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What $700B won't buy: a quick fix for the economy

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moh malekpour

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May 25, 2002
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California
http://biz.yahoo.com/ap/080927/bailout_fallout.html?.v=2
SAN FRANCISCO (AP) -- Not even $700 billion will be enough to spare the United States from more economic anguish if the government's proposed banking bailout pans out like similar desperation moves during the past two decades.

It usually takes years to recover from a financial crisis severe enough for politicians to ride to the rescue with truckloads of taxpayer money.

Take, for example, the U.S. government's August 1989 bailout of the savings-and-loan industry. The stock market fell by 12 percent within the first 14 months of the rescue plan while the economy slipped into an eight-month recession that began in July 1990. Housing prices that had just begun to erode continued to fall for another three years

There's little reason to believe it will be dramatically different this time around, particularly since this bailout involves harder-to-value assets and comes with the U.S. economy already on the edge of a recession, if one hasn't begun already.

"This is going to take years to work out and it will be incredibly complicated," predicted banking consultant Bert Ely, who has extensively studied the U.S. government's 1989 bailout
My prediction is that the stock market is going to react very positively to the rescue plan agreement tomorrow morning and the dow may go up 2-3%. This is going to be a temporary spike. at the end of the week, it is going to come back down. This is just a guess
 

Austin

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Virginia
My prediction is that this is just one more obstacle sweep under the rug and the next crisis is just around the corner and after that one is dwelt with........ Then we will end up exactly where we would have if they had done the smart thing-nothing.
 

Riick

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Delaware
Bernake & Paulson look for loan HERE
 

Big ole Boy

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Dec 6, 2003
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Tennessee
Its not easy to know what to do .

Hindsite is 20/20 ....

except for socialists .......

...... socialists will always be looking for a gold pot at the end of a rainbow ......

..... much of me would like to see conservatives revolt and not vote on any bailout bill ....

...force the majority of dems to pass the bill .... and let the chips fall where they may ....

... I say, suck it up ...... and let Wall Street and Mainstreet fall ......

..... now .....

..... now ...... is the time that people and conservatives have the most power ......

.... do not sell your souls ...... put principle above mammon .....
 
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