toady9_IHB
New member
If one was to make a small play on the bailout, who would you say benefits the most? Thursday Cramer said BAC, GS, and WB would benefit most. But WB is also predicted to fail. What about AIG and FRE?
Who will benefit most from the bailout?
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GraceOMalley_IHB
New member
I haven't kept up with the discussion on this so I am sure its already been discussed...however here is my 2 cents.
Call me bitter but I think that who will benefit the most form the bailout is anyone who has major abuses of lending practices. What specific companies get the dough is sort of irrelevant. I have a multitude of issues with this, but then I am no economist. So heres my opinion and please feel free to school me if I am grossly mistaken.
1. Why does no one ask specifically where it started and who is responsible for it? I mean accountability has become a dirty word in this country and how can we learn the appropriate lessons from this if we don't know how it became such a mess in the first place? And frankly I dont think most people realize how bad it was or how it began. Heres where I think it started and if I am not going back far enough ok..then where?
http://www.whitehouse.gov/news/releases/2002/10/20021015-7.html/
2. I think in laymans terms that the loans and loan packages have been bought and sold and sold again so many times it becomes nearly impossible to value them properly.
3. Most economists I have seen do not think that the bailout will really help the economy, and I agree. I see it quite simply as delaying the inevitable.
4. I cant remember the name of the company but there is a large accounting firm in OC who did the numbers on this and it came out to 740 billion in at risk loans and thats even BEFORE the subprimes which is another 500plus billion. So 700 billion isn't going to cut it. As of Friday the bailout was offering something like 55cents on the dollar for these loans yet the precedent has been set at 22 cents on teh dollar so we are still overpaying.
5. I have little to no confidence that the government can implement and run this program with appropriate efficiency or without corruption.
6. If as a country we continue to pander to big business then we can expect the abuses to continue.
So yeah, bitter party of 1?...
Call me bitter but I think that who will benefit the most form the bailout is anyone who has major abuses of lending practices. What specific companies get the dough is sort of irrelevant. I have a multitude of issues with this, but then I am no economist. So heres my opinion and please feel free to school me if I am grossly mistaken.
1. Why does no one ask specifically where it started and who is responsible for it? I mean accountability has become a dirty word in this country and how can we learn the appropriate lessons from this if we don't know how it became such a mess in the first place? And frankly I dont think most people realize how bad it was or how it began. Heres where I think it started and if I am not going back far enough ok..then where?
http://www.whitehouse.gov/news/releases/2002/10/20021015-7.html/
2. I think in laymans terms that the loans and loan packages have been bought and sold and sold again so many times it becomes nearly impossible to value them properly.
3. Most economists I have seen do not think that the bailout will really help the economy, and I agree. I see it quite simply as delaying the inevitable.
4. I cant remember the name of the company but there is a large accounting firm in OC who did the numbers on this and it came out to 740 billion in at risk loans and thats even BEFORE the subprimes which is another 500plus billion. So 700 billion isn't going to cut it. As of Friday the bailout was offering something like 55cents on the dollar for these loans yet the precedent has been set at 22 cents on teh dollar so we are still overpaying.
5. I have little to no confidence that the government can implement and run this program with appropriate efficiency or without corruption.
6. If as a country we continue to pander to big business then we can expect the abuses to continue.
So yeah, bitter party of 1?...