UnThreaded | Threaded | Whole Thread (22) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: washcomp Big gold star, 5000 posts Feste Award Nominee! Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 459259  
Subject: Re: Will the Bailout Plan Work? Date: 10/5/2008 12:56 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 4
I believe that from Bernenke and Paulson's perspective, the CDS isssue IS the big deal. The reason their original 3 page pplan was so nebulous was so they could stick their fingers in the dike whenever ANYTHING (sub-prime, student loan, car loan, credit card debt, corporate debt - anything) looked like it was going to default. This would give them breathing room to address the CDS thing without having to fight with the media over each decision (which out of systemic context might look out of place).

There are a lot of moving parts to this faltering economy and these guys must feel like their juggling a torch, a baby, a chainsaw and a bowling ball.

Another point: Let's take Wendy's example of my taking out a life insurance policy on my neighbor without informing them. It would be to my advantage to poison their drinking water to force a "credit event" (think "manipulative" short selling or false news reports). I've only bet $100/10,000 - that's pretty exciting leverage if I've placed enough black chips.

The restriction on short selling evaporates this week. I feel that despite the arguements that short selling makes for an efficient market, at this point they add complications which don't provide enough incremental benefit to the economy to be worthwhile permiting (until things reach a steady state again).

Jeff
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (22) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement