Senate hearing on the bailout

refined silver said:

I've said a few times, $700b while absurdly huge, it can't fix a $1.1quadrillion dollar OTC derivatives meltdown.

The problem is 1300 times bigger than the bailout.

If you get a 1% loss in the OTC derivatives (which are all privately negotiated, non-standards, no clearinghouse, depends on the loser in the transaction for payment, etc), thats $11 trillion!!!

Last week the Fed pumped $188b each day into the money markets!!! Thats nearly a trillion already!

Its 4 times the amount of the previous record of $48b per day which was the previous week!!!

http://www.reuters.com/article/ousiv/idUSTRE48O9B920080925

$700b, even though bigger than the entire defense budget, education or health budget of the US, won't come close to fixing it!!!

Its all over. Most people just don't have a clue yet.

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Buddy said:

Maybe you are right cut fish.
However, when I was a lad, or so it goes................
I can actually remember when banks checked your credentials before offering a loan. And you actually had to pay a (substantial) deposit on, say a house or land! If you didnt have a (substantial) deposit, and the ability to pay the loan back, you were told f off - there's the door, sir! As for women taking out loans...........well.........that's another matter..........we dont do that.

I think the word they used in that system was prudential financing, or something like that.

Let 'em sink I say. The whole useless lot of 'em. It's a race to the bottom.

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