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Politics : Welcome to Slider's Dugout -- Ignore unavailable to you. Want to Upgrade?

To: jim_p who wrote (11245)	8/21/2008 9:33:31 PM
From: Fiscally Conservative	Respond to of 50328

Should the Fed as a matter of last resort (Fed makes up the rules as they go along-hence no last resorts,imo),print more money and offset deflation and lower the value of the dollar they would then consequently raise the price of Oil. Deleveraging is easier than one may think,gg. All one needs to do is write down the cost of their leverage and or possibly package off for sale the rest for pennies on the dollar,if they can,which the Fed will help accomplish where it deems it so by availing the capital structures necessary to accomplish such. We have already witnessed this via Bear Sterns/JP Morgan. Remember how the investment bank's shares had dropped nearly 20% in the prior ten days before the cat was let out of the bag, and there were murmurs that short-sellers were circling. The executives stated; "We're making money- Our counterparties are getting paid-Trades are clearing- Business is picking up" It doesn't seem to be the likely scenario for an investment bank's collapse." Ten days later Bear Stearns (BSC, Fortune 500) was swallowed by J.P. Morgan Chase but not before the stock opened at $2 and change. Who helped finance J.P Morgans debt structure? And how many Mom and Pop's citizens(The working stiffs of this country) invested in various IRA's and Mutual Funds and Pension Funds alike in this Ponzi Co.? They got left holding the bag. Huge equity was wipe away by a pen stroke. On the morning of Friday, March 14th, when the Bear Stearns crisis neared its apex, the New York Fed agreed to backstop a loan that JP Morgan agreed to make to Bear to "stabilize" the firm. The Fed's involvement here was critical: JP Morgan would not have agreed to the loan without the Fed's help. And now we dealing with Fannie and Freddie. And what does the Street expect no less? Fannie Mae and Freddie Mac are government-sponsored enterprises that help the mortgage market function by purchasing pools of loans and packaging them into securities. The idea that one or even both should fail would be....,well pretty bad. At least this is what the governement is saying. So what should the street expect? Bailouts calore! Who ends up paying for this? No,I can't believe those who think they know more about how all this will end;deflationary/inflationary. How can I? Thus nor should I. The reason is their will be a reckoning that will need to take place before they try and sweep this under an oval office rug. This is an election year! Nothing is as it seems.