Wall St Analyst sees "little hope" from bailout...

[mwooldri]

... too late for Latest Breaking News (was this morning) ... but AFAIK it hasn't been posted...

http://www.reuters.com/article/newIssuesNews/idUSBNG6521320080923

Meredith Whitney, an analyst from Oppenheimer Funds, expects Citigroup to make a loss, Wachovia to make more losses, and the banks that do make profits to make substantally less profits. But the main headline here is that (from the article) "The credit crisis that began last summer has intensified so much that any U.S. government bailout plan has "little hope" of improving core fundamentals over the near and medium term, said analyst Meredith Whitney".

So if Wall St is figuring out the bailout isn't going to do much good, then why do it at all?

[magellan]

1. Why do it at all? That's what I've been wondering from the start.

As far as I can tell from my reading it'll only delay the inevitable...and put more money in the pockets of the thieves who got us here.

[Warpy]

2. It's a power and cash grab

that's meant to cripple an Obama administration. Remember, the $700billion figure that's been thrown around is only a start. What they thought they'd ram through Congress just before the recess in an election year is a blank check with absolutely no oversight.

The only mystery is why they released it late in the week, giving Congress a weekend to think about it and the public time to react.

My main hope is that the Democrats, by some miracle, buy neither the urgency nor the need for any of this specific plan.

Wall Street is right. This would do nothing to shore up the financial system because it does nothing in terms of either regulation or addressing the fact that the demand side of the economic equation is tapped out.

[MichiganVote]

3. Because they can't let the Iraqi's alone steal all our money

[avaistheone1]

4. So that they can fool the FBI and cover for accounts that are essentially empty because

Wall Street played it like a casino with derivatives and credit swaps.

[bemildred]

5. Paulson is just trying to save his own assets from being turned to rubbish.

There is nothing deeper to it. The chutzpah is stunning.
"Never apologize, never explain."