While I won't act as if economics is my expertise, I do feel as if I understand how people work pretty well. You may very well be right, but I'd assume with our economy, just as life in general there is a tipping point. I'm hopeful that the positive news with market the past few weeks, the sale of existing homes up 5% last month, and some big business passing on bailout money, people (who still have the ability to do so) will make a return to investing and spending the money they've been hoarding. I'm keeping my fingers crossed as I'm sure the majority of you are, that we've seen tipping point to the return of some consumer confidence again.
I find it ironic that the solution that America is taking to solving this crisis is primarily the same practices that individuals practiced on a small scale, namely borrowing and incurring large amounts of debt and spending with the hopes that a return on investment will be realized.
To me, seems a bit lucrative for private investors. FDIC insured investments? if the assets remain toxic however, the govt loses big time, right? and by Govt, I really mean America.
I want to know which private investors are receiving these Fed-backed dollars. I also want to know if those who receive the money will be taxed at a 90% federal rate on any money they make by using taxpayer money to buy these assets. It's ridiculous. I wish I could have seen the Geithner hearing today. Did anybody ask him these questions? Also Petro, by "America" you mean the working schlubs.
Geithner got reamed really really hard...basically one of the congressmen or senators grilled him about if they were FDIC insured securities, Geithner said no..then he was read the verbatim text of the bill. I loved Bernanke...he was "talked out of blocking the bonuses". Yeah right, you're the fucking FED Chairman...at the top of the food chain, you can't get talked out of shit.
