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Originally posted by tsloan
Yet here we stand a day after the sky has fell and doom and gloom has ruled a loaf on this thread...
I guess it's not as bad as thought...?
Nothing is going to happen...just like when everyone was screaming that if we don't save the auto industry america will crumble...Well guess what we did save them at the tune of about 38-40 billion dollars and guess what...They are going to file and all our tax money has just been used as the biggest pay off to a private company.
And guess what GM is still going to be GM....Dodge is still going to be Dodge...
Stop all the doom and gloom this is called a market adjustment is happens every 15 years. It's the Green bonds time to make millions before that sector will bubble and another one will rise...
Originally posted by SaraThustra
reply to post by lpowell0627
You're totally correct. Giving vouchers to people to buy new cars would have been better than a bailout of a car company. For that matter they could sell every car in a month by saying no money down and "If we go out of business in a year, you can keep the car for free."
My big brother's mortgage was sold to Bank of America for 10 cents on the dollar from Beare Sterns. Then BOA turned around and forclosed on him wanting 100% of the value and this was AFTER BOA got the billions in bailout money. Why didn't the government just let my brother pay the 26K so he could keep the house?
The reality is that ALL of the bailout money has ended up in the personal bank accounts of all of the Yale schoolmates of the powers that be - the elite, and until this country is ready to storm the Hamptons and raid the banks we will never ever see a dime of it - but for generations we will pay to keep the wealthy living in the lap of luxury.
Federal Reserve officials believe the recent sharp rise in yields on U.S. Treasury bonds could reflect a mending economy and a receding risk of financial catastrophe, suggesting the central bank won't rush to react -- even though some investors see danger in the government's rising cost of borrowing.
Originally posted by DEEZNUTZ
Like I said in another thread it's time to hit the RESET button. Erase all debt for everyone(People, Corps, Countries). Only the "Elite" would loose out and most of the World is democratic. If they don't like it they can find another Planet to enslave. Think of what erasing the Debts to zero would do. Talk about stimulated economies! Big tax cuts because we no longer have to service debt. Individuals would have more money. Some would spend, others would save. We need both of those things to keep the economy stable. If everyone lived within their means, had reasonable savings for rainy days we wouldn't have these bubbles in a true market driven economy. The above goes for everyone(People, Corps, Countries).
Originally posted by DEEZNUTZ
We own the government and some of these banks if you're a US citizen. We the people own the world these banks are allowed to operate in.
Before such a dislocation, what should happen is the following:
1) A flight to safety which will cause bond prices to rise (yields to fall). Currently, there is a bubble in US Treasuries.
2) Once the point of critical mass is reached, bond holders will begin to liquidate their US-bond holdings, driving up yields and pushing down prices.
3) Meanwhile, foreign countries, in an attempt to raise money, will liquidate their own Treasury holdings, putting more upward pressure on Treasury yields as well as foreign debt yields.
4) Since US Treasuries anchor the bond market, this will cause yields on all other bonds (corporate, munis, etc) to rise, causing defaults in the private sector.
5) Since US Treasuries anchor interest rates across the entire lending spectrum, all other rates will rise, making borrowing more expensive.