Bottomfeeder 244 Posted December 2, 2007 Share Posted December 2, 2007 The free fall of Citigroup was slowed by a cash infusion from the Abu Dhabi, who by the way holds many dollars. This is just a speed bump it what will be a continuos slide to the negative side. Paulson's plan: In short, bankers and loan-servicing outfits are going to lower interest rates on strapped borrowers so they don't lose their houses. How much, how long, and who qualifies are all still up in the air. No doubt, this will sound good to those folks who signed on for mortgages they can't actually afford. It will also look good to politicians angling to score points before the next election, and to bleeding hearts everywhere. It will also look good to select mortgage-industry players -- like Countrywide Financial (NYSE: CFC) and Citigroup (NYSE: C), which could really use a government-led bailout.http://www.fool.com/investing/general/2007...the-public.aspx "When great chunks of that AAA-rated paper turns into something suitable for fan-hitting, don't blame the Federal Reserve when it finally hits." http://www.lewrockwell.com/north/north589.html Link to comment Share on other sites More sharing options...
otterinbham 0 Posted December 2, 2007 Share Posted December 2, 2007 Oh, the biz will probably hit bottom in about 3 months. In the next 30 days, you'll start seeing huge write-offs by the major banks. They're doing this to get these losses off the books so they can begin 2008 afresh. However, the asset positions of these banks remain pretty solid. They just won't be lending money with the abandon that they formerly did. Personally, I'm not terribly upset about a banking bailout. After all, despite the meltdown in the mortgage market, the upside to all this has been a huge upsurge in personal household wealth made possible by inexpensive lending. Even with the short-term disruption in nonconforming mortgages, the overall lasting effect is a very positive one for the economy. That being said, I really think that there has to be a quid pro quo for any kind of bailout--Namely strengthening the FDIC's inspection ability on borrower qualifications. Essentially, a lot of small banks wrote a lot if iffy mortgages to people who probably weren't in a position to buy a house, and then turned around and sold the paper to larger consolidators such as Citi. Link to comment Share on other sites More sharing options...
JohnDeere 0 Posted December 3, 2007 Share Posted December 3, 2007 Other changes would have shortened the workday from eight hours to six, created a social security fund for millions of informal laborers and promoted communal councils where residents decide how to spend government funds Interesting...... Link to comment Share on other sites More sharing options...
Tigermike 3,055 Posted December 3, 2007 Share Posted December 3, 2007 Other changes would have shortened the workday from eight hours to six, created a social security fund for millions of informal laborers and promoted communal councils where residents decide how to spend government funds Interesting...... See you followed and read his links, which I don't. Interesting to say the least. Doesn't that sound a little socialists? At the least it sounds like they would like the U.S. to be on par with that world economic leader,,,,, France. Link to comment Share on other sites More sharing options...
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