Comments on: White-Knuckle Market Updates and Quotes (Updated)

By: Anonymous

Anonymous — Tue, 16 Sep 2008 14:09:00 +0000

There is the classic ecological paradigm of the foxes and rabbits on some small arctic island. In a non-ending cycle the rabbits multiple and so do the foxes Til suddenly there are so many foxes rabbit population tanks, foxes starve then rabbits start to do their thing over again.
But PETA in its goodness now decided to feed the poor rabbits and more took out mortgages. But finally nature prevailed and its a big starve time for the foxes
plschwartz

By: VocieFromTheWilderness

VocieFromTheWilderness — Tue, 16 Sep 2008 14:03:00 +0000

So the New York times wants us to think that free markets ended with the creation of fannie and freddie does it? Golly gee, since I get all my news from Fox, I've entirely forgotten how to remember history, and facts and truth are complete chimeras to me. Yes today is just like 1936 politically absolutely, where do I sign?

Oh goody, goody the NY Times wants to take tax payer money to prop up hedge funds and ensure the continued safety of the wealthy. What a great plan!

Who cares about the balance sheet of the federal government. They can bail anybody out, anybody. They are big momma bear, and no amount of intentional mismanagement, or willful distruction will ever change her power and might.

By: a

Tue, 16 Sep 2008 13:06:00 +0000

I’d agree with the last quote. If AIG goes, then there will be only one sort of lender in the market – the central banks. CDSs will go through the roof, and stocks tank. It won’t be the end of the world, but it just might be the end of the world as we know it.

By: Anonymous

Anonymous — Tue, 16 Sep 2008 12:40:00 +0000

It's not fun to watch things like this. However, it is fundamentally dishonest for the government to bamboozle people into making speculative investments to insolvent financial institutions. Giving insolvent institutions funding so they can make foolish bets in hopes of making a comeback is a horrible approach. For a while the government took that approach in the S&L crisis.

The economy needs sensible loans, and the government should capitalize the healthy banks with enough funds to make sensible loans. The economy doesn't need to give below market financing to people that want to make imprudent loans. That leads to disaster.