Forbes: Treasury pulled $700B figure from thin air

Discussion in 'Politics, Religion, Social Issues' started by r.j.s, Sep 30, 2008.

  1. r.j.s Moderator emeritus

    r.j.s

    Joined:
    Mar 7, 2007
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    Texas
    #1
    Source http://www.forbes.com/businessinthe... ngress-biz-beltway-cx_jz_bw_0923bailout.html

    WTF?
     
  2. arkitect macrumors 601

    arkitect

    Joined:
    Sep 5, 2005
    Location:
    Bath, United Kingdom
    #2
    This has been known ever since it was announced.
    A panicked figure pulled out of Paulson's a$$…

    Cool heads, eh?
    :mad:
     
  3. iShater macrumors 604

    iShater

    Joined:
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    Location:
    Chicagoland
    #3
    I don't know what is more surprising, the fact that they did, or the fact that we are surprised that they did? :eek:

    Lets name the financial figures that has been pulled out of thing air:

    1) Cost of the war
    2) Cost of the medicare prescription plan
    3) Wall-St bail out

    Am I missing any? :rolleyes:
     
  4. r.j.s thread starter Moderator emeritus

    r.j.s

    Joined:
    Mar 7, 2007
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    Texas
    #4
    Apparently I missed it. Why isn't this bigger news though? They want all this support for a random amount of money when they don't even know it's the right amount. Ahh the stupidity.
     
  5. atszyman macrumors 68020

    atszyman

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    Sep 16, 2003
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    The Dallas 'burbs
    #5
    From what I've read the $700 billion was picked arbitrarily high to prevent the market from suffering a downturn due to those who might bet against the bailout.

    The idea was to approve an exorbitant amount to ensure that investors would not bet against it and then (hopefully) only end up borrowing/spending a fraction of it.

    Of course I don't doubt that once authorized every bit of the $700 billion would have found a home somewhere, and unfortunately none of it would have found a home in my bank account. :mad:

    Here's a link to where I saw that.

     
  6. mactastic macrumors 68040

    mactastic

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    Colly-fornia
    #6
    Just more proof that the Bush / Paulson plan was a crock from the beginning.

    One more attempt to enact a wealth re-distribution from the taxpayers to the wealthy elites...
     
  7. Desertrat macrumors newbie

    Joined:
    Jul 4, 2003
    Location:
    Terlingua, Texas
    #7
    That's a nice sound bite, mac, but it has little to do with reality. That said, there has been way too much of the profits of the big financials pretty much cheated away from the stockholders--who are still getting it in the shorts.

    This is an effort to avoid a domino-deal series of bank failures, nationwide at a time when the FDIC doesn't have the money to cover it. Banks, retirement funds, stockholders, Lord knows who else: A decline in the value of these financials has hurt them all. What we're seeing is panic.

    It's an effort to re-establish liquidity so that "life can go on as usual." Home loans. Business loans. The revolving operating loans for businesses. Right now, things are super tight for credit.

    However, IMO, it's mostly BS, of course, since it's gonna be difficult for life to go on as usual with the ongoing decline of the dollars's purchasing power--which has been going on rather notably for some 30 years, now. The fundamentals are all in place for things to get worse, regardless. You can't replace high-pay jobs with low-pay jobs and have a growing economy. You can't run up mountains of personal debt without at some point becoming unable to buy those consumer items that have powered our economy. And you can't rely on housing sales to come back to anywhere near the past price levels for a long, long time; most homeowners are gonna be pretty much stuck with what they have.

    The Fed + The Treasury has already pumped well over a half-trillion bucks into this fiasco. The most ludicrous thing going is the news reports about how all these fine Congressional leaders were "shocked", were "white-faced" at the briefing from Paulson and Bernanke, back last week. All that means is that they didn't call their brokers when they should, I guess. Thousands of people had known for months and even some years that all this was on its way.

    Sorta makes a person wonder just a wee tad about "Qualified Candidates". Look what all these qualified people have helped bring onto us.

    $700 billion? It's a start. But it's nowhere near the end amount.

    And it's all deficit. Or mostly deficit. They buy junk paper for 60 cents on the dollar and then try to find a buyer. If it goes like the late '80s, they'll get somewhere between 20 cents and 40 cents, with the taxpayers making up the difference.

    Hey, the sovereign wealth funds out of Dubai and Russia and China will buy in and rent and resell and all that, and wind up doing pretty well for themselves. I guess that actually, those folks are mac's wealthy elite...

    And nobody's given thought to the cost of maintenance on "dead" houses where nobody lives in them but maybe squatters, or thought about the costs of replacing all the stuff that's been stolen out of them.

    Ah, well. It's been a helluva party, this last dozen years. Now it's hangover time.

    Oh, and by the way, the falling of the commercial real estate market is barely underway, and there is yet a bunch of bad credit-card debt to write down. Just to add a note of cheer.

    'Rat
     
  8. mactastic macrumors 68040

    mactastic

    Joined:
    Apr 24, 2003
    Location:
    Colly-fornia
    #8
    How is this bailout not a wealth transfer from the taxpayers to the wealth? Wall Street makes trillions of dollars worth of stupid investments, then instead of accepting the outcome of their risky bets, they want to stick regular Americans with the bill for their greed.

    How is that any different from a guy who takes on a mortgage he knows he can't afford?

    I thought you weren't the kind of guy who supported wealth re-distribution. Or is that only when Democrats do it?
     
  9. nanofrog macrumors G4

    Joined:
    May 6, 2008
    #9
    This does seem to be the case to me. Big corporations want to bleed every cent they can in their personal best interest. It doesn't matter to them if the corporation fails, thousands of people lose their entire net worth (lost jobs, investments tank,...). The CEO's and other top execs not only make a bundle while in control, they get a nice bundle of cash to walk away from their blunders.

    And expect the taxpayers to foot the bill. :mad:

    P.S. I like the signature BTW. ;)
     
  10. MacNut macrumors Core

    MacNut

    Joined:
    Jan 4, 2002
    Location:
    CT
    #10
    I want to know how the tax payers are going to pay for something they don't have. If everyone is suffering as it is and people are losing their jobs how does the government expect them to be able to pay for it. They can raise all the taxes they want but if people don't have the money in the first place where will the taxes come from.
     
  11. nanofrog macrumors G4

    Joined:
    May 6, 2008
    #11
    Exactly! :(

    Though the government seems to address the financial market issues, they've completely ignored the overall failure. Various markets/industries are tied together, and that includes the employees. In simple terms, the US has no real industry left, and its citizens can't even earn enough money to make ends meet. :rolleyes:

    McJob just won't do. :mad:
     

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