Use access key #2 to skip to page content.

The Mother of All Bailouts



September 19, 2008 – Comments (4)

I haven't read the news closely, but I got an email that stopped me cold. 

Money markets are guaranteed?  I had to catch my breath that they would consider something like that.

I have to look at this closer and think it through, but this may move me from the deflation camp...

4 Comments – Post Your Own

#1) On September 19, 2008 at 9:53 AM, Richthofen80 (87.55) wrote:

This is probably going to cost the government (aka taxpayers) 1 trillion or more.

And since they can't raise taxes because citizens are already debt-loaded and taxed out, they'll just try to inflate their way out of this thing. 

Its a pretty risky bet. equities need to come down in value. If this re-pricing is prevented by short-selling restrictions, trust corporations, and other nonsense, there's nothing stopping these firms from re-levering themselves.

Report this comment
#2) On September 19, 2008 at 10:13 AM, saunafool (< 20) wrote:

This is scary indeed. From what I understand so far, Washington is going to take all the Wall Street dogfood off the balance sheets (at what price?) and socialize the losses.

I can't wait to see what Seth (a.k.a. TMFBent) has to say about this one. He'll be ecstatic.

I think we'll also see a CAPS record for the most points lost in a single day from some of the players with red thumbs on all the banks. The leaderboard is in for a shuffle.

Report this comment
#3) On September 19, 2008 at 6:10 PM, StatsGeek (28.49) wrote:

Dwot -- I understand your deflation beliefs, but you really need to reconsider now, since American capitalism is now dead.  The government will stop at absolutely nothing to prevent a deep recession.  Hyperinflation is coming.  Buy precious metals, the Swiss Franc and short the US long bond!

Report this comment
#4) On September 19, 2008 at 10:05 PM, lquadland10 (< 20) wrote:

Have you ever thought that the powers that be have seen the light? This is a changing of the Guard and most of them have seen the error of their ways and are seeking redemption. There are a few more that need a little prodding but you will see that it will be free & peace and not war and destruction. We just need to remind them to tell the truth and it will set them free. The truth will be slipping in the words like IMF. Then explain what it is and how it works> AS that happens Then they will start dismantling the world bank and the united nations and what not.Also if you look at the bottom of your screen right before the ops signal then  you will see that it goes through many different servers and sometimes gets caught up. I wrote to the FED in the first part of the year and some of the things I told them are now coming out. Caral Icon was on fast money today you should watch it. All is not lost some of the big wales are mending their ways and didn't see what was happening. We just have to gently remind them.

Report this comment

Featured Broker Partners