Score One For America.

Quote from Nofear777:

I am proud of this country today.

If you are a believer in a free market, then you share my sentiments.

Sometimes a forest must burn to grow bigger.
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DITTO!
 
Quote from Nofear777:

Fearmongering will not work on me, or a good deal of responsible Americans.

You do the crime, you do the time.

Entrepreneurs will come back, simple as that.
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Really now?
How will entrepreneurs come back?
With what?

The patient is on the table in intensive care. We ALL know why he is there. He's has clogged arteries and a heart that is suffering from congestive failure with dead tissue in both ventricles. His blood pressure is off the charts. Surely smoking and drinking 24/7 didn't help, let alone eating at Burgker King for breakfast, lunch, either! We ALL know this.

So, as doctors are we suppose to simply let him die when we can bring him back to being a healthy, functional, and productive human being in society?

You guys continue to drive your car by looking into the rear-view mirror . . . There will be plenty of time for that and sending people to prison later.

Right now, the patient needs his arteries opened back up with a few stents.

But leave it to you ET "wizards" who have no understanding of what's actually going on ( commercial paper market anyone??? ) to want to let the patient die before even going into OR.

Congratulations.
And you call yourself "can-do" Americans?
:(

Get real.
 
Quote from Landis82:

Then why is someone like fixed-income money manager Bill Gross very supportive of this plan? Why is it that price discovery of these assets is a bad thing? Why is it that doing a "reverse-auction" and getting private capital involved in purchasing these assets a bad thing?

<snip>

True, the RTC was simply involved in liquidation, rather than also buy assets since the govt. already owned the busted institutions. But in this case, the assets that the Treasury will wind-up with this time around will be much easier to manage than the "cats and dogs" that the RTC ended up with nearly 20 year ago."
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Because Gross uses panics like this to buy distressed assets at bargain prices - just like any good money manager/value investor does.

Unlike you or I though, he does so in big size because he knows he has a line direct to washington and the public's opinion as the country's largest bond fund manager which can influence policy and therefore assure profitability.

When we make such bets in a similar circumstance, we do so much smaller and are willing to lose our capital.

Bill's just trying to make a buck. Can you blame him for using any tools at his disposal?
 
Quote from Landis82:

Then why is someone like fixed-income money manager Bill Gross very supportive of this plan? Why is it that price discovery of these assets is a bad thing? Why is it that doing a "reverse-auction" and getting private capital involved in purchasing these assets a bad thing?

You naively assume that this is "trash" paper. Yet, you obviously don't seem to have a COMMAND of the specifics regarding Paulson's proposal.

"Are you even aware of the FACT that of the $1 Trillion presumed whole, $800 billion involve subprime and Alt-A mortgage securities, which are of slightly higher quality than subprime? The remainder of losses is accounted for by under-water prime mortgage securities and unsecuritized loans.

Helping all this, is the fact that most of the troubled mortgage-backed securities lodged in financial institution balance sheets are senior slices of the securitizations that banks couldn't sell off because of their unexciting low-yields of 25-50 basis points over LIBOR. The good thing about these securitiies is that slices that are lower in the securitization structure have to absorb any losses on the underlying mortgages beofre the senior, triple-A tranches are touched. And most of the randier stuff was sold to hedge funds or shipped overseas to other speculative buyers.

Even though the RTC's liquidation process took more than 6 years and was criticized for favoring certain buyers, political cronyism,. etc. - - - it was still able to cut taxpayer losses on the S&L industry collapse from estimates as high as $350 BILLION to just $125 billion.

True, the RTC was simply involved in liquidation, rather than also buy assets since the govt. already owned the busted institutions. But in this case, the assets that the Treasury will wind-up with this time around will be much easier to manage than the "cats and dogs" that the RTC ended up with nearly 20 year ago."
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Everyone who is loosing there ass is in support of this, wink wink!
 
Quote from Landis82:

Then why is someone like fixed-income money manager Bill Gross very supportive of this plan?
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Probably becasue he wants to keep his job ... LOL.

***

As far as that other nonsense you wrote, that's pure speculation on your part. Unless, of course, you have the inside-scoop ... yeah, right.
 
Quote from Landis82:

Yet another Gold Bug on ET.
Shocker.
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Yeah. 5% of my portfolio on gold & gold stocks. A real goldbug.

7:1 leverage, sure.

40:1 leverage - forget it.

I'm not going to disparage you, but you and I have very different opinions on this matter. You can feel free to place me on ignore if you feel it helps you think more clearly. I won't be perturbed in the slightest.

Doesn't change right from wrong.
 
Quote from Landis82:

Then why is someone like fixed-income money manager Bill Gross very supportive of this plan? Why is it that price discovery of these assets is a bad thing? Why is it that doing a "reverse-auction" and getting private capital involved in purchasing these assets a bad thing?
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Bill Gross is the biggest shill and beneficiary for all of these government bailouts. True price discovery would be great but that is not what the banks want. They want the government to overpay for these securities, otherwise they are bankrupt. They are avoiding true price discovery any way possible. And finally, I have never even heard the mention of private equity getting involved (which would be a good thing). I believe the bill just allowed the government to buy these contracts.
 
Quote from MandelbrotSet:

As far as that other nonsense you wrote, that's pure speculation on your part. Unless, of course, you have the inside-scoop ... yeah, right.
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Try reading this week's Barron's.
I believe that they have a tad more credibility than your beloved "60 Minutes".
 
Quote from sprstpd:

Bill Gross is the biggest shill and beneficiary for all of these government bailouts. True price discovery would be great but that is not what the banks want. They want the government to overpay for these securities, otherwise they are bankrupt. They are avoiding true price discovery any way possible. And finally, I have never even heard the mention of private equity getting involved (which would be a good thing). I believe the bill just allowed the government to buy these contracts.
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No, No, and No.
Paulson has been talking about "price discovery" and private equity getting involved from the get-go. I am amazed that people have no real solid understanding of this proposal.
 
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