Comments on: TARP and Fed facilities unravel http://blogs.reuters.com/great-debate/2008/11/13/tarp-and-fed-facilities-unravel/ Thu, 21 Jul 2016 07:57:19 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: TruthSeeker http://blogs.reuters.com/great-debate/2008/11/13/tarp-and-fed-facilities-unravel/#comment-3286 Tue, 16 Dec 2008 02:19:40 +0000 http://blogs.reuters.com/great-debate/?p=430#comment-3286 Lynn Tilton (CEO of Patriarch Partners) was on CNBC Squawk Box on Friday…relevant insights to this discussion…Fixing the Financial Crisis: The truth of the situation can be ignored no longer (http://www.cnbc.com/id/15840232?video=9 60926779.)This is the same woman who predicted the financial crisis on Bloomberg TV back in 2006 (http://www.blinkx.com/video/lynn-tilton -on-bloomberg/87JL8lMSQmrDI4ALaa5zdQ) so perhaps she’s worth listening to now.She proposes direct lending to businesses through a new “Provisional Federal Bank (http://www.patriarchpartners.com/Lynn_T ilton_WashPost_NYT.pdf)”…Liquidity must be made available not solely to big banks where Treasury-injected capital has been amassed to fill the cavity left by gambling losses, but rather expressly to deserving American companies and their people who will reignite our sputtering economy. A provisional Federal Bank must be initiated to foster enterprise and to provide job opportunities for every American.”

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By: Jim Kirby http://blogs.reuters.com/great-debate/2008/11/13/tarp-and-fed-facilities-unravel/#comment-1748 Sun, 23 Nov 2008 10:37:39 +0000 http://blogs.reuters.com/great-debate/?p=430#comment-1748 I think that we have to tackle the crisis at its roots, which is the price of housing. The lower the price goes, the more people enter into a position of negative equity in their house. The only way to prevent further falls in the price of housing would be to stem the flow of foreclosures and the subsequent sale of the houses a distressed prices, which affects the price of every house in the area.Instead of giving the money directly to the banks bailout money should be used to buy back the mortgages that are in distress. It would be unfair to bail out only those individuals who are unable to pay their mortgage. This would penalize those we bought a house they could afford. However, it would not be unreasonable to negotiate a rental agreement with the current occupants of the house that reflected their ability to pay. For those who are not simply speculators this would allow them to stay in their current house, but they would not build up equity as their more prudent neighbors will be doing.Details remain to be worked out, such as the pricing formula and in the terms of the rental agreement. If the scheme is restricted to those currently living in the house the impact on the rental market should be manageable. Some way of preventing, or reducing the amount of “key money” from being exchanged would have to be found.Is the supply of rental accommodation also in surplus?

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By: M. Craig Kernan http://blogs.reuters.com/great-debate/2008/11/13/tarp-and-fed-facilities-unravel/#comment-999 Sat, 15 Nov 2008 21:04:26 +0000 http://blogs.reuters.com/great-debate/?p=430#comment-999 As an alternative to auto industry bailout it might be better to offer a percentage of low interest financial backing or investment to companies buying bankruptcy automotive assets to produce cars and trucks in this country.This could achieve two main goals:1. It would retain the domestic capability.2. It offer those with better ideas and less stuck in an old “automotive company culture” a chance to change the industry.I believe maintaining a significant domestic automotive capability is essential to national defense. Without such capabilities we would have been hard pressed to win WW II.

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By: COLIN JAMES OBE http://blogs.reuters.com/great-debate/2008/11/13/tarp-and-fed-facilities-unravel/#comment-986 Sat, 15 Nov 2008 14:39:15 +0000 http://blogs.reuters.com/great-debate/?p=430#comment-986 I totally agree that low or even zero interest rates in the US will not help the situation as we go into 2009 companies will fail at a faster rate and unemployment will rise to alarming heights, we should be in no doubt that this will be worse than the great depression, what will make this worse if the likes of General Motors are bailed out and not allowed to fail we cannot keep bailing out these companies the demand is not there for the supply and demand will not get back to levels seen pre 2007 because credit will not be available the rules of the game have now changed think of your parents or grandparents if you could not afford it you could not have it people had to go with out, now the party is over this is what it going like be in no doubt this is going to be extremely painful.

