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Politics : View from the Center and Left

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To: Steve Lokness who wrote (54220)	3/17/2008 12:59:33 PM
From: slacker711	Read Replies (1) of 542655

I don't like this either and my fear is when it's all done our dollar will be worth very little. I doubt that this will have much long-term impact on the dollar. I believe that CNBC stated that the total amount that the Fed is backstopping is about $30 billion and there likely losses would only be in the few billion range. The key here is that most of Bear's assets are still worth something, but since there are no markets for them right now, they are required to mark them down. Absent a great depression, I dont think that these mortages are actually worth zero. The problems for the dollar lie more with underlying economic problems than with worries about the Fed's intervention. The more likely cost is going to be for future financial transactions. We are going to get increased regulation to make sure that taxpayers arent put in this position again (or at least make it less likely) and that is going to drive up costs across the board. Slacker

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