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

[RougeUnderoos]

Originally Posted by Flame Of Liberty

This will clear the market, wipe out bad decision makers so the whole system can move and grow again.

We all hope you are right, but the consensus seems to be that this is going to lock everything up, not help it move.

[Lurch]

Originally Posted by Table 5

wow....what a horrible horrible decision by a bunch of yellow bellied rats more intent on getting votes than actually doing what's right for this country. I hope everyone remember the names of the fools that still think that wall street or main street or any street, isn't headed for the toilet.

I think the opposite - rare case of public pressure leading to politicians doing the right thing. Ultimately, I think the solution needs to be equity holders in these institutions being wiped out. Pushing the problems onto the taxpayer doesn't make them go away, it just puts the investment risk on parties that had no upside in the first place.

[HotHotHeat]

Originally Posted by RougeUnderoos

We all hope you are right, but the consensus seems to be that this is going to lock everything up, not help it move.

That's exactly it. We're officially back to the days of storing money inside mattresses. Lot's of hot headed investment bankers lost their livelihood today.

[flylock shox]

Originally Posted by HOOT

This is a gong show. Sure is a good time NOT to be American!

I think the better way to put it is now is not a good time to be American. There'll be lots of non-Americans having a very very bad time as a result of this too.

Mind you, this financial collapse is long overdue. Even when the bailout goes through I'm pretty sure we won't have seen rock bottom yet.

[Table 5]

Originally Posted by HotHotHeat

Lot's of hot headed investment bankers lost their livelihood today.

yes, and lots of normal folks about to lose their jobs in the coming months.

[Jason14h]

Nothing will teach those executives who made tens of millions of dollars a lesson like wiping out all the middle classes retirement savings!

[nickerjones]

Originally Posted by Jason14h

Nothing will teach those executives who made tens of millions of dollars a lesson like wiping out all the middle classes retirement savings!

yup..... of course firing them from their jobs after a couple weeks and giving them 100 million in severance pay didnt teach them then nothing will

[Wookie]

Yeah - I would have liked to see the bailout go through. The taxpayers would have footed the bill yes. But the assets that were being purchased/guaranteed weren't necessarily going to be worthless. Now isn't the time to be punishing people. Punish them once everything has settled. They're still going to foot the bill, but now it'll be through job loss, unemployment, less tax collection, etc.

[Table 5]

Originally Posted by Lurch

I think the opposite - rare case of public pressure leading to politicians doing the right thing.

These people are elected to lead and make decisions, not to do do whatever the popular vote desires. Who do you think we should listen to, a guy like Warren Buffett or some angry grandma calling her local congressman?

[Table 5]

Originally Posted by HOOT

This is a gong show. Sure is a good time NOT to be American!

Don't think this won't affect those of you living outside of the country. Maybe not as bad, and not as quick...but everyone will feel the pain.

[Flame Of Liberty]

Originally Posted by RougeUnderoos

We all hope you are right, but the consensus seems to be that this is going to lock everything up, not help it move.

Well I don't think everything will be bright and shiny by tomorrow. Remember when FED lowered interest ratest down to 1%? Everyone was lending to everyone, credit history be damned. Damage like that will not be fixed overnight. However, this is a step in the right direction.

[tvp2003]

So... anyone want to comment on what this will mean to the average Canadian Joe? My RRSP's are max 30% foreign content, right? Not that the other 70% fared much better today

Good time to invest some extra $ laying around? Or better to keep it all under the mattress until the smoke clears...

[Finner]

Originally Posted by tvp2003

So... anyone want to comment on what this will mean to the average Canadian Joe? My RRSP's are max 30% foreign content, right? Not that the other 70% fared much better today

Good time to invest some extra $ laying around? Or better to keep it all under the mattress until the smoke clears...

Actually there is no foreign content rule anymore. Hasn't been for awhile.

[Thunderball]

I'm frankly shocked they didn't pass this, and clearly, so are the markets.

TSX down over 800 points... tends to say it does affect Canada too.

[HOOT]

They figure over 100,000 people will be laid off per month if they don't get this figured out as smaller business won't be able to pay employees

[Lurch]

Originally Posted by Table 5

These people are elected to lead and make decisions, not to do do whatever the popular vote desires. Who do you think we should listen to, a guy like Warren Buffett or some angry grandma calling her local congressman?

I think you are dramatically overstating the support for this package from the "expert" community. There are a lot of things wrong with the package and throwing money at the problem is far from the only solution that will restore a modicum of liquidity. Grandma may be angry for a different reason, but that doesn't make the bill right by any stretch. IMO, any firm accessing a buyout fund should be in default and the equity holders holding the bag. Any outstanding debt could/should be backed to avoid crippling liquidity, but simply putting together a deal to protect these companies is irresponsible and not in taxpayers interest, again IMO.

[Wookie]

Originally Posted by HOOT

They figure over 100,000 people will be laid off per month if they don't get this figured out as smaller business won't be able to pay employees

Which is exactly why the taxpayers are paying for it regardless. It's just an argument over which method is worse.

[arsenal]

Does it actually affect Canada? Or is just speculators selling and re-investing in something they deem more stable?
Part of me wants to think that the markets have been way too speculative lately. I hope that this will get some of the speculation out of the market, and get back to actual real numbers.
Mind you I am no market guy.

[tvp2003]

Originally Posted by Finner

Actually there is no foreign content rule anymore. Hasn't been for awhile.

Thanks... shows how much I know about investing

[FanIn80]

So does (or can he even) Bush veto this vote and pass the bill anyway?