I was wondering what would the ramifications would be politically and economically? All the talking heads on cnn, cnbc fox, saids it will fix the credit problem, now there saying it will not necessarily fix, but aleve it. So what will the next step be and how much would it cost?
Oh, another $700B, then $1.5Trillion... then more... It's likely this Paulson Plan leads to a "bottomless, never ending sink-hole" for US taxpayer...
Based on the original plan, it is already a revolving credit line. That means Paulson can buy junk for 700B. Sell it all at discount and buy another 700B. So on and So on.... You think he wants to go thru this again for the next 700B? For the pain he is enduring right now, he wants a blank check.
I just think its crazy b/c everybody knows 700 billion just wont do it, and the next tranch in morgages will start or already started to deterioate. And the altA, non subprime is way bigger then the subs.
ITS NOT GOING TO WORK, $700 billion is not enough, They need more than $2 Trillion to clean this mess up. Paulson and Bernanke said 1000 times the economy is fine and the housing market is stable, too funny because I really think they are lying about the $700 Billion they need, they need a hell of alot more than $700B to clean this credit crisis up.
Of course it depends on how you define "works". Yes, this will "work" but only on a limited basis. Will it provide free-wheeling capital again? No. In addition, will this be a no cost "bailout"? Again, no. As much as possible, those that have helped to create this mess as well as those that took foolish risks need to be held accountable as much as possible. That of course will not return all the money but it should get back some and give fair warning to others that they will be held responsible for their actions. Joe.
They are going to wind up running the presses like the Weimar republic, little doubt in my mind about that.. They can only pay for the unfunded liabilities that existed before this crisis with 110% income taxation anyhow, now they piled on a war or two and this credit crisis bailout bottomless pit, it's pretty obvious they have to run the presses like mad at some point... It won't hurt those that are prepared for it but people on fixed incomes will be hurting. I remember the inflation of the Carter years, retirees on fixed incomes were losing their homes they worked all their lives for. I was feeding a homeless guy out the back door of where I worked for awhile... the government did not do a fricking thing to help all those people that lost homes either, it was Governor Jerry Brown's watch in California at the time, it won't be much different this time, anybody that believes these lying pos's about how they are here for the little guy will get burned every time......