US Treasury to buy Equity ... Woo hooo !!! Breaking on CNN

[TheCoxwain]

Nationalization !!!!!!



YEAH BABY !!!!


UBER-CAPITALISM can KISS MY ASS

[cottonseed]

1. Today we are all comrades.

[TheCoxwain]

2. I am gald this was initiated under BUSH ...

Conservatives will have nothing to shout about ...


HAHAHAHAHAHAHAHHAHAHAHAH

[redstate_democrat]

3. Hell, we already have the gulags, this is the obvious next step

Bush et al can kiss my black ass. Capitalism, free market my fucking ass. As soon as the shit hit the fan...

[BuyingThyme]

4. Congress has no right giving this fool the power to do this.

[high density]

5. What equity?

edit: Oh, financial stocks.

[TheCoxwain]

6. Insteading of buying Bad assets .. the teasury will buy stake in the banks

that will infuse capital and will regulate the banks..


This is a very good deal for the Tax payers...

[Alhena]

8. Exactly- I think Krugman proposed this as the best option

[Truth2Tell]

10. will regulate the banks

right after this...

[high density]

13. What size stakes?

A 10% stake (for instance) isn't going to do anything but bring up the share price temporarily. Are the banks generally going to issue more stock? I know Bank of America was itching to do so.

[TheCoxwain]

15. it has nothing to do with share price .. but the working capital for the banks

the thin balance sheets will look a lot more healthier and bank will have more confidence in making short term loans..


basically this will help unfreeze the credit market

[muriel_volestrangler]

19. Issuing more stock should be the idea

which would put the price down a bit, since any future profits would have to be shared with the new stock.

The theory behind the British move to do a similar thing is that there's a 'safe' ratio of capital to loans, that banks have moved from. So they either sell the dodgy loans to the government, or the government puts money in as new captial (which will require less money), to get back to the 'correct' ratio.

It seems to me, though, that a certain ratio is 'safe' only if the bank's lending practices are 'normal' too.

[WCGreen]

17. This is a great idea. Then when they sell the stake and refund the money

to the Treasury...

Time to bargan hunt is almost here...

[Alhena]

7. Honestly, I like this better than buying the worthless securities ...

at least we know that the shares of the bank itself have potential value. I didn't like the idea of the banks selling their toxic crap to the taxpayers as much as this idea.

[TheCoxwain]

12. The plutocrats haaaate this .. but they have no option left ..

There is a silver lining to the dark economic clouds after all

[Barack_America]

22. Sooo much faster too.

No need to comb through their assets.

[Erin Elizabeth]

9. Can someone explain this to me in

the language called "Finance For the Economically Retarded?" Because that's me.

Thanks!

[Kurt_and_Hunter]

16. We will give the bailout money to banks in exchange for owning part of the bank

The banks will then have more money to loan.

As things stand, a tic down in the housing market can bring down the average bank so they are all hoarding cash. (Afraid to loan it because their mortgages might go bad tomorrow and they'll need the cash.)

This is the best use of the bailout money. (Better than simply buying bad mortgage debt.)

Probably good for tax payers. Definitely good for trying to prevent a 1929 situation.

[TheCoxwain]

21. The banks either have to little cash to make loans or are afraid to make loans

that is what this crisis is about.

The earlier plan would have had Government buy the bad assets for some price thus giving banks money to do their business

The new plan will have us buying a portion of the bank and have the same effect ( more money to work with)

The second is better because the the share prices of the banks are priced by the stock market ( and are great buy in terms of long term price appreciation). The tax payers will benefit from this and the Banks get screwed as their equity is diluted; This is fair punishment for risky behavior

[CakeGrrl]

11. Will the loser who whined about a "socialist" taking the White House

have his head explode now?

[earthside]

14. Not Control.

Just heard on CNN that the central government is going to buy stock but not ownership control.

Sounds like a crappy idea to me ... the taxpayers take the risk but don't get to make the decisions to run the company.

I also don't like the idea that Bush and Paulson are going to, in effect, pick and chose which banks get the taxpayer's investment and which do not.

You can bet that the banks that are favored will be full of Bush cronies.

What is left of our country is disappearing very fast.

[TheCoxwain]

23. Dont worry ...Obama will come up smart 21st century regulation

I feel like a talking point regurgitating Idiot ..


But I am sure it's true ..... ( I think) :think:

[Joe Chi Minh]

18. I just heard Paulson say, "NEVER WAS IT MORE NECESSARY TO

ENGAGE COLLECTIVE SLOUTIONS!" BLASTED COMMIES! I'VE HAD 'EM UP TO HERE!

[sniffa]

20. Chavez speaks the truth

:D