Internet Anthropologist Think Tank: bail out reception

House rejects bail out plan 205 to 228

Did it work?
By Gerald: Internet Anthropologist Think Tank
Sept 29, 08

Boy congress was tough on all the CEO's that were involved in the Criminal Banking activities that almost lead to a disaster.

"Companies that participate in auctions, or other market-making mechanisms, and sell more than $300 million in troubled financial instruments to the government, will be barred from making any new employment contract with a senior executive that provides a golden parachute in the event of “involuntary termination, bankruptcy filing, insolvency or receivership.”"

They have to just keep all those old golden parachutes, but no new ones.

Such is the power of the banking lobby over congress.

The big Q is will this work?

I'm not sure it addresses the fundamental problem of liquidity.

Some of this "yellow paper" the "Real estate bonds", got into money market funds.

Which are suposed to be liquid, the "Real estate bonds" are not liquid die to defaults.

Will the RE bonds become liquid now?

If the Government guarantees them, that should put the Money market valuations back to

a dollar a share, ie liquid again.

How do you feel buying money market funds backed by the Gov?

Are there any more surprises lurking?

Lets see how the markets feel.

Market Update

09:40 am : Stocks tumble at the open. Selling interest is driven by concerns related to the government's financial rescue plan, news that another bank was forced to sell itself to avoid collapse, and the bailout of several European financial firms.

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