The Market Freefall...

[willyback]

Question...

if we had used the initial bailout package to subsidize the resets on sub-prime mortgage interest rates, wouldn't that have prevented this free fall into recession? The Fed could have followed those bailout subsidies with a national loan modification program for sub-prime borrowers, fully equipped with tax cuts for all 30-year, fixed rate mortgage borrowers (to keep the score even).

Why wasn't this a viable option?

[MonkeyF0cker]

Because the politicians couldn't pay off their campaign contributors with that method...

[durito]

The sub-prime loans were just the tip of the iceberg.

What is happening is the unwinding of a 25 year credit boom. The sub-primes may have got the ball rolling, but this was coming anyway.

[brooks85]

INVEST IN STOCKS we're practically GIVING THEM AWAYYY

[willyback]

The sub-prime loans were just the tip of the iceberg.

What is happening is the unwinding of a 25 year credit boom. The sub-primes may have got the ball rolling, but this was coming anyway.

You're absolutely right. I was just suggesting a plan that would have triggered a more gradual decline instead of this non-stop free fall.

[Dark Horse]

It doesn't matter at this point. It's all bullsh*t. The stock prices are obviously worth a lot more, but you know what happens to sheep when they panic. If you had forgotten, just look at what happened today. Evil Grand Wizard Bernanke casts some rosy spell about 2010 and the joyous bleating is deafening. All mass hypnosis. Only way to play this is as big bad wolf.