Talks Implode During Day of Chaos !!

luvpump

http://www.nytimes.com/2008/09/26/business/26bailout.html?_r=1&hp&oref=slogin


I fear this crisis is going to rumble on for quite some time yet, the referance to Henry Paulson's Plea to Nancy pelosi is quite extraordinary !!! & that the Meeting in the Oval office descended into a "shouting match" !! ... An indication of how Genuinely worried many are in washington :eek:

wombat42_2

These people (and others who were responsible for the credit crunch) are mentally dearranged. They have personality disorders, see
http://en.wikipedia.org/wiki/Personality_disorder

especially
http://en.wikipedia.org/wiki/Narcissistic_personality_disorder

Andrew64

Add to that the takeover of Washington Mutual and its emergency sale to JP Morgan! Here's one article about it, but it's big news everywhere.

http://seattletimes.nwsource.com/html/businesstechnology/2008204758_wamu26.html

Note this:

"But the thrift's financial situation deteriorated rapidly in the past two weeks, as credit-rating agencies slashed WaMu's debt to junk-bond status and deposits began flowing out at an alarming pace.

Despite offering 5 percent interest on one-year certificates of deposit — one of the highest rates in the country — WaMu lost $16.7 billion in deposits between Sept. 15 and this past Wednesday.

In the end, JPMorgan Chase took over $134.7 billion in deposits from WaMu. Less than three months earlier, WaMu had held $181.9 billion in deposits."

Stompa

luvpump wrote: »

the referance to Henry Paulson's Plea to Nancy pelosi is quite extraordinary !!!

Indeed, the Washington Post describes it thus: "The new proposal also displeased White House officials, including Treasury Secretary Henry M. Paulson Jr., who chased after Democrats leaving the meeting and -- half-jokingly -- dropped to one knee and pleaded with them not to "blow up" the $700 billion deal, according to people present at the meeting."

Though quite what there is to joke about is beyond me.

wombat42_2

Guru Jim Rogers says bailout is a disaster:
http://moneynews.newsmax.com/streettalk/bailout/2008/09/25/134291.html

Looks like some Republicans are siding with Rogers view.


"Rogers: Bailout Idea a Disaster

Treasury Secretary Henry Paulson's proposed bailout plan is "astonishing, devastating, and very harmful for America," internationally-known investor Jim Rogers told The New York Sun.

Rogers says the current monetary climate in Washington reminds him of when then-Fed Chair Arthur Burns refused to let anyone fail.

Rogers insists Washington is making the same mistake again.

"We're in for the worst recession since World War II, as well as higher long-term interest rates, higher inflation, higher taxes, a weaker dollar, and substantially lower stock prices," Rogers says.

Even worse, Rogers believes it's "embarrassing to see how little the presidential candidates know or grasp what's going on, just like the current administration."

But what about the almost 779-point boost in the Dow Jones Industrial Average that lasted for two days? "It's only a matter of time before reality sets in and the market heads down again," Rogers says.

"I wouldn't buy now because it's insane," says Rogers, who believes investors "were foolishly sucked in by hysteria and a buying panic."

Rogers, who bought dollars a couple of months ago, now thinks the greenback rally may have come to an end. He's now buying more Chinese shares.

Rogers' skepticism is shared by many, including former House Speaker Newt Gingrich.

"I think you have a Goldman Sachs chief of staff to the President and the Goldman Sachs secretary of the Treasury, and they convinced the President that the American people ought to send $700 billion to Wall Street," Gingrich told NPR.

"I think it's a very, very bad idea, and I would argue a very un-Republican idea. I don't understand what they think they're doing," Gingrich says.

GeorgeHowell

I suspect that what's going on is not primarily about the principle of a bale-out (or is it bail-out ?), which is probably inevitable, but about the terms and conditions.

Members of Congress no doubt see this as a one-off opportunity to improve control and regulation of the financial sector, protect taxpayers' money, and curb excesses of greed and irresponsibility such that the "Masters of the Universe" can never get the rest of the world into this kind of s**t again. A few hours or even days of delay probably won't be critical, and the outcome may be better than if Bush, Paulson and co are allowed to have it all their own way.

If the same happens in Britain, however, Brown and Campbell will no doubt use the bullying Labour whips to bamboozle whatever they want through Parliament on the nod. Our 'business-friendly' and 'City-friendly' government will no doubt see to it that minimal hardship or interference is suffered by the fat cats, and that Joe Soap (ie you and I) foots the bill in its entirety, on a pay-up & shut-up basis, as per usual.