Monday, September 29, 2008

1.4 trillion bail out plan was sent to Congress ... not just 700 billion

Roubini (PhD Economics, professor)reminds us that this just isn’t the $700 billion plan being sent to Congress today, there are other bailouts as well:
Bailout plan $700B
FHA/Housing $300B
Term Auction Loans $200B
JPMorgan repayments $87B
AIG takeover $85B
Money Market Insurance $50B

Roubini says the bailout might be good for the market to rally for a few days, but then "fundamentals will kick in". Losses will continue. He says "it’s expensive, and doesn’t do the job."
Just how expensive? Roubini says that this will cost us $37,000 for every man, woman and child in America. How are we supposed to go buy homes and save the housing market when we’ve got a bailout to pay for?

I wonder how long the "no-voters" can keep it up? 2 days, 4 days?
No, they will vote yes pressured by the public that as always was MISinformed regarding the bailout. Wallstreet will rally a few % and then crashes down like 1929. A bailout doesn't solve the problem, it SHIFTS the problem from the banks to you, me and John Doe.
A bailout postpones the inevitable, invest accordingly.

No comments: