This is a spot on assessment of the Wall Street Crisis, & how taxpayers are footing the bill. LINK

[Blackhatjack]

http://money.cnn.com/2008/03/28/news/economy/disaster_sloan.fortune/index.htm?cnn=yes

There is a financial threshold beyond which certain Wall Street Entities become 'too big' for the US Govt to allow them to fail(and pony up their remaining insufficient assets among their creditors through bankruptcy court).

Stepping in to save Bear Stearns was the only choice available given the size of the financial hole that would have resulted for all financial institutions if they had been allowed to fail. They literally would have sunk the financial system if allowed to fail, and the individuals and entities that profitted handsomely to put Bear in that position will never be held to fully account for their ill-gotten gains.

For the layman, this article explains in easy to understand terms where we are and what lies ahead for all of us --and it is not going to be pretty.

[PA Democrat]

1. I'll raise you another recommend and throw in a much needed kick.

Great article.

[Ichingcarpenter]

2. Its a federal taxpayer bailout of FAT Cats plain and simple

kick and nominated.

[MsLeopard]

3. Privatize the profits

Socialize the losses. Keep the poor poor, make more of them, and allow fewer and fewer to have EVERYTHING! Capitalism sucks. K&R

[varelse]

4. Here's my favorite quote

We're suffering the aftereffects of the collapse of a Tinker Bell financial market, one that depended heavily on borrowed money that has now vanished like pixie dust. Like Tink, the famous fairy from Peter Pan, this market could exist only as long as everyone agreed to believe in it.

[IamyourTVandIownyou]

5. Corporate welfare.

Free markets my ass.

[AllexxisF1]

6. Great Article.

It's all capitalism until the bill shows up then its conveniently socialist.

In a way I would rather have the market completely collapse and me selling apples off the street rather than devaluing this currency so bad that my great, great, great, grand kids have to pay the price.


Besides than we will all have good excuses to bring out the guillotine and pitch forks all over again.


You see an investment banker on the street be sure to kick him in the nuts.


Greed...greed...greed.

[hootinholler]

7. Ya know, if I sell a narc a quarter pound of pot...

They will come confiscate my house, my car, and anything else they can tie to the 'ill gotten gains' before I am tried!

How is this different? Why are these peoples assets not being seized?

:grr:

-Hoot

[Blackhatjack]

8. The people at the top need to be on the hook to pay the $ back....

Instead of being allowed to walk away with millions of dollars in bonuses for running a company in the ground.

Give them a choice... agree to pay the $$ back or they can spend a week on display in a public stock at the city square so that taxpayers/shareholders can show their displeasure.

[truedelphi]

9. Sloan is over optimistic and seems to be missing some differences between now

And 1929.

Although it its true that the Great Depression might never become as full blown an affair as it did, if Hoover's money people Had leased funding to the failing banks, the fact is that in 1929 our nation produced the goods we needed.

Thus devaluing the dollar would not have the horrendous side effects that will occur as the Federal Reserve continues to print up new cash.

Now that it's out of the bag that 800 billion is needed, (at least as of this moment), the currency is going to reel. If we were not importing our oil, our toothpaste and our Fruit of the looms, it wouldn't matter so much.

But given that the oil people want Euros, our currency's stability matters. And every bank note that gets printed simply amps inflation up beyond the notion of sustainability.

[bluesmail]

10. I found my way through the 'Alice In Wonderland' article

great article, well written, and free of unimportant matter, K&R, definitely. Thanks

[magellan]

11. knr n/t