Pardon the rant, but If you ask me, our economy has just been hijacked by politicians to terrify everyone and to sidetrack everyone from all of the other terrifying failures that they have brought upon us.. and those failures came from Both sides..

Yup.
Sad that the partisan crap gets in the way of this.
They should just hire Block Island Jeff to fix it all...

Yup.
Sad that the partisan crap gets in the way of this.
They should just hire Block Island Jeff to fix it all...


He might screw it up but he'll look good doing it...

He might screw it up but he'll look good doing it...
Damn straight.

I think it would be interesting to take some average people who were armed with common sense, and let them ask the Fed a few questions about their plans.

It might be quite telling.

-spence

Ya got that right Nebe. Regardless of who did what, fix it, and shut up.

Damn straight.

I think it would be interesting to take some average people who were armed with common sense, and let them ask the Fed a few questions about their plans.

It might be quite telling.

-spence

Thats my biggest issue; I see the need to fix this situation...
I'm a financial moron, and want to hear the what, when, why and how much of impacts to average person, instead of talking above and fear mongering....

Despite what the Republicans say about Pelosi's speach, can we all agree that she is the worst Speaker this nation has ever had. How the hell did she get where she is?

Thats my biggest issue; I see the need to fix this situation...
I'm a financial moron, and want to hear the what, when, why and how much of impacts to average person, instead of talking above and fear mongering....

Here is what you need to know:

daily, billions of $ moves between companies to fund capital investments, and invest short term cash. For example, on a small scale, Stop and Shop receives a delivery of $25,000 in milk. The owner of the store doesnt cut a check, its paid at a later date. Everythng is done on credit. Money moves constantly from bank to bank to fund major companies, just like we go to the ATM.
Well, all these banks and other major investment comanies have invested heanily in these garbage mortgage backed securities. on paper, they seem a pretty risk free return, In reality they are made up of really bad loans to people who are defaulting. So rather than get a return on their investment, they are not getting cash flow due to the defaults. So, there is a lack of $ to fuel the daily cash flow between businesses.
The "disaster" that people are concerned about might be - gas, food, domestic good delvieries might stop, if no one believes the bank will be able to value a check for deliveries, companies may stop shipping. There is no confidence they will get paid. Major corporations will not be able to get $ to fund their daily outflows - building new facotries, major system upgrades, and most importantly payrolls. Since our entire system is fueled by cash flow and the instituions that provide this cash flow have their $ tied up in bad investments, there may be no cash to move.

Thanks Dr. Jim

Despite what the Republicans say about Pelosi's speach, can we all agree that she is the worst Speaker this nation has ever had. How the hell did she get where she is?
I'm no fan of Pelosi, but I think Tom Delay did much to create lasting dysfunction in Congress. Pelosi is just too self absorbed, Delay was out to %$%$%$%$ the people.

-spence

It's interesting hearing large numbers of economists stating that the 'best' option is to let this financial institutions, fail, rather than have us bail them out.

Did you also see that the esteemed Congress signed the multi-billion bailout for Detroit?

And oh, see you Thursday!!!! What crisis?

Did you also see that the esteemed Congress signed the multi-billion bailout for Detroit?
I did see that, but it appeared to get nearly zero airtime.

Considering it was only 25B in loans, it's small stuff compared to the financials.

-spence