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By: Jeff http://blogs.reuters.com/great-debate/2008/11/13/tarp-and-fed-facilities-unravel/#comment-934 Fri, 14 Nov 2008 19:57:58 +0000 http://blogs.reuters.com/great-debate/?p=430#comment-934 How does an economy continue to grow and expand when the key drivers of the economy, the middle class consumer, has experienced real wage stagnation for over 10 years? By spending money which they have not earned – debt. Debt they are not qualify to obtain, but do so through reduced / eliminated borrowing requirements. That debt was backed by housing prices which were / are artificially inflated due to artificial demand (home loans to those who are not qualified or able to pay drives up demand). This works for a while, but at some point the consumer runs out of money and credit then:- default on home loans- Home prices fall- spending stops- economic contraction.Even if lending is freed up, there will be no qualified borrowers.Bottom line – the economy will not turn around until1. housing prices come in line with average income (median income = $48,000/yr affordable house price is 3.5 times median income = $168,000. Current median single family home price = $235,000. We have a ways to go). Once housing prices come into line the economic contraction will stop.2. If we then want economic growth, we need to create jobs which will increase real wages over time. If folks earn more money they will save and spend more money.Unfortunately we have sent a significant number of these jobs overseas. The engineers and bookeepers and factory workers who used to spend and save a good income are now making half of what they used to make. Hard to grow the economy with that happening.

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By: need answers http://blogs.reuters.com/great-debate/2008/11/13/tarp-and-fed-facilities-unravel/#comment-932 Fri, 14 Nov 2008 18:55:37 +0000 http://blogs.reuters.com/great-debate/?p=430#comment-932 Let’s see…Greenspan –> flooding the world with play money –> creating enormous asset bubbles –> economic fundamental out of the window –> game of musical chairs stops –> ???As a private institution, the Federal Reserve has the monopoly on money creation. The question is where is accountability and checks and balances?

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By: Will http://blogs.reuters.com/great-debate/2008/11/13/tarp-and-fed-facilities-unravel/#comment-930 Fri, 14 Nov 2008 18:43:45 +0000 http://blogs.reuters.com/great-debate/?p=430#comment-930 It is not that those in political and economic power don’t get it. They’ve got it and things are going great, for them.check out Michel Chossudovsky or Peter Scot Dale.

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By: Anubis http://blogs.reuters.com/great-debate/2008/11/13/tarp-and-fed-facilities-unravel/#comment-926 Fri, 14 Nov 2008 18:14:58 +0000 http://blogs.reuters.com/great-debate/?p=430#comment-926 When thew Big Three go bankrupt what will be left of U.S manufacturing? New housing is at a virtual standstill. Producing tangible goods is the way societies build wealth. Our society has built an economy based on debt to buy homes, autos and investment”products”. At some pint in time all markets become saturated and demand levels off. For a decade or more GDP growth has been based on profits from the financial sector and services.The challenge is to develop new products( other than just homes, autos and wireless devices) that consumers will buy. Bringing affordable solar panels, hydrogen cell generators, bio-fuels and low current electrical products to the market successfully will solve many of our problems. However, creating demand for such products, in this economic climate, has proven to be impossible.It is clear to me that the previous commentators get it but those in political and economic power do not. High wages paid to defense workers, along with price and wage controls during World War II, created excess income for U.S. workers. Many products were rationed. The American peoples response was to save and buy U.S. bonds which provided more revenue for the war than taxes or Wall Street did. This is what brought the U.S. out of the Great Depression.Free market capitalism, up to this point,has been unable to deliver to this society the things it so desperately needs. We must find a way to lift ourselves(and the world) up, like this nation did for itself in the 1940s, without going to war.

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By: jesse http://blogs.reuters.com/great-debate/2008/11/13/tarp-and-fed-facilities-unravel/#comment-923 Fri, 14 Nov 2008 17:58:53 +0000 http://blogs.reuters.com/great-debate/?p=430#comment-923 Please, the bailout was to give the bankers a new way to line there pockets while we on main street struggle to even feed ourselves. Its disgusting, Our country has been robbed of any kind of lively hood by bernake paulson and the international bankers of the fed reserve. Its time to end the fed and get this country back on its feet.END THE FED

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By: Jonathan Cole http://blogs.reuters.com/great-debate/2008/11/13/tarp-and-fed-facilities-unravel/#comment-922 Fri, 14 Nov 2008 17:58:43 +0000 http://blogs.reuters.com/great-debate/?p=430#comment-922 To me there is a common thread here. The criminals who perpetrated the greatest larceny in the history of the world have us believing this is simply a problem of financial transparency, regulatory policy, and the behavior of consumers.The fact of the matter is that we have been betrayed by the leadership for the benefit of their corporate backers. We really need to wake up here and impeach and remove these people, because they clearly intend to keep on doing the same actions (relieving us of our wealth and the wealth of generations yet unborn) by straight out corrupt practices. Why are we still giving these people the benefit of the doubt?It is almost comical how the public keeps falling for the lies that drag the world deeper into the quicksand. We need to wake up, realize that we’ve been had, bring the perpetrators to book and try to get back on some kind of stable footing. Right now we are on the express train to a major Depression and no one is putting on the brakes.Just the opposite. The forces of greed are lining up to try to get their share of the booty. It’s the new age of piracy, except the pirates are in charge!!

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