The Epic American Credit and Bond Bubble Laboratory Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Skeeter Bug who wrote (102930)	5/1/2009 4:04:25 PM
From: carranza2	Read Replies (2) of 110194

Seems obvious that the banks will need more capital. The next question, also obvious, is where will it come from? I think the bailout era is over. Don't see that even O! has the political capital to pull that trick off again. Two sources left: The Fed as a buyer of last resort of toxic debt or bondholder who get a haircut when their bonds get swapped into equity. Or, of course, a combination of the two. I see an epic battle getting fought here, with a lapdog Congress and its financial masters facing off against taxpayers. A true test of Obama's mettle. Will he or won't he cut off the bondholders' privilege as secured debtors and require them to make the same sacrifices thattaxpayers have made or will he kowtow to the banks? We'll see. My bet is that he will do something safe, screw the taxpayers by putting the monkey on the Fed's back and asking bondholders to do next to nothing. We'll see. Of course, J6P is clueless so the politicos have a lot of latitude.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next