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Old 09-14-2008, 09:27 PM
 
Location: Jonquil City (aka Smyrna) Georgia- by Atlanta
16,259 posts, read 24,711,467 times
Reputation: 3587

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It looks like the Fed is finally out of ammo and will quit having to prop up the banks and financial houses and let the chips fall where they may. No longer can Paulson and Bernanke wave their arms like Jesus to calm the waters. Nope, now they gotta let the chips fall where they may. And maybe it is time that people who made bad investments started feeling the pain of their decisions as opposed to the rest of us having that burden placed on us and our children.
Yes times might be hard for a bit and the stock market might go down for awhile. But in the end, a little pain now will hopefully save us alot of pain later. My view is that the Fed should not have ever started this crap with Bear Stearns. The sooner we let the financial markets clean out the dirt, the better off we will all be.
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Old 09-15-2008, 12:50 AM
 
Location: Los Angeles Area
3,306 posts, read 4,143,466 times
Reputation: 592
Quote:
My view is that the Fed should not have ever started this crap with Bear Stearns.
I think the idea with Bear Sterns was possibly if they bailout them out, the others would be okay. Now that is obvious more companies are going to fail they just have to let them go in the most orderly matter possible. Perhaps they are saving up for the collapse of WaMu that is going coming right around the corner. If WaMu collapses its going to largely wipe out the FDIC and big daddy government is going to have to start giving them money.
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Old 09-15-2008, 12:57 AM
 
Location: southern california
61,289 posts, read 87,247,282 times
Reputation: 55556
i agree. you pay for what you buy, we lost the concept some time ago.
its a french thing. sooner we get it back the better.
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Old 09-15-2008, 05:31 AM
 
20,187 posts, read 23,803,836 times
Reputation: 9283
You missed it... The Fed has just instituted a deal that allows them to buy ALL investment grade debt as collateral instead of Treasuries and high-grade securities... this fund will be used to help failing companies.. someone had said that the Fed doesn't use government money... we will see soon enough how much water that holds...
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Old 09-15-2008, 07:23 AM
 
Location: Los Angeles Area
3,306 posts, read 4,143,466 times
Reputation: 592
The FED released that information before the Lehman BK was announced. The FED couldn't just let Lehman Brothers fail without doing anything as it could bring down the entire system. Although, in the end the it may cost the same as a bailout it doesn't involve the same moral hazard as the Bear Sterns bailout. Lehman share owners are going to get wipped out, many of their creditors aren't going to get paid etc. This one is going to be much more painful for the sleaze in Wall Street.
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Old 09-15-2008, 07:29 AM
 
5,760 posts, read 11,520,206 times
Reputation: 4949
Sounds like most of the First Class passengers must be comfortably aboard the lifeboats if they are talking about shutting the pumps down on the big boat.

The rest of you all bring your swim suits?
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Old 09-15-2008, 09:37 AM
 
Location: Great State of Texas
86,052 posts, read 84,314,885 times
Reputation: 27718
Quote:
Originally Posted by Philip T View Post
Sounds like most of the First Class passengers must be comfortably aboard the lifeboats if they are talking about shutting the pumps down on the big boat.

The rest of you all bring your swim suits?
The first class passengers left that boat long ago.
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Old 09-15-2008, 01:35 PM
 
Location: Sputnik Planitia
7,826 posts, read 11,750,717 times
Reputation: 9045
the greed on wall st. never stops, if these people get bailed out and they will be back to their dirty tricks that got them into this bind in the first place!
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Old 09-15-2008, 02:55 PM
 
Location: Raleigh, NC/ West Palm Beach, FL
1,061 posts, read 2,245,679 times
Reputation: 840
So now I read that WAMU may be next? So what bank can someone put their money in that looks relatively safe in the short term.
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Old 09-15-2008, 03:14 PM
 
28,896 posts, read 54,042,483 times
Reputation: 46669
Quote:
Originally Posted by HappyTexan View Post
The first class passengers left that boat long ago.
Two years ago, in fact.

I knew the *** was up in May, 2006, when I talked to a guy who was pretty high up in the non-conforming lending department of a mortgage driven bank.

In the presentation, this guy swore up and down that illegal aliens were going to be the next big market in mortgage lending. He cited all the reasons, including how illegals always have cash, pay on time, etc.

So I raised my hand in the meeting and asked, "Excuse me. But why would you lend money to somebody who could get deported at a moment's notice with no legal recourse?"

You would have thought I had whipped it out and urinated on the board room table. It was as if I had ruined the party. Right then, I knew that something was seriously out of whack in the lending business.

The bank in question is now a two-star bank, according to Bauer's rating system. They are teetering on the edge of Federal intervention.
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