whats the latest on the bailout?
konsole
Posts: 795 ✭✭✭
Does anyone know what the latest news is on this bailout? I want to buy some pm's, but if this bailout forces prices down some more then I'll wait a little longer.
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Any thoughts on this?
The bill apparently will go before the house early this week for vote, and then the senate. It could be all wrapped up by mid-week. I think it will be either neutral or bullish for gold short term. I fully expect the PPT to be shorting gold Monday am following shorting by their overseas buddies. A little kick to the dollar and the stock market should be expected as the PPT goes on a 1-2 day buying spree to prop up the markets. On the flip side many will realize what the bail out plan truly entails and will be looking for gold. It should be an interesting week.
The nastiest item is section 132 which allows the SEC commission to waive marked to market accounting (rule FAS 157) in any situation they deem fit that could place investors or shareholders at risk. Basically, it allows marked to "myth" accounting to continue. This will only ensure slower unwinding of derivatives that will last for years to come.
The bail out money will be a welcome shot in the arm to the big struggling banks so that they can resume their process of shorting competing stocks and creating new derivatives to try and balance existing positions. I see it as rolling for double or nothing. Considering it's free money to them, why not?
roadrunner
With only $200 BILL initially coming, this is a drop in the bucket compared to what the FED has been doing all along. The worst part is the potential elimination of accurately valuing risky derivatives. They can now stay on the balance sheets forever without anyone being the wiser....well, at least until a counter-party goes bankrupt and the market value goes from Billions to zip overnight. Then it gets interesting.
roadrunner
What makes this really interesting is that we live in a world economy now. Something's got to give, and I'm sure that it will.
I knew it would happen.
That is such an amazing point!
They have already spent 2X the Bail Out Bill already.
We are screwed boys.
On Oct. 2nd the SEC short sell hold ban comes off, then Bombs away!
I will day trade the Market hoping we get a bounce in the Dow to 11,300-11,400 and buy a TON of out of the money DIA PUTs.
When we hit 7,500 on DIA buy up JPM, GS, BAC and C hand over fist at what ever price it is at the time.
<< <i>The crafters of the bill and those who appear on TV seem to give the impression that it's a done deal. But members of the house and senate still have to vote on it. If the American people continue to be 78% opposed to it, it will be interesting to see if both houses just pass it any ways.
roadrunner >>
In my opinion, the vast majority of our "representatives" rarely act on our best interests.
<< <i>The bail out has already been factored into the pricing. It appears that the bailout will be in such small increments as to not have much of an effect, except for morale. The FED gave away an average of $188 BILL per day last week. The bailout plan starts with giving $200 BILL. So in essence, a single day's printing for the FED. I'm sure most on Main Street have no idea that the FED has spent $1.4 TRILL just in the past 2 weeks.
That is such an amazing point!
They have already spent 2X the Bail Out Bill already.
We are screwed boys.
On Oct. 2nd the SEC short sell hold ban comes off, then Bombs away!
I will day trade the Market hoping we get a bounce in the Dow to 11,300-11,400 and buy a TON of out of the money DIA PUTs.
When we hit 7,500 on DIA buy up JPM, GS, BAC and C hand over fist at what ever price it is at the time. >>
As good as that sounds...I don't think that this will be a "buy on the (big) dip" scenario. If it goes down hard, the world economies will lose all confidence and who knows how much our dollar will be worth...or if there will be a dollar. I'm just historically pondering. I've been looking at other great economies and empires over the past several centuries and there is a precedent of utter monetary failure.
Ren
Old saying goes when the US sneezes the rest of the world catches a cold.
I would look more into demand/supply scenario for a reason for pms to rise or drop.
As far as I know the bailout will give the treasury 250 billion upon passage and the president can raise that to 350 billion if it is felt to be needed and the rest will have to be discussed with congress before using.
Edited to say that it is already back 'up' to -450. How is that for congressional speak
Random Collector
www.marksmedals.com
No need to worry. Now that many congressmen can say they voted against it, they will tweak it a bit (with no meaningful differences) and then pass it.
<< <i>so they didn't even bother listening to their constituency, just went ahead and did it. >>
If it does pass, an I'm sure it will, the United States will be another step closer to being a Socialist government.
//////////
I have no clue what the general market will do, BUT
there are a bunch of "real" companies that are starting
to become bargains for folks who have a longterm view.
..........
It is now in the interest of the bailout-proponents for
the market to tank hard. Folks with cash can start to
get rich by buying into that weakness.
<< <i>
It is now in the interest of the bailout-proponents for
the market to tank hard. Folks with cash can start to
get rich by buying into that weakness. >>
The saddest part about this is the biggest bailout-proponent, is wall street itself, who is the one with their hand out.
Edited to add, oh, and gold up 36 today.
Whenever it does pass, the vote record will be posted on my office wall for posterity.
I knew it would happen.
the sky is falling, the sky is falling!
