Quote:
Originally Posted by pocketkangaroo
No matter if we make money on this or not, it won't benefit anything in this country. Our growth and prosperity will stagnate because of this. And a few crooked bankers will end up jumping out with their golden parachutes.
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It's not about making a profit. It's about avoiding catastrophe. That's a hellova benefit if you ask me. Did you see what happened to credit markets last week? All lending stopped. If there's no lending there's no borrowing. If there's no borrowing the economy grinds to a halt.
This was from the WSJ on Sep 17th.
"It?s almost impossible to believe, but the overnight funding markets have seized up again and spreads on key measures of stress have ballooned ? surging past previous peaks hit in both July and March. Analysts call the activity unprecedented, as banks refuse to lend to other banks and investors flock for the safety of Treasury bills, which at one point hit a five-decade low in terms of yields."
This was what Warren Buffet had to say:
"Last week we were at the brink of something that would have made anything that's happened in financial history look pale"
Short term treasuries hit their lowest rates since World War II. The TED spread jumped. Everything was even worse than when the credit crunch first hit in August of last year.
OFF THE CHARTS PANIC!