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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: patron_anejo_por_favor who wrote (149707)	9/23/2008 10:23:52 PM
From: XoFruitCake	Read Replies (1) \| Respond to of 306849

"It kinda comes down to accepting Ben and Hank's word that they know the CDS's prices more accurately than the market." they can't but on the other hand, there is no other solution. The only alternative is watching one bank after another falls (some may fail together as the bank running getting bigger and bigger) until we get to the point that no one is sure which account that have access to and which one is frozen in bk court. the only way to restart the systems is to inject new capitals that banks doesn't have into the system. The overpayment represent that new capital. I think taking equity stake in the affect banks is a good move. It will balance things out at the end. Government will definitely overpay the purchase base on prevailing market price but it may not exceed the run off value of the papers. So at the end government and tax payer may do o.k. (and may be well) at the end..

To: patron_anejo_por_favor who wrote (149707)	9/23/2008 11:50:47 PM
From: stomper	Read Replies (1) \| Respond to of 306849

<<If they're that stupid and/or corrupt, why would I entrust them with even a penny of taxpayer funds?>> I'm just dying for ONE of them to ask: "The entire financial system has been put in jeopardy through the policies that you championed and profited from while at Goldman Sachs. Until 10 business days ago, you maintained publicly that our system was sound, resilient and in no danger while it was obviously careening out of control. As it is patently apparent that you have 1) blatantly lied to the detriment of the public good; or, 2) never actually could see any of this coming, when many "less knowledgeable" warned for months of impending dangers...HOW THE FUCK CAN WE POSSIBLY TRUST YOU WITH THE KEYS TO THE PUBLIC TREASURY!!!!!!" ...or something along those lines.