tag:blogger.com,1999:blog-3778556107185533687.post3794472089885012714..comments2023-09-25T09:26:32.591-04:00Comments on The Loop and The Lou: Don't Bail Me Out, Bro! (part 3)Rollerhttp://www.blogger.com/profile/16904666850142252780noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-3778556107185533687.post-64982865412577454302008-09-30T22:51:00.000-04:002008-09-30T22:51:00.000-04:00No such thing as a bad game of Plinko.No such thing as a bad game of Plinko.Austinhttps://www.blogger.com/profile/11102840388777883765noreply@blogger.comtag:blogger.com,1999:blog-3778556107185533687.post-30125171697218469402008-09-25T09:42:00.000-04:002008-09-25T09:42:00.000-04:00Nic, I didn't get a chance to watch Prez Bush on t...Nic, I didn't get a chance to watch Prez Bush on the boob tube last night but plan to watch it on the internet and review it in another installment.<BR/><BR/>The politics behind all of this is a great aspect of it. The conservative movement is alive and well, though just not entrenched in current power. At this point, all we can do is debate and educate and try not to make things worse.<BR/><BR/>(Someone did forward me a picture of Sarah Palin in a stars and stripes bikini at a backyard pool party holding a rifle. It was too good to be true, but a great photoshop job. How I hope that woman holds on to what I believe might be real conservative beliefs she is having to hide for McCain.)Ryanhttps://www.blogger.com/profile/17256070703334899567noreply@blogger.comtag:blogger.com,1999:blog-3778556107185533687.post-73028928330038197342008-09-25T09:36:00.000-04:002008-09-25T09:36:00.000-04:00Don't Bail Me Out, Bro! (Part 33): CUBs blow it ag...Don't Bail Me Out, Bro! (Part 33): CUBs blow it again!<BR/><BR/>Rollerz, clearly, everyone is just speculating now as to what the damage would look like.<BR/><BR/>Intuitively, though, what should be happening now in normal business practice is that the business who are owed money should be canabalizing the businesses who owe them the money, going after their assets. I would also suspect that in more than a few cases, some men should be going to jail for fraud. And this is the situation we are being asked to infuse money into.<BR/><BR/>It would tighten the credit market in every aspect. But it would not eliminate the credit market. So, probably it would be harder to get the loans you speak of, meaning standards would be raised. That is probably a good thing for the long term, although it shoots are business model of growing our economy through rapid inflation through the foot.<BR/><BR/>It would hurt wall street. But this is a false hurt, since the prices are already inflated. The wealth there isn't real in most cases. The only way to prop up prices in the market is to inflate the dollar. Which is to say "we can keep your wealth gains of 20% annual returns, but only if we shrink the value of the dollar by 20%".<BR/><BR/>It's a no win situation.<BR/><BR/>$700 billion is primarily a guess that Paulson came up with (apparently) in like 2 hours. He has no idea. But just like the every day homeowner now who is trying to sell, they have to discount the price. These toxic assets have value, so the question is why should we give Hank Paulson authority with our money to make the best offer on Wall St. for these things?<BR/><BR/>Given enough time or a low enough price, the market will figure this out on their own.<BR/><BR/>Warren Buffet is acting in his own long-term interest. I have a feeling his investment is bailout-proof. Goldman is attracting investments from Japan as well.Ryanhttps://www.blogger.com/profile/17256070703334899567noreply@blogger.comtag:blogger.com,1999:blog-3778556107185533687.post-12967054312817646522008-09-24T23:11:00.000-04:002008-09-24T23:11:00.000-04:00Ryan,You are my new favorite person for writing al...Ryan,<BR/>You are my new favorite person for writing all of these. You make more sense than any of the people on TV. <BR/><BR/>What are your thoughts on the politics driving this here and now? Watching G W Bush on TV tonight made me want to crawl out of my skin. (Mostly because anytime he says anything with "conviction" it convinces me of the opposite position). But, what thinks Sir Ryan of the timing and how the rhetoric is intended to effect the presidential race? <BR/><BR/>And, what will good old fashioned free market, anti-regulation, small government conservatives (are there any of those left?) make of the governments decision to nationalize the mortgage industry? Will they all just decide to forget about their fiscal conservatism and hold on tight to their guns, their millions and their pictures of Sarah Palin?Nicolehttps://www.blogger.com/profile/14562386466231328789noreply@blogger.comtag:blogger.com,1999:blog-3778556107185533687.post-12557023798303391582008-09-24T23:10:00.000-04:002008-09-24T23:10:00.000-04:00Is it true that you're writing all these consecuti...Is it true that you're writing all these consecutive installments to keep Coovo from writing about the Cubs? I can see it now, Oct. 30, "Don't Bail Me Out, Bro! (part 42) - Dude, I just tried to get a loan for a new robot and no dice. What the hell am I paying taxes for?!?!?"<BR/><BR/>Another good post. Really. <BR/><BR/>In your last comment on the previous post, you speculated the the damage from a no bailout would be mostly contained to the financial industry.<BR/><BR/>I can't disagree with that, but I can't agree with it either. The truth is that I really don't know what to believe. I've heard a number of really smart people who do make their living in finances explain why there shouldn't be a bailout, and the same number of the same type of people take the opposite side. These people study this for a living; I don't. <BR/><BR/>So... my gut is against the bailout. This probably stems from the fact that I've been responsible with my finances and it bothers me to hear promises that the FHA will be helping people out who were willingly irresponsible with theirs.<BR/><BR/>But if someone were to ask me to explain why a non-bailout wouldn't have significant effects outside of the financial industry, I couldn't. <BR/><BR/>If I stated that students would still be able to get loans for college, people could buy cars, businesses could pay their employees would be a guess. As would stating the reverse.<BR/><BR/>Like I said, my gut says no. But it looks like it will get done, so I sure hope Warren Buffet is right.Rollerhttps://www.blogger.com/profile/16904666850142252780noreply@blogger.com