What credit crisis?
This mess is about more than sub-prime mortages as much as we'd like to blame the bleeding hearts for extending loans to irresponsible people.
Anyone with a good credit rating can get a loan whether for a mortgage or a small business loan. I constantly have offers for loans thrown at me.
The much ballyhooed "credit crunch" that supposedly will happen if we don't do the bail-out is a Wall Street problem - not a Main Street or Elm Street problem. It simply means that brokers can no longer borrow money to buy stocks - which they then sell at a profit, pay off the loan and pocket the profit.
Fair enough about making a profit but since when has it become acceptable to use borrowed money to trade on the stock market? It probably happened long before the Goldman-Sachs "cartel" of Bernanke and Paulson et al got into the Federal government but it was they who started expecting the Feds to bail out their buddies on Wall Street when they lost money in bad gambles.
Yes, a lot of people (including ordinary folks with 401ks) stand to lose if we don't do the bail-out but hey - life's a gamble and I don't like covering someone's ass just because they bet on the wrong horse.
Anyway there may be a free market solution. It seems that Japanese investors are already buying up some of the assets of the failing institutions. Let capitalists buy our "bad notes" at MARKET prices. The bail-out is aiming to pay way too much for them. Sell the notes to the Japs ( in Bernanke's words) "at fire-sale prices not the hold-to-maturity prices." Of course he expects us taxpayers to pay "hold-to-maturity prices." What BS.
I don't always agree with Newt Gingrich but he's right to urge caution.
Jonah Goldberg's also against the bail-out.
PS So the Democratic bleeding hearts "forced" investors to make bad risk loans. What BS. We live in a democracy. They could have protested but - no - they didn't because they figured high interest loans were a good gamble but of course, like anything that's too good to be true.....anyway I don't like saying "I told you so."
Anyone with a good credit rating can get a loan whether for a mortgage or a small business loan. I constantly have offers for loans thrown at me.
The much ballyhooed "credit crunch" that supposedly will happen if we don't do the bail-out is a Wall Street problem - not a Main Street or Elm Street problem. It simply means that brokers can no longer borrow money to buy stocks - which they then sell at a profit, pay off the loan and pocket the profit.
Fair enough about making a profit but since when has it become acceptable to use borrowed money to trade on the stock market? It probably happened long before the Goldman-Sachs "cartel" of Bernanke and Paulson et al got into the Federal government but it was they who started expecting the Feds to bail out their buddies on Wall Street when they lost money in bad gambles.
Yes, a lot of people (including ordinary folks with 401ks) stand to lose if we don't do the bail-out but hey - life's a gamble and I don't like covering someone's ass just because they bet on the wrong horse.
Anyway there may be a free market solution. It seems that Japanese investors are already buying up some of the assets of the failing institutions. Let capitalists buy our "bad notes" at MARKET prices. The bail-out is aiming to pay way too much for them. Sell the notes to the Japs ( in Bernanke's words) "at fire-sale prices not the hold-to-maturity prices." Of course he expects us taxpayers to pay "hold-to-maturity prices." What BS.
I don't always agree with Newt Gingrich but he's right to urge caution.
Jonah Goldberg's also against the bail-out.
PS So the Democratic bleeding hearts "forced" investors to make bad risk loans. What BS. We live in a democracy. They could have protested but - no - they didn't because they figured high interest loans were a good gamble but of course, like anything that's too good to be true.....anyway I don't like saying "I told you so."
posted by Joubert at 9:17 PM
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