Hi all: I just finished watching Barney Frank in an impromptu news conference talk about how the negotiations for the $700 billion government bailout had broken down. Frank claimed that conservative Republicans walked out after adding pieces to the President's bill that made it unacceptable.
It appears there's more work to do. The biggest holdup is who pays for this bailout? The bill as originally presented would have us (think taxpayers) footing the bill. Some lawmakers would rather have the banks pay for their follies since they're deemed to be at fault.
I still think a deal will be brokered but perhaps for less money (Chairman Paulson has already agreed in principle to a tiered payout based on need) and not all on our backs. In the mean time, expect Wall Street to fall precipitously tomorrow unless they can work something out before the market opens. The wild ride continues. I just read Wa. Mu. will be acquired by JP Morgan. Wow! What a year. And I thought last year for our business was interesting. Stay tuned. As always, I encourage your thoughts. Have a nice evening!
Paul
Paul McFadden
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Paul,
They seem to be guided by the fundamental principle that this move is outside of the role of govenment. Their plan should be considered, as an alternative.
It does not address foreclosures though, and the democrats will likely have some difficulty there.
Richard
I wanted to hear more about bringing in government backed private funding that surface earlier this afternoon. It sounded like a better idea than the tax payers footing the bill. All the blogs tonight are about a failing economy. It's kind of depressing.
Thanks, Brian, for your comments. I also hope we can turn it around sometime soon. Unfortunately the numbers don't lie. The good news is there is always opportunity!
Esko: It may take a while. The pressure is on to settle because the stakes are too high. I expect some sort of deal either today or early next week.
Richard: Thank you. Those are good thoughts. We'll see what happens.
Interesing comment. It appears you're not in favor of government bailouts. I'm not sure I am either. The quewstion at this point is what is the alternative?
Thanks to all of you. Have a great day!
Paul
Paul, kind of like a ton of bricks. As more fall and as credit is frozen, surely they will see that the longer it takes, the worse it is going to get. I think it happens later today or tomorrow. I just hope that it really is enough. In the meantime, I am working, relaxing, watching football and drinking beer and no necessariy in that order. :)
Bo
I'm glad their taking more time. This is too big for quick action.
Hi Chuck: I agree it pays to be prudent. I also think something needs to be done. I appreciate your comments.
Bo: Thank you. It may get worse before it gets better but eventually we will rise again. I was having lunch today with a new contact and he reminded me how great and resilient America is! So true. Take care.
Paul