Well Fuck Me With a Spade - $700bn Isn't Enough

neonlyte

Bailing Out
Joined
Apr 17, 2004
Posts
8,009
World stock markets fall on announcement of 'Bail-In' as it is now being called :rolleyes:

I think they put too much hype of 'recovery' to mitigate taxpayer anger - it appears no one will share the pain other than taxpayers - who are confidently told they will get their money back (in a tax rebate???)

Note the 'Golden Parachute" small print relates to COE packages after the 'Bail-In/Out' proposal - in other words, if it was contracted, the COE's get the MONEY.

Wankers, Fucking Wankers, Fucking Poo Throwing Wankers.

Huge rafts of 'Oversight & Administration' created - I mean Fucking Huge - like every Federal District has to have Administration dealing with the problem.

The Best: Homeowners are bailed out only if their mortgages are performing, i.e. the people who could afford to pay now Don't Have To Pay - they can get their loans revalued, they can get their interest rate cut.

The only bright note - overlooked by all of us AH experts - is tenants in 'buy-to-let' mortgage property get full protection if their rent is up to date, they can even get funding to bring the property up to a reasonable standard. Don't agree with the last part, you rent what you can afford, you don't rent to windfall improvements.

It's a Camel - a horse designed by a committee - with acronyms.




Oh... and one word on VP's... did Dick die while all this was going on and they forget to tell us?
 
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Bush went on TV at 7:30 AM to plug the bill, looking rumpled, sleepless, and hassled. I've never seen a President make a 7:30 AM press statement before. It was kind of spooky. Obviously he was aiming it at the overseas markets. Some bank in Iceland failed overnight.

A financial expert on TV said he fully expects CEO's of local banks to opt out of the program and let their banks fail rather than forgo their executive compensation packages.
 
Oh! The whole swindle is designed to rescue a few CEO's, shareholders friendly to Bush, and put some credit-card jingle in the pockets of deadbeats. America's premier industry, tattoos, is already in a serious financial depression....this will help.
 
Oh! The whole swindle is designed to rescue a few CEO's, shareholders friendly to Bush, and put some credit-card jingle in the pockets of deadbeats. America's premier industry, tattoos, is already in a serious financial depression....this will help.

Hey, those people payed good money for consideration...

er, money anyway.
 
...A financial expert on TV...

Doc, that's a contradiction in terms.

By definition (with the sole exceptions of Jack Bogle and Warren Buffett), someone who spends their time on television (or in the mob attempting to get on television) is a promoter/salesperson. It astounds me that anybody pays the slightest bit of attention to the financial media- don't do it.

Stop watching television; do not believe anything you hear or see on the boob tube. The media, while well-intentioned, is clueless. They have no interest or ability to gauge investment acumen, competence or integrity.

I was exposed to thousands of so-called "investment professionals" over the course of a thirty year career. Only three or four were honest AND competent (it is an astounding and appallingly rare combination). The rest were dolts, used car salesmen or some combination thereof. As a general rule, you may rely upon the fact that the honest and competent do not seek publicity.

The three/four it was my enormous good fortune to know and understudy would rather have died than appear on television.
 
XSSVE

You know, dont you, that CEOs make the fat money because they give Bush et al a 'heads up' before they steal everything thats not on fire. This sort of service and courtesy is worth a lot.

Trysail is right. Almost every investment guru is a carnival barker by profession.
 
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Here's a link to the Act - it's about 1/3rd of the page down. http://news.bbc.co.uk/2/hi/business/7641733.stm

Only the top half of the Act is worth reading - the rest is largely cement.

What astnishes me about this, is the Act is quite different from the media portrayal - kudos to Tyrsail - it is being spun for soundbites. The act provides substantial househwner protection and limited COE/Bank penalty.

Do they really think people can't read... or think.

As a Financial Instrument, it's hugely flawed and retrospective with only indications of proactive legislation to curb the source of the problem. It may bring temporary respite, but I wouldn't bank on it, there are too many loopholes not least its overlap with a new administration who will be required to mandate the second and third phases of the Act. Stuffing a new Pres with $450bn of taxpayer debt is taking the piss and only prolongs the crisis.
 
Let me add one thing: If youre a pal of Bush the government will now buy all the expensive shitboxes you intended to flip before things went to hell.
 
The Treasury's $700 Billion Bill Limited, The Markets Turn To The Fed

The attention of the markets is focused in the wrong direction. The Treasury will probably get its $700 billion bailout bill. A number of banks and other financial firms will have their balance sheets buttressed. Credit availability may improve, but banks may hold on to a lot of the capital to shore up reserves against more write-offs due to a failing housing market.

