ok, so the plan is dead. I am watching the nbc and the internet, and all I see (from Spain) is people throwing the same comments to each other about republicans, democrats, yes to the bailout, no to the bailout… what is the alternative (assuming that do-nothing is not an alternative)? has anybody come up with a different strategy than buying toxic assets from the banks? anything that makes sense?
what makes sense is that banks & institutions should be recapitalized through the aid of the fed gov, which is subtly different from having the fed gov directly purchasing toxic shit off the bank’s book. or cut rates and risk inflationary pressure
Now that’s just ridiculous. The most inefficient of institutions running the US banking system? Come on now people, is there any sense left on this forum?
tell that to george soros who is also recommending banks recapitalize their bsheets.
So I think there are alternatives, but I think that something like this bill ends up getting passed. Right now there are a bunch of Congressmen who are not sitting around smugly congratulating themselves on the biggest market crash since '87. They let the Administration and other Congressmen know that they aren’t happy and that they need to be consulted about a bill of this magnitude. This is about crappy leadership in the Congress and White House not consulting with enough people in a deep enough kind of way to build consensus. I hate this and all thinking people should hate this, but the gov’t has to at least try to fix the problem so we’re going to get a bailout bill. In the next few days we’ll see what needs to be done to placate these Congressmen. I bet a bill gets passed next Monday that looks a lot like the one we have now except it is twice as long and includes a few senior centers in Alabama, etc…