New bailout plan (toxic assets purchases)=Crazy
put $0.07 down, and the government will put 7 cents in and LOAN you 85 cents to buy ONE dollar of toxic assets.
You share the profits/losses (up to 15%) with the government.
so you put 7 cents in, you COULD lose another 15 cents =22.5cents lost.
How is this anything but PAYING the banks for poor work??
This year's Nobel Laureate (Paul Krugman of the NY Times) agrees that this is NOT a Good idea.
Also:
- I do NOT think that we (as a nation) are getting better.
- The recent stock drop (DOW)from 7500 to 6500 came 15 months before I predict the bottom of the market will come.
- Since the Dow has already dipped to 6500, I think the new bottom will be perhaps 4750. Still around june 30th of 2010.
- I STILL say that we are in for another major financial crisis, that of the OTHER collateralized debt obligations (financial obligations based on aggregated assets) when THEY collapse. Credit card, car loan, college loans and ALL consumer loans that were made into CDO's will collapse, and cause major havoc in our government (again!).
- I still say we need an OUTRIGHT ban on all CDO creation again
No comments:
Post a Comment