Interesting Q&A About Bailouts
I found this interesting link:
http://www.iht.com/articles/2008/09/21/business/21qanda.php
It's from the International Herald Tribune, the "Global Edition" of the New York Times.
It's essentially the bailout plans for the financial industry in a nut shell.
Enjoy.
Liam.
posted by Liam at 9/21/2008 07:45:00 PM
2 Comments:
Interesting in the article the comment about Congressmen having to go home to confront voters while campaigning for the election.
This is only a bandaid (albeit a large and expensive one) to prevent a major bleed out, or delay it. It's necessary, of course. But the real work will be left to the new president, the work to plug up the still existing holes. I pray it's not left to McCain.
Sunday, September 21, 2008 9:26:00 PM
I am hoping that the average voter is smart enough to see this for what it is: The abject failure of the hard-right policy of "deregulate as much as possible" and will not fall for the inevitable spin from John McCain that he's somehow a "reformer" who will hold people accountable when his entire career has been about deregulation, and even as recently as a week or two ago, he was talking about his solution to the medical industry being to deregulate it "like we did with the financial industry".
Of course, he's removed that line from his stump speech (wonder why?), but nevertheless, it was there.
By the way, I don't take great comfort from the "this might not end up costing all $700 billion to the taxpayers", because it relies on finding investors stupid enough to buy these distressed mortgages (because clearly it's not the safe, responsible ones that are causing the meltdown). Stupid enough and yet non-critical enough that if they take the losses the CURRENT owners of those mortgages are being rescued from, we don't set up another failure.
I think what'll likely happen is that the government, in their infinite wisdom, will buy out these mortgages at something like full value and then maybe will end up selling them off at pennies on the dollar.
Liam.
Sunday, September 21, 2008 9:35:00 PM
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