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Politics : PRESIDENT GEORGE W. BUSH -- Ignore unavailable to you. Want to Upgrade?

To: DavesM who wrote (418034)	6/24/2003 2:17:14 PM
From: DuckTapeSunroof	Respond to of 769670

Re: "Depositors were bailed out for similar reasons that Long Term Capital Management was bailed out." >>> Of course they were <G> "Too Big to Fail". (Not to mention a healthy helping of socialism for the well-connected!) "I would like to point out, that only accounts that were Federally Insured were bailed out." >>> Of course! but my point was that they TOTALLY IGNORED THE INSURANCE LIMITS ($100,000 per person, per institution... limits which had only recently been raised from $40,000) AND THEY BAILED OUT EVERY PENNY IN INSURED INSTITUTIONS... NO MATTER HOW MANY MILLIONS OF DOLLARS WERE IN THE ACCOUNT. >>> My point was: if they are going to bail out that investor class, why not the Nasdaq investors? "Bondholders and Stockholders of failed S&L's were not bailed out either." >>> Technically correct... but many bond holders were rescued from the consequences of their bad investments, because the S&L rescue package kept many S&Ls in business just long enough for the bond holders to cash out. "Please show some documentation that depositors in S&Ls were considered "savy investors" by the Feds or anyone else." >>> It's called "Qualified Investor" (not 'asvy investor') and is a federally defined term: >>> Section 3(a)(54) of the Securities Exchange Act of 1934 (as amended by Section 207 of the Gramm-Leach-Bliley Act of 1999) defines qualified Investor as: * A natural person who owns not less than $5,000,000 in investments. * A company that owns not less than $5,000,000 in investments that is owned directly or indirectly by or for two (2) or more persons related as siblings or spouse (including former spouses), or direct lineal descendants by birth, adoption, spouses of such persons, or foundations, charitable organizations or trusts established by or for the benefit of such persons. * A trust not covered by clause (16) that was not formed for the purpose of acquiring Interests, as to which the trustee or other person authorized to make decisions with respect to the trust, and each settlor or other person who has contributed assets to the trust is a person described in clause (15), (16) or (18). * A person , acting for its own account or the accounts of other qualified purchasers, who in the aggregate owns and invests on a discretionary basis not less than $25,000,000 in investments. * An entity all of the securities in which all of the equity owners are qualified purchasers. >>> Qualified Investors are presumed to know what they are doing with investments, and are allowed to make riskier investments than the rest of us, and certain disclosure rules are not required with them.