tag:blogger.com,1999:blog-552220532629250363.post5102799313767969480..comments2023-07-08T07:30:22.439-07:00Comments on Jon's Political Ramblings: Socialist States of AmericaJon Perlowhttp://www.blogger.com/profile/05668426868582255096noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-552220532629250363.post-72349811944846785832008-10-10T08:19:00.000-07:002008-10-10T08:19:00.000-07:00Dude, I found your post randomly... Somehow I dou...Dude, I found your post randomly... Somehow I doubt that the US has been teetering being Socialism and Capitalism since the institution of the Federal Reserve.<BR/><BR/>Maybe it's good that some citizens have that perception... meaning perception is 90% of reality... but I'm concerned you are deceiving yourself...<BR/><BR/>Cheers!Anonymoushttps://www.blogger.com/profile/14463656423247599356noreply@blogger.comtag:blogger.com,1999:blog-552220532629250363.post-43399958819713174592008-09-25T10:15:00.000-07:002008-09-25T10:15:00.000-07:00Jon,I was upset by this as much as you were, but a...Jon,<BR/><BR/>I was upset by this as much as you were, but after reading the plan it sounds like it's not that bad of an idea.<BR/><BR/>The goal is to bring clarity to bank BS, which is what the market wants. These banks have already written this stuff down a bunch, and will be probably selling these instruments at a decent loss to the govt in exchange for the clarity that it provides them on their balance sheets.<BR/><BR/>A large problem with these assets is there is no common central market for them, like a stock exchange. This creates a huge issue in deriving true market value, which is something the govt wants to setup with the auction process.<BR/><BR/>If banks fail because these new market prices cause new mark to market rates, then govt should let them fail or take preferred stock and fire management etc. like they did with lehman.<BR/><BR/>I am not sure what the alt should be?<BR/><BR/>I have a feeling at the end of the day fannnie/freddie bailout will cost a lot more than this proposed bailout, and buffet seems to think the govt will make a profit.<BR/><BR/>Am I being naive, and is it better that the govt just do nothing?eugeneshttps://www.blogger.com/profile/16170293668905799340noreply@blogger.com