meazza Posted September 23, 2008 Share Posted September 23, 2008 Where did he say it wasn't a big deal? The government's not loaning anyone money either, as far as I know. They're buying up illiquid investment vehicles from financial companies. Not a bad plan, either...there's a reason several private equity funds have stepped up and asked if they can get a piece of the action. It's a big deal to everyone. It's a big deal to the shareholders of Lehman, Bear, and the Mac's who bought shares because of the security of a bank and a GSE and some positive long term returns only to find out their shares are now worth zero. It's a big deal to the counterparties on all the bonds and swaps. In all honesty I think the economy is already at a terrible point. A big chunk of the job losses is from middle management who are in the higher income bracket. Imagine all the lost tax revenues simply due to the loss of jobs on WS... This will, like GG already said prevent it from spiraling into a global recession. Link to comment Share on other sites More sharing options...
meazza Posted September 23, 2008 Share Posted September 23, 2008 http://www.ft.com/cms/s/0/d9d096c4-88ce-11...00779fd18c.html No big deal Link to comment Share on other sites More sharing options...
DC Tom Posted September 23, 2008 Share Posted September 23, 2008 Do Mortgage Brokers working at Uncle Jimmy's House of Loot Mortgage Brokerage have any oversight on their apps? Theoretically...yes. There are actual HUD guidelines and requirements they're supposed to follow. In actuality...nobody pays attention to HUD, and HUD doesn't even enforce their own rules. Even the simple "The lender needs to get the paperwork to the borrower 72 hours before closing." rule is routinely ignored - and often ignored by people like "Uncle Jimmy's House of Loot" so that they can change the terms at the closing and put the borrower over a barrel. Seriously...my wife has had lenders say to her "Here's the paperwork for the loan, but don't show this to the buyer at the closing because we told them something different." (To which she says "!@#$ you", and reports them to HUD...who often does nothing.) Sad thing is, that behavior is already illegal. We don't need more regulation to solve it, we just need to enforce the ones already in place. Link to comment Share on other sites More sharing options...
ExiledInIllinois Posted September 23, 2008 Share Posted September 23, 2008 She wants Richard Fuld's head on a plate... And why not? Why not put some teeth! Link to comment Share on other sites More sharing options...
YellowLinesandArmadillos Posted September 23, 2008 Share Posted September 23, 2008 I think the right way to do it is for government to buy $700 bn of mortgages and then negotiate with the homeowners to write down the value of the mortgages to $350 bn to give people help. That will fix everything. Address the root problem, now there is a novel idea! But then the fat cats on Wall Street wouldn't get any benefits. Link to comment Share on other sites More sharing options...
bills_fan Posted September 24, 2008 Share Posted September 24, 2008 Theoretically...yes. There are actual HUD guidelines and requirements they're supposed to follow. In actuality...nobody pays attention to HUD, and HUD doesn't even enforce their own rules. Even the simple "The lender needs to get the paperwork to the borrower 72 hours before closing." rule is routinely ignored - and often ignored by people like "Uncle Jimmy's House of Loot" so that they can change the terms at the closing and put the borrower over a barrel. Seriously...my wife has had lenders say to her "Here's the paperwork for the loan, but don't show this to the buyer at the closing because we told them something different." (To which she says "!@#$ you", and reports them to HUD...who often does nothing.) Sad thing is, that behavior is already illegal. We don't need more regulation to solve it, we just need to enforce the ones already in place. Wow! I have known some shady broekrs/bankers/traders in my time...but Wow! I really am speechless. Link to comment Share on other sites More sharing options...
Joe Miner Posted September 24, 2008 Share Posted September 24, 2008 http://www.msnbc.msn.com/id/26858746/ Ok, in all sincerity, what happens economically if the bailout is not passed? Link to comment Share on other sites More sharing options...
meazza Posted September 24, 2008 Share Posted September 24, 2008 http://www.msnbc.msn.com/id/26858746/ Ok, in all sincerity, what happens economically if the bailout is not passed? Realistically... probably what happened last week times 5. You see how quickly the market reacts ot bad or good news? Link to comment Share on other sites More sharing options...
