Looks like the politicians are reading your threads:
http://biz.yahoo.com/ap/080930/bailout_all_in_a_name.html
http://biz.yahoo.com/ap/080930/bailout_all_in_a_name.html
Does C-Gold have anything to do with this site? https://c-gold.com/
"7". - If you actually READ what the proposal is, you will quickly find out that it is an "investment" and not a "hand out" or "bail out". You don't need to be part of the secret club, you just need to know how to read... and do it.
I work in financial markets and the public's ignorance is disguisting. It isn't so much that you need a PHD to understand it all, you have to spend the 5 minutues to understand the deal.
The government is making a trade, much like you would trade cash for a stock. You put your 10,000 bucks into ETrade, and trade cash for Microsoft stock.
The government is trading the financial institutions CASH for distressed financial instruments. The reason why they can't sell them is because there is no market. The reason there is no market is because demand is down. The reason demand is down is because everybody is trying to deleverage at the same time. The reason everybody is trying to deleverage at the same time is because of capital requirements and ratio's.
The banking industry is actually heavily regulated. One of my friends at work used to do just that. He would travel across the country and audit banks.
The problem isn't that these instruments are worthless... they are far from it... the problem is that the potential buyers of these are other banks and hedge funds and they have no money.
It isn't that they don't have money, it is that they have to meet regulations, and the reason why they are having trouble with that is because they are seeing assets depreciate... It is making the whole thing spiral down... assets are deprciating... making them need more money... making assets depreciate further.
Look at Lehman... The CEO didn't want to see their distressed financial products because he said they were "undervalued". He didn't want to take heavy losses, but in the end it costed him big time... the 100 something year firm.
The governmen is not buying trash. These financial instruments are backed by housing. So far were are at ~ a 2% forclosure rate... A lot of subprime mortgages already have gone belly up... people are trying to stop wasting money...
These financial products the government is buying DO HAVE value. Warren Buffet bets the government WILL MAKE MONEY, and that is even expecting the government to not run the program smoothly ( they never do). Traders are expecting to reap 15-20% in this distressed market and even if the government made ANY positive returns it would be worthwhile... even if they broke even...
It would keep people in jobs, corporations paying taxes, citizens paying taxes, citizens spending money etc.
It is not a god damn bailout.
I work in financial markets and the public's ignorance is disguisting. It isn't so much that you need a PHD to understand it all, you have to spend the 5 minutues to understand the deal.
The government is making a trade, much like you would trade cash for a stock. You put your 10,000 bucks into ETrade, and trade cash for Microsoft stock.
The government is trading the financial institutions CASH for distressed financial instruments. The reason why they can't sell them is because there is no market. The reason there is no market is because demand is down. The reason demand is down is because everybody is trying to deleverage at the same time. The reason everybody is trying to deleverage at the same time is because of capital requirements and ratio's.
The banking industry is actually heavily regulated. One of my friends at work used to do just that. He would travel across the country and audit banks.
The problem isn't that these instruments are worthless... they are far from it... the problem is that the potential buyers of these are other banks and hedge funds and they have no money.
It isn't that they don't have money, it is that they have to meet regulations, and the reason why they are having trouble with that is because they are seeing assets depreciate... It is making the whole thing spiral down... assets are deprciating... making them need more money... making assets depreciate further.
Look at Lehman... The CEO didn't want to see their distressed financial products because he said they were "undervalued". He didn't want to take heavy losses, but in the end it costed him big time... the 100 something year firm.
The governmen is not buying trash. These financial instruments are backed by housing. So far were are at ~ a 2% forclosure rate... A lot of subprime mortgages already have gone belly up... people are trying to stop wasting money...
These financial products the government is buying DO HAVE value. Warren Buffet bets the government WILL MAKE MONEY, and that is even expecting the government to not run the program smoothly ( they never do). Traders are expecting to reap 15-20% in this distressed market and even if the government made ANY positive returns it would be worthwhile... even if they broke even...
It would keep people in jobs, corporations paying taxes, citizens paying taxes, citizens spending money etc.
