2 trillion dollar bailout??? (bankrupt, loans, creditors, debt)

[jetway777]

700 Billion Bailout Balloons To 2 TRILLION DOLLARS! (Bloomberg News)
Bloomberg.com: Exclusive

[Woof Woof Woof!]

And it will be another trillion next month, too.

[Barkingowl]

Time to let the government go under.

[Nor'Eastah]

When you're dealing with highly leveraged derivatives, the money adds up fast! That's why so many say that the $700 B "won't work". No amount of money will work. The derivative market is estimated to be over $1 quadrillion.

That's more money than there is in the world. Scary.

[jetway777]

Originally Posted by Nor'Eastah

The derivative market is estimated to be over $1 quadrillion.

That's more money than there is in the world. Scary.

WHAT THE ?*&^????!!!

I HOPE I CAN GET MY STIMULUS REBATE BEFORE GOV. GOES BANKRUPT?

[baystater]

This is old news. Nourial Roubini has been talking about this for months. If this is a surprise that it will cost at least 2 - 3 trillion dollars to handle this situation.........then you haven't been paying attention.


NOURIEL ROUBINI - InvestmentNews


March 24, 2008, 6:01 AM EST

Two years ago, I predicted home prices would fall cumulatively 20%, but now I believe it will be at least 30%.

With a 20% fall in home prices, about 16 million households are under water. They have negative equity, which means the value of their homes is below the value of their mortgages. With a 30% drop in prices, you have 21 million households that are in negative equity. And since the mortgages are no-recourse loans, essentially they can walk away.

Even if only half of the 16 million households were to walk away, that alone could lead to losses for the financial system of $1 trillion. Even a 20% drop in home values may imply losses of $1 trillion that are not priced into the market today. So that's the floor. Again, it could be higher — as much as $2 trillion — if prices fall 30% and more people walk.

MoneyNews - Roubini: Bank Losses Close to $2 Trillion


Monday, August 4, 2008 5:27 PM

He estimates the financial crisis will lead to credit losses of at least $1 trillion and most likely will be closer to $2 trillion.


"At this point, $1 trillion isn't a ceiling, it's a floor," says Roubini

[StoneOne]

This is precisely why the bailout is a scam. Just let this bad debt get written down, and let the delinquents go bankrupt. The creditors will be stuck with the good assets which are profitable.

Why have we become so afraid of letting the weak and the stupid go under? It doesn't matter if its an institution or an individual. They need to be flushed out of the system so that we can rebuild on a solid foundation.

[Woof]

"Weak and stupid" is not how I would characterize people who can get taxpayers to fund luxury resort getaways and monstrous severance packages.

[gwynedd1]

Originally Posted by Nor'Eastah

When you're dealing with highly leveraged derivatives, the money adds up fast! That's why so many say that the $700 B "won't work". No amount of money will work. The derivative market is estimated to be over $1 quadrillion.

That's more money than there is in the world. Scary.

Hello Nor Eastah,

Most people don't know all our money is debt. That's why they will be very confused if the dollar does not go through hyper inflation while they lose everything. They are printing enough debt currency for themselves to buy everything up as it stands now.

[Woof Woof Woof!]

Originally Posted by jetway777

WHAT THE ?*&^????!!!

I HOPE I CAN GET MY STIMULUS REBATE BEFORE GOV. GOES BANKRUPT?

No government goes bankrupt in its own currency because it can always print more.