Unsettled Economy & The Bailout

[matapule]

Re: Unsettled Economy

Forbs is saying something different, that it's not a bailout and that the feds are still undecided if they'll float a loan.

It's now official, the government IS bailing out AIG to the tune of $85B. This just opens the door to other private institutions going to the government with their hand out.

After years and years of fighting for deregulation, McCain is now saying this morning that he favors some sort of regulation for financial institutions.

McCain is also backtracking on his "economy is fundamentally strong" statement. That didn't play well. He is now saying the economy is in crisis.

[salmoned]

Re: Unsettled Economy

Why pick on the IRS stimulus package? That cost about a $150 billion dollars in total? How many times more money has our govt. spent in Iraq and Afghanistan the six years? You tell me that.

At least the IRS stiumulus payments result in money being spent and kept here at home, helping domestic businesses. If you ask me, that is a far better way to help our economy instead of sending those same dollars abroad.

Oops, thousands of stimulus checks went to PI (including my wife's)...

[Frankie's Market]

Re: Unsettled Economy

After years and years of fighting for deregulation, McCain is now saying this morning that he favors some sort of regulation for financial institutions.

Michael Kinsley once said that a gaffe is basically when a politician blurts out the truth. McCain did just that when he said he did not understand the economy as well as he should. All this stuff about fighting for deregulation was McCain parroting his economic gurus, Alan Greenspan and Phil Gramm. And while there is a lot of blame to be spread around over this latest Black Monday, those two gentleman each deserve a lion's share.

McCain is also backtracking on his "economy is fundamentally strong" statement. That didn't play well. He is now saying the economy is in crisis.

McCain has no clue to fix this crisis. His two aforementioned economic gurus have now been discredited and exposed for the charlatans that they are. Who does he turn to now?

As if Monday's gaffe (saying the fundamentals of the economy are still strong) wasn't bad enough, McCain compounded it yesterday by proposing to set up a 9/11 type of commission to investigate what caused the collapse. IOW, he wants to set up a group to "study" the events and to report back their findings sometime down the road. (In a couple of years, maybe?)

As I said before, McCain is absolutely clueless on how to fix this economy. And the events of the last couple of days has apparently made this fact clear to other voters. In the latest round of daily tracking polls, Obama has either taken the lead or has narrowed McCain's lead. While they are all within the margins of error and the race is still considered to be a statistical dead heat, I still think that this could be the start of a trend that will play out in Obama and the Democrat's favor.

http://www.realclearpolitics.com/epo...lls/index.html

[turtlegirl]

Re: Unsettled Economy

I don't have a back yard...front or side either! That's one of the many reasons I like condo living 'cept there's no place to bury anything of importance!

Fear not, HT'ers!! You are all invited to bury your valuables in my garden!

[Leo Lakio]

Re: Unsettled Economy

Fear not, HT'ers!! You are all invited to bury your valuables in my garden!

Even those of us who didn't get invited to your big six-month anniversary blowout lu`au? Thanks, tg!

[Peshkwe]

Re: Unsettled Economy

Or ya can mail all your money, jewels and other goodies to me. I'll bury em in the yard and in about 2 months it'll all be considered 'cold cash'.

[matapule]

Re: Unsettled Economy

Call me stupid (it wouldn't be the first time), but I am about ready to dump some money into a total stock market index fund like the Wilshire 5000. I am not ready to pull the trigger yet, but I am following things very closely. I should have a clearer picture within the next week or so. The stock market is presenting some interesting possibilities. If the market dips below 10,000, watch where the smart money goes. Just for reference, the market closed today at 10,609.

If the market heads a whole lot lower, look for money to be dumped into the housing market. There are a lot of good buys out there. Not necessarily in Hawaii, which I think is still way overpriced compared to the market 5 to 8 years ago. Even though the number of sales is way down in Hawaii, people are still stubbornly holding on to their asking price for the most part.

Certainly, there is a lot of doom and gloom at this time. But these are the times of opportunity for the savvy investor. For better or worse, these are exciting times. I see the glass as half full in terms of investment opportunities.

I really don't know much about anything, I just act like I do on the Internet.

[Walkoff Balk]

Re: Unsettled Economy

A simple solution would be to build a time machine and travel into the future. Then, you can go online to a Wall Street Journal website. You will have guarantee winners because you know what happened in the past to make your investments.

[MyopicJoe]

Re: Unsettled Economy

I'm not keen on financials. Does this amount to bail out?

[Peshkwe]

Re: Unsettled Economy

I think it does.

http://www.marketwatch.com/News/Story/Story.aspx?guid={BDABD1B6-8FCB-40A9-BD70-4E20692DB777}&siteid=mktw

Commercial banks, investment banks and American International Group had borrowed a total of $121.2 billion from the Federal Reserve as of Wednesday, the Fed reported Thursday.

[matapule]

Re: Unsettled Economy

I just saw an interesting explanation of what happened to AIG on CNN International.

1. Lehman goes under and guess who is the largest investor in Lehman? Right AIG. So AIG is suddenly in a world of hurt.

2. AIG owns a subsidiary that is the largest lessor of commercial aircraft in the world. The subsidiary is the primary financier of aircraft to the commercial airlines.

3. Since AIG's assets are now in trouble because of Lehman, their subsidiary has to cut back (maybe even stop) on airplane orders from Boeing and Airbus

4. Commercial airlines cannot purchase new planes

5. Boeing and Airbus cannot build new planes

(do you see where this is going?)

6. Airlines have to cut flights, raise prices, and layoff personnel

7. Boeing and Airbus have to layoff personnel

8. The US and World economy goes even deeper into recession

So the answer is that the US taxpayer (through the governement) steps in and loans $85B to AIG. The US taxpayer is now the largest stockholder in AIG. The US taxpayer is now assuming the risk for the mismanagement at Lehman, AIG, and the Bush Administration. We are now on the hook for $85B.

AIG should never have become (in effect) an investment banker for Lehmans. They are an insurance company not an investment banker. Unfortunately Bush, McCain, and the Republican party is opposed to governement regulation of any industry. When there is no regulation, big business will take risks that are not prudent. Why not? The taxpayer will just bail us out when (not if) we go under.

It is like playing a football game with no referees.

[Leo Lakio]

Re: Unsettled Economy

I am not that well versed.

I really don't know much about anything, I just act like I do on the Internet.

I think you understand better than you realize, when you say this:

It is like playing a football game with no referees.

[MyopicJoe]

Re: Unsettled Economy

I just saw an interesting explanation of what happened to AIG on CNN International.

Thanks for laying things out, Matapule. Always good to know how things are connected. Oh what interesting times we're living in.

[Vanguard]

Re: Unsettled Economy

The party's over by Pat Buchanan

[timkona]

Re: Unsettled Economy

At least Buchanan is finally listening to me. I been saying for years what a bunch of dingalings are the baby boomers. He describes them as "oblivious and self-indulgent". How true.