Repubs are 66 to 132 . Dems are 141 to 94. The money channel is blaming the repubs.
Weird .when the bill was being voted ,the market was down 703., It now is 450.
http://faculty.chicagogsb.edu/john.cochrane/research/Papers/mortgage_protest.htm
Heres a couple economists who don’t like the Paulson bill.
Well, you got your wish gonzo…no bailout bill. Hope you are still happy about this turn of events in a week or so.
(BTW, you still don’t get it…NO ONE liked this stupid bill. Do you know what ‘compromise’ means? Further, look at how the break down of the vote went dude! It was voted for in the MAJORITY by the Dems, and against by the Pubs.)
-XT
My god, I think you are driving the whole world off a cliff, and over class resentment at that?!
Well a moot point now. Perhaps indeed some companies on the cusp of the drain will offer the same deal to China or India or some Arab investment conglomerate:
“Toxic” mortgage backed securities for pennies on the dollar of what they were originally evaluated for. Probably close to what they will be able to be sold for or better if the economy doesn’t totally tank.
Warrants for stock thrown in.
And a contractual obligation to pay for a shortfall between the buy price and the eventual sell price, albeit over a prolonged period of time.
It’s a speculative contrarian buy to be sure. If the companies tank anyway then all you got are the mortgages which may be worth even less than you are paying for them even if you do hold onto them for a while. But if valued realistically at purchase the risk, as a long term hold illiquid investment, is somewhat small, and the upside if the companies survive and/or if real estate bottoms out near here and starts to recover is sizable indeed.
I’ll bet some combination of Arabs/Chinese/etc take it.
Now we can do it right. We can deal directly with the foreclosures. Then people will make their payments and fuel the system. That would fix it.
Giving money to the financial institutions would just make them better thieves. It would not deal with the basic problem, foreclosures. A bunch of money for the banks would just get them involved in their incestuous interbank relationships. We tire of making billionaires.
We have not even discussed the credit card thieves yet. it was suggested that if the credit company wished to raise the rate, that they had to give 45 days warning and it would go on future balances only. The companies howled. It will be fun when we try to make sense of the biils they wrote and the repub congress and senate passed.
Then bankruptcy has to be fixed.