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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: RJA_ who wrote (11582)	9/22/2008 1:35:51 PM
From: Real Man	Respond to of 71412

It is close to the cost of this monster, although those might increase. Not all loans are bad, by far.

To: RJA_ who wrote (11582)	9/22/2008 3:42:15 PM
From: Don Earl	1 Recommendation Read Replies (1) \| Respond to of 71412

RE: "Let's say he decides to buy them at 60 cents on the dollar and sell them for 10. You, the taxpayer, will eat the fifty cents, for an immediate cost of $350 billion dollars." Your math is in error. A loss of 50 cents out of 60 is 83%. An 83% loss on $700 billion is $583 billion, not $350 billion. You are correct that this is a blank check and is NOT limited to $700 billion. The same is true of the Fannie and Freddie bailouts. The only limit is the national debt, which was raised $800 billion for F&F and is about to be raised another $700 billion for the current bailout proposal. That's $1.5 trillion as the first installment and it will take at least double that to cover the losses. The FDIC also wants half a trillion dollars to cover losses on bank deposits, but since that would help average Americans, it doesn't seem to have much steam behind it.