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The Bailout... are you watching?


MichaelSaulnier

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So now, it looks like the Treasury is planning to purchase preferred stock in financial institutions in addition to or instead of purchasing the toxic assets.


I wonder how the list of contributors to the political parties will correlate with the list of financial institutions that get federal capital infusions.

 

 

Yes.

 

There will also be a long(er) list of banks that don't receive funding. Leading to another reset as they dive. When can anyone expect the reentry of private money?

 

Now is it unfair to think the treasury is dressing up assets for acquisition? -

The timing follows Goldman-Sachs (I am kind of thinking of them as an out-sourced version of the Treasury Dept.) and Morgan Stanley repositioning as bank holding companies.

Treasury cleans banks up, arranges marriages, underwrites guarantees and presents them to the cherry-picking investment banks.

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There will also be a long(er) list of banks that don't receive funding. Leading to another reset as they dive. When can anyone expect the reentry of private money?

 

 

A number of people have pointed out that the market is now at the point where it is not at all over-priced and that people and institutions with the means have got to start looking at it now and seeing serious bargains that they are going to do very well on a few years out. I wish I had the bucks to buy some myself. If I were Bill Gates or Warren Buffet I'd be on a spree right now.

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A number of people have pointed out that the market is now at the point where it is not at all over-priced and that people and institutions with the means have got to start looking at it now and seeing serious bargains that they are going to do very well on a few years out. I wish I had the bucks to buy some myself. If I were Bill Gates or Warren Buffet I'd be on a spree right now.

 

 

Not so fast, even those guys are holding out for a premium. Buffett's investments in GE and G-S carry a 10% annual dividend and warrants for the common. GE had revenues of 172 Billion USD last year (half from overseas) and still was willing to pay 10% juice.

 

Buffett is under water on G-S currently.

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The administration on Monday announced the selection of a team of interim managers, picked an outside firm to help run the program and tapped Federal Reserve Chairman Ben Bernanke to head up the oversight board guarding against conflicts of interest.


Kashkari, the assistant Treasury secretary who is interim head of the program, said officials were developing the guidelines that will govern the purchase of bad assets and had consulted with six specialist law firms on how the government will take partial ownership of banks.


After those consultations, Kashkari said Treasury had chosen Simpson Thatcher & Bartlett LLP to move forward to help the government structure the stock purchase program.

 

 

http://news.yahoo.com/s/ap/20081013/ap_on_bi_ge/financial_meltdown

 

Kashkari (late of Goldman Sachs) picks Simpson Thatcher & Bartlett LLP.

 

so do you think that they represent any interested parties? Here's STB's deal list just for this year.

http://www.stblaw.com/sitecontent.cfm?contentID=24&itemID=231&itemType=4

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Hyperstagflation

 

 

Cute, but isn't that an oxymoron? "Hyper" implies the opposite of "Stagnant". It makes no sense. The idea that the entire global economy is going to become a banana republic is ridiculous. I'm not a materialist, but because the amount of material goods in the world is so staggering, you have to consider that we are just haggling about the price at some point. Yes, distribution can be a problem. But come on.

 

 

Buffett is under water on G-S currently.

 

 

But Buffett is looking longer than this week, month or year. The alleged share price of an asset is irrelevant if you don't intend to sell - what matters is the profit income generated by that asset. If you want to buy stocks right now, buy stuff that pays a quarterly dividend.

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But Buffett is looking longer than this week, month or year. The alleged share price of an asset is irrelevant if you don't intend to sell - what matters is the profit income generated by that asset. If you want to buy stocks right now, buy stuff that pays a quarterly dividend.

 

 

right. I just wanted to temper the boosterism and deliberate misinformation that the broadcast media is encouraging. Buffett got 10%. MUFG got 10% for their reduced buy of Morgan Stanley. We will see if they also received a federal guarantee. We are getting a very controlled flow of information.

 

 

A fellow Morgan Stanley shareholder will be the U.S. government. The Treasury Department will invest $10 billion in Morgan Stanley as part of a $125 billion cash injection into nine of the biggest U.S. banks, people briefed on the plan said.


Federal officials assured Mitsubishi UFJ that its investment in Morgan Stanley would be protected, the New York Times reported, citing unidentified people involved in the talks. The statement from the two companies didn't say anything about the U.S. government providing protection.

 

 

http://www.bloomberg.com/apps/news?pid=20601103&sid=aei8EoLIcrX0&refer=us

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right. I just wanted to temper the boosterism and deliberate misinformation that the broadcast media is encouraging. Buffett got 10%. MUFG got 10% for their reduced buy of Morgan Stanley. We will see if they also received a federal guarantee. We are getting a very controlled flow of information.

