Quote:
Originally Posted by Jim Richards
I'm a bit confused...what's the difference between the Federal Reserve pumping $670 billion of "liquidity" into the market, and the $700 billion bailout plan (besides the obvious $30 billion)??? Where does the money come from in each case? What is the effect on the dollar, our debt, and on inflation?
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It's like - YOU Jim are Wall street, and you have a bunch of crappy loans, disguised as a rusty '75 Targa with 23 bad headstuds.
The $670 Billion is a loan from the government to allow you to hold onto your car and keep it running, until there's a big change in the demand for Mid-Year Targas.
In the $700 billion Plan, the Government BUYS your Mid-Year Targa for whatever YOU think it's worth, even though the actual Market price is about half of what you WISH it was. Then they take your Targa and either part it out, or lease it to some broke teenager who really wants a "Porch" but can't afford one.