mongon Posted October 1, 2008 Report Share Posted October 1, 2008 Just re-read your post. It is precisely the MBS which are based on junior tranches which the investment banks will be selling to the Treasury first, and then progressively more senior ones as they get deeper into their dodgy paper, as the unloading process continues. This means that the first batch of paper sold to the Treasury by each investment bank will be completely and utterly worthless, and subsequent batches will only be worth something if they dig deep enough into their MBS pile to start selling us paper based on senior tranches - which they have little incentive to do because those securities are known by everybody on the Street to have value and will be liquid as a result. That is the beauty of the plan. If Paulson can take the worthless crap off the hands of the institutions who hold it, and replace it with $700b in cash, then when he goes back to being chairman of Goldman Sachs in a few months he will have lots of potential and very grateful buyers flush with cash and ready to buy whatever crap Goldman Sachs is hawking at the moment. Nothing in this bailout package requires wall st to change its business practices. GS converted to a commercial bank so we will see how Paulson is able to redirect its mission. One thing is for sure, Wall St will be talking for a hundred years, might even teach it in MBA school, about the "Paulson Strategem" or whatever name they come up with for his spectacular sales pitch that produced the biggest pay off in history. Link to comment Share on other sites More sharing options...
.. Posted October 1, 2008 Report Share Posted October 1, 2008 Two emotions run Wall Street: Greed and fear. It drives all markets. Nothing wrong with that as Gordon Gekko said 'Greed is good'. However, its up to the government to regulate that greed. Wall Street only acts for its own good. It could give a shit if their actions hurts America, the people. The free market and capitalism doesn't have a conscience. It will sell its soul to the Chinese or Russians if it means profits. Its how it works. Its the government that has to regulate the morality into the process. The problem for the longest time is that these firms have the politicians on its payroll. The politicians work for them. They get their donations from them and these banks or law firms hire the pols after they leave office to entice their former colleagues to keep the gravy train going. All of this will repeat itself again and again and again because the politicians are all beholden to companies and groups and not the people. We're the dumbest of them all, collectively, because let it happen. Bravo Steve, well said. That's just it. It is the failure of 28 years of Reaganomics coming home to roost. Of listening to the Norquists who want to totally eliminate oversight. Of the Dems who wouldn't stop it. To my conservative friends out there, I'm reminded of a post by my old buddy, The Rude Pundit: [color:purple]"Goddamn, it must suck to be you right now. I mean, look around you, Johnny Maverick. Look at what the fuck is happening. People are losing their houses, businesses are gonna shutter up, jobs are disappearing, Afghanistan is falling apart, Iraq's only being held together by duct tape and the American military, Pakistan is fuckin' shooting at our soldiers, and China's just waitin', man, waitin' to step up and say, 'Hey, Russia, wanna dance on the grave of the United States?' And why is this happening? Because of every fucking thing that you believe in, Johnny Maverick. Aw, shit. That's gotta hurt."[/color] Cheers, SD Link to comment Share on other sites More sharing options...
Bangkoktraveler Posted October 1, 2008 Report Share Posted October 1, 2008 Home come rogie doesn't comment about this mess? Link to comment Share on other sites More sharing options...
Faustian Posted October 1, 2008 Report Share Posted October 1, 2008 The argument has been lost. Even he must realise he has nothing to defend. Link to comment Share on other sites More sharing options...
rogueyam Posted October 1, 2008 Report Share Posted October 1, 2008 The argument has been lost. Even he must realise he has nothing to defend. No one here is making the least bit of sense. Why waste my time? Link to comment Share on other sites More sharing options...
dullnight Posted October 1, 2008 Report Share Posted October 1, 2008 " It will sell its soul to the Chinese or Russians if it means profits. Its how it works" Why wouldn't anyone sell to Russia or China or Burma if he feels like ? What is soul ? Can I buy a few containers of soul and sell them to the most offering ? Where? Who has a good sample soul? Dullnight, will sell your soul at a discount. Link to comment Share on other sites More sharing options...
Bangkoktraveler Posted October 1, 2008 Report Share Posted October 1, 2008 " It will sell its soul to the Chinese or Russians if it means profits. Its how it works" Why wouldn't anyone sell to Russia or China or Burma if he feels like ? What is soul ? Can I buy a few containers of soul and sell them to the most offering ? Where? Who has a good sample soul? Dullnight, will sell your soul at a discount. I keep mine on the bottom of my shoe so nobody can steal it. Link to comment Share on other sites More sharing options...
Faustian Posted October 1, 2008 Report Share Posted October 1, 2008 I don't have one to sell... Link to comment Share on other sites More sharing options...
Faustian Posted October 1, 2008 Report Share Posted October 1, 2008 The argument has been lost. Even he must realise he has nothing to defend. No one here is making the least bit of sense. Why waste my time? LOL Please furnish us with your version of sense...I'm just dying to know what your take on it is... Link to comment Share on other sites More sharing options...
rogueyam Posted October 1, 2008 Report Share Posted October 1, 2008 Please furnish us with your version of sense...I'm just dying to know what your take on it is... Learn to read. Link to comment Share on other sites More sharing options...
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