GG Posted September 24, 2008 Share Posted September 24, 2008 http://www.msnbc.msn.com/id/26858746/ Ok, in all sincerity, what happens economically if the bailout is not passed? Everything between nothing and a major depression. Seriously, if the bill or some sort of intervention doesn't come forward, be ready for serious shocks to the system - increased bankruptcies, high unemployment, & geopolitical instability. The impact to the budget deficit will be far greater than the $1 trillion face amount of increased government outlay to try to fix this, and its commensurate effect on the dollar and interest rates. Link to comment Share on other sites More sharing options...
bills_fan Posted September 24, 2008 Share Posted September 24, 2008 Everything between nothing and a major depression. Seriously, if the bill or some sort of intervention doesn't come forward, be ready for serious shocks to the system - increased bankruptcies, high unemployment, & geopolitical instability. The impact to the budget deficit will be far greater than the $1 trillion face amount of increased government outlay to try to fix this, and its commensurate effect on the dollar and interest rates. But, the plan will be passed. Congress wants to appear to be negotiating a tough bill and not capitulating to White House demands. Another body and you will see the bill passed within 24 hours. And there will be another body... Link to comment Share on other sites More sharing options...
DC Tom Posted September 24, 2008 Share Posted September 24, 2008 Everything between nothing and a major depression. Seriously, if the bill or some sort of intervention doesn't come forward, be ready for serious shocks to the system - increased bankruptcies, high unemployment, & geopolitical instability. The impact to the budget deficit will be far greater than the $1 trillion face amount of increased government outlay to try to fix this, and its commensurate effect on the dollar and interest rates. I know that one. Revelations 5:15-17, right? Link to comment Share on other sites More sharing options...
erynthered Posted September 24, 2008 Share Posted September 24, 2008 I know that one. Revelations 5:15-17, right? I think you're right. Keanu Reeves is in that one, right? Link to comment Share on other sites More sharing options...
/dev/null Posted September 24, 2008 Share Posted September 24, 2008 I think you're right. Keanu Reeves is in that one, right? Only the boy with the golden PSP can save us Link to comment Share on other sites More sharing options...
molson_golden2002 Posted September 24, 2008 Author Share Posted September 24, 2008 Republican officials said Treasury Secretary Henry M. Paulson Jr. had agreed to demands from lawmakers in both parties to limit the pay of executives whose companies benefit from the bailout. The enormous pay packages of some Wall Street executives, coupled with the realization among non-wealthy Americans that the crisis could affect their financial foundations, have created an incendiary issue on Capitol Hill. http://www.nytimes.com/2008/09/25/business...amp;oref=slogin Link to comment Share on other sites More sharing options...
DC Tom Posted September 24, 2008 Share Posted September 24, 2008 http://www.nytimes.com/2008/09/25/business...amp;oref=slogin Good. All officer compensation packages should come with a caveat: "If you have to have your company bailed out with taxpayer money, you get nothing." And I don't even necessarily think it's their fault. Link to comment Share on other sites More sharing options...
GG Posted September 24, 2008 Share Posted September 24, 2008 Good. All officer compensation packages should come with a caveat: "If you have to have your company bailed out with taxpayer money, you get nothing." And I don't even necessarily think it's their fault. Window dressing - the biggest (cash) pay on Wall Street doesn't go to the sr. execs but to the stars. Link to comment Share on other sites More sharing options...
meazza Posted September 24, 2008 Share Posted September 24, 2008 Good. All officer compensation packages should come with a caveat: "If you have to have your company bailed out with taxpayer money, you get nothing." And I don't even necessarily think it's their fault. So i won't get that 100 million golden parachute i was promised Link to comment Share on other sites More sharing options...
bills_fan_in_raleigh Posted September 24, 2008 Share Posted September 24, 2008 Good. All officer compensation packages should come with a caveat: "If you have to have your company bailed out with taxpayer money, you get nothing." And I don't even necessarily think it's their fault. You not only get NOTHING your are required to pay back 20% of your last bonus to the US taxpayers. Its not just the parachutes its also the bonuses and option packages that need to be scrutinized Link to comment Share on other sites More sharing options...
Booster4324 Posted September 24, 2008 Share Posted September 24, 2008 Window dressing - the biggest (cash) pay on Wall Street doesn't go to the sr. execs but to the stars. Retroactive salary/bonus decreases? I realize a lot of these guys invest their own money, but if they are gambling with people's futures, why not risk their own? What, you say they wouldn't have the balls to do it? I am joking, mostly... Link to comment Share on other sites More sharing options...
Pine Barrens Mafia Posted September 25, 2008 Share Posted September 25, 2008 I still think it's a mistake for the gubmint to do ANYTHING at this point. Let the market work through the pain now, it'll be stronger in the future. Link to comment Share on other sites More sharing options...
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