[IWE] Pelosi's viciously partisan speech

Ashton Brown iwe@warhead.org.uk
Mon, 29 Sep 2008 22:43:24 -0700

Ben Tilly wrote:
> On Mon, Sep 29, 2008 at 9:04 PM, Jay Mehaffey <jaym667@yahoo.com> wrote:
>> From: Bill Patient <bepatient@cfl.rr.com>
> [..]
>> Personally, I'm mixed about it failing. Something must be done soon, but
>> I'm hoping this will force Congress to build a better bill. The Democrats
>> need to take ownership of this, build a bill strong enough to get the party
>> to line up behind it, pull in a few Republicans and dare Bush to veto it.
> ---------------------------------< snip > --------------------------
> The result is the credit crisis.  Right now it is mildly entertaining.
>  How big a failure can we survive next?  But every failure makes
> Christmas softer, and after a soft Christmas when companies discover
> that they need loans to make short term operating expenses..and can't
> get it.  The mass layoffs that you hear about?  They are real.  They
> will hit main St in the first half of next year.
> The bailout would solve this by making the government into the large
> investor the market needs that can afford to buy and hold and receive
> a profit.  If Paulson did it correctly, he could buy $700 billion in
> bonds at above market price.  There is a good chance that the market
> in those bonds would recover since the fundamentals for a lot of them
> really are better than the current market price.  After that the
> government would have the choice of selling those bonds back into the
> market for a profit, or of holding them to maturity for a profit.
> Either way the recovery of the market would improve the debt/equity
> ratio at banks, opening them back up for lending.
> Cheers,
> Ben

Pretty hard to fault that logic; the US Govt expects to be around for 
lots of things to 'mature'. Clearly "making a profit" (or at very least, 
breaking even) is hardly even a stretch -- although the condition of 
some of this just-abandoned 'property', in a year or three? does get 
into the details and Devils arena. Surely they are not arguing about 
That minor sub-level of uncertainty.  Shirley.

But since none is privy to the actual sticking-points of the fracas -- 
one is forced to wonder what counterpoint could be offered as a delaying 
issue -- against the sheer madness of watching day-day necessary loan 
access crash and burn. Ah Yes.. and Christmas and beyond.
Does congress know about those new-fangled price scanners and CCs? Yet? 
Bush I didn't.

Robt. Reich, in SF recently and his comments rebroadcast tonight -- 
mentioned that he was unable then (~week ago?) to determine even whether 
the BushCo 'plan'  was re recapitalization or ... some other scheme 
which would remove much of the pain from the top money folk via taking a 
much riskier and (implicitly, unimaginitive) route.  Now if he can't 
find out some basics of the schemes - we aren't going to.