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The Dow showed it's strongest gain in years following the Fed's announcement that it will buy debt to help floundering banks and mortgage lenders. Is this just another band-aid, or will it have sustainable positive effects?
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Posts:
2,818
Registered:
7/17/07
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(8 of 8)
Re: Fed to bail out mortgage lenders
Mar 12, 2008 10:30 PM
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> The Dow showed it's strongest gain in years following
> the Fed's announcement that it will buy debt to help
> floundering banks and mortgage lenders. Is this just
> another band-aid, or will it have sustainable
> positive effects?
Amazing how the fed will help out banks and mortgage lenders when they've exercised poor lending judgment. The rest of the population who have been hit with loss of employment, rising costs and interest rates are left to either work 2 or 3 jobs or lose their savings.
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13
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3/8/08
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Re: Fed to bail out mortgage lenders
Mar 12, 2008 10:02 PM
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As usual the idiots in Washington have decided to reward stupidity with money. I just wish i owned a bank or airline or train company or oil company. These companies will continue to do stupid things as long as our government continues to reward them for it. I for one and sick and tired of bailing out failing businesses.
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1,208
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(6 of 8)
Re: Fed to bail out mortgage lenders
Mar 12, 2008 9:53 PM
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Figures they want to bail out the people losing their money instead of the people losing their homes. It should be a requirement of the bailout that they forgive the outstanding debts responsible for the bankruptcies.
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1,507
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Re: Fed to bail out mortgage lenders
Mar 12, 2008 6:50 PM
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Comparing the Dow to years ago is pointless. It wasn't the same Dow. It had some different stocks in it, and some that are there now, weren't then. At best, the Dow is only a measure of the public's confidence in large-cap common stocks, at worst, it's the commentary on a never-ending horse-race, reflecting only people's speculations.
To answer the question, the Fed's move is less than a band-aid. A band-aid, at least, does two things: it covers up the wound, and it stops infection. The Fed's move covers up the problem, but the fact that they're willing to bail out anybody, gives a false sense of a safety net, and this can only promote more speculation by those who should should be backing off and looking elsewhere.
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6,290
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Re: Fed to bail out mortgage lenders
Mar 11, 2008 9:58 PM
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I agree with Frank--it's a band-aid and it only delays the inevitable.
The dollar is worth about 25 cents.
If we use the value of gasoline as a standard, comparing prices to the 1960's, a dollar is worth maybe a dime.
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Edited by Jetfuel2 at 03/11/2008 6:59 PM
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3/11/08
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Re: Fed to bail out mortgage lenders
Mar 11, 2008 9:45 PM
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A special opportunity:
If you look at Hillary?s supporters you will find an older demographic. And although Obama has acquired many Union endorsements, it is Hillary who has received most of the attention of those hit hardest by global economic shifts. And over and over again, these supporters site Hillary?s experience and capability over Obama?s ?empty rhetoric of change?. I would like ask those people one thing. If Americans can change America, then will it be the elderly that change this country? Will it be those whose skills have been incapable of flexing under the enormous and unfair pressure of the global economy? I don?t think so. And it?s not because I believe those Americans do not need attention that drives my support for Barack Obama. But in fact, it is because they need attention that I support Barack Obama. It is the youth, the educated, and the energized that will ultimately change this country. They just need to be led.
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2,771
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Re: Fed to bail out mortgage lenders
Mar 11, 2008 9:43 PM
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> The Dow showed it's strongest gain in years following
> the Fed's announcement that it will buy debt to help
> floundering banks and mortgage lenders. Is this just
> another band-aid, or will it have sustainable
> positive effects?
Its a band-aid. At best this will make banks more willing to extend credit, which is exactly how we got in this housing mess.
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322
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1/17/08
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(1 of 8)
Fed to bail out mortgage lenders
Mar 11, 2008 9:40 PM
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The Dow showed it's strongest gain in years following the Fed's announcement that it will buy debt to help floundering banks and mortgage lenders. Is this just another band-aid, or will it have sustainable positive effects?
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