Okay, I’m freaked out. Congress is officially unable to forget about politics for a few days and get something done to stop the banks from collapsing. Whatever your view on the current crisis, hopefully it is evident to all that something needs to get done. Quite clearly the Rethuglicans are willing to let the ship sink. No surprise. Democrats, you want to lead this country, sack up and do something. To quote myself from over at PP’s place: “700 billion vs. 3.something trillion in losses in stock prices in one day and who knows how much Wachovia is going to cost with no regulatoray rules or guidelines in place. And how many more banks will go tomorrow (local papers say Phoenix — of housing bubble fame — is ready for local banks to start falling)? And how long till the credit spread starts to mean no payrolls? I’m sorry, but I think we’re fucked.”
So Dems, want to know what to do, I suggest you go over to Nouriel Roubini’s Global Economic Monitor and check out the HOME plan. While you’re at it, see what he has to say today. Not pleasant at all. At least I’m glad to know that it is in line with what I was thinking on Sun, again quoting myself from PP’s blog:
To the great detriment of my mental health, I have been reading as much as I can about the financial bailout plan in order to get some understanding of what is going on. I think I can grasp the fundamentals of the problem, what is completely unclear to me are the potential ramifications of the various proposals. I thought I was starting to get it from some of what Chris Dodd was saying earlier last week but now I am back to being utterly confused. Why do we have a complete lack of competent leadership in this country? On the other hand, at least I was able to make out that those 100 rethuglican house members are complete morons… capital gains tax! hilarious!
the draft bill is available on CNN. I’m gonna try to dive into it tonight to see what is there…
I don’t mind taking on some “toxic” assets so long as the govt (us taxpayers) retains the assets that have value. My preliminary understanding was that there were roughly 100 billion in these toxic assets that were tied to 600 billion in additional assets. If the 100 billion go, the 600 billion go with them (to whoever gets the entire company that fails). Presumably the govt can take on those assets in their entirety and sit on the viable investments until they come around. What I’m not sure about is: since the 100 billion are largely bad mortgages, can they could be reworked so that they eventually make money? Obviously all this is overly simplistic, but I’ve been writing all day and can’t bear to write any more.
This whole thing stinks to high heaven but time is running out before the current crisis starts hitting all of us. Moreover, there is opportunity here. The rethuglican leadership has already shown that they are willing to pass it up to stick to their deregulation principles. They’re fools. Democrats, get to work and get it right… before that TED spread gets out of control and all of our homes get taken hostage to this mess.