Herr Chimpy looks a little worse for wear. He seemed to lay it out though....I can accept the part that " the federal gov is the only entity big enough to absorb these financial air-muffins and sit on them until things smooth out alittle..".that makes sense,but I'm not saying us putting all our moola into dead investments is a great investment strategy.What ya gonna do?
Re: The President's speech -- Who is this federal government that is so big as to absorb this mess anyway? It is some 2300 frns worth of debt for every man, woman, and child (legal ones, anyway) that has to be paid off somehow, some way. If we are lucky, really lucky, there are honest people that are overextended and will somehow, someway carry out the obligations they signed on for. Don't count your chickens that the 2300 will be dramatically less as time wears on. For some reason, I don't have all the sympathy I maybe should for the sheepish folks that were lead down the path to destruction. But it is the shepherds, in all the various political and economic incarnations, that allowed an overweaning optimism cloud their judgments. Stupid is as stupid does, and I'm leaning toward this bailout (or underpinning, or whatever the spinmeisters are calling it to make it palatable) as being a stupid move. It just does not look like a soft landing.
I watched this while working at the range, I got a good laugh out of part of it. I liked Fox's after the speech commentary. "this is really a good investment for the government. we can buy these troubled assets low, and when the market stabilizes, we can SLOWLY sell them off, actually making a profit for the government" ( I'm paraphrasing this as I couldn't devote my whole attention to it, we had customers come in during this time). Yeah, right, the government will make a profit - only to line the politicians pockets, those of us that work hard, pay our debts will never see a dime of that "profit"
these shitty loans aren't worthless because people don't want to buy them. they are worthless because the people who have 'em cant pay them. Id be surprised if the .go can even recoup any of its money much less turn a profit.
Well if the folks don't come back and finish paying them off doesn't that mean the gov owns a bunch of houses to be sold when and if the market comes bacK???
prolly, and they'll just make them into gov't housing since they own them already - ya know, more homes for those poor families that have 10 kids and can't find a job.
