Should the bailout plan be passed and will it really help this burning market? [voice your thoughts!]? - burning sens throat
The past week since Paulson asked for a 700 billion rescue package to save the market. The struggle between Bernanke, Paulson and Senator has happened since then. Washington Mutual and Wachovia Corporation is the latest victim of the delayed rescue operation. Foreclosure market and the record for the largest drop of $ 1 per day in 20 years. so that the rescue operation after so many days late, always help the market or St continues to suffer major, is running even after the bailout plan. Is it still important?
Monday, February 1, 2010
Burning Sens Throat Should The Bailout Plan Be Passed And Will It Really Help This Burning Market? [voice Your Thoughts!]?
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3 comments:
Plus, I analyze this rescue, I think it does not help the stock market or the economy for more than a few days if at all. In addition, the rescue plan was never designed to help the stock market.
Also, to see whether the interest rate cuts by the Fed's 1 / 2 point before the end of October 2008. You could see the general reduction of the various governments during the night. The ECB, the Bank of England, etc., should also cut rates. This will help banks in the world of credit. I give him a chance of 65-70%, that it even now.
The disadvantage of the lower rates is that the unit of oil (gas), food prices and higher consumption, increase inflation. That is exactly what the Fed does not want to prevent. The Fed needs to focus on inflation in the face for some time to help save the world economies more bank failures.
After the rescue of the bank, the market will focus on economic recession and the global economic slowdown. This is bearish. I want to sell in any case, if you can.
Oh, wait, I forgot to say that the government, we are not in a recession. Property and real prix can never perish.
To rescue banks:
1. It will not stop a recession.
2. It is the U.S. Dollar.
3. It will not cause consumers to buy.
4. It will be no industry, but the banks, especially banks.
The big problem is the following:
The banks said they can not and will not sell their "toxic mortgages" at current market value. The reason why I did not do that because they say it helps the balance, which is still in financial difficulties.
The banks want to sell their "bad mortgages" on the current market value, balance, improves so that they have. I do not support this idea.
Why the taxpayers should pay more for a house currently worth?
Who could do in their minds? And that is exactly what the banks want to do the taxpayers.
The banks are also against the idea of taxpayers in the capital of banks. No rights, no security, no stock. Only WANIt gives us more money for something that is really worth.
If you went to a bank for a loan, you believe that you want to see what your picture looks like justice? Do you think you could get a loan with no money down, no credit, no income ... Oh wait, I think you can do this a few years ago.
I think the banks need financial help, but we will pay your shit let alone homes below market value in exchange for money and the banks above the current market value.
edit:
RE: Mark S
I'm not sure what the point by Mark S said, it was "important in some areas and if the formation of a contradiction argument, we see that there are more credible when it quotes the line question for discussion, the gap identified, then a contradiction argument. The premise of the struggle has not been established, so the opposition argument is invalid.
--- College of Education in Logic and Reasoning
http://en.wikipedia.org/wiki/Argumentati ...
The rescue package will not help oil prices stop rising consumer spending and thus to recessions. The goal of the current plan is to the credit market freeze, release the portion of the pump speed money. The frozen credit market is to reduce the freezing of mortgage-backed security, because no one really knows fair market value of the underlying asset.
The rescue is the government's effort to secure the collateral for the private sector will not pay to buy. At what price? If the private sector can not judge how a government official to negotiate with bankers to determine the risk premium at a fair price for the taxpayer?
The Paulson RTC will buy assets at inflated prices, therefore, by which a charity is for the rich at the expense of taxpayers are available. If this subsidy is large enough, they can end the crisis.
This is done at the expense of the taxpayers billions of dollars and violated a fundamental principle of capitalism that the loss must be prepared to pay.
There are other options, but the Bush administration has for the plan through the use of fear. Someone will benefit greatly from this law, and nothing is done to stop the recession.
This law should not be accepted. There are other options. See the sources listed below.
Net Advisor is disabled on some crucial points. Not that the banks are not willing to sell their "bad mortgages" in the current fair market price, there is simply no fair market value at all, because absolutely no one wants to buy. You have to get rid of their own, they do not already enough. How does the Fed, ie banks, we buy their mortgages. We offer. We do not want to pay more than their fair value, it constitutes what we consider fair value. If you are the right price and it is the hard part, others will step in and say, hey, I want to buy at this price. This will help unclog the credit markets. The key is to buy the set price that the banks do not want to sell and the good banks are willing to. These mortgages are not worthless, have a value.
Today, Wells Fargo / Wachovia agreement shows that this plan could work. Citigroup initially had an agreement with the government to buy parts of Wachovia, Wells Fargo, but then realized that they are losing a real hidAin spoke so without government help, and made an offer for all of Wachovia for a price even higher. Thus, the bailout will work. Once the government steps in that recognize Buy mortgages from banks in difficulty, to others they lose a heck of a tender and begin to address these mortgages. It is possible that the Fed do not even have the whole 700 billion U.S. dollars. Enough to the market moving again. And really can buy money on mortgages.
The plan itself does not prevent a recession. Very probably too late, but it will be shorter and shallower.
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