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Bailout doubts already

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MrBurns

MrBurns

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From the Business Today site -

Rick Klusman, head of institutional trading at Aequs Securities, predicts the market will rally sharply early and then fall away because the US is expecting a weaker open on Wall Street.

Fears the $US700 billion financial services industry bailout will fail to solve the global financial crisis have US investors betting that Wall Street will fall when it opens this evening Australia time.

Dow Jones futures are currently down 138 points, according to Bloomberg, to 11,217.

''People don't think it will work,'' he said. ''Generally the view is that intervention won't work but will only delay the problem.''

In fact, the bailout plan overseen by US Treasury Secretary Hank Paulson, must still get congressional approval, where a number of Democrats have voiced interest in attaching protections for US homeowners facing foreclosure and caps on executive pay.
Click to expand...
 
DOW

FUTURES FUTURES FAIR VALUE (42.44)

11388.44 11247.0 -112.00 11401.44 11247.0 -154.44


S&P 500

FUTURES FUTURES FAIR VALUE (11.78)

1255.08 1236.5 -9.50 1257.78 1236.5 -21.28


NASDAQ

FUTURES FUTURES FAIR VALUE (17.41)

1745.06 1726.5 -13.00 1756.91 1726.5 -30.4
 
Green08 said:
Quite an interesting site with real facts on the USA and what will happen.

http://www.marketoracle.co.uk/Article6364.html
Click to expand...

I think the Fed are betting if they can turn this around then property valuations will stop dropping and more money won't be needed.

If this doesn't happen then God help us all.

I like the quote:

As President Bush said today, it does not help to find who is at fault today, we have to figure out how to get out of this mess. It is going to cost the taxpayers a lot of money
 
As President Bush said today, it does not help to find who is at fault today, we have to figure out how to get out of this mess. It is going to cost the taxpayers a lot of money
Click to expand...

I thought they'd already worked that out, there goes Bush again telling the truth by mistake.

All they can do is work the confidence trick, they cant fix this it has to run it's natural course.
 
There was an item on "The World Today" suggesting that the bail out in the US will include all debt!, i.e. including credit card debt, student loans, everything!!

Surely that couldn't be right?
 
Julia said:
There was an item on "The World Today" suggesting that the bail out in the US will include all debt!, i.e. including credit card debt, student loans, everything!!

Surely that couldn't be right?
Click to expand...

Wow, the joy of living in the US of A. Can I emigrate there with my credit card debt? Heaven on earth.:p:
 
Whats with how all the reports refer to the bailout document as a 'three page' document. "The treasury released the 3 page proposal". Read the "3 page" bailout proposal here.

Wow - three whole pages - thats so long you can't even read the whole thing out on a cnn video grab - it must be pretty detailed. Congress can vote on it but it'll have to be in three weeks time after Bush has managed to get through the whole document. (someone tell him which way up it goes first though.).
 
I really think Bush would understand if it was read to him slowly like on 9/11. Put him in a little chair and have him listen while he tries not to "blink".
 
Reminds me of that famous quote when he first took office.
"The dashboard of the economy has a few red lights right now"

I actually liked that quote.
 
They surely couldn't include credit card debt and all student loans.3

You'd have to wonder what people that have managed their household debt in the USA with normal loans and are still paying it off would have to think. Maybe they still have time to switch to a bad loan ;). (Actually I also wonder what rate people in this situation could get in the near future).

I can kind of see where they are coming from, if the debt ladden companies go belly up, there's a chance they could reclaim nothing of the principal. Whereas at least they'd be getting at least the % of what the house is worth at current values (in a worst case situation). I might be revealing my lack of knowledge here, so I'll assume that debt never dies in the meantime.
 
Might as well give every woman and children in America $1 million each and get this over and done with. Why do it bits by bits?
 
Temjin said:
Might as well give every woman and children in America $1 million each and get this over and done with. Why do it bits by bits?
Click to expand...

LOL! You mean give them a 1 Million Dollar bank loan each!
 
