Deal reached in US financial crisis [Update- NOT Passed]

[Slava]

Originally Posted by nickerjones

ehhh it doesnt exist but for some reason i believe i heard it will del with the govt buying stocks and bad mortgages and banking that they can resell them at a higher price in the future when everything settles..... The kicker is if they cant , the american tax payers foot the bill ......

You're right, but if you buy stocks tomorrow and they are not worth more in 5 years than something else has happened in the market place...or you bought the wrong companies to begin with.

[Phanuthier]

Slava, if you do get a chance, I would love to hear where you think this $700B comes from.

[HotHotHeat]

Originally Posted by Phanuthier

Which port is that?

I believe it's in Port Rupert?

Here's a link...

http://www.wd.gc.ca/10224_ENG_ASP.asp

[JohnnyB]

Sure would be nice for me if the dollar crashed. Make my Chinese RMB salary super-dope!
If the whole world's economy is going to be messed, I'd atleast like to live it up for a short while.

[missdpuck]

Now the bailout is $350B, $250 with 100B forthcoming, with all transactions posted on the net for the public. Maloney just made a very convincing argument for supporting the bill. Not doing anything would just create more disaster as previously mentioned.

[missdpuck]

Congressman Gregg (R-NH) kept indicating that the burden would be on the taxpayer.

[TheCommodoreAfro]

I'm just glad I'm not a US taxpayer. Sort of makes this whole deal easier to swallow.

[missdpuck]

Originally Posted by TheCommodoreAfro

I'm just glad I'm not a US taxpayer. Sort of makes this whole deal easier to swallow.

Plus the taxpayer-funded $25B bailout of the auto industry?

[V]

Looks to me like the markets had already priced this in market. The USD/JPY is up one pip, the GBP/USD is down 82 pips, the EUR/USD is down 70 pips all from Fiday's close. In other words, the USD has gained strength short term over the other currencies. When the news was broken a couple weeks ago the USD had a short term drop.

[HotHotHeat]

Originally Posted by missdpuck

Plus the taxpayer-funded $25B bailout of the auto industry?

That's just the beginning. Word is fully drawn out General Motors is lobbying hard for a bailout package similar to the one all these investment firms have gotten.

http://www.washingtonpost.com/wp-dyn...d=sec-business

[missdpuck]

Originally Posted by HotHotHeat

That's just the beginning. Word is fully drawn out General Motors is lobbying hard for a bailout package similar to the one all these investment firms have gotten.

http://www.washingtonpost.com/wp-dyn...d=sec-business

Thanks--I think

[nickerjones]

im just not sure how the CEOs of these troubles companies are getting fired or leaving and walking away with millions, it just blows my mind!

[Bagor]

Originally Posted by nickerjones

im just not sure how the CEOs of these troubles companies are getting fired or leaving and walking away with millions, it just blows my mind!

No kidding.

NEW YORK (CNNMoney.com) -- Washington Mutual Chief Executive Alan Fishman could walk away with more than $18 million in salary, bonuses and severance after less than three weeks on the job, according to the terms of his employment agreement.

http://money.cnn.com/2008/09/26/news...ion=2008092613

[jolinar of malkshor]

Originally Posted by Phanuthier

Slava, if you do get a chance, I would love to hear where you think this $700B comes from.

It is being printed as we speak. Come on INFLATION!!!!

[missdpuck]

Wish I could find a link to a recent TV interview with Alan Mullaly, Pres. and CEO of Ford (US). His arrogance was sickening.

[Displaced Flames fan]

Originally Posted by missdpuck

Wish I could find a link to a recent TV interview with Alan Mullaly, Pres. and CEO of Ford (US). His arrogance was sickening.

Former VP of Boeing's commercial aircraft division and later, their CEO as well. Dude panicked after 9/11. They announced layoffs the next day. Massive layoffs.

[peter12]

What a joke. The market will sort itself out. Poor American taxpayers on the hook because Wall Street companies can't figure out a good business plan.

[Phanuthier]

Originally Posted by peter12

What a joke. The market will sort itself out. Poor American taxpayers on the hook because Wall Street companies can't figure out a good business plan.

Yeah, maybe... in 10 years.

[Slava]

Originally Posted by peter12

What a joke. The market will sort itself out. Poor American taxpayers on the hook because Wall Street companies can't figure out a good business plan.

Hank Paulson of all people agrees with this sentiment. His view has been one of not wanting to bail out the shareholders and investors, but still save the banking system and really the financial well-being of the western world.

I do agree with some of the comments made here regarding the riskiness that CEO's might feel compelled to take on now, as the government would just bail them out of bad decisions.(This is basically the definition of moral risk btw, in case you read it elsewhere). I think and hope that this is a simplistic view though. I consider this as a single-case scenario where nothing was done for far too long when there were issues...eventually that leads you to a crisis.

As far as the CEO's and such walking away with cash it is extremely unfortunate, and needs to be addressed. Unfortunately though you cannot let everything collapse to prove this point.

[tussery]

I was going to write a long winded post but I figured it would be more beneficial to go and invest in a life time supply of KY because it looks like I will be getting screwed for awhile.