Comments on: The Economy Is Great, Except for Banks, Housing, Autos, Health Care, Energy, the Deficit . . . http://firedoglake.com/2008/07/14/the-economy-is-great-except-for-banks-housing-autos-student-loans-health-care-energy-the-deficit/ Firedoglake weblog Sun, 22 Nov 2009 07:44:55 -0600 http://wordpress.org/?v=2.8.6 hourly 1 By: MarkH http://firedoglake.com/2008/07/14/the-economy-is-great-except-for-banks-housing-autos-student-loans-health-care-energy-the-deficit/#comment-1541204 MarkH Mon, 14 Jul 2008 21:55:59 +0000 http://firedoglake.com/2008/07/14/the-economy-is-great-except-for-banks-housing-autos-student-loans-health-care-energy-the-deficit/#comment-1541204 <p>If Paulson & Bernanke were non-political I’d say we could get through this without serious problems, perhaps even a gain. But, I don’t know where they stand politically.</p> <p>F&F have paper and a line of credit.<br /> Mort. holders have paper.<br /> Somebody who has been speculating in oil futures has money.</p> <p>How’s it play out with F&F?</p> <p>If bondholders (some are the Cayman Islands) sell sell sell, then the price of bonds goes down down down.</p> <p>If B&B were smart they’d let the price drop some and then buy buy buy to make a (sell high, buy low) profit for the government.</p> <p>If they were doubly smart they could play it double-sided: let the stock of F&F drop some and buy it back cheap (as stated above) and also play the sale & rebuy of mortgages the same way.</p> <p>The government would likely be criticized for ‘taking advantage’ of their knowledge of how things were going to go, but it’s pretty obvious and doesn’t require their insider knowledge. After all, I’ve just stated it here and I certainly don’t have insider knowledge.</p> <p>Who might get hurt?</p> <p>If F&F stock stays stable enough, then they do too.<br /> If mortgage prices stay stable enough over the long-run, then that’s fine.<br /> People who sell F&F stock are going to be happy to sell it since the admin. has been telling them it’s junk.</p> <p>Seems like a win win win situation if handled right.</p> If Paulson & Bernanke were non-political I’d say we could get through this without serious problems, perhaps even a gain. But, I don’t know where they stand politically.

F&F have paper and a line of credit.
Mort. holders have paper.
Somebody who has been speculating in oil futures has money.

How’s it play out with F&F?

If bondholders (some are the Cayman Islands) sell sell sell, then the price of bonds goes down down down.

If B&B were smart they’d let the price drop some and then buy buy buy to make a (sell high, buy low) profit for the government.

If they were doubly smart they could play it double-sided: let the stock of F&F drop some and buy it back cheap (as stated above) and also play the sale & rebuy of mortgages the same way.

The government would likely be criticized for ‘taking advantage’ of their knowledge of how things were going to go, but it’s pretty obvious and doesn’t require their insider knowledge. After all, I’ve just stated it here and I certainly don’t have insider knowledge.

Who might get hurt?

If F&F stock stays stable enough, then they do too.
If mortgage prices stay stable enough over the long-run, then that’s fine.
People who sell F&F stock are going to be happy to sell it since the admin. has been telling them it’s junk.

Seems like a win win win situation if handled right.

]]> By: ubetchaiam http://firedoglake.com/2008/07/14/the-economy-is-great-except-for-banks-housing-autos-student-loans-health-care-energy-the-deficit/#comment-1540941 ubetchaiam Mon, 14 Jul 2008 17:12:19 +0000 http://firedoglake.com/2008/07/14/the-economy-is-great-except-for-banks-housing-autos-student-loans-health-care-energy-the-deficit/#comment-1540941 <p>The ‘low response rate’ may be related to Ian Welsh posting last night on the subject in a different manner than Scarecrow. But responses also always fall off when it is mentioned that there is a new posting ‘upstairs’. Television, Drug of the Nation, habituation.</p> The ‘low response rate’ may be related to Ian Welsh posting last night on the subject in a different manner than Scarecrow. But responses also always fall off when it is mentioned that there is a new posting ‘upstairs’. Television, Drug of the Nation, habituation.

]]> By: alank http://firedoglake.com/2008/07/14/the-economy-is-great-except-for-banks-housing-autos-student-loans-health-care-energy-the-deficit/#comment-1540940 alank Mon, 14 Jul 2008 17:05:19 +0000 http://firedoglake.com/2008/07/14/the-economy-is-great-except-for-banks-housing-autos-student-loans-health-care-energy-the-deficit/#comment-1540940 <p>The low response rate here is rather telling.</p> <p>It was very well-anticipated last February this bail-out of the banks. It just happened a few months sooner than expected. The process has been ongoing, with the two major players in the secondary mortgage market buying up worthless credit notes, knowing full-well the taxpayer, one way or another, would cover the bad debt accumulated, thereby.</p> The low response rate here is rather telling.

It was very well-anticipated last February this bail-out of the banks. It just happened a few months sooner than expected. The process has been ongoing, with the two major players in the secondary mortgage market buying up worthless credit notes, knowing full-well the taxpayer, one way or another, would cover the bad debt accumulated, thereby.

