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Politics : Formerly About Advanced Micro Devices
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To: bentway who wrote (367844)1/22/2008 11:53:49 AM
From: tejek  Read Replies (1) of 1577029
 
Look. I want to apologize for going off on you this morning. However, I don't think you fully understand how serious the situation is and continues to be. For an example, last week, one of the mortgage insurers, which are teetering on the verge of bankruptcy, tried to raise more money by selling bonds. They had to withdraw the sale because no one was buying. The mortgage insurers don't have enough money to pay off all the defaulting loans. Had one or more of them failed the entire credit system would have collapsed. Everyone knows it.....that's why people are so worried.

Meanwhile the LIBOR rate....a key rate for lending...is down to a level which should permit banks to lend, but the banks aren't lending. They are scared......cash is king....thats why the credit markets are freezing up.

Bottom line: I am not stupid......I know this is taking a facile way to deal with all the problems but it had to be done. You can't get people to clean up their act with their feet in the fire and everything collapsing around them. Does lowering the fed rates solve the problems? No. But it does provide us with a platform to start making the reforms that need to be made. Will that happen? Depends on who we elect as president. For the past couple of years, we've talked about how much of a mess this country is in......well the chickens have come home to roost. Right now, we have a very lame duck president, a Congress that can't seem to get its stride and a Fed chief who doesn't have a clue. Scary times....IMO this is not a time for "taking your medicine" as you have suggested in the past.
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