Okay so this kinda pisses me off, I knwo this is needed all with the bailout package.
So, all this happened due to collective greed of a subset of society
I mean, some people bought more houses than they could afford thinking they could sell it for 30% more in a year..
others were even more cheetay, they got several properties and thogut they were some kind of Donald Trump of teh future.
mortgage brokers made money..loan officers, financing entities all made money, great bonuses, realtors kept getting their share ..invetsment bankers got in teh game by taking ridiculous positions
So, then the bubble burst…and teh implications of these people’s greed were so bad that they shook economy..well economies..
and now a bailout package for institutions, which obviously is going to get funded by my taxes..
and then kid gloves for the people who got themselves in trouble..getting their homes reevalued and banks then makign them liable for current property value and not the one that they bought it for etc.
I dont understand the reward the greedy and not the people who act in a responsible manner. but the people who act in a responsible manner then have to pitch in to clean up the colelctive mess of greedy sonz o…
yeah its needed and all, but I dont have to like it all
"When you owe the bank $5000 and cannot pay, you are n trouble, when you owe the bank $10m and cannot pay, the bank is in trouble". Same applies here. The alternative was too horrible to contemplate. At best this is a short term measure and if this is not followed up by some strict regulations and strict monitoring the same mess will be there again.
They created a monster and are getting away with it. So far no investigation as to why it happened and who should be held accountable.
I am not sure who go greedy and what not, but I always had my reservations about some of the mortgage deals been offered
Interest only payments, 40 yrs mortgage .. what is all that. Banks were knowingly lending out money to the people whom they knew could not afford the half of it.
"When you owe the bank $5000 and cannot pay, you are n trouble, when you owe the bank $10m and cannot pay, the bank is in trouble". Same applies here. The alternative was too horrible to contemplate. At best this is a short term measure and if this is not followed up by some strict regulations and strict monitoring the same mess will be there again.
They created a monster and are getting away with it. So far no investigation as to why it happened and who should be held accountable.
come on EB, when enron mess happened the perps directly respionsible for it were allowed to roam free, and an entire company was made teh sacrificial lamb to pacify blood thirsty mob hyped u to a frenzy by a lame media that seemed liek it had nothing else to report..
in this case, the who's who of wall street is involved in it, they are not going to do jack.
everyone made bad decisions, from the people acting like idiots, to mortgage brokers giving somone zero down mortgage on some millin dollar home when teh guy makes 60K. banks accept those loans bundle it, sell it as securities and these joker investment banks trade it among themselves.
yeah a bailout is needed. yeah stricter regs are needed to prevent the same thing from happening again ..
but u know of this all sort of risk mgmt stuff was supposed to be covered by sarbanes oxley, was'nt it?
So, who thinks that within a few months the CEO's and other top officers of these companies will be fleeing the country within the next 6-12 months? You know, like the fancy expats of the Great Depression?
ahh BS did ken lay or jeff skilling on enron run anywhere?
but the environment is diff, no one else to make into a villain maybe the fed investigations will be diff thins time.
Without the bailout a lot of business would fail, leading to unemployment, and a vicious circle would start. It may take a few years for us to come out of a recession. Government revenue would be adversely affected. It is a better option to avoid all that, rather than to let the market take its course.
I'm with ehsan bhai on this one.
Grant it, its really stupid that we let everything get this bad but I think the bail out is kind of needed now.
What are our alternatives, let the economy crash completely? Have hungreds of thousands of umeployed people? I dont know how closely anyone else was effected by Lehman and Bear but I personally lost some of my biggest brokers; translating into needing less people to do the work in the office for us.
Now as for the tax money, I much rather spend it this way securing jobs, or for the bettermennt for the economy vs. other war related things.
Dont you also think that the economic turmoil can be blamed partially on the futures market and not just the mortgage market? I mean especially the hedge funds buying and selling short this rampidly? I think its high time teh hedge funds see a little more rgulations.
Well it's said without a bailouyt the stock market could lose 1/3rd of it's value, that's a correction that will trigger all 3 circuit breakers designed to limit panic selling and give time for emergency action to take place by the feds (right or wrongly). As far as short selling and regulations, you def. need to make sure the market isn't being manipulated by those who are shady short sellers who are out there.
My question, why did the market go up friday...bailout or no bailout?
Whatever the consequences ...(I wonder what they will call this in the history books?) , this is likely to mark the end of US global economic dominance. The repuercussions of this will likely be severe, globally, the Chinese cannot afford to lose their biggest market, the Arabs soverign funds will get severely burned in this process too.
On the plus side if you were worried about your fuel bill ..with decreased consumption oil should start dropping :p