 

 

Buffett is also buying actual stock, an ownership stake in the company. He's not just agreeing to take "toxic" loans off the books so the company can clear its colon (so to speak).

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I think Congress should bail-out the Indie recording industry. Look how many Indies there are out there. Surely more of us than the smog-hog car-builders in Detroit. Every Indie artist should be subsidized so they can forgo their day jobs.

In addition I think the lending standards should be loosened on buying music equipment. I want a $200K sub-prime loan so I can buy an original vintage Korina wood Gibson Flying V. Then the government should pay for my "toxic asset" while I enjoy playing it. :idea:

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I think the bailout is going to end up costing a lot more than what they've initially stated. I heard Citigroup is going to get around 300 billion of it themselves so I have a bad feeling about this. The bailout reminds me of a gambling addict that thinks they're always about to hit the "big one" and doesn't think about the consequences if he loses the shirt off his back. This thing will only work if the consumers pay their loans back and with more and more people losing their jobs while our economy goes down the tubes I wonder just how they think this thing is going to work out they way they planned or hoped. And we can't reward people for irresponsible spending behaviors by helping them out if they fail to pay back their mortgage loans for 3 months while good folks that work hard and try to do right receive no benefits. I've overheard some people saying that they're not going to pay back their loans so they can get federal help if this deal goes through and it really bothers me because I know they're completely able to pay it. It's just not right...

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Theres some very interesting occurrences taking place at this time on the planet. The bailout is in an odd sense, a numerical expression of these changes. In short, the reserve is literally running low. We are entering into a period of great change. The word great here means on a global level, nothing good or bad, just change.

 

Speaking of change... can any one bail me out with about $50gs?

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Just watched Paulson explain how it's going to take more.

 

Of course it is. It's just that *there isn't anymore*.

 

The math doesn't work out. The U.S. can never, ever come up with the amount of money it owes.

 

The U.S. doesn't exist anymore. That should be the topic of discussion: what is going to happen?

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Something else I've thought about...

 

The government is going to cover the bucks by printing up money. That has a tendency to create big-time inflation. But if the dollar tanks, and you have a non-adjustable rate mortgage for $200,000, and the dollar becomes so worthless that a loaf of bread costs $50,000 - you'll be able to pay off your mortgage in no time!

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Throwing more money into the machine is just throwing fuel on the fire. We`re looking at 30+ years of bad decision making. The legs on the table can no longer support the weight. As bleak as it may sound, I think the only way for the current system to right itself is to let the table fall. Then rebuild. The only thing is, the table already fell, no one wants to say so.

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Something else I've thought about...


The government is going to cover the bucks by printing up money. That has a tendency to create big-time inflation. But if the dollar tanks, and you have a non-adjustable rate mortgage for $200,000, and the dollar becomes so worthless that a loaf of bread costs $50,000 - you'll be able to pay off your mortgage in no time!



Something I've thought about:
The moderators should be fair about decisions to move bailout threads to the poli forum.:facepalm:

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But if the dollar tanks, and you have a non-adjustable rate mortgage for $200,000, and the dollar becomes so worthless that a loaf of bread costs $50,000 - you'll be able to pay off your mortgage in no time!



The thing is, there isn't enough money to cover the losses in the financial sector. It's impossible.

They did the bailout so that things didn't blow up all in one week, creating riots, blood in the streets, etc.. That's the only reason; the FDIC only covers 1% of it, and that grows less.

I have a non-adjustable rate mortgage. Except, by income is "adjustable" - downward.

I predict in the end it will just be Goldman Sachs;
There will be an emergency session of congress called, because "surprise!" - all of the "assets" they've bought are worth = trillions of $ of debt;
The government will have to step in , otherwise that will be it in one fell swoop;


We'll get a new currency, and for it to have any use it will have to be backed by gold and integrated into someone else's economy - Mexico and Canada. Otherwise, nobody will give us any supplies for manufacturing, and we won't be able to sell anything because the $ will be worth nothing.

(fun speculation follows....)

Since everyone's accounts will be rolled one way or another into one bank, we'll go to an all-electronic system and anything else will revert to a bartering system. We could have done it like Sweden did, but it's now about 3 months too late. Sachs, or whoever, will be broke into perhaps regional National Banks, and we'll then *have* to have a national i.d., replete with RFID. Everyone will think it's great because it will make buying stuff easier, retailers will like to be able to downsize further by laying off more cashiers, and the big selling point will be it will make a "flat" tax possible. I predict that's how they'll sell it. :blah::blah::blah:


/ "crazy":lol:

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