There goes your 401k again
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do tell
here a psht, there psht, everywhere a psht psht
PVC SQUAD MEMBER #2- 95 CIVIC EX- DD 320whp on a mustang dyno
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Raider;238631 wrote:
nothing like loosing money again....thanks to the shit heads voting noAs opposed to bailing out ultra-rich Wall Street execs and banks? It's a necessary evil that had to occur. Would you rather have pain now or more pain later?
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Lets throw 700 billion at wall street to prolong the inevitable. Someone explain to me why it is a good idea for government to get involved in the private sector and why it is a good idea to bail out all of these financial institutions that are failing? Let them fail.
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MisterCMK;238649 wrote:
Lets throw 700 billion at wall street to prolong the inevitable. Someone explain to me why it is a good idea for government to get involved in the private sector and why it is a good idea to bail out all of these financial institutions that are failing? Let them fail.If it were one or two, I'd agree. I didn't look at the bill that they voted on, I've been out of the loop all weekend on this. If the bill failed to provide gov't oversight to ensure that this type of behavior doesn't continue and didn't reintroduce regulations on the banking/lending/investing community, I would have voted against it too....
Why is it good? How is a total banking collapse a good thing for the US/World? For some companies it is far too late for the bail out, but a lot of others are being asked to shoulder the burden of others mistakes (see JP Morgan Chase's assumption of WaMu's debt/assets) which makes them vulnerable. It'll be interesting, but I have a feeling none of us are going to be liking where this market is heading for quite a while.... Oh well, gives me a chance to buy up some cheap stocks.
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tjamz;238657 wrote:
If it were one or two, I'd agree. I didn't look at the bill that they voted on, I've been out of the loop all weekend on this. If the bill failed to provide gov't oversight to ensure that this type of behavior doesn't continue and didn't reintroduce regulations on the banking/lending/investing community, I would have voted against it too....Why is it good? How is a total banking collapse a good thing for the US/World? For some companies it is far too late for the bail out, but a lot of others are being asked to shoulder the burden of others mistakes (see JP Morgan Chase's assumption of WaMu's debt/assets) which makes them vulnerable. It'll be interesting, but I have a feeling none of us are going to be liking where this market is heading for quite a while.... ** Oh well, gives me a chance to buy up some cheap stocks**.
That's how I'm looking at it right now...trying to keep a somewhat positive attitude towards the whole thing.
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Good thing for banks like Wells Fargo who didn't do subprime loans and thus are not hurting NEARLY as bad as other idiotic banks who decided to give $100,000 mortgages to people earning $15,000 a year.
In any other business, when you do idiotic practices and they destroy your company you suffer the consequences generally. This is the exact same way...I guess I could see SOMEWHAT of a payoff helping, but 700 Billion?? NO thank you...Another burden on taxpayers already strained for money.
The funny thing I hear in the news is how lenders are now being very strict on lending practices, as if that's a bad thing. I fail to understand what is so bad about someone not being approved if they can't afford a loan and what is so bad about someone not being approved who can't afford a loan.
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Wells Fargo did not write any sub-primes, but they did buy them from mortgage companies. My initial mortgage was sub-prime by them. I refi'ed in 2003 though so I got a rate lower than my subprime rate at that time.
I also agree that there should be loan regulations....much like there used to be BEFORE a certain politician running for president voted in favor of the de-regulation of banks & investment companies......oops. I normally am all for letting people live by their mistakes, but there needs to be some guidance/rules to keep things in check.....basically, if the market continues to slip, you will see many more banks fail...even those that weren't directly involved. You will see investment stop. Basically, the rich will horde the money and the rest will suffer.
This is the primary reason a bailout is needed. Not to protect those that made bad decisions, but to protect those that didn't from losing all.
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tjamz;238657 wrote:
Why is it good? How is a total banking collapse a good thing for the US/World? For some companies it is far too late for the bail out, but a lot of others are being asked to shoulder the burden of others mistakes (see JP Morgan Chase's assumption of WaMu's debt/assets) which makes them vulnerable. It'll be interesting, but I have a feeling none of us are going to be liking where this market is heading for quite a while.... Oh well, gives me a chance to buy up some cheap stocks.JPM will be the very last bank standing. They got a great deal on the WM transaction; otherwise they wouldn't have pushed it.
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This was the bailout plan...
