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

To: TH who wrote (11693)	9/23/2008 11:49:19 PM
From: carranza2	1 Recommendation Read Replies (1) \| Respond to of 71425

Of course it is going to pass. The hearings are a charade designed to allow Senators and Congressmen to express faux outrage and tack on meaningless riders such as the exec. compensation provisions Frank insists upon because, remember this, we are in an election cycle and the plan is hugely unpopular. The solons need to trash the plan and amend it meaninglessly before they OK it. What's so wrong about doling out the cash in dribs and drabs, as necessary, with independent supervision of the process, rather than giving the Sec. of Treasury enormous authority in one fell swoop? Why do we commit now? Why not let some of the lenders go BK as took place in Lehman's case? Lehman's BK did not lead to the end of the world. The world will likely survive if the authority is parceled out as necessary in, say, $25 bn increments. And why not follow ther RTC model, with the RTC foreclosing on bad loans and using the proceeds to pay off the loans? Sure, the RMBS and CDOs get screwed, and CDS kick in, but isn't that what the buyers of the junk expected if it hit the fan? It certainly is what I would have expected.