Stocks soar after bank plan unveiled

[Williy@anker]

It's he assets are going to be auctioned between banks and investors. This will not cost near $500 billion; rather, it's projected to cost 20% of that. It is not even close to a short-term fix, especially since its effects will resound for decades.

20% at first then they will decide if they want to dump more money into it after seeing how the first 100 millions goes. And how much do they really expect to make at auction on these? How do they decide how much to pay, pay too much and we get swamped in more tax debt, pay too little and the bank gets screwed. It's a no win for anybody..
We need to cut off the money letting somewhere. How many more hundreds of billions are we going to sit around and let these people throw out as lifelines?
Just let the market runs it's coruse IMHO.

[daniel3417]

The first "government intervention" came with the AIG support. I feel it was essential to keeping our economy afloat. Most everyone would feel the effects. Finally, although this may not apply to you quite yet, CREDIT IS ESSENTIAL FOR OUR ECONOMY. It sounds too easy to let banks go belly-up, but it would be a tragedy.

Well I agree with all of the above. Credit was too easily given prior to this recession and now it has tightened up. The market could balance it out to a healthy amount if it were allowed to.

[tutall]

The first "government intervention" came with the AIG support. I feel it was essential to keeping our economy afloat. Most everyone would feel the effects. Finally, although this may not apply to you quite yet, CREDIT IS ESSENTIAL FOR OUR ECONOMY. It sounds too easy to let banks go belly-up, but it would be a tragedy.

I disagree with you on a few points... first... AIG is the governments darling... Look at all the politicians wrapped up in AIG.. that is why it could not fail.... if we bail them all out now what is going to happen 5 years down the road when it all happens again... I work for a bank that has recieved quite a bit of the TARP funds.... I am still giving out just as much lending and credit as i did when i started a couple years ago. There are some companies many of which are not credit worthy that have had credit tightened on them. Everyone wants to loosen the credit but they also want restrictions.... how is that supposed to work? I recently had a mtg close for someone with a sub 600 credit score.... so there are some companies that may have tightened but i really think it has been blown out of proportion.... if you are credit worthy you would have no problem getting a loan right now

[Yanksfan396]

And how much do they really expect to make at auction on these?

As much as $1 trillion.