Reagan's Gift

[Oddball]

Yeah...Reality...Let's look at a little reality.


How about the little reality that happened when all the economic "geniuses" told us the we needed to throw a few hundred billion at the banks, ostensibly so they could get to lending out those funds.

There was no requirement that they lend those funds.

Translation: We were sold a bill of goods.

But what happened?

The overnight markets went from complete collapse to being partially rebuilt - just as Paulson etal had hoped.

best idea? Probably not. Decent idea? yes. Especially in light of the end costs involved.

What happened is that that the American taxpayer got scammed once again, over the "overnight collapse" scare tactic....Your *opinion* as to whether the costs involved were worth it is irrelevant.

 

[8537]

Yeah...Reality...Let's look at a little reality.


How about the little reality that happened when all the economic "geniuses" told us the we needed to throw a few hundred billion at the banks, ostensibly so they could get to lending out those funds.

There was no requirement that they lend those funds.

Translation: We were sold a bill of goods.

No, translation: Tom didn't understand the point of the program.

But what happened?

The overnight markets went from complete collapse to being partially rebuilt - just as Paulson etal had hoped.

best idea? Probably not. Decent idea? yes. Especially in light of the end costs involved.

What happened is that that the American taxpayer got scammed once again, over the "overnight collapse" scare tactic....Your *opinion* as to whether the costs involved were worth it is irrelevant.[/QUOTE]

The overnight collapse scare tactic? Really? What happened to the commercial paper market the night after Lehman collapsed? How may of the twelve largest US financial companies would have been bankrupt if the CP market remained in that position? If you don't understand the impact of a complete evaporation of the short-term lending market, then you don't know enough about the crisis to speak of it.

As to the costs: How much do you think it cost, Tom?