I've been listening to all the talk surrounding this bail out and there's only one thing we know for sure...that it'll be American taxpayer who'll be on the hook...IF
I say IF, because it's very possible they won't actually be able to work out a deal in congress this weekend.
What we don't know is how the whole thing will be structured...
What will we be paying for bad paper that apparently nobody wants to pay anything for at the moment in the private market. 10cents on the dollar?/ 80cents on the dollar?
And Mark Haines of CNBC brought up an excellent point...namely that MOST of these MBS are held by foreign banks and sovereign wealth funds! Are we, the American people, going to be bailing them out too? It sure sounds like it, but who knows? I'm sure that'll be a point of contention in the negotiations this weekend in congress.
Then add all the things you mentioned and the bottom line is...we don't know shit yet. We don't know if it'll work or how much it'll cost. We don't even know if it'll happen at all.
It ain't over yet. Not by a long shot.
Also, just heard a gold trader talking about the inflationary effects of this and a few other things in the pipeline. But he's talking about it having a serious inflationary effect in 2 to 3 yrs down the road.
So your also probably right about the moves in the PMs being incremental, with lots of trades to be made between now and then. Of course we're assuming that the market has been stabilized when discussing an orderly move upward for gold/silver. That's far from a given at this moment.
Cox has said for quite a while that he's leaving the SEC with the Bush admininstration. YAY!
Talk of Naked shorting has quickly morphed into just shorting and it's already been squelched again from the looks of it.
Lot's of institutional resistance to reinstating the uptick rule. Hmmmmm...wonder why? It worked for 69 yrs but they're claiming the logistics of reinstating it would be "really hard". LOL Cramer said we'd be used to it again within 24hrs and just threw up his hands and rolled his eyes.
If/when they don't have a plan ready to go this weekend or by Monday morning...we're in for another "interesting" week.
McBUSHIE'S choice of Palin was irresponsible, dangerous and insulting to America's intelligence. That choice and his continuing smears/lies prove he'll do anything to win this election even to the point of endangering his own country.DEFEAT HIM!
