Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : THE WHITE HOUSE -- Ignore unavailable to you. Want to Upgrade?

To: Patricia Trinchero who wrote (21953)	9/7/2008 12:05:57 AM
From: DuckTapeSunroof	Read Replies (1) \| Respond to of 25737

Yep, you are right! (Even the preferred will be diluted to a fair-thee-well.) I think that was the main big fight --- over whether just the common stock would become worthless, or also the preferred stock. (Lots of banks own Billions of the preferreds, including maybe your local bank.) That question and, of course, just HOW MUCH the American taxpayer would get hit-up for the bail-out. Seems that they are going with the 'bail-out by installment plan' instead of just ponying up to the bar and socking the Treasury with all of it at once. Either way you count it though, every analyst I read says the final hit to the American taxpayer (adding this debt directly to the national debt) will make this bail-out BIGGER even then the Savings and Loan bail-out at the end of the Reagan years. Unavoidable though, I suppose. The writing was already on the wall, the damage already done. (Fannie and Freddie were running around with near zero net equity and levered around 50 to 1.) :-( Delaying it further would just make the recession far deeper and worse then it needs to be.