HFBoards

Go Back   HFBoards > NHL Western Conference > Pacific Division > Arizona Coyotes
Mobile Hockey's Future Become a Sponsor Site Rules Support Forum vBookie Page 2
Notices

850 Billion Bailout (economics, not politics)

Reply
 
Thread Tools
Old
03-18-2009, 06:54 PM
  #126
indczn
Registered User
 
Join Date: May 2008
Posts: 1,439
vCash: 500
Quote:
Originally Posted by yakko View Post
It's a shame so few in the media are willing to re-frame the arguments in terms of percentages instead of fanning the flames of anger over small percentages of the total amount.
Don't bite the hand that feeds.

Edit: I'm sure the media personnel can't perceive the giant numbers as well.

indczn is offline   Reply With Quote
Old
03-18-2009, 09:20 PM
  #127
TeamTippett
Formally TeamTurris
 
TeamTippett's Avatar
 
Join Date: Jan 2007
Location: Phx
Country: United States
Posts: 5,325
vCash: 500
Quote:
Originally Posted by Matzel View Post
That may all be true but the money currently being used to 'bail out' the AIGs and GMs of the world is money that comes largely from middle class Americans. The same people who may not have gambled on housing, signed 0-down/sub-prime-mortgages or amassed obscene credit card debt and 'played it safe' their whole life.

.
Well technically all of this is funded by debt, of which the Chinese and anyone with millions of dollars purchases and funds some of these bail-outs. “Presumably” We will be paid back. Laugh all you want but have you seen what our investment in Citi is returning today? It’s up 300% from a low of .97 cents closed today at $3.08. We have stock warrants for all these banks, I have no idea the specifics. But I honestly believe when the dust settles we will reap massive benefits when we go and sell those stocks on the open market.

Other portions, like announced today by the Fed Reserve, Where the Fed (brilliantly I may add) purchasing Treasury Bonds. This has an effect of driving down bond yields, when combined with a near 0 Fed Funds rate, means mortgages are headed to about 4% for the Middle Class, so illuminate me as to how the middle class is beings screwed any more than anyone else?

Quote:
Originally Posted by MP View Post
Agreed. The chairman of the Fed has suggested that the recession could end this year and recovery could begin in earnest by 2010, but lenders have to start lending again and the market has to return to some kind of normalcy, and the government can help to bring that about. It's worth paying for that, from my layman's perspective.
Well for the most part, like mentioned above, the Fed is literally forcing banks to lend. Look when treasuries are yielding in the neighborhood of 0-3% (depending upn the duration) it’s generally perceived to be a bad investment, especially when we reinflate. When combined with that 0% fed funds rate, were seeing the credit markets easing and capital flowing again. Banks can sit on cash all they want, but their loosing with these historic yields. Why do we get an announcement from JP Morgan last week saying they expect to be profitable in Q1? Why? Because money is so cheap, I borrow it at effectively 0% lend it out at 5-6% maybe more if it’s credit card, and it’s pure profit. That’s the Genius of the Ben Bernakie Plan. Why do you think we have seen a Stock Market Rally this past week plus?

Look banks aren’t going to give College kids with no jobs CC, no more 105% Loan to Value on your Home, banks are going to be more prudent. Sometimes there are people that despite themselves, shouldn’t be allowed to acquire more debt, Scottsdale is filled with them. I got a new CC just a month ago, just fine.

I believe were beignin to see the light at the end of the tunnel. (remember the Stock Market is a leading Indicator, unemployment is a lagging). I know Synergy and others may disagree, but confidence is being restored because of all the bail-outs. The Treasury TALP plan just came out, were Stress Testing the banks as I type this. (still don’t know what a stress test is beyond it assumes a scenario of unemployment of 10.5%) Were doing all the right things. Doing too little would prove to be disastrous IMO. In hindsight we could have handled things differently with the bonuses.

TeamTippett is offline   Reply With Quote
Old
05-18-2009, 09:40 PM
  #128
TeamTippett
Formally TeamTurris
 
TeamTippett's Avatar
 
Join Date: Jan 2007
Location: Phx
Country: United States
Posts: 5,325
vCash: 500
Hey FYI
http://www.cnbc.com/id/30815526
Goldman Sachs & Morgan Stanley are repaying what was borrowed from the TARP and tax payers. Other institutions are lining up to pay it back. They want to pay it back because they realize being in business with uncle Sam is fraught with pit falls.

While it's way-way too early to know if this is reflective of a trend; but I did say early on that we would make money on this ala the Resolution Trust...guess we will see.

TeamTippett is offline   Reply With Quote
Old
05-18-2009, 10:53 PM
  #129
SniperHF
Global Moderator
Desert Ranger
 
SniperHF's Avatar
 
Join Date: Mar 2007
Location: Phoenix, Arizona
Country: United States
Posts: 14,807
vCash: 500
Quote:
Originally Posted by TeamTurris View Post
Hey FYI
http://www.cnbc.com/id/30815526
Goldman Sachs & Morgan Stanley are repaying what was borrowed from the TARP and tax payers. Other institutions are lining up to pay it back. They want to pay it back because they realize being in business with uncle Sam is fraught with pit falls.

While it's way-way too early to know if this is reflective of a trend; but I did say early on that we would make money on this ala the Resolution Trust...guess we will see.
Stupid question, if the Government can virtually force a company like Wells Fargo to Take the money, couldn't they theoretically prevent such companies from paying it back claiming it is "too soon".

Example: Morgan Stanley goes to the treasury dept and says, okay we took your money stabilized and now we think we can hold our own here is your cash back Sam. Sam says, WE looked at your books too and disagree, you are stuck with it until such a time of OUR choosing. Have a nice day.


SniperHF is offline   Reply With Quote
Old
05-19-2009, 12:02 AM
  #130
TeamTippett
Formally TeamTurris
 
TeamTippett's Avatar
 
Join Date: Jan 2007
Location: Phx
Country: United States
Posts: 5,325
vCash: 500
Quote:
Originally Posted by SniperHF View Post
Stupid question, if the Government can virtually force a company like Wells Fargo to Take the money, couldn't they theoretically prevent such companies from paying it back claiming it is "too soon".

Example: Morgan Stanley goes to the treasury dept and says, okay we took your money stabilized and now we think we can hold our own here is your cash back Sam. Sam says, WE looked at your books too and disagree, you are stuck with it until such a time of OUR choosing. Have a nice day.

yes we will have to see what the Treasure says, but I believe Goldman passed the Stress Tests, but the important thing to note is that Morgan and Goldman (Goldman being one of the last true investment banks left) Both were not req'd to take TARP Moneys (unlike a Wells) but rather both applied to become a "Bank Holding." company in order to have access this past fall to TARP. Both being able to pay it back (plus some) demonstrates that perhaps the TARP may have worked; help ailing banks prop up their balance sheets until a better time when they can raise capital in the privet markets to pay it back. Clearly capital markets have begun to thaw and while no one has a crystal ball, I truly believe without the Gov't massive intervention the recession would have been a depression and the Coyotes financial troubles would not be of a concern to anyone on these boards right now. I know we all won't agree, but I am a Keynsean Economist.

TeamTippett is offline   Reply With Quote
Reply

Forum Jump


Bookmarks

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off



All times are GMT -5. The time now is 10:26 AM.

monitoring_string = "e4251c93e2ba248d29da988d93bf5144"
Contact Us - HFBoards - Archive - Privacy Statement - Terms of Use - Advertise - Top - AdChoices

vBulletin Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
HFBoards.com is a property of CraveOnline Media, LLC, an Evolve Media, LLC company. 2014 All Rights Reserved.