HL, what's happening with US fnancial institutions?

[Mosiah]

The dominos have begun to tumble now that Lehman Brothers is about to go under.

I really didn't expect such mismanagement from Americans.

Sincere sympathies to those of us who have some connection to these institutions. Hope you get thru it soon and back on your feet!

[Islandman]

The Fed may have to employ an expert on bailouts of financial institutions using taxpayers money. One Omar Davis comes to mind as a great choice.

So much for America being the model of free market capitalism. When all this is done the US economy will be looking like 1970s East Germany in terms of govt ownership. The auto industry is next in line after the bank bailouts and soft loans are finished.

And of course the management will be allowed to walk away will millions of dollars in compensation.

Well, if there is a bright side it may be an opening for Obama to stand firmly against the continued tax cuts promised by McCain.

[Karl]

The Fed may have to employ an expert on bailouts of financial institutions using taxpayers money. One Omar Davis comes to mind as a great choice.

So much for America being the model of free market capitalism. When all this is done the US economy will be looking like 1970s East Germany in terms of govt ownership. The auto industry is next in line after the bank bailouts and soft loans are finished.

And of course the management will be allowed to walk away will millions of dollars in compensation.

Well, if there is a bright side it may be an opening for Obama to stand firmly against the continued tax cuts promised by McCain.

Bailouts?
Why stop there...economies as I have said to my good friend Willi and to Don1 and any who will listen are complete wholes...prick here or push there and movements - bulges or contractions - take place 'every other which place'...look for the next president to 'print money' and 'pump money' into build out & rehab (rehabilitation) of physical infrastructure and introduce measure to "free credit"...not tighten as has been going on presently...but "free up availability of credit".

Merely throwing money at these financial giants and folding arms is...well frankly, NONSENSE!

[*** ofcourse there shall also be great investment is the energy sector, manufacturing, technology, etc...but things like a comprehensive immigration reform policy - (open or hidden agenda - We do want to keep prices for manual services low - agriculture, housing, fast food industry, screw driver type industry, small businesses, etc. payment for such services eat up the largest percentage part of the common man's income and those also provide greatest percentage employment) - will be tackled. ]

Inflation?
Ofcourse!

[Islandman]

The problem I have Karl is not so much the govt intervention to save the system, it is the fact that during "good" times these same companies fight tooth and nail against regulation of any sort, claiming that "the market" should determine what they are allowed to do and the relationships they are allowed to have.

Then as soon as greed gets the better of them as it always does, they suddenly become open to accepting govt welfare checks, because thats what it is. What happened to pulling yourself up by your own genuine leather bootstraps then?

[Mosiah]

What happened to pulling yourself up by your own genuine leather bootstraps then?

Leather? Or faux leather made in China?

[Assasin]

I-man it seems like you change somewhat to my stance.

Mi think you did more right wing fiscally.

[Karl]

The problem I have Karl is not so much the govt intervention to save the system, it is the fact that during "good" times these same companies fight tooth and nail against regulation of any sort, claiming that "the market" should determine what they are allowed to do and the relationships they are allowed to have.

Then as soon as greed gets the better of them as it always does, they suddenly become open to accepting govt welfare checks, because thats what it is. What happened to pulling yourself up by your own genuine leather bootstraps then?

You have a point! ...but we are where we are adn we need action to stem the tide and correct NOW!

[Assasin]

yes, Impeach George Bush and Dick Cheney

[Gamma]

FINSACed?

[Assasin]

yep

[Islandman]

I still consider myself to be moderately conservative fiscally but what these criminals are practicing is not conservative fiscal policy. It is benefitting from big profits while passing any losses they have to the taxpayer. That kind of welfare costs a lot more than food stamps.

I still think that in general governments take in more than enough taxes to do what they have to do. It is corruption and waste that is the problem most of the time. For that reason I generally oppose tax increases although I recognize there are times when it has to be done to deal with specific challenges.

[Karl]

I still consider myself to be moderately conservative fiscally but what these criminals are practicing is not conservative fiscal policy. It is benefitting from big profits while passing any losses they have to the taxpayer. That kind of welfare costs a lot more than food stamps.

I still think that in general governments take in more than enough taxes to do what they have to do. It is corruption and waste that is the problem most of the time. For that reason I generally oppose tax increases although I recognize there are times when it has to be done to deal with specific challenges.

Good chat, sah!

[HL]

Add Merrill Lynch to the mix of bail-outs too.

I agree that Lehman Brothers , Merrill Lynch, Fanny Mae, Freddie Mac and other institutions were grossly mismanaged. The CEO's for all these companies made MILLIONS last year.

The good news is that the economic foundation of the American economy is still strong!

More good news is that this is a very good time to invest.

I have been watching some stocks that may be worth investing. Maybe you should take advantage of this crisis too Mosiah. And encourage yuh bwoy...wooooops...yuh employee to do the same.

[Gamma]

yes.....the opportunity is there to get traditionally strong stock options at a good (low price) the risk is how much of a long term ivestment is it likely to be AND the basis for doing so is the thinking the that gov't will not allow these institutions to sink.

i happen to think that bailouts will be cherrypicked and so everyone will not have the same luck.

neverthelessand notwithstanding the fact that the real estate market plays a prominent role in the collapses, it is a better time to buy real estate than stock options.

[Islandman]

I don't think its a particularly great time to buy US stocks right now. I wouldn't suggest that anyone liquidate thier portfolio but the reality is that the magnitude of the problem is not yet known. These banks have mortgage-backed assets on thier balance sheets that nobody really knows what thier true value is. Given the nature of what is happening the US stock market has been relatively calm so far.

The big risk as I see it is the effect all this could have on the availability of credit as the failures start to include more commercial banks and not just investment banks. The economy simply cannot function well without short term credit being available to small and medium size businesses in particular. Thats where it can get messy real fast and becomes a problem for the man in the street and not just Wall Street as it is now.

I am sure someone like Willi can paint a much more scary picture of all of this.