Umnm, what do you mean you want to buy iliquid/distressed assets???
September 19, 2008
– Comments (2)
So I'm a little confused, I thought the government was around to you know, provide national security, pass a few laws, make fancy speeches, etc etc...I didn't know they were here to continually screw me!! wtf? Honestly, I'm really glad we could tack on an extra 1/2 a Trillion dollars to our already out of control budget these last few months. FNM/FRE for 200 billion, AIG for 85 billion, financed the Bearn Sterns debacle, helped facilitate the Merril Lynch buy...And that 1/2 a Trillion dollars is a conservative estimate, the Fed as you know has the power to inject Billions more into FRE/FNM especially. Wait for this number to swell. Thanks Fed, you rule!!!
The necessity of these freaking bailouts is debatable, and not my interest here in this post. I'm confused as I mentioned. What does it mean when the Fed/Gov wants to create an organization to buy these "iliquid/distressed/crappy/worthless/blackhole" assest? So the Fed/Gov are going to "buy" these assests from the retarded companies that can't make a profit, and the government who is always super frivolous and sound with money is going to turn them around into good assets? Is that essentially what is the plan?? And does anyone have the slightest confidence in the government running a good business, turning these bad assets into good assets and reselling them? Also, buy releaving the dumb companies of their distressed ssets, aren't we incouraging the to be even riskier and take on more bad assets? Why would companies become more responsible and less retarded if we are taking and getting rid of their bad assets anyway. Doesn't this just encourage more of the same. As I said, to me this sounds like a terrible idea, but I'm struggling to understand this issue fully. Hence my post/question.
But hey, look at the bright side all my fellow Americans, we now own three new companies (Fannie, Freedie, AIG) and the best thing is we didn't even have to do anything! Yeah!!!!
PS, did anyone else get a key to the money printing press? I seemed to have been absent that day when the fed handed them out...Come to think of it, I think they threw the keys away just before they locked themselves inside with lots and lots of coffee/red bull and with nothing else to do besides make pretty pretty green paper. Paper's fun, yeah!
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