I'm curious if you feel the government bailout of Fannie Mae/Freddy Mac/ AIG, etc., etc. will really help. What do you think? I think something had to be done. But being a free-market guy, I just wonder how much it's going to cost you and me.
Granted. we may have been headed for panic in the streets and this wouldn't have been good. I'm glad someone is finally recognizing the seriousness of the situation. And with the stock market down almost 400 points again today, it's becoming increasingly clear we've got a way to go.
I still think we'll turn the corner sometime next year. It was always a matter of digesting all the "kool aid" (as some of my esteemed colleagues refer to it) we drank. Be sure to weigh in with your thoughts. This is definitely a live one that won't be going away antime soon.
Paul
Paul McFadden
Paul: I think the most surprising thing is how all of the Wall Street experts missed the ball on this, leaving no alternative other than the gov't bailout. ML and others were actively looking to buy more subprime firms right up until bodies started to drop.
Michael: Thank you. Greed usually gets in the way of common sense. Up here, we've got banks who would be considered stodgy who invested in Fannie Mae and Freddy Mac. Now these banks are declaring losses, often for the first time in their history. Interesting times that I think will continue for a while longer. Take care.
Paul
Paul.... it was nice speaking to you earlier today. Personally, I think we still have close to a year until it becomes worse. And it won't be home values decreasing more. There is just no room for that to happen now, for several reasons. And rates can keep going lower, just another opinion that I have.
What I would like to see, in regards to these so-called bailouts is that we go after the CEOs, CFOs, and anyone high up the food chain that received these million dollar bonuses and those that signed off on things that are coming back and biting us. This bailout will hurt every American.... but those that are middle class and below. Those making 6 figures or more... especially the billionaires, this doesn't affect them. They should be double taxed then. But yes, this will hurt us... but then again, if we didn't same them, would it hurt us more? That I couldn't answer.
Jeff: Thanks! I appreciate it. These are good thoughts. I was talking to a loan rep. of mine today and she suggested a radical idea. Rather than having the government do a massive bailout, let the lenders allow homeowners to reset their mortgages to what their home is now worth. The problem is she feels that they don't care about the little guys. Interesting idea that I know would help alot of folk. The question is how would this affect the lenders. Perhaps positively as it would stop lenders from having to buy back their loans. What do you think? Talk to you soon!
Paul
We are humans we will lose and rebuild and say we learn but will make the same mistake again again again cant stop it. Its a cycle we say we will learn and build but ten years from now someone will say hey lets try this to make more and be right back.
I completely agree with you. Capitalism is either at its best or worst. For lack of a better system, it is what it is. Have a nice day!