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| U.S. Implements Bailout as Global Markets Plunge |
| 2008-10-07 |
| U.S. officials began putting the newly approved financial bailout plan into effect this morning, even as global stock markets plummeted on new concerns about the health of the European banking system and the likelihood of a global recession. |
| Posted by:Fred |
| #2 As of about 9am EDT today, futures are up big time and foreign markets are stable. |
| Posted by: mhw 2008-10-07 08:59 |
| #1 On Sunday, German finance officials said they had stitched together a $70 billion bailout for Hypo Real Estate Holding AG, a blue-chip commercial lender that was in danger of failing. A rescue plan announced a week earlier had fallen apart after private banks involved in the deal said Hypo's liabilities were worse than expected. Hypo officials said that they had been forthcoming about problems on their balance sheet but that credit conditions had worsened in recent days, making it extremely difficult for them to refinance debt. Lawmakers, however, reacted with anger; Steinbrueck, the finance minister, said it was "unthinkable" that Hypo's senior managers would be allowed to keep their jobs. German officials said their decision to guarantee all personal bank deposits was made to avoid a full-blown financial panic and had nothing to do with Hypo, which has no retail branches and focuses on loans to property developers. Okay, it's very debatable how well a U.S. style bailout is going to work, but these fucking socialists are so worried intent on rich bankers getting fired and 'The People' approving of what they do, that they've decided to insure individual accounts. Neither of their 'goals' will have any effect whatsoever on the liquidity problem. Firing bankers will not free up liquidity at any bank, anywhere, anywhen. Export economies like Germany are going to be screwed and with dumbass 'voter approved' measures like this, they're onl making it worse. |
| Posted by: Mike N. 2008-10-07 00:55 |