Friday, October 3, 2008

Bailout

So I was watching the vote on C-span and the bailout passed. I wonder what kind of footnote in history this will become?

5 comments:

Lona said...

To answer your question, I just saw this on the CalculatedRisk blog that I like:
Interesting Times writes:
To any future researcher analysing this thread 20 years from now.

Just so you know, the best action would have been:

DO NOTHING

Now go finish that doctoral thesis.

PS. If someone from the White House calls you asking to fill a position at the Fed, just say no.
Interesting Times | 10.03.08 - 4:29 pm | #

The funniest comment on that thread was this:
karelian writes:
I swear Paulson is a monocle, an albino angora cat and a brandy sniffer away from the most stereotypical Bond villain ever.

Ha Ha...but seriously, I think this spells disaster. Maybe I should start an acorn recipe blog.

Gordon said...

I think it is a great boondoggle. I don't believe the dire predictions. Four percent of mortgages are in default. Half the value will be recovered. Mortgages are only a fraction of the debt market. Let's say 1% of total debt is at risk. I don't call that a crisis unless you happen to be the individual holding the bag.

Gordon said...

I think it is a great boondoggle. I don't believe the dire predictions. Four percent of mortgages are in default. Half the value will be recovered. Mortgages are only a fraction of the debt market. Let's say 1% of total debt is at risk. I don't call that a crisis unless you happen to be the individual holding the bag.

Piri Jenkins said...

I think Bush's whole Presidency should be an interesting footnote in history, after all, he was not actually elected to begin with.

Lona said...

I don't think Gordon understand that the danger is the unwinding of the derivatives market which has hugely leveraged the mortgages. Today the size of derivatives markets is estimated by the Bank of International Settlements to exceed $109 trillion.