]]> By: ubetchaiam http://firedoglake.com/2008/07/14/the-economy-is-great-except-for-banks-housing-autos-student-loans-health-care-energy-the-deficit/#comment-1540939 ubetchaiam Mon, 14 Jul 2008 17:03:09 +0000 http://firedoglake.com/2008/07/14/the-economy-is-great-except-for-banks-housing-autos-student-loans-health-care-energy-the-deficit/#comment-1540939 <p>9/11 for the economy:<br /><a href="http://www.newsdissector.com/blog/" rel="nofollow">http://www.newsdissector.com/blog/</a></p> <p>Excuse me, I have to go get some gruel.</p> 9/11 for the economy:
http://www.newsdissector.com/blog/

Excuse me, I have to go get some gruel.

]]> By: dosido http://firedoglake.com/2008/07/14/the-economy-is-great-except-for-banks-housing-autos-student-loans-health-care-energy-the-deficit/#comment-1540933 dosido Mon, 14 Jul 2008 16:30:23 +0000 http://firedoglake.com/2008/07/14/the-economy-is-great-except-for-banks-housing-autos-student-loans-health-care-energy-the-deficit/#comment-1540933 <p><a href="http://uk.youtube.com/watch?v=0-8kc3-VG4g" rel="nofollow">Have fun storming the Capitol!</a></p> Have fun storming the Capitol!

]]> By: dosido http://firedoglake.com/2008/07/14/the-economy-is-great-except-for-banks-housing-autos-student-loans-health-care-energy-the-deficit/#comment-1540931 dosido Mon, 14 Jul 2008 16:25:45 +0000 http://firedoglake.com/2008/07/14/the-economy-is-great-except-for-banks-housing-autos-student-loans-health-care-energy-the-deficit/#comment-1540931 <p>No one whines louder than a CEO who has his perks taken away.</p> No one whines louder than a CEO who has his perks taken away.

]]> By: ekunin http://firedoglake.com/2008/07/14/the-economy-is-great-except-for-banks-housing-autos-student-loans-health-care-energy-the-deficit/#comment-1540888 ekunin Mon, 14 Jul 2008 15:51:05 +0000 http://firedoglake.com/2008/07/14/the-economy-is-great-except-for-banks-housing-autos-student-loans-health-care-energy-the-deficit/#comment-1540888 <p>We have not begun to utilize the power of the net. We haven’t got past the, you’ll pardon the expression, whining stage. We have a choice. We can leave solutions to the likes of Bernake and Paulson, or we do it ouselves. We can’t see past the present structure, so it’s pitchforks at the Capital or nothing. It may come to pitchforks, but there’s lots of less traumatic options to try first.</p> We have not begun to utilize the power of the net. We haven’t got past the, you’ll pardon the expression, whining stage. We have a choice. We can leave solutions to the likes of Bernake and Paulson, or we do it ouselves. We can’t see past the present structure, so it’s pitchforks at the Capital or nothing. It may come to pitchforks, but there’s lots of less traumatic options to try first.

]]> By: hazmaq http://firedoglake.com/2008/07/14/the-economy-is-great-except-for-banks-housing-autos-student-loans-health-care-energy-the-deficit/#comment-1540854 hazmaq Mon, 14 Jul 2008 15:28:40 +0000 http://firedoglake.com/2008/07/14/the-economy-is-great-except-for-banks-housing-autos-student-loans-health-care-energy-the-deficit/#comment-1540854 <p>Don’t ever forget - the Democrats were in on the creation of this winning strategy for the ‘haves’, while everyone else gets a lousy stimulus check -that ends back up in the pockets of the ‘haves’.</p> <p>My stimulus check went for, (1) a cheap suit to appear in court with and,(2)a cheap watch to tell me <em>how much fu**ing time I have left before I lose everything! </em></p> Don’t ever forget – the Democrats were in on the creation of this winning strategy for the ‘haves’, while everyone else gets a lousy stimulus check -that ends back up in the pockets of the ‘haves’.

My stimulus check went for, (1) a cheap suit to appear in court with and,(2)a cheap watch to tell me how much fu**ing time I have left before I lose everything!

]]> By: barbara http://firedoglake.com/2008/07/14/the-economy-is-great-except-for-banks-housing-autos-student-loans-health-care-energy-the-deficit/#comment-1540770 barbara Mon, 14 Jul 2008 14:04:05 +0000 http://firedoglake.com/2008/07/14/the-economy-is-great-except-for-banks-housing-autos-student-loans-health-care-energy-the-deficit/#comment-1540770 <p>Can’t get there. Another technologically tough day at the lake . . .</p> Can’t get there. Another technologically tough day at the lake . . .

]]> By: IrishJIm http://firedoglake.com/2008/07/14/the-economy-is-great-except-for-banks-housing-autos-student-loans-health-care-energy-the-deficit/#comment-1540764 IrishJIm Mon, 14 Jul 2008 13:53:22 +0000 http://firedoglake.com/2008/07/14/the-economy-is-great-except-for-banks-housing-autos-student-loans-health-care-energy-the-deficit/#comment-1540764 <p>Since we are socializing industry now and the GOP is willing to intefere in Markets, can we next go after the Oil industry next? I think the American Consumer can use a bail-out package.</p> Since we are socializing industry now and the GOP is willing to intefere in Markets, can we next go after the Oil industry next? I think the American Consumer can use a bail-out package.

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