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2008-09-28 Home Front Economy

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Posted by Fred 2008-09-28 00:00|| || Front Page|| [3 views ] Top

#1 The trunks in Teh House confuse me. Opposing the bailout because it's unpopular makes sense from a political perspective, but when pension funds go bust, it's far worse for their chances. That only needs to happen to one pension, just one and the MSM will pound it until the election.

If any house trunks are reading this, I would advise you to remember how long they dragged out Enron.

Posted by Mike N. 2008-09-28 00:16|| 2008-09-28 00:16|| Front Page Top

#2 Opposing the bailout because it's unpopular makes sense from a political perspective, but when pension funds go bust, it's far worse for their chances. Although I'm afraid of a potential economic crash, I am kind of enjoying the spectacle of a real important national issue intruding on the national entertainment spectacle called the election. The politicians are stumbling all over themselves.

Posted by Anguper Hupomosing9418 2008-09-28 01:02|| 2008-09-28 01:02|| Front Page Top

#3 Jittery Money-Market Investors Await Treasury Guarantee Details
"Murali Iyer and his wife haven't slept much since Sept. 17. That's when they got a call from TD Ameritrade Holding Corp. that made them worry about their life savings.
Iyer, who thought his $400,000 at the brokerage was in a government-insured bank account, learned that it was really in the Reserve Primary Fund" -- RPF, a non-FDIC money market fund, is now frozen after a run on it. If Mr. Iyer had studied the paperwork associated with RPF or searched on the internet, he would have easily been able to learn the truth. Diversification of savings is important, do not put all your eggs in one basket.
"Consumers have been using money-market mutual funds for three decades as a kind of bank account. The funds aren't FDIC- insured, but they do follow rules enforced by the U.S. Securities and Exchange Commission designed to keep them in conservative investments. Alongside bank accounts and U.S. Treasury bonds, they are considered one of the safest places to put money. I doubt this will be the case any longer.

Like other investors in the Primary Fund, TD Ameritrade customers will have to wait until the Reserve permits withdrawals. Money-market funds are usually allowed up to seven days to honor requests for cash. In this case, because of the credit market freeze, the company received a waiver from the SEC for a longer delay. ``We anticipate that the SEC order will remain in effect until sufficient liquidity returns to the markets,'' said the Reserve's spokeswoman, Ming Hatch, in an e-mailed response to questions. "

Posted by Anguper Hupomosing9418 2008-09-28 01:13|| 2008-09-28 01:13|| Front Page Top

#4 Sausage-making in Congress this weekend: Republicans, under pressure from Democrats to deliver 70 to 100 votes from their side, were scouring the ranks and focusing on the two dozen Republicans who were retiring this year...Both parties were also scouring the political map to identify lawmakers who face little or no opposition for re-election in November, knowing they would be more willing to vote yes. Democratic officials warned that Democrats in potentially tough races could not be counted on to provide the votes to put the package over the top when, and if, it reaches the floor. Sen. Conrad D-ND, said in a speech on the floor: Its not just going to be Wall Street. The chairman of the Federal Reserve has told us if the credit lockup continues, three million to four million Americans will lose their jobs in the next six months.

Posted by Anguper Hupomosing9418 2008-09-28 01:35|| 2008-09-28 01:35|| Front Page Top

#5 "Iyer, who thought his $400,000 at the brokerage was in a government-insured bank account"

Ummmm, NO.

I don't have $400,000 or a brokerage account, but I do know that (1) brokerage accounts - "money market" or otherwise - ain't secured by the FDIC, and (2) deposits in actual FDIC-secured accounts are only insured up to $100,000.

Bzzzzzzt. Nice try, Mr. Iyer. Thanks for playing. Next time, read the not-so-fine print.

Posted by Barbara Skolaut">Barbara Skolaut 2008-09-28 01:39|| http://ariellestjohndesigns.com/]">[http://ariellestjohndesigns.com/] 2008-09-28 01:39|| Front Page Top

#6 We should all be wary of the $700B bailout.

Posted by JohnQC 2008-09-28 02:16|| 2008-09-28 02:16|| Front Page Top

#7 "We should all be wary of ~~the $700B bailout~~ Congress."

There - fixed.

Posted by Barbara Skolaut">Barbara Skolaut 2008-09-28 02:35|| http://ariellestjohndesigns.com/]">[http://ariellestjohndesigns.com/] 2008-09-28 02:35|| Front Page Top

#8 The world entire should worry about handing over this much cash to the ~~very people~~ criminals who created the problem to begin with.

