What's the True Cost of the Bailout

[cute fuzzy bunny]

Wait until the other shoe drops...when people get their mortgages renegotiated down to current levels, and then 7 years from now when they sell, they pick up a nice profit...tax free!

 

[ladelfina]

I'm still waiting for that Iraq war to start paying for itself.. as dozens of Very Serious and Important People said it would.

I think the chances are right in around there..

 

[cute fuzzy bunny]

Oh look, its now a soapbox post!

I wonder what the foreclosure rate in Iraq is?

 

[ladelfina]

Ha ha.. apologies.. some of these bailout finance things are in both places.

I'm just saying, we've been promised profits before, and I'd like to see more evidence as to how they think we'd arrive there before jumping on board.

I don't see that as particularly partisan thinking, but I will try to remember to check the heading so as not to risk offending..

 

[2B]

I don't see that as particularly partisan thinking, but I will try to remember to check the heading so as not to risk offending..

Feel free to offend me anytime.

 

[riskadverse]

The true cost of the bailout is the suspension of free markets and higher inflation. Greenspan had been holding interest rates artificiallyhttp://rds.yahoo.com/_ylt=A0oGklnnv...q-Meq2k63ImJmfEt7AGT2t5gAAAA%40%40&fr2=sp-top low for wall street through long term capital, Y2K, 911, etc etc etc. Bernake followed his lead and now that the Fed is out of bullets (or on their last bullet), they're knocking on your door to try and interrupt the business cycle yet again.

 

[Art G]

In my opinion, Bernanke pulled the trigger waaaaaay too soon. He emptied his gun of bullets long before the battle had begun.

 

[Canadian Grunt]

If you go to this link you can see the history of bailouts in the US.


Bailout Aftermaths - ProPublica


History of U.S. Gov’t Bailouts - ProPublica

 

[OAG]

CG-Nice site and information. In some cases (notably Chrysler and NYC) the Treasury did not lose.

 

[Art G]

Apparently the cost is zero. Being that they can't agree on a plan that puts money in all of their pockets.....and yes, I am very cynical today.

 

[2B]

While we're wringing our hands over the "bailout," the NYSE asset value fell today well over a trillion dollars. For the year it's several trillion. Credit is freezing up. It's not freezing up because of a collapsing economy (yet, but soon) but because of the absurd "mark to market" accounting standard. The "bailout" (which it is not) was to allow these performing assets to reinflate to a real market value.

If you love the "free market" to work, you'll love what's going to happen without this. Read what loan terms were before the first great depression. We're about to have our own if we're not careful. We'll then start making 60% loans for 10 years to buy a house. Interest rates will be about what you'd pay for a non-subsidized used car loan. Care to think what the value of your house will be with those types of terms available to borrowers? Care to think what the impact will be to the economy?