"The list, which includes nearly 800 stocks temporarily banned from short selling, was clearly put together in a rush and includes several stocks that are not in the financial services sector - such as a Nigerian aviation company - as well as some that are no longer trading":eek: - By CNBC.com | 19 Sep 2008 | 04:12 PM ET There are thousands of credit institutions in the USA.

and with these ones not on the list

AIV....APARTMENT INVT & MGMT CO

AVB...AVALONBAY COMMUNITIES INC

AXP ....AMERICAN EXPRESS FINANCIAL

BXP....BOSTON PROPERTIES INC

CBG....CB RICHARD ELLIS GROUP INC

CIT....CIT GROUP INC

COF....CAPITAL ONE FINL CORP

DDR....DEVELOPERS DVSFD REALTY CORP

DFS....DISCOVER FINANCIAL SERVICES

EQR....EQUITY RESIDENTIAL

FITB....FIFTH THIRD BANCORP

GGP....GENERAL GROWTH PPTYS INC

HCP....HCP INC

HIG....HARTFORD FINL SVCS GRP INC

HST....HOST HOTEL & RESORTS INC

IVZ....INVESCO LTD

KIM....KIMCO REALTY CORP

LM....LEGG MASON INC

MET....METLIFE INC

MMC....MARSH & MCLENNAN COS INC

MTB....M & T BANK CORP

PLD....PROLOGIS

PSA....PUBLIC STORAGE

SPG....SIMON PROPERTY GROUP INC

VNO....VORNADO REALTY TRUST
 
".....bailout tab to $1.8 trillion.

Following are details of actions, proposals and amounts:

—Up to $700 billion to buy assets from struggling institutions. The plan is aimed at sopping up residential and commercial mortgages from financial institutions but gives Treasury broad latitude.

—Up to $50 billion from the Great Depression-era Exchange Stabilization Fund to guarantee principal in money market mutual funds to provide the same confidence that consumers have in federally insured bank deposits."

They actually still had a Fund running from the Great Depression?

http://riskmoment.com/ralm/2008/09/...hange-stabilization-fund-to-the-rescue-again/
 
deadset said:
Reminds me of that famous quote when he first took office.
"The dashboard of the economy has a few red lights right now"
Click to expand...

An update of the current situation by George Bush
"Somebody has stolen the dashboard
There are holes in the fire wall
The engine is on fire
But dont worry folks, we are going to extinguish the flames with some gasoline."
 
What makes me sick it that they are doing this all to save face. The one stupid face of Bush the most un-American of all Americans.

With all this money just materialising think of what they COULD have done to assist their country in health care, education etc...........................

Does this put "the greatest nation on earth" on a path to stagflation?

I know our government put $1.5 billion in the float scheme. Hey what about the people!

It is a simple process, look after your helath, look after your family and it branches from there.

I'd love to ask as these politicans in USA who are so devout and looking quite stressed these days - is this Part of God's Divine Plan? Must be as everything else is....do unto others as others have done to you......
 
Green08 said:
What makes me sick it that they are doing this all to save face. The one stupid face of Bush the most un-American of all Americans.

With all this money just materialising think of what they COULD have done to assist their country in health care, education etc...........................

Does this put "the greatest nation on earth" on a path to stagflation?

I know our government put $1.5 billion in the float scheme. Hey what about the people!

It is a simple process, look after your helath, look after your family and it branches from there.

I'd love to ask as these politicans in USA who are so devout and looking quite stressed these days - is this Part of God's Divine Plan? Must be as everything else is....do unto others as others have done to you......
Click to expand...

Agree, these guys can stump up to bail out the big end of town, yet the health care system is shot. Unbelievable
 
Green08 said:
What makes me sick it that they are doing this all to save face. The one stupid face of Bush the most un-American of all Americans.

With all this money just materialising think of what they COULD have done to assist their country in health care, education etc...........................

Does this put "the greatest nation on earth" on a path to stagflation?

I know our government put $1.5 billion in the float scheme. Hey what about the people!

It is a simple process, look after your helath, look after your family and it branches from there.

I'd love to ask as these politicans in USA who are so devout and looking quite stressed these days - is this Part of God's Divine Plan? Must be as everything else is....do unto others as others have done to you......
Click to expand...

I agree im fact I heard a comment yesterday that made me sit up, The US couldn't find the time or money for Global Warming but the minute their buddies on Wall St are in trouble all of a sudden they have found a spare Trillion, I don't even know if Global Warming is a reality but it proves the point that they can find the money when they want to.
 

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