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[bellman]

Quote from TopTrader8:

This is not about wall street so much as it is about the average joe losing his job because businesses are unable to borrow the loan capital they need to continue funding and expanding their operations.

I could not disagree with your post more. This line is a fallacy until the money supply contracts 20%, at which time the dollar will have made substantial gains against other currencies.

If none of the banks are able to loan money, this is the time for new competition to enter the market, and more efficiently and more proffitably make loans. There is still shloads and shloads of money supply available, and for dirt cheap I might add. Let the government take that 700 billion and create incentives for new competition to enter the arena.

 

[athlonmank8]

lol....... bump


Yeah saw this one coming myself.....

http://www.elitetrader.com/vb/showthread.php?s=&threadid=138514

 

[IluvVol]

TopTrader, excellent post. Someone who actually seems to grasp the issue.

Bellboy, what are you talking about? Which competition? Where is the liquidity coming from? You have clearly NEVER worked in the financial services industry. There is no other source of liquidity right now, period. Everything is COMPLETELY dried up.

Why dont you try to convince the millions of Americans in the age of between 50-70 whose investments in their 401k and other savings will drop possibly another 20-30% in a matter of month without the expectation of a rebound for the next half to full decade. If this is gonna happen then most in the age of around 60 should stop thinking of a golden retirement time but instead already start searching for the next part time jobs at the local library. If any kind of intervention can save just 5% in market valuations (which would be the absolute minimum effect) then this is worth a multiple of USD 2000 (the cost if broken down per head in the US). There is no guarantee this bill will solve the crisis, but there is a near certain guarantee that it will alleviate the situation. Its ok to trumpet and scream and join into the Joes on the street but an entirely other to disguise and completely deny the benefits of this package.

It is ABSOLUTE bullocks to say that there is plenty liquidity flowing around and that its not there because valuations are still too high. Warren Buffet is not buying now because valuations are too high and he is not only buying because he is betting on a government intervention.

Quote from bellman:

I could not disagree with your post more. This line is a fallacy until the money supply contracts 20%, at which time the dollar will have made substantial gains against other currencies.

If none of the banks are able to loan money, this is the time for new competition to enter the market, and more efficiently and more proffitably make loans. There is still shloads and shloads of money supply available, and for dirt cheap I might add. Let the government take that 700 billion and create incentives for new competition to enter the arena.