Comments on: Paulson Plan Officially On

By: fredw

fredw — Thu, 25 Sep 2008 21:41:00 +0000

As per Senator Shelby (5pm-Marketwatch) — no deal yet after leaving the Whitehouse meeting this afternoon…..

By: jkiss

jkiss — Thu, 25 Sep 2008 21:04:00 +0000

David
Used to be that our trade deficit provided foreigners with the cash needed to fund the fiscal deficit… not in FY09 with deficit up 4x. I agree interest rates will rise, maybe 10%, maybe more, high enough that we will all want to park our savings there, maybe high enough that what is left of discretionary spending goes there, too.
If this is true the dollar will be strong. And, hard assets such as precious metals, commodities and real estate, plus leveraged companies and jobs, crash with high interest rates… highly deflationary. High interest rates low inflation, who will possibly want gold?

By: Matthew Dubuque

Matthew Dubuque — Thu, 25 Sep 2008 20:23:00 +0000

David-

That would be the facile approach, all due respected accorded to you.

By stark contrast to your view, I foresee the bull market in Treasuries continuing unabated as the smart money hedges against a DEFLATIONARY burst.

The Fed is NOT going to monetize this debt. YOU are going to pay the taxes.

This fiasco is on the Treasury's book, NOT the Fed's balance sheet.

The Fed is NOT the Treasury. Bone up on the vital distinction. The Fed is PARTIALLY privately owned, for starters.

See my other posts.

Respectfully yours,

Matt Dubuque
mdubuque@yahoo.com

By: David LaDow

David LaDow — Thu, 25 Sep 2008 19:24:00 +0000

Now that the bill appears to be a certainty, what do you foresee as the likely consequences? Massive interest rate hikes to support the sale of T-bills? Inflation in dollar denominated commodities and stores of value (e.g. gold). Will this stop, have no effect, or accelerate deleveraging? What will happen to GDP? Will the next president share the fate of Jimmy Carter?

By: Lewis B. Sckolnick

Lewis B. Sckolnick — Thu, 25 Sep 2008 19:21:00 +0000

You mean the Dud plan.

By: Anonymous

Anonymous — Thu, 25 Sep 2008 19:14:00 +0000

My guess is that much of it will look like the Dodd plan http://www.politico.com/static/PPM41_ayo08b28.html
Which I believe was drafted with Frank’s and also perhaps Schumer’s input.
Some items as reduction of mortgages by bankruptcy judge will be decided after the election.

By: Lewis B. Sckolnick

Lewis B. Sckolnick — Thu, 25 Sep 2008 19:11:00 +0000

You want warrants too!!!

By: charlottemom

charlottemom — Thu, 25 Sep 2008 19:01:00 +0000

RE Red Herring Executive Compensation Limitation Provision

Do people realize that we're just getting a massive paycut in addition to the inflation sure to come with this bailout?

If executive pay is recalibrated, all corporate salaries will be impacted downward. Or did the mid=level financial associate think he'd be paid close to the same as the CEO?

By: Lewis B. Sckolnick

Lewis B. Sckolnick — Thu, 25 Sep 2008 19:01:00 +0000

'Who is going to manage this massive stock portfolio?'

Manage!!!

Did you say manage?

This is politics at its very best what do you think this is all about?

By: doc holiday

doc holiday — Thu, 25 Sep 2008 19:01:00 +0000

I’m for it baby, go Paulson! Lot’s of great banks in America and we need to stay calm!!!!!!!!!!!

http://www.bauerfinancial.com/btc_ratings.asp