Did anyone follow the "Bail Out"?

[HarveyH42]

I'd figure there to be American owned banks in a lot of different countries, as there are American workers and businesses all over the world. Also, lots of people in other countries want the same things Americans have, we are trend-setters.

 

[jpanhalt]

@HarveyH42
Thanks for the links. All that pork made me hungry. Time for dinner. John

 

[AllVol]

I only have a couple credit hours in Economics, so I am by no means expert on the subject. However; I do have a couple of comments:

It just may have been much cheaper for the US govt. to bail out the banks, rather than have to pay off all the insured loans if the banks failed. For example, if just 10 percent of Americans have the maximum 100,000 in FDIC insured savings, and all the banks failed, someone would need to cover about 3x10^12 bucks... much more than the anticipated 7 billion bailout. Of course, that is suposition, but as valid an example as any others I've heard.

If something had not been done, the banks were on the verge of calling in all debt owed to them, primarily through credit card balances. If that happened, "Average Joe" would be in bankruptcy court by the first of the year.

As a neighbor said, "Danged if you do, and danged if you don't:

Two cents worth.

 

[HarveyH42]

I don't think there would have been more than a few banks(big ones though), that would have actually failed. Not all banks gamble with other people's money.

Somebody mentioned a huge bonus, Merrill Lynch paid an exec. My 401k retirement at work, is managed by Merrill Lynch, and it's been losing money pretty steady since they took over. Bank or America just bought some of their business, one being retirement accounts, which is one of the banks in trouble... Guess I can kiss that $56k goodbye.

 

[kchriste]

It just may have been much cheaper for the US govt. to bail out the banks, rather than have to pay off all the insured loans if the banks failed.

I think you are right on the money here. The government doesn't have the money to cover all the FDIC insured deposits in the country. The whole fiscal system is a house or cards anyway. No real money exists anymore, it is just some bytes in a bunch of servers which we, by mutual agreement, say is worth something. A true confidence game if there ever was one.

 

[jbarnaby2000]

Wow...just reading the first ten pages I am more worried now....it gives the Secretary of the Treasury a lot of power...and he is not even an elected official...

 

[3v0]

It is flawed to think that all banks are failing.

It is a sweet deal for crooks.
Wells Fargo, Citigroup go to battle over Wachovia | Business ...

Wells Fargo & Co. offered $15 billion for Wachovia Corp., setting up a contest with Citigroup Inc. for control of the embattled North Carolina lender.

Citigroup demanded Wells Fargo abandon the takeover, claiming it breaches an exclusive deal reached earlier this week in which the New York-based lender agreed to buy Wachovia's banking operations for $2.16 billion with government help.

Well Fargo's surprise offer for Wachovia, run by former U.S. Treasury official Robert Steel, may lead to a face-off with federal regulators and a bidding war with Citigroup Chief Executive Officer Vikram Pandit. The bank may take legal action to block the deal, and a person with knowledge of the deliberations who also said Citigroup may increase its offer.

In short Wells Fargo has offered over 7 times the money but "insed track" people want to buy it for a song and have the taxpayers pick up the rest.

Tell me again how this is a good thing ?

I think you are right on the money here. The government doesn't have the money to cover all the FDIC insured deposits in the country. The whole fiscal system is a house or cards anyway. No real money exists anymore, it is just some bytes in a bunch of servers which we, by mutual agreement, say is worth something. A true confidence game if there ever was one.

 

[jpanhalt]

Right, the banks and brokerages are not all without money. It's the system that is broke, as in broken. Treasury and the SEC have plenty of muscle, but decided not to use it. Instead, they decided to let the industry "self-regulate" through FINRA. No other industry in the US has anywhere near the complete freedom to self-regulate with virtually no oversight as FINRA allows and has failed to do.

Ever wonder who gets the money from investment firms and why the current Democrat-controlled Congress gave them what they wanted? Here is an interesting chart.

John

 

[Space Varmint]

Hey! Guess who Barny Frank's lover is? Senior Exec. of Fannie Mae...Herb Moses

 

[Space Varmint]

30 Million mortgages a day go into default.

30 billion dollars a day go into liquidation which is backed by derivatives and they will go belly up.

Bail out will cover about 24 days.

 

[jpanhalt]

Hey! Guess who Barny Frank's lover is? Senior Exec. of Fannie Mae...Herb Moses

Here's a reference: https://www.foxnews.com/story/0,2933,432501,00.html

No conflict there, right?

John

 

[Space Varmint]

Here's a reference: https://www.foxnews.com/story/0,2933,432501,00.html

No conflict there, right?

John

Never go to Fox News unless you enjoy being lied to.

