Friday, Sep 26, 2008
The $700bn bail-out is already hurting your wallet
MoneyWeek: The $700bn bail-out is already hurting your wallet
The US Treasury's financial rescue plan isn't going to work. Banks are already hoarding cash and lending rates are soaring. And that means the cost of your own borrowing is going up, too. As David Stevenson explains, the plan is just a plain bad idea.
Posted by damien @ 01:26 PM (423 views) Add Comment
6 Comments
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1. inbreda said...
"Then there's Fed chairman Ben Bernanke, who assured us that subprime would be contained, and said as recently as last July that total write-offs were likely to be less than $100bn. They're already $500bn and counting. "
I wish I could be bothered to go back over old postings to prove my point, but I distinctly remember when bernanke made the $100bn comment, and everyone on these boards was saying "no way, it will be at least $500bn".
Am I imagining thing or are we really prophets?
2. icarus said...
inbreda 2.05pm - that was probably a PR 'estimate' by Bernanke to calm markets rather than an estimate produced by his backroom boyz.
Martin Wolf says the $700 billion scheme is neither necessary nor efficient. In that case why doesn't he go further and ask why it's being implemented? Just faulty reasoning on their part is it, Martin? And why didn't Paulson etc. look at the suggestions by Robert Cyran quoted in this article? Or answer those who put forward such suggestions? You simply have to consider that the US may be run by the mafioso.
3. maddison said...
Cant say I blame the Americans public for not wanting to put up that much cash. This might precipate a pull out of Iraq as that is costing $100bn pa according to some estimates
4. sneaker said...
http://www.lewrockwell.com/paul/paul481.html
http://www.lewrockwell.com/paul/paul479.html
5. planning4acrash said...
No, $700bn has nothing to do with anything. He can spend $700bn, then spend it again, and again, and again. It is an ever replenishing coffer. When asked, why $700bn, they didn't have a reason other than that it was a big number. I thought it may have an occult meaning tied to the days of creation, given that they are playing God with the economy, and given that these guys are Luciferians In Genesis, God rests on the 7th day after giving light. Luciferians consider Lucifer to be the light bearer who takes over from God on the 7th day.
6. Ijsa said...
Why do taxpayers have a duty to keep a flawed and corrupt system moving forward? Does it not make sense to let these people who run the companies get their fingers burnt in order to show them behaving in a 'don't give a toss, where's my bonus' way leads to disaster.
http://interpill.org
Let them eat cake.