[phaster]

just thought I'd drop by this evening and see how the peak oil crowd looked at the $700 billion emergency rescue package that just went down in flames today...

didn't see a poll about the topic so thought I see where people stand on this topic.

personally I have reservations about the 700 billion dollar program, without oversight because it takes the funding role away from congress (not that those partizan hacks would spend the money any wiser).

IMHO if approved the person in charge of the 700 billion dollar spending program (right now it look like treasury secretary paulson) will in effect make him a king (able to bestow patronage as he sees fit) and I find that more troubling than say "the family" connections in congress

http://bloggingheads.tv/diavlogs/11164

It's one thng to have wacked out ideas, but wacked out ideas with financial means is down right dangerious!

On the other hand I understand that 700 billion dollars might be the lubricant needed to get short term loans (called commerical paper) going back business as usual.

http://en.wikipedia.org/wiki/Commercial_paper

I'm not a finance guy but been pondering the problem for awhile and can't imagine a modern economy where there is no credit! To the man on the street that means at a gas station you would have to pay for gas with cash, food bought at the supermarket could only be bought with cash, etc. The same thing would happen to supermarket owners and gas station owners, they would all have to pay their suppliers in cash, etc., etc. etc.

Been thinking about it, and even though I have cash in varaious banks including WaMu which was taken down last week, and wachovia just taken out this week, I know I could survive a credit crunch better than most because I had some forsight and took some preemptive actions to manage the risk.

BUT I have to wonder how many ordinary people in the USA realize the full extent of the credit problem (kinda like the peak oil issue), and how different society is going to change because easy and cheap credit, much like easy and cheap oil is now a thing of the past...

[jbrovont]

Keep your greasy fingers out of my pocket Paulson! You made your bed. Sleep in it.

[smallpoxgirl]

Check the front page of the website. There's a poll about this with about 500 votes so far.

[phaster]

Keep your greasy fingers out of my pocket Paulson! You made your bed. Sleep in it.

Just wondering if American's realize what its like to live without credit of anykind, I've been to many places where ya literally have to carry around a pile of cash to get anything done...

Unlike sarah palin who says she has ineternational experience because see can see russia from her house (SNL opening was darn funny), all I can say is its kinda fun for a while when you're on holiday, but day to living in a society w/o credity pretty much sucks!!!! BTW thought I'd share this picture of me with a pile of cash, over in that part of the world.



IMHO if congress does nothing to address the short term credit markets (which is called commerical paper), something like this will soon be a normal all across the USA.

[phaster]

Check the front page of the website. There's a poll about this with about 500 votes so far.

opps, never check there.

usually just use a bookmark to go to the PO fourms

[Gerben]

IMHO if congress does nothing to address the short term credit markets (which is called commerical paper), something like this will soon be a normal all across the USA.

Actually the reverse is happening. Stock prices of financial institutions are deflating. Creating 700 bln. to buy up assets above their market price would have been inflationary. More credit (money) reduces its value and promotes inflation.

[RedStateGreen]

You didn't have a choice for "Hell No!"

[phaster]

IMHO if congress does nothing to address the short term credit markets (which is called commerical paper), something like this will soon be a normal all across the USA.

Actually the reverse is happening. Stock prices of financial institutions are deflating. Creating 700 bln. to buy up assets above their market price would have been inflationary. More credit (money) reduces its value and promotes inflation.

am I getting my economic terms mixed up?

Thought when there are lower economic earnings expecatation and uncertatinty the future value of stock goes down, so the reaction of a market player would be to sell their holdings. If there is less demand for a stock, the prices goes down "deflating" as ya say.

But I'm kinda fuzzy as to where paulson is going to inject 700 bln.

If he does buy up assets above their market price, say some POS home in surburbia, isn't that setting an artificial floor? Basically what I'm trying to say is no one wants that assets and there is only one else willing to bid on the POS home in surburbia its kinda a waste of time effor and money to try and prop up something that isn't viable in the first place...

guess a better question would have been, if and when a 700 bln rescue package gets passed where best to prop up the system so credit markets get back to normal...

BTW IMHO bush and his administration just found there weapon of mass distruction, it was home grown!

[TheDude]

Fees on all stock transitions. Repeal Bush tax cuts for the wealthy. Trim the DOD budget. Anything but letting this grizzled cueball frolic in the meadow!