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

To: geode00 who wrote (190854)	3/15/2009 11:23:07 PM
From: ChanceIs	Read Replies (2) \| Respond to of 306849

>>>It appears that we prevented bankruptcy, pulled their bacon out of the fire and they are turning around and demanding bonuses for a job poorly done. Talk about biting the hand that feeds.<<< This seems to be the case. And it is the same with Detroit. The last things the unions wanted was a BK filing - because that would have voided all of the labor contracts. It might have saved the auto industry and their jobs, but that i besides the point. So if the government only takes 80% of AIG and pumps in .... what ... $100 billion, it should have no say in bonuses!!!! If you think Enron was a scam, try Madoff. If you think that Madoff was a scam, try AIG. Most people still don't realize where the money pumped into AIG is going. There was some news released this week that Deutsche, Goldman, etc were getting lots of goodies. I mean .... they all bought speculative puts on any and every loan through AIG, and those are contracts and need to be made good. It wasn't as if AIG was like Fannie and Freddie with an implicit government backing. There was a risk that those buying puts from AIG wouldn't get paid if the puts got into the money and AIG failed. But in America, we don't let people fail. So instead of doing the completely sane thing and pushing AIG and Detroit into BK, we keep them on life support so the leeches can feed for another few months. It seems that we didn't learn the lessons of Viet Nam. In order the save the village, we must first destroy it. Oh. And yes. The Calpine baby was thrown out with the Enron bathwater. What can I say. It was a value play and had nothing to do with Enron. It might be analogous to trying to pick amongst the rubble of the home builders today for one with a big contract backlog. Or maybe like thinking about nibbling on JP Morgan or Morgan Stanley. Or maybe even Citi - because after all, they said they were going to be profitable this year. And that wouldn't depend on FASB and mark-to-market rules, or real estate having bottomed, or Ant-A or credit cards going bust, or commercial RE, or.......