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Paulson's plan is injecting credit from : government -> banks that hold toxic waste -> general consumers and regular business. Tax cut : government -> general consumers and regular business. The net effect of injecting credit is the same. The magnitude of the credit injection is...

This is a better plan. Taxpayer needs to be in front of shareholder and bond holder of that company. Which means, if these companies are in default today and those CDO don't change in the future, the government will end up owning these companies. I will still argue that don't rescue...

If you want to soften the blow, we have no choice but to spend money that we don't have. I put the credit impact ratio at the end. We can do it thru tax rate cut (1:1), forming banks (10:1) and government spending (1:1) etc.... The current bailout plan is (10:1). The spending has to...

You wrote that? :)

That's another big problem. You ask Ben and Henry where this number came from? They will say "I dunno, we just want a really big number" What kind of answer is that? With that kind of money, you give me that kind of ad-hoc answer? FAIL, redo your homework. They will argue that doing...

1st google link search gives me $62 trillion CDS. It is within the number that I hear all the time, but no one knows for sure. http://www.rgemonitor.com/econo-monitor/253602/back-of-the-envelope_estimate_of_counterparties_net_cds_exposure

1) Why would BBT get penalized? It is the 14th largest bank right now. If some of those top banks go into default, its ranking will move up right? It can expand its lending business right? 2) If the mortgage portfolio is such a good deal, how come no one bids on it? If CDO is such a...

Why libor rate is high? Because if all these asset mark to market right now, theyse banks are all in default. It is not life threatening to the whole economy because if all these banks went into default, what we will go thru is a credit crunch, decrease money supply or whatever other ways you...

Why this is a bailout? 1) When you bought something that has no market value, you are by default either OVERPAID or UNDERPAID. Paulson makes it clear that taxpayer has to overpay for them otherwise banks won't play ball. Why? If it is sold at market value, banks will go into default and...

There is this fundamental question that I want to ask for a long time. Exactly why we can't turn these CDO back to individual mortgage one by one? Yes, I know it is tedious and it is hard work. It is not rocket science though. If I know this mortgage is related to this address and...

Remember we selected those officials. So, we are guilty too.

I can also equally show you how many times Ben and Henry said "everything is fine". Then one day, the sky is falling and give me $700B right now. Go ahead, show some link or reference to back up your claim.

Now, let see if there are 150 economists + nobel prices winners come out and say "yes" to the bail out plan.

Hundreds of Economists Urge Congress Not to Rush on Rescue Plan http://bloomberg.com/apps/news?pid=20601087&sid=aNKGD.bJwmRA&refer=home By Matthew Benjamin Sept. 25 (Bloomberg) -- More than 150 prominent U.S. economists, including three Nobel Prize winners, urged Congress to hold off on...

Could be true. Raise some cash. Get some foreign currency. Protect yourself. Nasdaq went from 5000 to 1400 and no one jump off the building. What so scary about Dow drop 2000+ points? In all likely hood, it could be the buying opportunity of a life time.

We still have full representation in this US of A. We should try to fix the problem, not run away from it...:) However, if we are not careful, we could become Argentina.

Separate the problem! The goal of the bill is to increase credit supply. You don't necessary need to do this thru banks and pay them off at the same time. The very group of people who create this mess. Just like if you have a traffic jam, you go around it, not thru it. You don't try...

Based on your logic, we should just let both side of the loan work it out and stay out of it right?

You can't trade in China...:) China has currency exchange restriction. However, you can trade Hong Kong China stock. There is no capital gain there and short sell is allowed.

This does not compute. MSFT/INTC employee has nothing to do with wallstreet.