The $700 Billion Bailout Question: Will it Work? at FinGad.com

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The $700 Billion Bailout Question: Will it Work?

Categorie: Recreation
Submitted 2 months ago by

Ziad , President & CEO at Blackhawk Partners, Inc

Morning folks…..Hope all is well.I guess these are times we’ll remember for a very long time and that will affect our lives for at least the next decade.The $700 Billion Bailout Question: Will it Work?Economists and financial experts don't all agree that a taxpayer-funded purchase of troubled mortgage securities is the best way to attack the credit crunch. Some support it, while others prefer alternatives like a loan program for hard-hit financial institutions or a government-backed mortgage refinancing program -- strategies that could supplement the administration's plan or replace it if it fails. Regardless of their take on the rescue, most experts agree there is a key unanswered question at its core: How would the government know if it is paying the right price for the exotic securities it would buy from troubled firms? Pay too much and the taxpayer could lose hundreds of billions of dollars. Pay too little and the bailout would fail.The big question is, at what prices will the Treasury buy the debt?. The problem with this crisis is that it's not just about confidence in the markets. It's also about the huge losses that banks, investment banks, insurance companies, hedge funds, etc…. have so far suffered. The Feds are betting that restoring liquidity will be enough. M... More...

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#1 | Rajiv @ about 1 month ago An Investor... at Bank Of Baroda....migrating to USA User Rank : 137 Portfoilo Balance: $85,200.00 Comment Rating: 0 Flag Comment Spam | Miscategorized | Prohibited: Dear Ziad, That is a wonder view you have drafted taking all positives and negatives. I agree with almost all the view and I have almost written the same at my blog and that is Tax payers money will be safe....and even Gover can make more from it... Regards, Rajiv
#2 | Blankinglost @ about 1 month ago retired at none User Rank : 4 Portfoilo Balance: $7.00 Comment Rating: 0 Flag Comment Spam | Miscategorized | Prohibited: Dear Ziad, This is one of the best articles I have seen regarding the bailout. I agree wholeheartedly that the fundamental problem is not being dealt with in this bailout and I am fearful that it will not be addressed until it is too late. Illegible fine print got us into this mess and unfortunately the paper and the properties are now under the control of the masters of illegible fine print and remarkably undecipherable decisions. Best regards, Blankinglost

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