Sunday, Mar 16, 2008
When choosing to flirt with moral hasard...
Bloomberg.com: Paulson Says He'll `Do What It Takes' to Calm Markets
``Treasury Secretary Henry Paulson, defending the bailout of Bear Stearns Cos., said policy makers will do whatever is needed to prevent disruptions in financial markets from hurting the economy.''
``The government is prepared to do what it takes to maintain the stability of our financial system,'' Paulson told the ``Fox News Sunday'' television program in Washington today. ``Our focus, our No. 1 priority, is the stability of our financial system.''
Posted by trough2010 @ 05:26 PM (370 views) Add Comment
7 Comments
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1. harold said...
The more this goes on, the more I think hyperinflation is on its way.
2. bystander said...
I am equally interested by Trichet and the ECB's stance on this. He says the ECB are targeting inflation, but the ECB keep flooding the financial markets with money.......I may be wrong but doesn't parachuting money into any system cause inflation. The ECB are maintaining a strong Euro through rhetoric, but feeding the target of the rhetoric. Analysts and economists can go on as much as they like about the fundamental strength of the eurozone, new dealings with eastern europ etc, but in reality the financial system in club med is just as flawed as it is in the US and UK. Personal debt may be lower, but country debt is just as high and financial institutions supped from the same tainted chalice as everyone else. I am becoming more and more convinced of some orchestrated move by the ECB, BoE and the Fed to destroy the dollar and sterling. I hope I am wrong.
3. plato said...
The plan of attack here is to let struggling homeowners fall (as a natural result of silly borrowing by the ignorant). On the other hand those actually and inexcusably responsible are to be rescued,however much it takes (and the cost could be devastating).
Best of all : You and me are going to pay for it.--------- AND --------- even better: Please feel happy knowing that these 'leaders' will still be able to lead a comfortable and enjoyable life and will never go without no matter how much you suffer.
I think that sums it up.
4. Stevie Dee said...
Or you could always rub Henry Paulson's stomach for luck!!!!
5. tyrellcorporation said...
The laughable thing is they're running out of options. Once you've shot off all your cartridges and the enemy is still baring down on you what do you do?
6. harold said...
"Once you've shot off all your cartridges and the enemy is still baring down on you what do you do?"
Slip into some brown trousers and run like bu*gery for the hills?
7. it_is_going_with_a_bang said...
Do what it takes?
Do what you like, someday someone has to pay back the loan that can't be paid back, then a short term loan is meaningless.
Extended form 30 days to 90 days. A laugh a minute. It still has to be paid back.
It's amazing. The biggest most irresponsible behaviour by banks EVER in history due to excessive greed and risk taking. What happens? They get a pat on the back and promises of cheap money to keep them going.
WHY? Politics and Power is all about MONEY. That's all you are seeing here. The rich and powerful trying to look after each other. The sad thing being whoever they vote for later this year they will get the same corrupt behaviour.