Biggest Bailout Ever: Did the Government Go Too Far?

[om3ga]

We can't say we weren't warned.......

In April 2008, the International Monetary Fund (IMF) warned that potential losses from the credit crunch will reach $945bn (£472bn) and could be even higher.

The IMF said that losses were spreading from sub-prime mortgage assets to other sectors, such as commercial property, consumer credit, and company debt.

It said that there was a "collective failure" to appreciate the risky borrowing by financial institutions. And it warned that tough measures and government intervention may be needed.

The IMF report blamed lax regulation by governments and poor supervision by banks for allowing the situation to develop.

And it warned that national governments must prepare contingency plans "for dealing with large stocks of impaired assets" if "writedowns lead to significant negative effects on the real economy". The report is sharply critical of banks and other financial institutions, which it accuses of "excessive risk-taking" and "weak underwriting" .

Credit crunch costs '$1 trillion'

 

[titsrock]

I distinctly remember Dennis Kucinich in one of the early Democratic Presidential Debates warn the audience that the Housing Market was going to ultimately lead to the U.S. Tax Payer bailing out Hedge Funds.

We all need to pay attention to see if Hedge Funds start to get mentioned as being part of this $700 Bil bailout.

I believe the debate was on CNN and I wish I knew someone in CNN to cue up the debate footage and we can "remember" exactly what Kucinich said. It seems that we're on the doorsteps of the Hedge Funds right now--based on bailing out the banks and investment banks like we are doing now. Are they next?

 

[om3ga]

I distinctly remember Dennis Kucinich in one of the early Democratic Presidential Debates warn the audience that the Housing Market was going to ultimately lead to the U.S. Tax Payer bailing out Hedge Funds.

We all need to pay attention to see if Hedge Funds start to get mentioned as being part of this $700 Bil bailout.

I believe the debate was on CNN and I wish I knew someone in CNN to cue up the debate footage and we can "remember" exactly what Kucinich said. It seems that we're on the doorsteps of the Hedge Funds right now--based on bailing out the banks and investment banks like we are doing now. Are they next?

That's the problem with historic events - the warning signs are always overlooked.......until it's too late.

:dunno:

 

[maildude]

I heard some of the GOP pundits saying yesterday that this is Clinton's fault for pushing for low-cost housing loans favoring the lower-income folks. Maybe some of it is. But who the hell thinks it's a bad idea to help those people out? Maybe it was the fault of the banks in general to not provide contingency programs in case this happened, instead of just sucking up the fed's money.

 

[LBP 76]

With all due respect to those people in favour of this bailout; can someone please show me some proof that this is a good idea?

A good part of me is hoping someone can.

 

[Friday on my mind]

I heard some of the GOP pundits saying yesterday that this is Clinton's fault for pushing for low-cost housing loans favoring the lower-income folks. Maybe some of it is. But who the hell thinks it's a bad idea to help those people out? Maybe it was the fault of the banks in general to not provide contingency programs in case this happened, instead of just sucking up the fed's money.

Ok but if the GOP thought it was a bad idea they did have 6 years of control of both the white house and congress to change that.I'm not saying both parties did not probably advocate and do some things to get us here but lets be clear on who has been in charge the last 8 years and who is known as the party of deregulation and hands off the way buisnesses are run,that would be the republicans.