Check if your money will be available at your bank, bank run status etc...

https://www.thestreet.com/

 

[HiTech]

30 Million mortgages a day go into default.

30 billion dollars a day go into liquidation which is backed by derivatives and they will go belly up.

Bail out will cover about 24 days.

Where did you get those figures? 30 million default mortgages daily sounds pretty extreme IMHO.

TO THOSE SUBSCRIBING TO THIS THREAD:
Last night I typed a carefully worded reply that detailed my thoughts and reasoning behind this national debacle. However, I got to rethinking about it and decided to spare you all the soap box sermon and merely exited the forum instead.


I will state here and now that this whole mess truly disgusts me in several ways:

• disgusted with corporate greed and white collar deceit
• disgusted with the exponential burocracy of federal, state, and local governments; disgusted with partisan politics
• disgusted with the abuses and mismanagement of entitlement programs
• disgusted with American aggression abroad, be it military or otherwise
• disgusted with the intolerance and "me first" mindset of many of my fellow citizens
• disgusted with those who set out to undermine our Constitutional documents and disregard sound, moral standards.

Now before you go off thinking that I am pessimistic and turning postal, fear not. I do have hope for America, as I contribute my small part in numerous ways towards returning this nation to the globally revered status it once enjoyed. I'm sure tens of millions of others are doing the same, the best they know how to. Accountability for one's actions should be across the board from the Executive Branch on down to the common citizen. These financial execs. should not receive their severance packages, nor should they skate off with a wrist slap either. Before they're sent off to meet the prison staff, they should be introduced to my hickory staff.
Unfortunately a good many of these financial sharks will lay claims that their actions were the results of calculated risks and market conditions, etc. of which makes it difficult for a court to hang a conviction on them. "Stupidity" is not an incarcerable offense.

 

[3v0]

Exactly.

Also

30 Million mortgages a day go into default.

30 billion dollars a day go into liquidation which is backed by derivatives and they will go belly up.

When a home mortgage goes into default the home still exists. It still has value. If it is handled correctlly the home is sold and the owner gets whatever money is left after the lender is paid off. The only money that should be lost is if the owner borrowed more then the house was worth.
In that case the lender is getting their just deserts.

So why should anyone bail out a lender to greedy to follow sound lending practices ?

 

[jpanhalt]

Yep, 30 million mortgages a day seems a bit large for a country with about 300 million people, including lots of debt-free little children. John

 

[HiTech]

Check if your money will be available at your bank, bank run status etc...

https://www.thestreet.com/

What? You mean you don't bury your stash in jars and cans out in the backyard?

 

[Nigel Goodwin]

Yep, 30 million mortgages a day seems a bit large for a country with about 300 million people, including lots of debt-free little children. John

Like all his other paranoid posts, he just makes it all up

 

[HarveyH42]

Exactly.

Also


When a home mortgage goes into default the home still exists. It still has value. If it is handled correctlly the home is sold and the owner gets whatever money is left after the lender is paid off. The only money that should be lost is if the owner borrowed more then the house was worth.
In that case the lender is getting their just deserts.

So why should anyone bail out a lender to greedy to follow sound lending practices ?

That's the part I don't get. The people writing the loans, know how much security is involved, and know what to expect in case of a default, and still give more money than the property is worth, or what the borrower could afford to pay. They had to know that most people who can no longer afford to pay their adjustable/variable rate loans, on a house that isn't worth even half the mortgage value, are just going to walk away from it, file bankruptcy if needed. These people encouraged homeowners to refinance, or take on a second mortgage against their equity. I use to get offers in the mail all the time, which I threw in the trash. I never do business with people that bring it to my door, it's usually a bad deal.

With credit rating/scores/reports, why so many bad loans? They pretty much know how much you earn, how much debt you carry, and your payment habits. Why do so many people carry a balance on 3-7 credit cards, and are still given more credit? The lenders need to be held accountable, they aren't stupid, they aren't new at this. Probably knew the government would hand them a boat load of cash, if they asked.

 

[kchriste]

That's the part I don't get. The people writing the loans, know how much security is involved, and know what to expect in case of a default, and still give more money than the property is worth

The loans were given on the belief that property values would continue to rise. They did the opposite. When someone's asset becomes worth less than it's mortgaged for, people walk away leaving the bank holding the bag.

Ever wonder who gets the money from investment firms and why the current Democrat-controlled Congress gave them what they wanted? Here is an interesting chart.

Funny, you've had 8 years of Bush and the Republicans, and somehow it's the Democrats fault?

 

[HiTech]

A majority of the Dems approved that crap back then. Realtors chimed in as well knowing they were pushing sales of inflated values, but heck, they're paid on commission so why should they turn down extra thousands in their yearly income.