$700 Billion Bailout
I guess everyone now is betting on that the $700 billion bailout plan will pass the congress and to be signed by the President. Otherwise the market would have already sunken to the bottom, e.g. the Dow to 7k.
With the $300 billion already committed by the US government ($30 Billion for Bear Sterns, $85 B for AIG, and $200 B for 2F's), and with the additional $700 B on the way, in total, that's close to round number of $1 trillion. That might be what keeping the Dow above 10k.
By many estimates, the total loss for all outstanding mortgages (about $12 trillion in total) would be close to $1 trillion.
They dug a hole with $1 trillion Fed notes. They will fill it with $1 trillion T-bills. Overall they come out even.
Only one guy comes out as a winner, Fed Chairman Bernanke, now he will control more banks, including GS and MS.
With the $300 billion already committed by the US government ($30 Billion for Bear Sterns, $85 B for AIG, and $200 B for 2F's), and with the additional $700 B on the way, in total, that's close to round number of $1 trillion. That might be what keeping the Dow above 10k.
By many estimates, the total loss for all outstanding mortgages (about $12 trillion in total) would be close to $1 trillion.
They dug a hole with $1 trillion Fed notes. They will fill it with $1 trillion T-bills. Overall they come out even.
Only one guy comes out as a winner, Fed Chairman Bernanke, now he will control more banks, including GS and MS.
posted by Unknown at 8:43 PM
0 comments