It is not a god damn bailout.
you assuming government is going to responsibly oversee this buying of assets and assuming that government is able to price these things well which the financial markets currently aren't able to do so the taxpayer doesn't get the shaft
being a small government free market guy liberal hating guy i find that quite astounding to say the least
the whole problem with this situation is they tangled such a ugly web nobody knows who owns what etc.....so i guess its now up to government to sort it all out and put the taxpayer at risk...
to which is say screw that....
being a small government free market guy liberal hating guy i find that quite astounding to say the least
the whole problem with this situation is they tangled such a ugly web nobody knows who owns what etc.....so i guess its now up to government to sort it all out and put the taxpayer at risk...
to which is say screw that....
Warren Buffet even took " government mismanagement" into account, and still believes the government will earn a profit. If they are buying things said to be 15-20 percent undervalued, he didn't say they would make 20 percent, but he bet they would make " a profit". A similar act was taken by Hong Kong said years ago and they did profit.
I disagree nobody knows the value of these instruments, it is that the demand is killed. The potential buyers would LIKE to buy these instruments, but they see their capital ratios effected as well. Just look at how Lehman unfolded with Dick Fold not wanting to unload... Look at Bear etc.
I disagree nobody knows the value of these instruments, it is that the demand is killed. The potential buyers would LIKE to buy these instruments, but they see their capital ratios effected as well. Just look at how Lehman unfolded with Dick Fold not wanting to unload... Look at Bear etc.
we shall see how it all works out
i give it very very low odds we turn a profit....
warren is also assuming this will somehow miraculously save the economy
warren is a permabull.....for the most part....thinks everything will be just fine....
it will do nothing of the sort
for them to make a profit housing prices and the economy must respond positively
not continue to slowly fall into the abyss
i give it very very low odds we turn a profit....
warren is also assuming this will somehow miraculously save the economy
warren is a permabull.....for the most part....thinks everything will be just fine....
it will do nothing of the sort
for them to make a profit housing prices and the economy must respond positively
not continue to slowly fall into the abyss
Then Berkshire Hathaway should be buying the shit out of those undervalued securities. But they are not.
What they did buy was a stake in Goldman Sachs, who is in the market of selling those securities.
Here's a good take on it:
http://econlog.econlib.org/archives/2008/09/what_warren_buf.html
I wouldn't exactly call Warren a permabull. He was the one saying that we could NOT expect historical stock market returns of 7 to 10 percent per annum. That would mean by the year 2100 the dow would be at some riddulous number like 100,000. He was saying investors should be more happy to seek maybe a more modest 5% return... I believe those comments were in the Brk annual report in 2000ish. He has certainly been right thus far.
You know, if we were talking about human beings, working together, innovating, solving problems, capitalism, free markets I would strongly disagree with him. But if were were talking about America as she currently is, and our road to serfdom, I would say that he is being optimistic. If we go down the road to socialism with the Obama's and Hillary's of the world... we are fucked and the smartest, richest, best people will move to free-er and more prosperous lands. America is not "entitled" to being #1 as we have abandoned all of her principles.
You know, if we were talking about human beings, working together, innovating, solving problems, capitalism, free markets I would strongly disagree with him. But if were were talking about America as she currently is, and our road to serfdom, I would say that he is being optimistic. If we go down the road to socialism with the Obama's and Hillary's of the world... we are fucked and the smartest, richest, best people will move to free-er and more prosperous lands. America is not "entitled" to being #1 as we have abandoned all of her principles.
I love America, I am proud to be an American, I think the history of America ( not taught in school) is a success story, a wonderful one, we ran an experiment never seen in the world called freedom. Free markets, freedom of religion, speech, press, etc. I am so proud of the Patriots that fought off oppressive government in 1776, and I worship the sons of liberty.
With that being said, this isn't what they were fighting for. This isn't what they wanted. The US has grown into a huge buracracey and the US government has taken on all kinds of projects that are not the role of government...
If Ireland, Australia or any other country decided they wanted to be the freedom capital of the world... I wouldn't hesitate to move there and start over.
Do you by any chance know the history of thanksgiving Tiz?
bottom line c-gold the entrepeneurs of the 1940s to 1990s gained massive amounts of wealth
now they are promoting socialism to continue to hold and concentrate more of this wealth
while us the new american's get the shaft with high deficits and have less a chance of becoming them in this rigged socialistic economy
now they are promoting socialism to continue to hold and concentrate more of this wealth
while us the new american's get the shaft with high deficits and have less a chance of becoming them in this rigged socialistic economy
