote for him again. Thank you.

Listening to an economics expert on George Noory last week, he said that this period of time will hurt us, but if we leave it alone it will heal. The bailout would only make it worse. I'm still nervous, still scared out of my wits, but hopefully the winds of change are blowing through America right now. Fingers crossed!

Grimreaper, why are you so sure countries will fail like the US?
Sure they may not grow as much but they wont crash as badly.
I think economists of all contries know the way the US is run, by credit and
fiat currency. They enjoyed the benefits the US economy brought while preparing for this very moment.
It is basically a free ride that may eb about to end with the US losing big and others going back to how things were. We have lived beyond our means. The higher we go the harder we fall.

reply to post by SectionEight


Central banks around the world have been injecting billions of dollars to the markets for the past months and expect more of that today. Is just that there is no takers, no one wants to lend, companies dont trust each other, thats the bottomline.

This bill wont change that because even if they sell these assets to the government, that dont mean that these companies are well run, that they are not cooking the books.