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 My take on the banking thing New
- Forum: LiquidLounge
Date: Sep 20 2008, 9:28 GMT
From: willdabeast
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It's genius, its like temporarily quarentining the bad debt like an anti-virus. I don't really think that this debt will ever be actually paid for by taxpayers, thats why alot of this stuff isn't going on the books. I heard it described as a series of TIME-OUTS of varying lengths, 2 weeks-2 years. Like SS and Medicare, entitlements aren't going to the books because one day they will just be ended or we will try to sustain them and the value of our money will collapse. Some politician is just going to have to bite the bullet and do it or push back the age at which you can get benefits about 10 years. But make no bones about it, we were on the brink of a massive collapse. and they can deal with the inflation and shore up the dollar later. That or, as some conspiracy theorist think, we'll end up going to the North American Union and the Amero as our new currency. Countries all over the world essentially did the same thing today, buying into their own market areas that were tanking. The thing is the government is getting this stuff for nothing maybe .30 on the dollar or less. Once the fear is gone and liquidity is restored they can recoup there money by breaking Freddie and Fannie up into 10-15 smaller companies and selling them off. AIG has to pay back at 11% interest and should buy back all that debt in the near future when they are better off to avoid that cost. A certain percentage of the bad loan assets that are absorbed into this "bad bank" fund can be sold, refinanced or morphed into an affordable housing program once the housing market makes a comeback. The pain is going to be with the currency and interest rates in the future, better get them while they are low and get a deal on a house. Wish I could sell my house in Atlanta so I could buy one here in NC, maybe I will soon.
Will |
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 Take the Money and Run. <NT> ezwater New
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