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

To: Les H who wrote (180581)	1/29/2009 6:01:38 PM
From: patron_anejo_por_favor	Read Replies (4) \| Respond to of 306849

The main problem with the Bad Bank is that We the Sheeple are paying for it. Therefore, all the clownbux that were being sequestered due to bad bets by the punters in the financial sector would simply be released in exchange for an equal amount being vacuumed out of the Sheeple's pockets. Just when we are fighting a consumer-led recession. The banks would emerge, but the Sheeple will go further into entrenchment mode, discretionary spending would drop further and the recession would be longer and deeper than it would otherwise. Not to mention moral hazard being propagated and no behavioral changes forced on the crims at the banks. No thanks.

To: Les H who wrote (180581)	1/29/2009 6:05:37 PM
From: Perspective	Read Replies (1) \| Respond to of 306849

I dunno, Les. This still just looks like anti-deflationary strategies to me; the inflation associated with the massive expansion of debt has already happened. That's how we got the real estate bubble, stock bubble, bond bubble, debt bubble, commodities, etc. etc. etc. The inflation already happened; covering the bank losses with fresh dollars is just an attempt to prevent the hard reset of deflation. It's basically designed to favor the big lenders in our society, avoid the BKs that would otherwise clean the slate for the heavily indebted. `BC