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To: GVTucker who wrote (176133)	9/17/2008 9:57:30 AM
From: John Koligman	Respond to of 176387

Thing is, as these banks go down, credit gets tighter, and as they need to sell assets with even more urgency they will be more likely to accept lowball offers on foreclosed homes and many other assets, so in the end it's hard for me to see how the 'real' economy won't be affected this time. Best regards, John PS - And the real economy is already knee deep in this stuff, -look at how much money the Feds have pledged to bail out WS. I saw a post on the Real estate crash thread that the total is up to 900 BILLION. What is the government's balance sheet going to look like in coming years??? PS - Can you explain to me how in the world we got to a situation where one single company needs 85 BILLION dollars at a 'moment's notice' just to sell assets in an orderly manner??? U.S. government bailouts top $900 billion Sept 16 (Reuters) - The U.S. Federal Reserve stepped in to rescue insurance giant American International Group (AIG.N: Quote, Profile, Research, Bourgeois Buzz) from bankruptcy with an $85 billion loan on Tuesday, the latest in a series of bailouts and loans for the financial and housing sectors. The action brings the total tab for government rescues and special loan facilities this year to more than $900 billion. Following are details of actions and amounts. * $200 billion for Fannie Mae (FNM.N: Quote, Profile, Research, Bourgeois Buzz) and Freddie Mac (FRE.N: Quote, Profile, Research, Bourgeois Buzz). The Treasury will inject up to $100 billion into each institution by purchasing preferred stock to shore up their capital as needed. The deal puts the two housing finance firms under government control. * $300 billion for the Federal Housing Administration to refinance failing mortgage into new, reduced-principal loans with a federal guarantee, passed as part of a broad housing rescue bill. * $4 billion in grants to local communities to help them buy and repair homes abandoned due to mortgage foreclosures. * $85 billion loan for AIG, which would give the Federal government a 79.9 percent stake and avoid a bankruptcy filing for the embattled insurer. AIG management will be dismissed. * At least $87 billion in repayments to JPMorgan Chase & Co (JPM.N: Quote, Profile, Research, Bourgeois Buzz) for providing financing to underpin trades with units of bankrupt investment bank Lehman Brothers (LEH.N: Quote, Profile, Research, Bourgeois Buzz) (LEH.P: Quote, Profile, Research, Bourgeois Buzz). U.S. Treasury Secretary Henry Paulson said over the weekend he was adamant that public funds not be used to rescue the firm. * $29 billion in financing for JPMorgan Chase's government-brokered buyout of Bear Stearns & Co in March. The Fed agreed to take $30 billion in questionable Bear assets as collateral, making JPMorgan liable for the first $1 billion in losses, while agreeing to shoulder any further losses. * At least $200 billion of currently outstanding loans to banks issued through the Fed's Term Auction Facility, which was recently expanded to allow for longer loans of 84 days alongside the previous 28-day credits. (Reporting by David Lawder; Editing by Lincoln Feast) reuters.com

To: GVTucker who wrote (176133)	9/17/2008 9:58:04 AM
From: Lizzie Tudor	Read Replies (1) \| Respond to of 176387

we need IPOs out here to create big companies out of small ones though. Facebook and Ausra should have IPOd 2 years ago- if they did then they would be hiring and growing more than they are now.