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View Full Version : where the $700b failout figure comes from




xtravar
09-26-2008, 11:50 AM
Yes, I'm calling the bailout a failout.

If you've been keeping up, you'll know that there are only about $100b in sub-prime mortgages. So why is the president and secretary of treasury asking for $700b? Here's a good hypothesis (from http://www.tickerforum.org/cgi-ticker/akcs-www?post=62883 ):


The reason the real truth cannot be stated by anyone is obvious. They would have to state flat out:

"The economy is going to hell in a handbasket and the deficit next year is going to go through the roof. To get ready to finance this whopper of a deficit, we are going to have to help out our primary dealers by giving them $700 Billion in balance sheet relief. The Treasury will do this by buying distressed assets from them at above market prices."

Nobody can come out and say that. Period."