About the 'no stock broker left behind' bill

[melchar]

Let me get this straight - the Senate has added 150 BILLION more to the 700 billion 'Wall Street Welfare' bailout bill. Bwah?

So they added PORK and did NOT add re-regulation [they should do this FIRST] - so they're doing NOTHING to stop this from happening again;

They should BAN collateral debt obligations and adjustable rate mortgages. Plus they are explicitly going to allow FOREIGN interests to get bailed out, too. Anyone else feel sold down the river?

Comments

[gil-liant.livejournal.com]

I am failing to understand the entire approach to this bailout. As clearly as I can express it, they want us to buy a bunch of bad paper and acquire an equity interest in a lot of failing companies in order to solve a lack of supply in the liquid credit marketplace.

Why don't we take the $850+ billion and buy a bunch of good paper and acquire an equity interest in successful companies to solve a lack of supply in the liquid credit marketplace?

AIG is going bankrupt? Okay, let them. But put $50 billion into other insurance companies with tolerable balance sheets. Instead of bailing out Wachovia, give some commercial banks an extra $200 billion to loan, in exchange for an equity stake in their success. Tired of bailing out GM? How much would Toyota cost the U.S. government on the open market? Pass the 'bailout' directly to main street by putting the money in the hands of those who have shown they can use it responsibly and create new jobs for all the dispossessed 'worker bees', while allowing the negligent upper management of the unsuccessful companies to drown in the fiscal liabilities they created for themselves -- and rue the additional restrictions they, themselves, placed on personal bankruptcies not-so-long ago.

Of course, the government would ruin this too, because we have generally seen that public takeovers of successful private firms generally leads to spectacular failures due to micro-mismanagement and partisan politics. But, if we know they would ruin a healthy investment, how can anyone think that investing in an unhealthy enterprise will be anything but an inflationary disaster?