Bad Debt Plan May Cost Up To Half A Trillion Dollars

[EV_Ares]

The plan to create a massive facility to buy mortgage-backed securities could cost as much as a half-trillion-dollars and would involve the purchase of both private-label and government-guaranteed mortgages.
Is This a Turning Point?

Short-Sellers Under Attack

SEC Halts Short-Selling in 799 Financial Stocks

Link: http://www.cnbc.com/

[specialed]

1. The Risk of bailing out markets.

What are the risk we run as a society when we socialize the impacts of negative behaviors in the market place that have no form of oversight? The banking industry may claim to be highly regulated however, the opposite is true. This all started with Reagan and continued by BUSH I & BUSH II. Were just now seeing the effects of letting the foxes be the police in the hen house.

And John, Keating Five, McSame is not the man to bring about the kind of change needed in the banking industry.

[EV_Ares]

2. Yeah, it was McCain's now economic adviser "americans are a nation of

whiners" Phil Gram that got that deregulation bill through congress with McCain's pushing for the banks & insurance companies.

[ixion]

3. guaranteed: it will cost FAR more than that

it's going to cost trillions, and will leave us in debt for decades to come.

[JDPriestly]

4. As Cenk of The Young Turks said, this is Communism

and I would add, at its worst.

Look, having a system in which people share risks AND PROFITS such as a universal health insurance plan is one thing. I'm for that.

But that's not what is going on here. The American people are getting the downside of debt dumped on them while the bankers and their friends take off with the upside of the profits.

A lot of things just don't make sense to me. The shareholders in the defunct companies are being cut off without a dime, yet each time that the government rescues another barely breathing financial institution from its natural death, the markets become inflated with money. Where is all the money that puffs up the markets after each catastrophe coming from? And if there is enough money floating around to reinflate the markets so quickly, why does the government have to buy the bad debts? One bank is pronounced critically ill, the stocks of many banks fall, the government rescues the worst of the banks and then suddenly investors flock to buy the stocks of the many banks.

I should think the last thing anyone would want to be at this time is a shareholder in an American company. Sure, the government is buying bad debt, but it is not rescuing shareholders. So, how is it possible that, after the fed rescues an institution, investors rush in to inflate the value of stocks once again? Something just does not fit in my view of this picture. There is just something wrong about it.

[EV_Ares]

5. Yeah and this is peanuts to what CEOs get all the time but the CEO of AIG had been there only

since June of this year. Actually, he was not the cause of AIG's failure because those causes were occurring before June but still he walked away with $5,000,000 in his severance package. $5,000,000 payout from June of this year to the present. Not bad, huh.

[JDPriestly]

6. At $8 per hour, that's 625,000 hours or, at 2,000 hours per year

approximately 312 years. Otherwise figured, if you average 2000 hours of work per year at $8 per hour, you earn $16,000 per year, so it takes about 312 years to earn $5,000,000.

Nobody, nohow, nowhere is worth that kind of money.

[madinmaryland]

7. A trillion here, a trillion there. Pretty soon you are talking real money!