And I heard somewhere the price tag for the fix is closer to $5 trillion

Posted by badanov 2008-09-28 02:54|| http://www.freefirezone.org]">[http://www.freefirezone.org] 2008-09-28 02:54|| Front Page Top

#9 I heard somewhere the price tag for the fix is closer to $5 trillion And what is the price tag for no fix?

Posted by Anguper Hupomosing9418 2008-09-28 02:58|| 2008-09-28 02:58|| Front Page Top

#10 Criminals?

Posted by Mike N. 2008-09-28 03:40|| 2008-09-28 03:40|| Front Page Top

#11 And what is the price tag for no fix?

Exactly zero...

Posted by badanov 2008-09-28 03:40|| http://www.freefirezone.org]">[http://www.freefirezone.org] 2008-09-28 03:40|| Front Page Top

#12 From Ace:

I cant tell you how many members of Congress were stunned at that news, and were stunned that none of their local bankers were calling them. And then they called their local bankers, as I called my local bankers, and my local bankers said, I think things are just fine. I talked to one banker who said, Gosh, weve got money, and were liquid, and were making a profit. And were in the market selling loans, and weve got competitors trying to sell loans against us.

So, at that point, theres a disconnect. Secretary Paulson is claiming that this is a catastrophe of generational proportions that could go worldwide. And none of what we were hearing back home matches that. And Im not speaking just for myself, but also for many of my colleagues who were making similar calls. They werent being called by their bankers, or by any of the businesses back home saying, I cant borrow any money.... If, in fact, Paulson had struck a chord with the American banking community, wouldnt you think that after he announced on Friday that there was a crisis of liquidity that threatens the entire nations financial solvency and Americans jobs from coast to coast, that my community bankers in Arizona wouldnt have been picking up the phone by Monday morning, if not over the weekend, to say that I share the Secretarys concerns?

Posted by badanov 2008-09-28 04:19|| http://www.freefirezone.org]">[http://www.freefirezone.org] 2008-09-28 04:19|| Front Page Top

#13 the House Reps are trying to remove some of Chris Dodd's pork for ACORN, and keep taxpayers protected by paying off the debt with profits, rather than fund Donk special interests. If this bill was so great, the Donks would pass it without Republican votes or cover

Posted by Frank G">Frank G 2008-09-28 07:36|| 2008-09-28 07:36|| Front Page Top

#14 If I need a loan, I must make proper application. I don't go to my Congressman for the money. Where are the Wallstreet loan applicants? The "punishment" for failed CEO's and firms should come in the way of NO MORE INVESTEMENTS. NO MORE MONEY!

Posted by Besoeker 2008-09-28 08:20|| 2008-09-28 08:20|| Front Page Top

#15 How secure is FDIC? What's the worst case scenario where even FDIC couldn't pay out?

Posted by Tarzan Angeter7567 2008-09-28 09:40|| 2008-09-28 09:40|| Front Page Top

#16 If we punish who it seems we should it might throw us into a serious recession or worse. That would probably drag the rest of the world into recession.
This is a shit sandwich and we're all going to get a bit.

Posted by bigjim-ky 2008-09-28 09:50|| 2008-09-28 09:50|| Front Page Top

#17 How secure is FDIC? What's the worst case scenario where even FDIC couldn't pay out?

Martian Secret Service seizing the BEP.

Posted by .5MT 2008-09-28 10:02|| www.cybernations.net]">[www.cybernations.net] 2008-09-28 10:02|| Front Page Top

#18 The FDIC is probably the second most competent agency in the Federal government. And they do have access to BEP.

Posted by Nimble Spemble 2008-09-28 10:44|| 2008-09-28 10:44|| Front Page Top

#19 My question is...why is virtually NO ONE in Congress screaming to the heavens about all the pork being attaced to this bail out by both Dimocrats and RINO's??? Just curious, ya' know?

Posted by WolfDog 2008-09-28 10:52|| 2008-09-28 10:52|| Front Page Top

#20 > bailout plan due to be signed by President Bush to save the country's economy

If government bailouts of the economy worked then the USSR would be the biggest economy in the world.

Posted by Bright Pebbles 2008-09-28 11:02|| 2008-09-28 11:02|| Front Page Top

#21 the 5 year review needs to be 3 so its before the next election.

Posted by 3dc 2008-09-28 19:22|| 2008-09-28 19:22|| Front Page Top

#22 "You buy insurance for things that might happen, not for things that have already happened or are very, very likely to happen."

You obviously haven't heard of something called "post-claim underwriting". You think you're covered buuuut....you're probably not.

Posted by Lonzo 2008-09-28 22:30|| 2008-09-28 22:30|| Front Page Top

23:56 Redneck Jim
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