Because the system is so badly damaged, it is unlikely that the economy will be suddenly awash in capital.

The Fed, working quietly, is building an insurance policy into the system and it may do more than the new "Emergency Economic Stabilization Act of 2008."

Over the last week or so, the Fed has stepped up the rate at which it buys Treasury bills. That investment has recently been running up 10% over last year. Earlier in 2008, the sum was not growing at all. The Fed did not want to push capital into the markets and fuel inflation.

Chairman Ben Bernanke has had a change of heart. He clearly does not see inflation as the risk. The economy is too badly crippled. The Treasury plan may improve the asset-based problems in the financial system, but it may do next to nothing to solve the catastrophe derived from lack of credit.

The Fed has very few restrictions on how it uses it cash. In that way it is a bit better off than Treasury. The Fed can print money to put into the system, or tap current reserves. Either way, putting cash into buying US debt is mainlining it to the broader economy and the financial system uses it as it will. It is not "earmarked" for anything special and the Treasury can push out tens of billions of dollars in a short time.

The markets should move their attention to the Fed. It may not cut rates, but cutting rates has done very little. Banks have not put that back into the market in the form of lending.

The Fed has turned on the cash pump. That may do much more for building liquidity into the system than the bailout ever could.

Douglas A. McIntyre
 
Citigroup buys Wachovia

http://news.bbc.co.uk/2/hi/business/7642126.stm

Points to who ever it was who forecast Wachovia on the buy list.

Fortis also went today, together with UK bank Bradford and Bingley - now politely described as a disaster waiting to happen :rolleyes: - and the Icelandic Bank mentioned above.


I'm thinking of printing my own money, it's got to be safer :rolleyes:
I need to get Throbbs to draw me a nude Brittania being screwed over for the A side.
 
Is it time to start manufacturing illegal drugs to barter with?

We'll need balm for the completely wigged out, speed for those trying to fix it all, and poison for those who just can't take it anymore. I think there's plenty of demand for what you can supply.

I'll start up the prostitution ring. In the face of death, everyone wants to fuck.
 
IMPRESSIVE

I have a hunch the market will be flooded with pussy.
 
Citigroup buys Wachovia

http://news.bbc.co.uk/2/hi/business/7642126.stm

Points to who ever it was who forecast Wachovia on the buy list.

Fortis also went today, together with UK bank Bradford and Bingley - now politely described as a disaster waiting to happen :rolleyes: - and the Icelandic Bank mentioned above.


I'm thinking of printing my own money, it's got to be safer :rolleyes:
I need to get Throbbs to draw me a nude Brittania being screwed over for the A side.

Around here they had been re-named Walkalloverya. :rolleyes:
Not a good group to try and do business with. :(
Several small business owners I know moved to different banks over the last 4 years. :(
 
Some bank in Iceland failed overnight.
Some bank in Iceland fail every time there's a dip in the price of cod. The finncial market of Iceland is just about the size of a stamp, and not much sturdier.
 
Time to rebuild the old chicken coop in my backyard. We'll have eggs to barter for Doc's illegal drugs.
 
We received papers this morning from LloydsTSB advising us of the buy-out terms for our HBOS shares - Lloyds bought HBOS last Monday. Our HBOS shares are valued at 232p, we get Lloyds shares to a commensurate value, which apparently today the stock market judges to be of little value. HBOS shares have astonishingly dropped to 146p a collosal 40% discount to holding LloydsTSB paper.

One has to ask who knows what, this level of discount shouldn't be happening.

Santander (Spanish Bank) has been buying banks across Europe. Three mortgage banks in the UK, including Bradford & Bingley this morning. They also bought the bank in Portugal where we have held business and personal accounts 35 years. We cannot get them to finance a building loan covered 8 times by assets. I'm told they have stopped lending money. Given the state of the Spanish property market, there are an estimated 2m finished and unsold apartments across Spain, I am suprised Santander is still in the market for buying mortgage banks, especially B&B, though the toxic element of B&B is stuck with the UK taxpayer, Santander bought the retail bank, i.e. taking in deposits from customers. One assumes they know what they are doing since it is widely acknowledged there is no profit in retail banking, on the other hand, they might just be buying cheap deposits hoping they can ride out the storm. I wouldn't bet on it.


ETA: UK Mortgage lending for August was just 2% of the level for August 2007.
 
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I've got a big garden... five chickens...and next year, we'll have fish. Except for dairy, we're doing pretty good... :eek:
I don't think we can support a cows on california brush, but maybe goats...

Goat milk in my coffee? I can get used to it.
 
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