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Politics : President Barack Obama -- Ignore unavailable to you. Want to Upgrade?

To: sylvester80 who wrote (25791)	7/13/2008 5:38:13 PM
From: RetiredNow	Read Replies (1) \| Respond to of 149317

We'll see. This financial mess isn't over. I hope you are right that the 80s will have been worse that what we are now experiencing. But I'm worried that this time around will make the 80s look like a test run. You can't rack up $10 trillion in debt and continue deficit spending to the tune of $500B/yr without consequences. We're about to pay the piper. Hold onto your seats, because this one is going to wipe out retirements. I'm sad about it too, because in Oct'07 I was within 2-3 years of retiring, but since October, this mess has added 1.5 years to my retirement date. I'm now around 4 years from retiring. Maybe that will be 5-6 years before the fallout is over. So maybe by mid 2009, I'll be within 5 years of retiring, when I started in oct'07 being within 2-3 years of retiring. That really sucks. I'm too old for this shite.

To: sylvester80 who wrote (25791)	7/13/2008 8:38:21 PM
From: RetiredNow	Read Replies (2) \| Respond to of 149317

Hi Sylvestor, here's some more perspective on the S&L crisis versus the financial crisis we face now: Cost of S&L Crisis "The U.S. Savings and Loan crisis of the 1980s and 1990s was the failure of several savings and loan associations in the United States. The ultimate cost of the crisis is estimated to have totaled around USD$160.1 billion, about $124.6 billion of which was directly paid for by the U.S. government -- that is, the U.S. taxpayer, either directly or through charges on their savings and loan accounts-- [1], which contributed to the large budget deficits of the early 1990s." en.wikipedia.org Potential Cost of FreddieMac and Fannie Mae Bailout "Fannie Mae and Freddie Mac either hold or back $5.3 trillion of mortgage debt. That's about half the outstanding mortgages in the United States." apnews.myway.com If the government has to bail them out, we could end up paying 10-20% of that amount, or about $500 billion to $1 trillion, which would make it much worse than the S&L crisis. The IndyMac bailout ended up costing about $8 billion and they had assets of around $30 billion.