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Too big to fail
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We need to stabilize the financial system in the here and now, because we are seeing breakdowns at an accelerating rate - the spiral is accelerating.
Aside from the brown stains in some CEOs' $5000 designer boxers, what breakdowns are occurring? The urgency is similar to that which shrouded the Iraq war and the Patriot Act. It seems that all those crying for urgency also have some skin in the game. I see this 'bailout' as analogous to me overpaying for a POS car, driving it with no oil in the sump, then having my rich uncle take over the payments so I can go out and get a new loan to buy another POS car.
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"You go to the track with the Porsche you have, not the Porsche you wish you had." '03 E46 M3 '57 356A Various VWs |
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Misunderstood User
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If the gorvernment wants to bail out companies, I think they should call the ALL the shots;
That includes compensation, having input in the risk and reward. Consider this a Coporate takeover, new rules are set. I don't why some are now upset over regulations; the lack of regulaltions got us into this in the first place; check that - it was greed. The trickle down theory doesn't work for me. Every game needs rules. You have got a 'free for all if you don't'. Time for a new venue. You can't expect different results with the same mindset; that's insanity.
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Jim 1983 944n/a 2003 Mercedes CLK 500 - totaled. Sanwiched on the Kennedy Expressway Last edited by jcommin; 09-24-2008 at 12:24 PM.. |
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GAFB
Join Date: Dec 1999
Location: Raleigh, NC, USA
Posts: 7,842
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No urgency??
When there's a run on money markets to the tune of $133B in two days, how long can the market survive? Make no mistake, the Treasury averted a serious meltdown on Friday by backing money market funds. The hemorrhaging slowed to $5B on Friday. If you pull over $3 trillion out of money markets, where does the money go, such that the economy doesn't fail? Same idea with the deteriorating balance sheets of the major banks as well as FNMA and FHLMC. Banking regulations are all about liquidity - if your assets start evaporating in value due to panic, your liquidity, your ability to conduct day to day business, goes with it. If you don't have a certain level of liquidity, your access to short term funds is closed. Action is required immediatley - you can't put it out to committee - that ship sailed months ago.
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Several BMWs |
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Senior Member
Join Date: Feb 2000
Location: Lacey, WA. USA
Posts: 25,310
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Hey, I've got an idea. This being a democracy and all. Let's loan these greedy rich folks something like $150B and place the rest on the ballot in November.
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Man of Carbon Fiber (stronger than steel) Mocha 1978 911SC. "Coco" |
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B58/732
Join Date: Feb 2000
Location: Hot as Hell, AZ
Posts: 12,313
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Oh noes, a meltdown.
Who cares? I have enough ammo to keep me in deer and antelope meat until 2064.
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ΜΟΛΩΝ ΛΑΒΕ I don't always talk to vegetarians--but when I do, it's with a mouthful of bacon. |
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Registered
Join Date: Nov 2001
Location: Marina del Rey, CA
Posts: 508
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**DISCLAIMER** I have not read every post in this thread.
However, that being said, if they DON'T pay these executives this kind of money they will simply go to private equity houses where NO ONE can say anything about what they get paid. Big deal right? Well, what will happen is a steady exodus of the best talent moving away from public companies and ultimately it will be more expensive to have some idiot running the company. I'm telling you, from here on out, no one will want to run a public company. Why put up with all of this BS when you can go start a hedge fund or join a venture capital firm where you can still earn great sums of money. Simply put, the best are going to leave because they don't need this BS from johnny public.
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We can share the women, we can share the wine - Jack Straw. 1970 911t w/3.0 1971 914 w/2.0 1987 300E |
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Registered
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I'm worried about loss of talent in R&D, not money-grubbing fund yahoos with multi $B compensation deals. |
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Senior Member
Join Date: Feb 2000
Location: Lacey, WA. USA
Posts: 25,310
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My sense is that a million guys in America have every bit as much talent as those guys. I think the difference is how big their balls are. Some people sleep just fine at night regardless of what they did that day.
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Man of Carbon Fiber (stronger than steel) Mocha 1978 911SC. "Coco" |
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Bandwidth AbUser
Join Date: Nov 2001
Location: SoCal
Posts: 29,522
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Jim R. |
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Registered
Join Date: Sep 2002
Location: dfw tx
Posts: 3,957
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I've hardened on this too. I heard on Marketplace that the deathly fear the Senators were hearing was that people would not be able to finance new cars... BFD. Makes used ones more valuable and Service of Maintaining those used cars uses American Labor.
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72 914 2056: 74 9146 2.2: 76 914 2.0 |
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I'm a Country Member
Join Date: Feb 2002
Posts: 13,434
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What are the consquences of not conducting the bailout?
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Stuart To know what is the right thing to do and not do it is the greatest cowardice. |
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Bandwidth AbUser
Join Date: Nov 2001
Location: SoCal
Posts: 29,522
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Less money to lobby Congress?
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Jim R. |
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Registered
Join Date: Sep 2002
Location: dfw tx
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Just watched the President's address.
The Fat Lady has sung for him. ![]()
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72 914 2056: 74 9146 2.2: 76 914 2.0 |
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It would certainly be a good lesson and an act of tough love. But any of us here trying to sell our houses would find it almost impossible and that can't be good for values. And since the values would further sink, counties would have to find other ways to raise taxes, and we all know they'll do that before they cut spending.
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2022 BMW 530i 2021 MB GLA250 2020 BMW R1250GS |
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I'm a Country Member
Join Date: Feb 2002
Posts: 13,434
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And what the bigger pciture? The US is a nett debtor. It finances consumption spending with overseas debt. If this bailout does not occur, and overseas lenders on which the US relies turn off the credit tap, what then?
This is not just about bailing out over priced Wall St screen jockeys. The US central bank is acting to stabilise the entire US financial house of cards. Whether or not the bailout is the right thing to do is debatable, but the ramifications are greater than the outrage being expressed over bailing out millionaire investment bankers. However, there is a great irony in the fact the institutions are being socialed in the home of the free market. GM and Ford will be next.
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Stuart To know what is the right thing to do and not do it is the greatest cowardice. |
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"O"man(are we in trouble)
Join Date: Nov 2005
Location: On the edge
Posts: 16,452
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Those *********s should be required to pay some of that back to begin with, taxing is after the fact!
It's nothing more than legalized grand larceny. I'll think I'll pass on paying any income tax this year. |
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Senior Member
Join Date: Feb 2000
Location: Lacey, WA. USA
Posts: 25,310
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EXACTLY! You see Congress worries more about GM and Ford than it does about Joe Lunchpail. Yes, I know that GM and Ford are employers. Stop being confused. You know what GM and Ford would do with a pile of cash? They'd automate. Congress thinks it would be better for people to buy new cars than to service and repair their existing ones. I think the opposite.
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Man of Carbon Fiber (stronger than steel) Mocha 1978 911SC. "Coco" |
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Too big to fail
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After hard lobbying, automakers won up to $25 billion in low-interest loans to help them develop technologies and retool factories to meet new standards for cleaner, more fuel efficient cars.
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"You go to the track with the Porsche you have, not the Porsche you wish you had." '03 E46 M3 '57 356A Various VWs |
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Bandwidth AbUser
Join Date: Nov 2001
Location: SoCal
Posts: 29,522
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Now they can build more SUV's
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Jim R. |
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