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."
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."