Source: http://www.cnbc.com/id/26808715—Up to $700 billion to buy assets from struggling institutions. The plan is aimed at sopping up residential and commercial mortgages from financial institutions but gives Treasury broad latitude.
—Up to $50 billion from the Great Depression-era Exchange Stabilization Fund to guarantee principal in money market mutual funds to provide the same confidence that consumers have in federally insured bank deposits.
—The Fed committed to make unspecified discount window loans to financial institutions to finance the purchase of assets from money market funds to aid redemptions.
—At least $10 billion in Treasury direct purchases of mortgage-backed securities in September. In doubling the program on Friday, the Treasury said it may purchase even more in the months ahead.
—Up to $144 billion in additional MBS purchases by Fannie Mae and Freddie Mac.The Treasury announced they would increase purchases up to the newly expanded investment portfolio limits of $850 billion each. On July 30, the Fannie portfolio stood at $758.1 billion with Freddie's at $798.2 billion.
—$85 billion loan for AIG, which would give the Federal government a 79.9 percent stake and avoid a bankruptcy filing for the embattled insurer. AIG management will be dismissed.
—At least $87 billion in repayments to JPMorgan Chase [JPM 47.05 --- UNCH (0) ] for providing financing to underpin trades with units of bankrupt investment bank Lehman Brothers [LEH 0.2151 --- UNCH (0) ]. Paulson said over the weekend he was adamant that public funds not be used to rescue the firm.
—$200 billion for Fannie Mae and Freddie Mac. The Treasury will inject up to $100 billion into each institution by purchasing preferred stock to shore up their capital as needed. The deal puts the two housing finance firms under government control.
—$300 billion for the Federal Housing Administration to refinance failing mortgage into new, reduced-principal loans with a federal guarantee, passed as part of a broad housing rescue bill.
—$4 billion in grants to local communities to help them buy and repair homes abandoned due to mortgage foreclosures.
—$29 billion in financing for JPMorgan Chase's government-brokered buyout of Bear Stearns in March. The Fed agreed to take $30 billion in questionable Bear assets as collateral, making JPMorgan liable for the first $1 billion in losses, while agreeing to shoulder any further losses.
—At least $200 billion of currently outstanding loans to banks issued through the Fed's Term Auction Facility, which was recently expanded to allow for longer loans of 84 days alongside the previous 28-day credits.
-Peter
1991 240SX
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I prefer the Warren Buffet approach to stocks: Buy when everyone is selling and sell when everyone is buying.
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DaveH;238851 wrote:
As young as all of us are (yes even me) it's always time to buy.True.....just buy more when cheap.....kinda like shopping at Sams Club
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True free markets need to be left alone by the government. Their interference will just create more of a mess. Let the rich corporate companies learn from thier mistakes. No more bailing out companies that give their CEO 23 million dollar severence packages for failing a company. Most investment banks should have enough to cover deposits based on the law.
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I'm seriously pressed to find a single industry that has been better for the public after deregulation.
Insurance: Nope
Airlines: Nope
Banking: Nope
Investments: Nope -
fast food baby!
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tjamz;238945 wrote:
I'm seriously pressed to find a single industry that has been better for the public after deregulation.Insurance: Nope
Airlines: Nope
Banking: Nope
Investments: NopeI am not talking about deregulation....I am talking about free markets. Insurance has made huge profits, only one company really is in this mess which is AIG. The airlines would be suffering if government control or not. Banking is just fine at the local and regional level, it is the investment banks that screwed everything up by becoming too greedy. By having the markets free from government control creates more competition and allows them to get profits or losses. So when they are profiting everything is fine, but when they fail it is not the governments job to step in. We are based on Keysnian economic policies with deficit spending to create more growth which is not working anymore and effecting the markets. I was a firm believer that this type of economics can work for a while but eventually you leverage too much out and create inflation. The dollar isnt worth anything because the interest rates are driven by the market anymore but by the government. Also, creating money out of thin air is killing us. These things affect the market tremendously. I for one am not supporting bailing out wall street because they errored in judgement and gave out loans and credit to undeserving people. They failed as a private organization and should declare bankruptcy like everyone else should. This would be the best for the market and allow the best companies to come forward and take their spots. Government stimulation has not been working because our economy has gotten so big. Look at the stimulas checks that we got...5.5 billion worth in a 13 trillion dollar economy. Figure 3 billion got spent on what it was supposed to with multiplier factor only puts it at 3 trillion of stimulus. New economic policies need to be put in place...period.
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