Why The Bailout Bill Will Not Solve the Credit Crunch (And What Could)

[Hannah Bell]

>>At this stage, I think the bailout complicates matters enormously, because the immediate problem is

1) Preventing further runs on banks and money market funds by extending deposit insurance & mmmf insurance

2) Reviving the interbank market by placing the Fed as counterparty and paying interest on loans

3) Keep working capital loans rolling over until solvency can be assessed and workout recaps can be facilitated.


The biggest problem with this bailout package it that it addresses the wrong problem...


However, Doing Something is clearly taking precedence over Doing Something That Might Actually Work.<<

http://www.nakedcapitalism.com/

[GreenTea]

1. " The biggest problem with this bailout package is" that it's created, written & designed

to give our tax money to the rich as socialism (welfare) for the corporations and the wealthy.

I hate the fact the corporations stole billions and expected and then knew the people's taxes would bail them out, if they could get it through fast enough...no strings just more raiding of our taxes for profit - Bush is pushing this lie to get done as fast as possible makes it quite obvious who this disgusting bailout bill will help, he & his friend...and as always Bush throws in the FEAR card to make sure the Dems fold and pass it quickly.

Dennis Kucinich a true liberal has it right, tell congress to vote NO on this horseshit bailout - another Bush lie and scam for the corporations and to destroy our social programs.

[struggle4progress]

2. Using the government to support the rich isn't socialism: it's business as usual

[mhatrw]

3. Yep. n/t

[anigbrowl]

4. Fed as counterparty means private capital is shut out., and we get hyperinflation

Macroeconomics fail. Points for trying, though.