Okay, so all the guys reporting on the Stock Market say that the Credit market is frozen, and has been frozen since Paulson came forward with his Bailout plan...(why should those with money bail out those that need it if the government is going to come in with all this free money?)

So, those corporations with the money are holding back and freezing the market until they get the bailout with our tax dollars.

Someone has "the money" in hand....to buy off the bad debt at a cheap price and to "make money off of it" other than the usa government...don't you think?

It doesn't just disappear... yes, homeowners that made money off the sale of their homes made a bunch, but they reinvested this money and SOMEONE, some financial institution is holding it....no?


When congress passes some kind of bill for a bailout, don't you think the market will just shoot up in the manner that it shot down today?

Do you mean "who has the REAL money ?"

__________________
"Some men eventually stumble over the truth but they usually pick themselves up and walk on as if nothing ever happened."
-Winston Churchill

"But though there is no difference in this respect between the best demagogue and the worst, both of them having to present their cases equally in terms of melodrama, there is all the difference in the world between the statesman who is humbugging the people into allowing him to do the will of God, in whatever disguise it may come to him, and one who is humbugging them into furthering his personal ambition and the commercial interests of the plutocrats who own the newspapers and support him on reciprocal terms."
-George Bernard Shaw

no, who has all the play money, in this game? Where is it? In whose individual accounts or what institutions?

Rent-A-Center, the Money Tree and all the other predatory lenders who popped up under Clinton.

__________________
Poor Spot! He was tired of being thought of as stupid. "I'm gonna join Mensa," he said to myself, "and then I'll be legally permitted to wear the society's insignia--a tattoo of a little map pin pushed into my flesh--and then everyone'll know that I'm not dumb at all!"
Spot Joins Mensa
by James "Kibo" Parry

Let me try this again---do you mean CASH ?

__________________
"Some men eventually stumble over the truth but they usually pick themselves up and walk on as if nothing ever happened."
-Winston Churchill

"But though there is no difference in this respect between the best demagogue and the worst, both of them having to present their cases equally in terms of melodrama, there is all the difference in the world between the statesman who is humbugging the people into allowing him to do the will of God, in whatever disguise it may come to him, and one who is humbugging them into furthering his personal ambition and the commercial interests of the plutocrats who own the newspapers and support him on reciprocal terms."
-George Bernard Shaw

I have decided to set myself up as the protector of all money from now on.

Pay pal is your friend. Please remove all your savings and paypal it to me immediately. In 20 years, you may enjoy viewing the huge house I will be living in, and rest easy knowing your money was well spent.

__________________
Poor Spot! He was tired of being thought of as stupid. "I'm gonna join Mensa," he said to myself, "and then I'll be legally permitted to wear the society's insignia--a tattoo of a little map pin pushed into my flesh--and then everyone'll know that I'm not dumb at all!"
Spot Joins Mensa
by James "Kibo" Parry

who has the cash...?

and

who has the money on paper, on their financial ledger....?

Basically, we have a crapload of mortgages that nobody knows how much they are worth.

As they were written they created demand which in turn drove up prices. No problem if you're in an ARM so long as value outpaces the interest rate. Once the market peaked and interest rates remained high the ARMs left the owners upside down.

When the defaults came through the bst course was to get a fixed or sell.

You can't get a fixed because you only qualify subprime. You can't sell because as previousluy noted the market peaked.

When mortgage payments don't come in the banks lose capital to loan elsewhere. But to cover their current ops the law says they have to have X% liquidity and the law also says they cannot hold on to defaulted mortgages.

But the wants to buy a mortgage that was inflated by all the other bad mortgages just like it? You can't even offer pennies on the dollar for the paper because nobody knows how many dollars it is worth.

They're caled toxic assets.

Just how much ephemeral money are we talking?

Bad News For The Bailout - Forbes.com

You see: the assets are so unpriceable Treasury doesn't even know if $700B would have been enough, too much or too little.
Be afraid. Be very afraid.

__________________
I support homosexuality because it keeps liberals from breeding.

I support abortion because it keeps liberals from having children.

I support public education because it keeps liberal children pliable, unthinking and easily lead.

I support euthanasia because old sick liberals aren't worth paying for.

I support welfare because liberals will not eat if they displease me.

How do you like me now?

Let them crash and burn.

__________________
Poor Spot! He was tired of being thought of as stupid. "I'm gonna join Mensa," he said to myself, "and then I'll be legally permitted to wear the society's insignia--a tattoo of a little map pin pushed into my flesh--and then everyone'll know that I'm not dumb at all!"
Spot Joins Mensa
by James "Kibo" Parry

House prices are way over any rational concept of where they should be. The banks made way too many loans based on way over valuations.

The hard reality is prices will have to come down to about 20% of where they are in some places.

__________________
Ally of Justice

Care,

The money is still there. The market is correcting itself by adjusting prices - what people are willing to trade for stuff. The alleged 'crisis' claims that no money is available for loans, yet banks are still advertising, cars are still moving off of car lots, and realtors are not begging in the streets selling little dolls made of string. Look around... if no credit were available, your credit card would not work in the gas pump and trucks would not be rolling the highways.

This is the tail trying to wag the dog and the dog finally woke up. It is a scam. Like the best of scams it has a basis in reality, but it is a scam.

There is going to be a price correction in everything, including wages, and it is going to hurt, but if the voice of the people continues to be heard above the lobbyists we'll look back on this time like the 50's looked back on the 30's.

-Joe

__________________
Treat the earth well.
It was not given to you by your parents, it was loaned to you by your children.
We do not inherit the Earth from our Ancestors, we borrow it from our Children.

-Native American Proverb