C-Span is covering the house discussion of the bailout bill.
Regardless of your political affiliation, I strongly urge all who can to get in front of the TV or watch it on tape delay tonight.
This is how congress works folks, and for the first time since the Iraq conflict there is a serious difference of opinion.
This isn't filibustering or pandering but serious discussion the impact of which will be echoing for generations.

 

It this isn't OT, please tell me and I'll delete the post, but I just read that CITI is buying Wachovia in a deal negotiated by the feds. The fed is stressing the fact that Wachovia did NOT fail. I'm glad for Wachovia.

 

I would venture to say the Shareholders of Wachovia feel a little different regarding the bank

 

I'm no longer sure this plan will really change anything regarding our free market system. Regulations that flow from the plan may. The more I read about the crisis, the more I understand how this situtaion is really a very interesting cascade triggered by a combination of some toxic loans, and accounting rules that were enacted post Enron. It is sort of like the car that catches on fire because the manufacturer did not forsee a certain combination of events that caused a circuit to malfunction and ignite.

There are some very good financial instruments on the market that are highly undervalued at the moment. The low valuation has almost nothing to do with the risk of the instrument failing, and everything to do with accounting rules that require institutions to value their asset at "market" rates. Right now the market for these very good investments is very low because no one has the money to buy them. If the plan allows the Govt to buy them at market prices, they will be very good deals and quite profitable in the long run.

I do not know what percentage of the various securities are good risks versus bad risks That is the part I'd like to know more about.

 

I'm a bit confused. Is Citi buying Wachovia Bank or Wachovia Financial or both? Also, I thought Citibank was in trouble itself. How is it doing this?

 

Failure is a relative term, I suppose.

 

Citicorp is buying Wachovia's banking operation. Wachovia will continue to exist, holding onto its brokerage business.

 

I'm beginning to think this bill is a lot like the choice between hitting a guardrail and a tree.
Both options are awful but which will you walk away from.

 

You can view the press release from Wachovia's website:

Wachovia press release

 

[QUOTE=Legal Bill,Sep 29 2008, 11:07 AM]

There are some very good financial instruments on the market that are highly undervalued at the moment.