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corysub -> RE: Exposing Obama (9/21/2008 7:10:42 PM)
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quote:
ORIGINAL: Lucylastic Not being funny here Popeye, cos I reallly dont know, so Im askin, How do you feel about the 700billion bush wants approved for the bailouts? Isnt that taxpayer money? Is it different because its American companies. Do you thinkthrowing more money after bad money is the way to go? just curious:) It's not like the government is going to "spend" $750 billion and we are never see all, or part, or even more of that money back. What Treasury Secretary Paulson is trying to accomplish is to provide liquidity for a lot of complex paper that has value...some of it above market valuation. Because everyone is risk averse these days, bids have evaporated for these packaged products. Many of them are still current on their interest and not in default, but under legislated rules, banks have to mark the value of these holding in their portfolio's at "market prices"..something that is really hard to do when there is no market. The taxpayers could winde up making a lot of money on these distress purchases. It's not like we are going to SPEND $750 billion dollars of taxpayer money and it's gone...like entitlement programs, defense programs, medicare, etc etc.
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