gurby

The Deal's Getting Done, But Will It Work?

The last comment was the most level headed I have read for quite some time. Heed it.

David missed the most fundamental point. How is the govt going to act on Monday. If they are banging on hope, then they will be sorry. They must take decisive action to back stop those in the brink of failing and not let FDIC do its dirty job of feeding the big and crooked banks. It is better to sustain rather then slash and burn only to pick up the pieces.

America have lost enough investment banks and with it valuable long therm edge to keep ahead. It cannot afford any failure and especially wwhen it just announced a major plan.

Rgds

Read It and Weep for the USA

Ironically this plan is exactly what the competitors of America wanted to see. If this is an economic war, America has strategically taken the steps towards losing everything it has build up on history. Saddle the drug the country to on extreme levels of debt that it can never pay back and then watch its systematic fall.

America had the competitive edge with Europe and China, precisely because of its investment banking. America can fund futuristic technology better then any other country because of it far sighted investment banks. So the first attack was launched on investment banks by drugging then with cheap returns and taking extreme bets with instruments they all did not understand.

The second step is get the Govt to commit to saving all Americans and corporations, although technically impossible, by bailing out and getting saddled with debt that will take several generations to pay if the mortgages assets continue to correct another 20 percent.

What is needed is a return of the equity rescue by investors who need to be confident that the US govt will not interfer by wiping out equity. Reality is no amount of bailout or loan can save this country. Only equity have the scale to rescue this country. So what is needed is confidence that the capitalist system must be respected and regulated fair play

Good luck and God Bless

5 Failures of SEC Chairman Cox

Well done. Can you help write one for Paulson as well. Only when his former company Goldman Sachs was drastically going down did he suddenly have the insight of using 700 bil.

Fannie & Freddie Bailout? - Fast Money Recap (9/5/08)

The biggest mistake of Corporate America will be to wipe out common shareholder value. Investors and not financial institution are the real markets.

Once people who are the ultimate investors lose confidence in the capitalist system we can kiss good buy to solving the financial crisis, mortgage crisis, and the US dollars.

It is amazing how this basic understanding eludes even Alan Greenspan and the presidential candidates. They have this false illusion that the FED plan may benefit shareholders. In fact, shareholders are the ones that could potential protect the taxpayers from monumental losses.

All I can say is good luck to corporate America if there is even the slightest whiff that the plan would entail shareholders losing close to everything.

Why I Finally Bought Fannie Mae

I dread to here the phrase 'Taxpayers losing' as if it will affect them directly and as if they owe the tax paid. In reality the whole plan is to sucker investors at the expense of frivolous taxpayers who evade and over consume beyond their savings buying houses, TVs, cars, and everything they cannot afford.

Politics aside, and inspite of what Alan Greenspan and Warren Buffett have said, the initial FED's fannie and freddie bailout plan is indeed to essentially safeguard taxpayers and private equity(gamblers and greedy individuals) rather then genuine long term investors. Those who say it is sell out do not understand the real maths. Taxpayers stand to loose much much more if Freddie and Fannie are nationalize and not to mention the cascading fallout to mortgage/insurance markets and the trust people have in the administration to honor its GSE institutions. The markets(genuine investors) know this and therefore want more assurances from the govt that they will let the markets find the equilibrium rather then nationalize and leave investors with nothing. If the markets do not participant, the taxpayers stand to loose big time as GSE loans are clearly sovereign loans. The govt will have to come out with much more and with no assurance of getting back anything in return.

The other alternative of selling out to private equity with zero value to current investors will also be a fatal error. They will strip the companies take their profits and sell it. The markets and global investers will also loose faith in all the assurances the govt and Freddie and Fannie have given to invest more in these companies just a few weeks ago. The
trust once lost will take a long time to gain back. There is also no gaurantee that private equities have national or broader social concerns. Their priority is going to be their own stockholders, who essentially are again the markets.

The market is looking for firm and decisive actions to show that the govt is prepared to invest in Freddie and Fannie in the short term to shore confidence against the poor negative sentiments. Freddie and Fannie are not yet bankrupt and their business models are still relevant albeit in certain rough patches. with some short term help They have enough cash returns and expenses to roll over and navigate from the current crisis.

Time is of essence. The FED need to act fast and decisively.

Fannie, Freddie: What Paulson Learned From the Pentagon

I dread to here the phrase 'Taxpayers losing' as if it will affect them directly and as if they owe the tax paid. In reality the whole plan is to sucker investors at the expense of frivolous taxpayers who evade and over consume beyond their savings buying houses, TVs, cars, and everything they cannot afford.

Politics aside, and inspite of what Alan Greenspan and Warren Buffett have said, the initial FED's fannie and freddie bailout plan is indeed to essentially safeguard taxpayers and private equity(gamblers and greedy individuals) rather then genuine long term investors. Those who say it is sell out do not understand the real maths. Taxpayers stand to loose much much more if Freddie and Fannie are nationalize and not to mention the cascading fallout to mortgage/insurance markets and the trust people have in the administration to honor its GSE institutions. The markets(genuine investors) know this and therefore want more assurances from the govt that they will let the markets find the equilibrium rather then nationalize and leave investors with nothing. If the markets do not participant, the taxpayers stand to loose big time as GSE loans are clearly sovereign loans. The govt will have to come out with much more and with no assurance of getting back anything in return.

The other alternative of selling out to private equity with zero value to current investors will also be a fatal error. They will strip the companies take their profits and sell it. The markets and global investers will also loose faith in all the assurances the govt and Freddie and Fannie have given to invest more in these companies just a few weeks ago. The
trust once lost will take a long time to gain back. There is also no gaurantee that private equities have national or broader social concerns. Their priority is going to be their own stockholders, who essentially are again the markets.

The market is looking for firm and decisive actions to show that the govt is prepared to invest in Freddie and Fannie in the short term to shore confidence against the poor negative sentiments. Freddie and Fannie are not yet bankrupt and their business models are still relevant albeit in certain rough patches. with some short term help They have enough cash returns and expenses to roll over and navigate from the current crisis.

Time is of essence. The FED need to act fast and decisively.

Fannie, Freddie: Beyond the Balance Sheets

Politics aside, and inspite of what Alan Greenspan and Warren Buffett have said, the initial FED's fannie and freddie bailout plan is indeed to essentially safeguard taxpayers rather then investors. Those who say it is sell out do not understand the real maths. Taxpayers stand to loose much much more if Freddie and Fannie are nationalize and not to mention the cascading fallout to mortgage/insurance markets and the trust people have in the administration to honor its GSE institutions. The markets know this and therefore want more assurances from the govt that they will let the markets find the equilibrium rather then nationalize and leave investors with nothing. If the markets do not participant, the taxpayers stand to loose the most as GSE loans are clearly sovereign loans. The govt will have to come out with much more and with no assurance of getting back anything in return.

The other alternative of selling out to private equity with zero value to current investors will also be a fatal error. People will loose faith in all the assurances the govt and Freddie and Fannie have given to invest more in these companies just a few weeks ago. The trust once lost will take a long time to gain back. There is no gaurantee that private equities have national or broader social concerns. Their priority is going to be their own stockholders, who essential are again the masses.

The market is looking for firm and decisive actions to show that the govt is prepared to invest in Freddie and Fannis in the short term to shore confidence against the poor negative sentiments. Freddie and Fannie are not yet bankrupt and their business models are still relevant albiet in certain rough patches. with some short term help They have enough cash returns and expenses to roll over and navigate from the current crisis.

Time is of essence. The FED need to act fast and decisively.