[hiknapster]

How many times are they going to bail out these corporations? Bear Stearns is the latest abomination.

They are just walking away, and we are left holding the bag.

Don't get me wrong, I don't have a mortgage, but we are all left with this mess.

Meanwhile, the Fed is pumping in $200 billion to these corporations. Pretty soon, the discount interest rate will be at zero.

Bless the hearts of the average American, but this means nothing for their mortgage rate.

Did we not vote in these jokers, Democrats and Republicans, alike? How many times are we going to allow the government and the corporations to help each other while we can't make ends meet?

When, the heck, are we going to do something?

[Hero]

Originally Posted by Wild Style

You don't have to, the market will. When that thing is still sitting there a year from now.

Not sure if these sellers will ever get it. I've seen homes on the market for 1 year plus without a drop in price. Comps are 15-30% less but evidently their house has platinum piping.

"Denial ain't just a river in Egypt." -- Mark Twain.

[JimMe]

Originally Posted by hiknapster

How many times are they going to bail out these corporations? Bear Stearns is the latest abomination.

They are just walking away, and we are left holding the bag.

Don't get me wrong, I don't have a mortgage, but we are all left with this mess.

Meanwhile, the Fed is pumping in $200 billion to these corporations. Pretty soon, the discount interest rate will be at zero.

Bless the hearts of the average American, but this means nothing for their mortgage rate.

Did we not vote in these jokers, Democrats and Republicans, alike? How many times are we going to allow the government and the corporations to help each other while we can't make ends meet?

When, the heck, are we going to do something?

Correct me if I'm wrong but I do not believe what the Fed did was to bail out Bear Stearns. The value of that company just plummeted because of the huge losses it was sustaining because of the crash of the housing and crdit markets. So another bank bought it out at bargain basement prices. Like what happened to Enron the people who got hurt out of all this are the Bear shareholders--most of whom were Bear employees. I feel sorry for them but that's the cahnce you take when you invest in the stock market. I hope enough of them were able to read the hand writing on the wall and got out while their shares still held some value.

As regards what the Fed did in pumping 200 billion into the banking stream, that, too, is not a bailout in the strict sense of the word. It simply made money available to the banks (which must be repaid) in order for those banks to be able to lend money to borrowers, small and large, to finance all kinds of business expansion projects. In other words it was attempting to ease the credit crunch. Again, the banks will lend, not give, that money and, hopefully stimulate economic activity.

[Wild Style]

JimMe

i agree with you on your points. Only small correction i would make is on who gets hurt. Wasn't just employees holding shares who get hurt. A lot of retirement funds invest in these companies. I remember when Enron went down a lot of working class people with group pensions like teachers lost everything.

[lostbuyer]

actually it was a bail-out,the only reason jp morgan went through with the deal is because the fed promised to make them whole again should bear fail,so if that happens its the taxpayers money getting flushed..

[Miami580]

Originally Posted by JimMe

Correct me if I'm wrong but I do not believe what the Fed did was to bail out Bear Stearns. The value of that company just plummeted because of the huge losses it was sustaining because of the crash of the housing and crdit markets. So another bank bought it out at bargain basement prices. Like what happened to Enron the people who got hurt out of all this are the Bear shareholders--most of whom were Bear employees. I feel sorry for them but that's the cahnce you take when you invest in the stock market. I hope enough of them were able to read the hand writing on the wall and got out while their shares still held some value.

As regards what the Fed did in pumping 200 billion into the banking stream, that, too, is not a bailout in the strict sense of the word. It simply made money available to the banks (which must be repaid) in order for those banks to be able to lend money to borrowers, small and large, to finance all kinds of business expansion projects. In other words it was attempting to ease the credit crunch. Again, the banks will lend, not give, that money and, hopefully stimulate economic activity.

The FED did bail out Bear Sterns by providing a 30 billion guarantee of their debt. Otherwise, JPM would not have bought them and they would have filed for bankruptcy.

[Miami580]

Sorry, didn't see that lostbuyer had already responded.

[jbravo]

Originally Posted by JimMe

Correct me if I'm wrong but I do not believe what the Fed did was to bail out Bear Stearns.
As regards what the Fed did in pumping 200 billion into the banking stream, that, too, is not a bailout in the strict sense of the word. It simply made money available to the banks (which must be repaid) in order for those banks to be able to lend money to borrowers, small and large, to finance all kinds of business expansion projects. In other words it was attempting to ease the credit crunch. Again, the banks will lend, not give, that money and, hopefully stimulate economic activity.

I saw the above but wanted to add... it is the BIGGEST bailout in US history.
The banks are technically bankrupt, for real. The FED took worthless paper as collateral and loaned the banks on a 28 day period. Was it correct? I do not know, guess in 10-20 years will have an answer.
This is much, bigger than a Real Estate problem. Figures of trillions are thrown about.

[sunrico90]

Difficult to believe, but is true...ABC7 News Online - $86,000 homes: Taking the good with the bad

[Wild Style]

Originally Posted by sunrico90

Difficult to believe, but is true...ABC7 News Online - $86,000 homes: Taking the good with the bad

^^

Like CJ, Bale, Tallrick and everyone else has been saying. Come down to market value and these darn things WILL sale. Until people realize the game is over, we will have to sit through this ridiculous situation. BUT even when home prices go back to where they are supposed to be, thats not going to fix our retarded economy. That is another bag of tricks.

*edit*

that is, if they can get financing