They still have not told us what the 700B is for

I just don't see what the 700B is for.

They say the problem is banks will not loan money to other banks and this is freezing up credit.

They will not loan money to other banks because interest rates are low and people will not risk giving out loans with their capital because these banks have these bad assets on the books and there credit rating is down.

I have been hearing CEO's on CNBC all day talk about how they have available capital to bargain hunt.

So in essence, we are covering the loss of these banks.

We can buy these assets for one dollar just to clear them off the books of these banks which would increase there credit rating.

These bankers seem to be using the American Government and our tax dollars to cover their losses. As far as I can tell, the 700b is not needed because their's money out their it's just not being loaned out.

It also seems the media along with Politicians are pushing this too hard. They have a show vote coming up tonight in the Senate with Obama, McCain and Biden fly into Washington and they tell us from the Senate floor how important this is.

Essentially what I hear the promoters of the bailout bill saying is "We are in crisis, give us money, and it will be all right". I do not hear "...included are these measures to change the system so it never happens again."

Let 'em sink...The idea stank when I first heard it, and has only been smelling worse...

reply to post by Wise Dome


The 700 Bil. would be used for adding liquidity to the stagnant markets. The money would be used for buying up the mortgages that are killing the banks and investors alike. The govt' wants to hold on to the mortgages until they mature but I think it's a completely foolish plan. The whole idea is just stupid IMO all they are doing is setting us up for the same problems down the road but next will be the credit market.

Watching c-span2 now... discussion of the bill, and there is now talk of re-regulation, and steps to take for long-term protections.
Still, once raped, how does one make things right again?

I have no idea lol. I think if the people who are supposed to be regulating these lenders are more adequately funded the companies that caused this mess would be under closer watch and would be less apt to giving any Joe Blow wanting a home a mortgage, also more people are educated on adjustable rate mortgages so those burned by those and those who would be are better equipped with knowledge for the future. I'm not so sure how they can go about fixing the credit problems though, I think that is up to us to live within our means. Maybe even start moving away from plastic all together! but that is wishful thinking.

What really gets my panties in a bunch about all this credit crisis nonsense is the way the politicians and bankers talk about the problem as if it just suddenly landed on their doorstep yesterday and caught them by surprise. These people are paid a fortune and yet they totally missed the obvious. They have used our money to make themselves millionaires and now the system has gone tits up they want our tax money to fix it so they can carry on raking it in! You couldn't make it up... And the worst thing is- nobodies accountable. If I'm a couple of days late paying a bill they can't wait to drag me into court yet these bas**rds have robbed us blind and are going to get away with it.

This is how Paulson sees the $700b going down: The banks who hold lots of that bad stuff are in red, and the share holders are not color blind. So Paulson tells the banks that he is willing to pay 30 cents for each bad dollar. Some banks will refuse to go so low -- and that means the junk they want to get rid off DOES have some value. In other words, Paulson wants to establish a market value for the bad assets. What those non-performing assets are worth would depend on what the banks would be willing to sell them for outbidding one another. So if a banker wants to sell the bad investment assets dollar for dollar, he will be told to hold on it till maturity, if he feels that the asset is worth that much.

Paulson knows the banking industry; he knows how the bankers think. He wants to catch two flies in one sweep, because he thinks that he is the best financial strategist ever born, and he's out to prove it to himself. That would take some ten years to find out though.

Actually the US government plans to buy up bad debt tied to the US housing collapse from banks in other countries. They aren't bailing out Wall Street at all (Which would have been bad enough anyway), and is probably indicative that bottom is about to fall out. They're gonna try and get as much bad debt on their books before the whole thing goes belly up, and let foreign banks out of this mess as much as possible. How much the US will buy back is anyone's guess, but I would think that these foreign banks won't keep the 700B or more for very long. Look for the market to crash very soon, and look for commodities to rise significantly, in terms of US dollars that is.

Here's a link

www.youtube.com...

reply to post by Wise Dome


What the heck do you mean they have not told us what it's for?

It's to purchase mortgage backed securities at above market prices......

How hard is that to grasp?

Originally posted by Wise Dome
I just don't see what the 700B is for.

Well, about $500 Billion is going into somebody's pocket, never to be seen again. Who knows about the rest? This is the Administration's last big run to the National ATM machine before they have to get out of town.

Nobody can keep track of that amount of money. I don't know how many times I've read of this or that many billions of dollars going to Iraq or Afghanistan ending up "unaccounted for."

It's all just a huge fraud and theft, happening right in front of everybody's eyes. Won't help anything. Just lining the coffers of one of the most corrupt administrations since the days of Imperial Rome.

Originally posted by Rockpuck
reply to post by Wise Dome

 

What the heck do you mean they have not told us what it's for?

It's to purchase mortgage backed securities at above market prices......

How hard is that to grasp?

You obviously didn't read my post.

That's not telling us why they need to buy these mortgage backed securities if there's money available.

You constantly hear politicians and wall street analys say there's money available it's just not being loaned out.

So the 700B is not to free up credit by buying these assets, it's to cover the losses for these companies.

If it's that bad, we should be able to buy these assets for 1 dollar. This will clear these assets off of their books and free them to obtain credit.

We are just covering there assets and they even told us that the 700B number was something they pulled out of thin air because it's a big problem.

So actually they have not told us what the 700B is for because they don't know by their own admission. This is just a BIG number to cover BIG losses.