Comments on: “When Big Ben Speaks….”

By: Who Did They Think They Were Kidding? : NO QUARTER

Who Did They Think They Were Kidding? : NO QUARTER — Mon, 19 Jan 2009 02:16:57 +0000

[...] “When Big Ben Speaks . . .” (January 14, 2009) What does this mean? The banks need more money along with government guarantees against further losses from their deteriorating portfolios. To wit, Citigroup is selling divisions to raise capital. How will those government guarantees be structured? Potentially the nationalization of a banking institution, like Citi, or the splitting of Citi and perhaps other banks into “good banks” and “bad banks”. The “good banks” will house the day to day operations, while the “bad banks” will house the toxic and deteriorating assets and will be capitalized by, you guessed it, “Uncle Sam!” [...]

By: Wisewoman

Wisewoman — Thu, 15 Jan 2009 17:10:42 +0000

Hillary’s suggestion should have been followed. She also addressed the solution on the floor of the senate. John McCain agreed with heer, Obama opposed the idea. The video and link are below:

In response, Senator Clinton outlined a series of proposals to address the problem:
· Create a new entity to buy up and quarantine toxic mortgage securities that are dragging down the markets which would allow the markets to stabilize. Last spring Senator Clinton was among the first to call for a new entity modeled after the successful Depression-era Home Owners’ Loan Corporation (HOLC) or the Resolution Trust Corporation (RTC) created after the Savings and Loan crisis.

http://clinton.senate.gov/news/statements/details.cfm?id=303208&&

By: Sonic Ninja Kitty

Sonic Ninja Kitty — Thu, 15 Jan 2009 16:33:47 +0000

Thank you very much for both your replies. It is very helpful to get many different opinions and yours are always thoughtful.

By: LD

LD — Thu, 15 Jan 2009 14:05:39 +0000

I do think that our markets will retest the lows seen on November 20th. Those lows are approximately 8-10% below yesterday’s close.

Given how quickly things are developing it is very possible that they actually take out those lows. In fact I think we will move to DJIA 7000 which was last seen in 2003. That would be approximately 15% below yesterday’s close.

Please understand though that I am not a professional financial planner nor promoting day trading activities. Every individual needs to address their own overall financial situation, assess their comfort with risk, their short term cash needs, their long term goals, their time horizon (meaning age), and then determine what to do.

I hope this helps.

By: LD

LD — Thu, 15 Jan 2009 13:58:42 +0000

Sonic Ninja…I will say that whenever I listen to Ron Paul, I come away thinking that he makes a lot of sense. I do believe that he wants to promote real FISCAL COURAGE, which we need now more than ever.

Regrettably too much of our political process in this country is rooted in excessive money supporting incumbents.

I do think we need a strong and viable third party.

By: LD

LD — Thu, 15 Jan 2009 13:11:30 +0000

not sure what this has to do with the economy ….but thanks for sharing…

By: elise

elise — Thu, 15 Jan 2009 05:20:44 +0000

Mr. Doyle, it isn’t comforting when our PE is on the news everyday talking about how bad things are and congress is divided over how this “package” will or will not work. I know you would not deliberately create fear or mislead, but I don’t have the same faith in politicians. I read a book last year by Naomi Klein, The Shock Doctrine, and that book scared me more than anything you can say because it is her theory governments use or “create” disasters simply in order to make changes they otherwise would not be able to pull off. It feels like what we have been getting from Bush et al for the last seven years except his topic is the “War On Terror”. The result is the same. Americans have given our approval to the trashing of our Constitutional rights so forgive me if I’m a little paranoid at this point. I’ve always wondered why Thomas Jefferson hated banking and warned against it so many times. Sincerely, thanks for the information in this and your other posts. When Bernake or Paulson talk, I don’t even bother to listen because I can’t understand what they’re saying and wouldn’t believe a word if I could.

By: ritamary

ritamary — Thu, 15 Jan 2009 04:43:55 +0000

I second that – GO RAVENS! Who would have thought at this time last year the Ravens would find a strong and steady leader in a young rookie quarterback named Joe Flacco. Joe Flacco for President in 2012!

By: Shonester

Shonester — Thu, 15 Jan 2009 04:30:20 +0000

“The Curious Case of (Radical) Hamas”

http://www.youtube.com/watch?v=mWzvgFei_C4

CHECK IT OUT!

By: MBC

MBC — Thu, 15 Jan 2009 04:16:40 +0000

I bet it is Rep. Kaptur (sp) from OH. She had some great arguments during the first bailout.

By: rolling_thunder

rolling_thunder — Thu, 15 Jan 2009 04:13:07 +0000

Indeed the dollar will take a long slow dive in value. Let the printing presses roll. {snark}

By: Sonic Ninja Kitty

Sonic Ninja Kitty — Thu, 15 Jan 2009 04:06:04 +0000

Also, noting a comment you made to Elise above, do you think the stock market will go further down, or is this more about layoffs and later inflation?

By: Sonic Ninja Kitty

Sonic Ninja Kitty — Thu, 15 Jan 2009 03:58:30 +0000

Dear LD, What do you think of Ron Paul’s stance–in particular to abolish the Fed…? I am seriously thinking of joining the Campaign for Liberty even though such solemn platforms have no ‘hope’ of ever getting a candidate elected. His ideas make great sense to me although they would involve truly radical change.

By: rolling_thunder

rolling_thunder — Thu, 15 Jan 2009 03:57:36 +0000

Oh and she says, “Stay in your home. Don’t leave. No one knows who owns your note, so no one can kick you out.” That’s some ovaries.

By: rolling_thunder

rolling_thunder — Thu, 15 Jan 2009 03:55:31 +0000

We understood the money was to be spent to stop foreclosures by helping primary resident owners from losing their homes and re-negotiating loans at a lower interest hence making existing loans held by banks to be secured, turning bad loans into good loans

Yep. And many in Congress know this and are beginning to stand up and fight back.