gross from pimpco says the purpose of the bailout is for inflation down the road...i guess meaning our dollar will be worth alot less ..hyperinflation?


assume...you make an ASS out of U and ME

Karl even in theory I don't get how this "New Toilet" RTC2 thing will not acheive the opposite effect and cause an immediate mark to market of this trash. CNBC panel discussed offloading to this @ 30 cents on the dollar. Does this not instantly take a Level 3 assett and bring it on the books at this price acheiving price discovery which is something you've been wanting, but at an artifically inflated rate, making the institutions under lawful capitalization and also set a panic price for bond fund managers who must now liquidate and cause instant losses for there clientele?? Only way this could even delay the issue is if the traded to the toilet at par, is this not so.

It will Storm.

There are all sorts of nasty unintended consequences here.

Believe me, this is the worst of all worlds, and either Paulson is STUPID or Machiavellian and INTENDS to cause a crash.

bill gross is a piece of ****...he expected to be called to head the rtc..AAAAASSSSHOOOLEE

Yep, the government (we the people) just got creamed again by private enterprise.

Quote:

Welcome To The USSA

Nope- The system just became more capitalistic because the government took on a liability not an asset. (taking over assets is socialism).

2 points for the Pigmen, -1000 for the aggregate.

The government is officially an arm of private enterprise.

Guys, the simple answer is the government looks at each and every families finances, analyzes the balance sheet, income statement, etc. and decides how much you need to live on. Any assets over and above those that are necessary to maintain the standard of living they deem you deserve to live at, will be confiscated. Also all income generated from your labor will be taxed as to allow you a necessary standard of living as determined by your elected officials and the rest will go to the treasury. How hard is this to understand.

I've heard on blogs the governments intentions to crash the market and crush the dollar so they can bring in the amero for cents on the dollar. i know its a crazy thought, but worth thinking about (and, possibly preparing for)....

side note with the hosing going on...

In Utah, you do pay sales tax on a used car when you register it....go figure....

Gen, the unfair thing about the consumption or fair tax is that it really would screw the upper middle class individual. The poor get the break and the rich if they don't spend get a break. I would support it in conjunction with a income tax that kicks in say at 15% across the board. You could use that to replace the current social security tax.

I just called Sen Dodd's office in DC and relayed my outrage to the boy who answered my call. My other unsenator will simply do what is in his best interest. The comment from europe saying that angry mobs would be in their streets if this were happening to them makes me so sad for what has become of independent spirit here. NOT here on TF, this is my solace, but in our country.

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Gen, the unfair thing about the consumption or fair tax is that it really would screw the upper middle class individual. The poor get the break and the rich if they don't spend get a break. I would support it in conjunction with a income tax that kicks in say at 15% across the board. You could use that to replace the current social security tax.

No it doesn't.

You don't have to live a $250,000 lifestyle even if you make $250,000.

Remember, you pay no tax on INCOME - only consumption.

Karl the markets are rallying on this bailout plan, but has any official release described how it is intended to work? It doesn't sound like the Treasury is going to offer par for these instruments. Regardless of the actual viability of the plan, what is the "PLAN"

No official release ... there's not even a Bill yet.

Thank God for Gen and Ticker Forum !!

This lastest ploy by Bernanke and Paulson will end very badly.

I just finished faxing Ted Kennedy, John Kerry, and McGovern in Mass.

If it wasn't for Karl, I wouldn't have a clue as to what is truly happening to our country and we the Tax payers.

I have forwarded todays Ticker to all family and friends.

I just sent some stuff in for Obama (from Canada)...doing the best we can here...

Gen,

Read it. It is indeed a good tax proposal but not enough.

We have to make the people who benefited from the past 8-10 years of roaring R/E prices pay. There are those who have so much but can never consume so much...

Gen,

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There are all sorts of nasty unintended consequences here.

Can this plan actually work ?

What are the mechanism they will have to use ?

How such mechanisms lead to a crash ?

The fair tax is a dead issue.

Not that it's not a good idea, just that look at it, it encourages thrift and savings.

Corporate America would fight it with such a ferocity they'd pull a figurative gun on anyone trying it, you do that we'll crash the economy right now, that seems to be working for them lately anyhow, they'll run that play til it dosen't work anymore.

We've been sucked into a fascist vortex, we're owned lock stock and barrell, the correct designation is USA inc.

<<we're owned lock stock and barrell>>


And our output is pledged to the bondsmen - forever.

Gen I've been reading here over a year, and posted some pretty stupid posts (mostly after at least four beers)

But I did a rather foolish thing yesterday, told the girl I'm trying to impress about heavy **** going down next week, really heavy ****, and I'd guess I look like a whack job to her right now, that was just before Paulson et al pulled the suprise sticksave out of their ass, the veneer is pretty thin on it, underneath it surely is a turd but now it could kick the can quite a long way down the road?

I hope you're right, she will be mighty impressed at my forecasting abilities... if I'm wrong another black mark on my already shaky record
Oh, she's moving to the states in a couple of months, a crash might scupper that plan, therefore I have 'skin in the game' more than money!

PS I still crack up every time I see 'Lucifer poked his head into the tent' as a camper that totally cracks me up every time, lol. More of this please!

That generational opportunity was Wednesday with the 100 print.

After the shorts and hedgies get crushed, there will be nothing to force a covering rally.

So some bad piece of news will cause stocks to drop, and there won't be anything to stop them. The drop will get lower and lower, until people are texting each other at the office, and they all pull their 401ks into Ts.

This will be The Crash.

Of course with the 2T to 10T in debt Hank just signed on, that won't be a good investment for long. There will be more failures and more bad paper until Hank takes it all on. Trillions of it. Eventually Chindia and the ME will create a new currency and we get obliterated.

When the tally is complete, I'm Certain that the number will not be 2-10T. I'm certain more like $20T and then some. We're talking everything here, not just the last 24 hours ... although that is the biggest share.

So ultimately my question is, does this cause capital flight? Or is this seen as a move to strengthen and we will end up with a "flight to quality".

Thinking through this makes my brain hurt a bit.....

Still one good thing Paulson did was banning short selling. Short selling should be banned in all stocks. ... at least in it's current form.

Say a company has 100 shares outstanding and floating. Today, unlimited numbers of shares can be sold short. IN other words 100 shares can be shorted multiple times. I don't know if DTC is doing a good job. Then there is naked shorting. If a company is paying serious dividend then the short sellers have problems otherwise it's free money for them. PIPE financing uses nakes short selling concept to destroy start ups. How many investors have been fleeced by this scam, I don't know. it's fair to say that several startups have been doomed and several investors have been burnt.

Stock market was created to enable companies to raise capital, flourish and reward investors. Short selling has turned it into a tool for hedgies to pilfer those funds. Therefore I say NO to all short selling. I am sure other will disagree.