The bail out was a scam.

Since the bailout the stocks have been tanking. They told us that the stocks had went up because Wall Street was anticipating a bailout, this was a lie.

All you had to do was watch CNBC or Fox Business. C.E.O. after C.E.O. was on TV saying that they have available capital. When you pass a 700B dollar bailout these people will not spend there money and this is what's happening.

All you had to do was continue to let stronger banks absorb weaker banks at a chep price and the government would take the bad assets odd the books of the weaker bank.

We didn't need 700B bailout and this has hurt because people will hold onto their money until they see how this money will be spent.

and what of the $693 BILLION the US treasury has allready pumped into the banking system in the last 2 weeks?

oh thats right

nothing happened

Other stuff is going on too. Oil is down big, and there is some really interesting currency action as well. As of 1pm est there has been a major move in lots of currency crosses. The dollar is strengthening? and pretty hard too.

Originally posted by Wise Dome
I don't think this is the case at all. People are not so stupid that they are just realizing today that the 700B would not be given out after the president signed the bill.

Yes, they are. The majority of people thought that the promise of government would some how resume the lending practices among banks like government was giving 700 billion out tomorrow.

The only difference between today and last week is a promise by government. That really doesn't mean much to the banks on wallstreet.

The stocks are tanking because 700B was not needed. People had available capital they just were not loaning it out because of these bad assets that were on the books.

Where is the logic? The 700 billion to buy bad assets wasnt necessary because the only reason loaning came to a hault was bad assets being on their books? What?

We did not need to cover the losses of these companies with 700B. They just needed these assets off of the books and that could occur as stronger banks take over weaker banks.

Um, no, it doesn't work that way. In fact, I don't even know where that connection came from. The bad assets don't just disappear because you absorb another bank with MORE bad assets, hence the reason they needed to be bought.

You pretty much just said "they can get the bad assets off their books by acquiring MORE bad assets, along with good ones." In reality, that just makes them big enough to hide their true numbers and makes them too big to fail. That is a DANGEROUS market strategy to have.

They have X amount of bad assets. As a result, they need Y amount of capital on hand. If they don't, should something happen, like what happened to Lehman Brothers, they go under, whether they have the assets or not.

It doesn't matter if you have 900 billion in assets. If you can't raise 50 billion in CAPITAL within X amount of time, you go under. The issue was not being able to raise capital fast enough. Other banks do not want to face a similiar fate.

Adding 700B only causes people to hold onto their money because their not going to spend their money if the government is going to spend the taxpayers.

This was a scam.

Thats not true. People are cutting spending because they see credit markets getting really tight and they have been living on their credit cards all this time (beyond their means). This was going to happen, bailout passed or not.

Originally posted by deeprivergal


The Dow dropped 280 points on opening.

Watching it live, the DOW hit below 10000 for the first time since 1999. They are currently down more than 300 points and trading at around 10003.

Apparently the bailout didn't work. The overseas stocks didn't do well at all last night with the Russian trading halting several times.

A couple points. 1st off we dont know if the bail out will work or not. Nothing has been implemented yet. It will be months before we will know how it has worked. Most people in finance knew this, that is why the market is down. Secondly, although most of you think this is a US problem, it is global. So unless Europe does something they are going to be far worse off. It was also below 10000 in 2004 not 1999. If you have extra money laying around now is the time to start buying stock. Using Dollar cost averaging of course. This is where new millionairs will be made. You can take that to the bank, or put it in a safe. Curious to see what tomorrow brings. After all webbot supposedly predicts some major disaster. Bet it is in the European Markets. Russia's complete economic collapse maybe?

Inching toward the 9700 mark as we speak . . . it was steady around 9800-9850 for most of the day so far but it is clearly sagging . . .

Originally posted by Wise Dome
You seem to have fallen hard for this nonsense.

If you listened to the problem, it's about money being loaned out between banks. Banks were not loaning money to other banks because of bad assets.

So these banks did not want to risk their capital, it's not that they didn't have capital available.

huh, I guess you just don't read. That is exactly what I just said these past couple posts. Lehman Brothers tanked because they didn't have the capital to cover the bad assets that went sour.

AS A RESULT, other banks started to hoard capital. Giving them more capital doesn't solve the problem. Please try to read.

So the 700B dollars will be used to cover the losses of these banks and that was not needed. We don't even have a clue as to how much these assets are worth.

Bush and Paulson said they just threw out that number 700B because the problem was big.

700 billion is at the very least, a good number to start with.

When you remove these assets off the books, then credit limits will increase and banks will be willing to risk their capital.

That is the point. To have them start risking capital again.

THE 700B IS JUST BEING USED TO COVER THE LOSSES OF THESE COMPANIES. WE DON'T SHARE IN THEIR PROFITS SO WE SHOULDN'T HAVE TO COVER THEIR LOSSES!

Yes you do. Your lack of understanding as to how we are vitally connected to the success of wallstreet shows your general lack of knowledge on the matter.

Further to boot, you lack some sort of reading comprehension because you say I don't understand why the markets are crashing, then reiterate what I have been saying.