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|Subject: Re: Is your 401(k) Inadequate For Retirement||Date: 8/2/2008 11:33 PM|
|Author: SeattlePioneer||Number: 13775 of 20062|
<<Soooo...how'd all the sub-prime mortgage lending, re-packaging, re-selling thing work out? After all, it WAS engineered by Wall Street's best and brightest. The mortgage lenders were in on it, the big investment houses were in on it, the hedgies were in on it, the rating companies were in on it, the bond insurance companies were in on it...just about anyone and everyone making millions of dollars per year for their supposed financial acumen were in on it.
Tell me, again, how well that worked out for the average working stiff...the American taxpayer...who is now bailing all these clowns out?
I'm sure the lion's share of the losses are being absorbed by private investors --- myself included since my Washington Mutual stock is down by about 95% in the past year.
Personally, I would have preferred that all such losses be absorbed by private investors, and I hope whatever bailouts have been offered come with protections and guarantees to the government that will allow the government to profit handsomely by investments the government feels constrained to make.
I might also observe that government guaranteed lenders like Fannie Mae failed spectacularly as well.
You may recall that when Chrysler was bailed out by the Federal government in 1978 or so, the government profited handsomely from stock options they got as a part of the deal. I hope any such bailouts pan out as well for the government in the end.
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