It might take the house awhile to read it all
<< <i>The bill that failed to pass in the house was 3 pages long. The bill the senate passed is over 300 pages long
It's actually 400+ pages long. I doubt most read it-- Probably skimmed through it while taking a dump.
Such as a whole section on "bicycling to work" credits. This will singlehandly recover Fannie and Freddie.
Is this a bailout bill or Park's sausages?
roadrunner
<< <i>i think i am going to get all of my cash and PM and take it home with me tommorrow >>
Just now-- overheard a co-worker saying he's thinking of converting a HELOC to cash, and taking delivery of the cash in case of a bank run.
<< <i>Just now-- overheard a co-worker saying he's thinking of converting a HELOC to cash, and taking delivery of the cash in case of a bank run. >>
Wow. The banks will really appreciate that interest. Hope he does not lose his house over that move.
I can understand taking your assets out in the form of cash.
But to respond to a crisis like this by maxing out your credit card? The one backed by your house? That idiocy in my opinion. It's exactly the wrong thing to do.
I'd rather retire some debt before the interest rates go up...rather than assure that I am up to my armpits in debt.
<< <i> But to respond to a crisis like this by maxing out your credit card? The one backed by your house? That idiocy in my opinion. It's exactly the wrong thing to do. >>
Yeah it doesn't make sense, but times like this make you do foolish things. Maybe he has good equity on his home.
<< <i>
<< <i>i think i am going to get all of my cash and PM and take it home with me tommorrow >>
Just now-- overheard a co-worker saying he's thinking of converting a HELOC to cash, and taking delivery of the cash in case of a bank run. >>
i was thinking the same thing but just took enough for a few months out of a chking accnt. ...to the SDB is tomorrow at a different bank.
Hey....come to my place and we'll have a doomsday
<< <i>Really important stuff in this bill..........
Such as a whole section on "bicycling to work" credits. This will singlehandly recover Fannie and Freddie.
Is this a bailout bill or Park's sausages?
roadrunner >>
Washington DC and wall Street will continue sticking it to Joe citizen and it aint gonna stop
<< <i>Bicycling to work? Maybe a PM to invest in is chromium, I want to have the shiniest bike----------------------BigE >>
pimp your ride! titanium and carbon fiber
from a cyclist it's.......
cheaper lighter stronger
choose two.
Cool! I have a home office. I'll bike to work every day! And then drive to a "temporary" worksite downtown!
What a shock huh?
Coin's for sale/trade.
Tom Pilitowski
US Rare Coin Investments
800-624-1870
<< <i>They've decided that we don't matter and are going to print the money anyway. What a shock huh? >>
Stocks sold off after the vote. I guess the market is saying $700B is not enough, lol. I'm kinda disappointed in my state reps. They did the right thing on the first round, then promptly flipped their votes to 'yea' today. Business as usual I guess.
Bush said that the ultimate cost to taxpayers would be lower than the $700 billion price tag but cautioned that the benefits wouldn't be immediate. "It will take some time for this legislation to have its full effect on the economy," Bush remarked at the White House.
The impact of the bill will be immediate in that the big Banks will go back to doing their dirty work for a while on taxpayer money. The ultimate cost of this bill will be untold TRILLIONs. Further destruction of the economy begins immediately.
Gold and silver should prosper.
roadrunner
<< <i>Markets tanking with 5 minutes to go ....I guess 700B was not enough to do the trick >>
ya whats the deal with that? Just from what I heard the DOW was up to around 330 at its high today, but then closed down 193. Thats 520 points down from its high all after the bailout bill passed. Maybe its like I have heard before that the market has already factored in a yes vote on the bailout and its now looking to the future.
Opposite of progress is congress.
Ren
To keep it PM related that's 200 billion more dollars printed which should lower the dollar.
And help my squinty little hoard....
<< <i>171 members of the House (39%) who understand the motivation behind the bill, voted against it. I tip my hat to them, and will always remember the others who gave these absurd powers to the Treasury Secretary. >>
Replace 'Treasury Secretary' with Goldman Sachs. It's all relative y'know.
Yes, I am sure that will help stimulate the economy.
Member ANA, SPMC, SCNA, FUN, CONECA
Sign me up with both ears marked.
roadrunner
The opposite of pro is con.
The opposite of progress is congress.
Knowledge is the enemy of fear
Sec 128; accelerates the effective date from Oct 1, 2011 to Oct 1, 2008 of section 203 of the Financial Services Regulatory Relief Act of 2006. This ammends 12 USC 461 which happens to deal with Banks and the Federal Reserve and in particular, the reserves kept by banks.
The most striking difference is changing the requirements of maintaining at least 3% cash reserves on hand to cover accounts. It now reads "not >3% and which may be zero." Other changes now in effect eliminate the FED's Earnings Participation Account and allow payments to be made to foreign banks.
Why would we want banks to be able to keep no reserves on hand?
various links to references listed above
roadrunner