hanson001

Wall Street Breakfast: Must-Know News

axelrod6008: If I could have my way, the people that helped create this problem would have zero assets. That would mean that a great deal of the world's population would have no roof over their head. The plan that's in front of Congress is the government attempting to preserve what is left.

The government will not allow a run on the banks? Yeah, like the Great Depression, when we had bank holidays, after the damage was done. And the French government couldn't stop the bastille coming down, eventhough they said don't do that. One could argue the run has already begun with Bearns Stearns and Lehman. The government always acts after the infection has taken hold.

Wall Street Breakfast: Must-Know News

axelrod608: "In the P&B (Paulson and Bernake) plan I have yet to hear where the proceeds would go. Wouldn't paying the creditors be a good thing, especially since P&B have repeatedly made the case that their plan is to fix the credit problem ? "

The tax payers, like always, are the creditors. The proceeds, depending on how the reverse auction turns out, could be a good investment. Don't get me wrong. I am for the free-hand no matter what. My belief is that great stress is the only way to change behavior.

axelrod608: "It would be a piece of cake to add a dozen or more judges to the bankruptcy system to handle the additional demand. The cost would be recaptured in the asset auctions. More responsible companies with stronger balance sheets and more conservative executives would buy up the assets of the insolvent companies and put them back to work. And they wouldn't play Lotto with their shareholders' funds."

This problem is global and I believe we are close to a run on the banks. The behavior in the money market accounts and the t-bill yields should give you a clue. People, smartly, have no confidence in the system. Too many lies, too much greed, too many people with great dept levels crying about the government having the same problem. Wow! We have a very sick culture.

Our sin nature makes me collect ammo.