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Commenting article: US Announces New USD 1,5 T Bail-out Plan

The US Cabinet promised Tuesday to undertake decisive measures to fight the financial crisis and unveiled a comprehensive USD 1,5 T bank bail-out plan, BBC reported.

The new US Treasury Secretary Timothy Geithner announced that the new plan would allow the US government to successfully deal with the crisis by unfreezing the credit market to boost a renewed granting of loans to businesses and private individuals.
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#1
pk - 13 Feb 2009 // 05:58:13

Resip.

For once I like your theory on what will happen - borrwoing vs. printing.

Very interesting... and SO FAR seems to be correct.

I'm a currecny trader and keep noticing that the dollar keeps it strength while EVRYONE thinks for the crash + the fact that very few think the treasury bonds will go back up after this recent break down..

Very good theory!

#2
xNELLIEx - 13 Feb 2009 // 01:49:17

resi

"Therefore the TREASURY will borrow money from other nations."

Don't bet on this.

#3
resipsaloquitur - 13 Feb 2009 // 01:20:59

My dearest NELLIE,

Sorry but it seems you did not take any Investment courses.

Aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaall the speculation on

WALL STREET does NOT have anything to do with the real markret value of a

company!

The investors are speaking of BOOK VALUE of a stock.

It is true that in USA companies are obliged to issue a q uater's statement


but it only reflects the Equities and Liabilities.


All other assets like properties(e.g. GM owns plenty of real estae...flats fot it's

workers),mashinery and who knows what else...may some Jets or yaghts..

it is not in these audits.


The USA TRASURY will avoid to PRINT MORE money ,beacuse as you said it will

lead to deflation of the $$$$$$$.

Week dollar actually is good for the export but NOT good for IMPORT and USA is importing a looooooooooooooooooooooooooooooooot of products.

Therefore the TREASURY will borrow money from other nations.

#4
xNELLIEx - 12 Feb 2009 // 16:23:45

It would be a good idea for banks to pay back TARP $'s. That way, they don't have to provide credit lines to dead beats and can charge high interest rates to compensate for high risk people.

I want to see banks give back the billions of TARP dollars they were ASKED to take, and tell Mr. Barney Frank and those other fcuking retards to go fcuk themselves. Banks are corporations that should looks after their shareholders first and have zero responsibility to look after the idiot scum that over-borrowed and are now claiming that they were somehow duped into borrowing against home values that could, low and behold, fall as well as rise. Where were these fcukers when the bubble was going up? Spending the money on flat-screens, vacations and big black arse dildos no doubt!

#5
xNELLIEx - 12 Feb 2009 // 13:38:45

resi

Don't forget that money is just paper and treasury has stepped up productio0n of dollars. Therefore, the value of the dollar will be diluted and it will drop like a bomb.

Also don't forget that this money everyone thinks disappeared did not grow legs and run away, assets simply got devalued. For example - if you had a house worth 500,000 and you had stocks and investments worth 500,000, you had a million dollars. Against that million in assets, you could borrow up to a million. After the housing bubble burst, your house is worth only 250,000 and after the stock market went down, your stock is worth only 250,000 now. You lost half of your net worth in a couple of months. Now you can only borrow up to 500,000. That's what happened to companies too. The US lost half of its net worth. Actually, the whole world lost half of its net worth. It was paper money, or money on paper only, it was not real money in your savings account.

#6
resipsaloquitur - 12 Feb 2009 // 01:17:20

Phillipe,

DO NOT BELIEVE WHAT THE MEDIA IS SAYING!

The LOANS(this are loans and NOT presents) to the financial institutions will be

financed by China,AUE,Kuwait,Oman,Bahrain or other oil reach countries.

The USA Government will borrow these monies and pass it to the banks.

THIS IS DONE AS THE USA GOVERNMENT WANTS TO BACK THE BANKS

AND RESORE THE INVESTORS CONFIDENCE IN THE FINANCE INDUSTRY.


The USA Government will receive PREFFERED STOCK in the banks,to wich it

provides loans.

Being owner of PREFFERED stock means in case of bankruptcy the TREASURY will be

satissfied from the remaining assets.


Three decades ago the Treasury also financed the BIG THREE car manufacturer

in Detroit...the money was well


ell spent.The CAR manufacturer paid these loans back+dividents+increased

value of the stock.

The bail-out (how the median presents it) are simply LOANS!

In order to get these money USA Government has to borrow heavily as I said


either from the SUVEREIGN FUNDS of the GULF States or another country with plenty of cash...

CHINA!

#7
Philippe - 11 Feb 2009 // 18:57:24

The Americans still don't understand the things; It is wrong to organize societies on credits; At the end, lenders prostitute theirselves, and sell the bad deals to the rest of the world, assuming that governments (tax payers) will cover the losses Their personal fortunes are protected through their political influence; The "free market without corrections" clearly failed, because of a lack of ethics and self-control;

It would be far better in the present situation that all banks get temporary nationlized, management prosecuted, put responible for their acts, losses recovered where possible, wait a couple of years for new ethics in loan-strategy, and then privatize the things to a new generation of bankers, within a framework of global laws;

I'm affraid Obama can not tackle the bank-lobby;

Today the Fortis shareholders decided to keep the bank nationalized; Probably a wize decision.

#8
xNELLIEx - 11 Feb 2009 // 04:37:04

That plan is a joke. All the smart people are saying that you can't spend your way or borrow your way out of this recession, because too much borrowing and debt is what caused it in the first place.

Or maybe the market is coming around to the harsh realization that its not so easy to fix the general mess created by years of essentially false prosperity, all fueled by a housing bubble. Let me say also that I recommend getting out of the NY area to really understand the depth of the problem. I was on the west coast of FL a few mos ago and can tell you that the housing situation is ugly beyond belief.

#9
mitko___ - 10 Feb 2009 // 23:43:42

ahhh the free market....

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