Dave Burris? Do you support this type of Free Market?
I could be wrong in asking this only to Dave. But if my memory serves me, dave is on board with a Free Market economy. Dave likes to give his opinion on fiscal matters too, so I don’t think I’m out of turn on this one. And we all know that he has been very supportive of Bush and his way of creating a Free Market Economy. I can’t help but ask if this is what Dave and other conservative consider a Lazze Faire Approach?
I ask because when a company like Bear Sterns was 5 minutes from getting flushed in the shitter today, our Free Market Economic approach Bush Style kicked into high gear today.
Now put this on top of this news:
Last week, the Fed announced an industry-wide rescue package that would provide as much as $200 billion in loans to banks and investment houses and allow them to put up risky home-loan packages as collateral. It was the Fed’s latest effort to stem a global credit crisis that began last August with rising loan defaults for subprime mortgages, loans provided to borrowers with weak credit histories.
and you have yourself one heck of a conundrum
UPDATE: OH MY….
NEW YORK – President Bush preached optimism and Republican orthodoxy of minimalist government intervention Friday as the best approach to an increasingly troubled economy.
His main message, aside from displaying confidence in the U.S. economy’s underpinnings and historical resilience, was to caution against overreaction by policymakers that could damage the economy’s short- and long-term prospects, something he did about a half-dozen times in 40 minutes of remarks.
I don’t support government bailouts. Never have.
can you write a letter to bush please…
DV – Well Done. Putting the word “Dave” in the header is good for 50 comments right off the bat.
Anyway – Artios puts it like this:
According to CNBC, JP Morgan is acting as an intermediary for Bear Stearns because Stearns doesn’t normally have access to the Fed discount window. Lucky for everyone, this is a nonrecourse loan! JP Morgan is using some pile of shit from Bear Sterns as collateral, and if that collateral isn’t worth anything JP Morgan won’t be held liable if there’s a default.
Unreal. This scary shit makes me think about what it must have been like just befor the crash of 1929.
Wasn’t that crash in 1929? (Not to be a dick, of course. I knew what you meant.)
D’oh. Thanks for the correction.
Dear Lord!!!!
Not to be a dick, of course…
BREAKING: Mike Mahaffie cursed!
🙂
The super rich must do OK, remember our trickle down money is at stake. I know I will get some soon if we just keep bailing them out. Maybe some more tax cuts are in order? Karl Marx wasn`t so wrong after all, GREED will kill capitilism after all!
I’m with Dave on this one – if these banks aren’t allowed to take their lumps they will lose all aversion to risk, and the sub prime losses will continue to distort financial markets. If your house gets termites, you have to kill them all and replace the wood, not slap on a new coat of paint.
Oh, what happened to ATHF this week?
I do not support government bailouts either. I think the restructuring that needs to be done needs to take place within the banking sector which for too long has operated like a good old boys club and not enough like a global player, at least not with any reasonable level of parity compared to the rest of the world. You do not use a sledgehammer to break a glass and you do not ask the government to get into the banking market. But the banking market needs to change itself to a new global dynamic and China may be the only nation whose banks can save and restructure America’s private sector banks. These are all pressures from globalization and fall out from the housing market and credit destruction through highly risky speculative practices.
G-Rex- Lol….do you mean this ATHF?
http://en.wikipedia.org/wiki/ATHF
http://www.youtube.com/watch?v=Ld9mVm6LxC8&feature=related
http://www.youtube.com/watch?v=viOl9FdLdAw&feature=related
yo G, if they were to actually take their lumps then said lumps wouldn’t be averted by a gov’t bailout.In the free market about to lock down on my throat-I gets da lumps,lumped out of all my assets because brankruptcy is just short a crime but these guys getting paid six zeros easy get paid when they lose nine zeros of the investors do-re-mi AND go off to the sunsets with additional hundreds of mills.
Brian kick any Tibetans lately?Have you seen any American made products on the nearest shelf?
…”China may be the only nation whose banks can save and restructure America’s private sector ”
I’ve never been accused of being Optimistist on Point but I live amid many Americans that can restructure the financial system.We could start where the whore-mongering Gov left off-sharpen the teeth of the SCC
Go dow jones market watch, there are 22 pages of comments on the Bear Stearns story. This is only the first of many financials to fall, Remember most of these arms have yet to reset. If enough people walk away from these homes, as they will no doubt have too, there could be trillions of dollars of bad money out there. We could be looking at a financial meltdown.
Bush’s cheerleading about the economy seemed intended to step on this man’s assessment of the economy this morning.
This group, if you remember definitively marked the 2001 recession as the (first) BushCo recession. Mr. Feldstein seems pretty definitive that the recession is now and we have not yet seen the worst of it.
And evidently this housing crisis has pushed homeownership levels back to where we were in 2001.
The actions today are appropriate and necessary.
I agree with Mike. What government bailout? The Fed is a private bank chartered by the government and run by economists who are charged by law to keep the system stable, liquid, inflation low, and tilted to full employment.
The experts at Standard & Poore’s said the worst is over. It takes about 6 to 9 months for monetary stimulus to take effect. We started in September. Do the math. Bush is right.
It acts independently of the President, that independence is also enshrined in law. The problems we are having should by all rights put us at about 7.5% unemployment and a couple percent of negative growth. I bet we will stay around 5 to 5.5% top and maybe have one quarter of mildly negative growth then rebound. Any takers?
David wrote: “What government bailout? The Fed is a private bank chartered by the government and run by economists who are charged by law to keep the system stable, liquid, inflation low, and tilted to full employment.”
Uh, no. Here’s an accurate definition:
“The Federal Reserve System (also the Federal Reserve; informally The Fed) is the central banking system of the United States. Created in 1913 by the enactment of the Federal Reserve Act, it is a quasi-public (part private, part government) banking system[1] composed of (1) the presidentially-appointed Board of Governors of the Federal Reserve System in Washington, D.C.; (2) the Federal Open Market Committee; (3) 12 regional Federal Reserve Banks located in major cities throughout the nation acting as fiscal agents for the U.S. Treasury, each with its own nine-member board of directors; (4) numerous private U.S. member banks, which subscribe to required amounts of non-transferable stock in their regional Federal Reserve Banks; and (5) various advisory councils. Currently, Ben Bernanke serves as the Chairman of the Board of Governors of the Federal Reserve System.”
While there are private elements involved, Wilmington Trust Company it ain’t. And denying that this was anything other than a government bailout is an exercise in pretzel logic that even Hillary Clinton might not stoop to.
The experts at Standard & Poore’s said the worst is over. It takes about 6 to 9 months for monetary stimulus to take effect. We started in September. Do the math. Bush is right
Oh my. Your capcity for self deception is astounding. I guess we are “winning” in Iraq too?
Besides which, S&P does not say the worst is over. They, like many see a possible end of the tunnel to write-downs for sub-prime assets within the next few months. They also see any positive effect from the end of those write-downs being quite offset (if not surpassed, according to other watchers) by the worsening difficulties of the credit markets and the real estate market.
And the Congress sanctioned monetary stimulus hasn’t even hit the streets yet, and the Fed interest rate adjustments have at best allowed the system to tread water.
This is, unfortunately, what happens when you get all of your info from Fox News and Rush Limbaugh.
The same experts at Standard & Poore’s who gave AAA ratings to mortgage-backed securities?
“Brian kick any Tibetans lately?Have you seen any American made products on the nearest shelf?”
Joe, I think human rights issues between governments are seperate from financial issues between private investment banks. But as a matter of fact, I would never kick anyone. Except through satire, which I am not so good at.