Warren Buffett praises bailout efforts

[Crabtownboy]

Crabby, Obama and Biden are the only three people left in America that still haven't come to grips with the failure of the non-stimulus stimulus.


Why the Stimulus Failed by Brian Riedl - National Review Online
http://nrd.nationalreview.com/article/?q=MTViNmZiZmQ4NmMxM2Y5NmEzNWIwYWRmNmNhMWJlY2I=

Jeffrey Sachs admitted the stimulus failed.
http://blog.heritage.org/2010/06/07/morning-bell-why-obamas-stimulus-failed/

Democrats' Trillion-Dollar Stimulus Failed
http://www.humanevents.com/article.php?id=37736

You quotes are old news and as of now inaccurate news. Also, do you really believe the Heritage Foundation would ever say anything that might support anything Obama has done?

You statement that the bailout has not saved one job. That is shown to be completely inaccurate.
Harvard's Jeffrey Miron Explains Why the Stimulus Package Failed http://www.openmarket.org/2010/10/3...ron-explains-why-the-stimulus-package-failed/[/QUOTE]

Likewise Miron is known for his conservative/libertarian bias. So again, would he ever say anything positive about any government program? I don't think so.

David Camp is a Republican congressman. He would never say anything good about Obama or any Democrat. No creditability in his article.

Also his article is now old news, superseded with newly published information.

Do you criticize Bush for the initial bailout. I don't. He and the actions he and his administration took saved a total meltdown of the economy and that will help save his legacy.

Find some up-to-date non-baised information. Certainly Bloomberg is not a far right nor a far left organization.

 

[targus]

You are right - the fact that the bailout was a failure is old news.

 

[Earth Wind and Fire]

How in God's good name could you believe that the mentality that "To Big To Fail" has any credibility in these United States? You have now chosen to believe the propaganda that what both the Bush & Obama Administrations have done were in fact good for the country instead of waking up & seeing the realities of introduced Socialism into a country that was once the bastion of Success through Capitalism....which you have just thrown out the window. In truth, where is your sence of outrage as you sit here & justify the destruction of your country. Please, if your still in Europe, think about making that your permanent home.

 

[Crabtownboy]

New Republicans hate!

How in God's good name could you believe that the mentality that "To Big To Fail" has any credibility in these United States? You have now chosen to believe the propaganda that what both the Bush & Obama Administrations have done were in fact good for the country instead of waking up & seeing the realities of introduced Socialism into a country that was once the bastion of Success through Capitalism....which you have just thrown out the window. In truth, where is your sence of outrage as you sit here & justify the destruction of your country. Please, if your still in Europe, think about making that your permanent home.

None of my quotes are from political sources.

Your statement makes it sound as if you want failure for the US. I do not and I will give credit to success regardless of political parties. Why do you want the government and thus the US to fail?

You comment on Socialism .... I do not believe you really have a real knowledge of what Socialism is about. Also I do not believe you understand Capitalism much better. This is said very gently.

Also, if the bailout was such a failure how do you and T explain the following news?

US Treasury's bailout profits top $10 bn
http://economictimes.indiatimes.com...fits-top-10-bn-Report/articleshow/5767143.cms

Feds to sell Citi stock, reap bailout profits
http://www.texarkanagazette.com/new...ds-to-sell-citi-stock-reap-bailout-pro-27.php

Bailout Profits Beat Treasuries
http://www.crossingwallstreet.com/archives/2010/10/bailout-profits-beat-treasuries.html

Gov't will sell Citi stock, reap bailout profits
http://www.newsvine.com/_news/2010/03/29/4085854-govt-will-sell-citi-stock-reap-bailout-profits

Bank Bailout = Profit
http://www.bullfax.com/?q=node-bank-bailout-profit

As Banks Repay Bailout Money, U.S. Sees a Profit
http://www.nytimes.com/2009/08/31/business/economy/31taxpayer.html?_r=1

Fed Turns Profit on Bailout
http://theimpolitic.blogspot.com/2010/01/fed-turns-profit-on-bailout.html

 

[targus]

How in God's good name could you believe that the mentality that "To Big To Fail" has any credibility in these United States? You have now chosen to believe the propaganda that what both the Bush & Obama Administrations have done were in fact good for the country instead of waking up & seeing the realities of introduced Socialism into a country that was once the bastion of Success through Capitalism....which you have just thrown out the window. In truth, where is your sence of outrage as you sit here & justify the destruction of your country. Please, if your still in Europe, think about making that your permanent home.

I find Crabby's tag line to be quite ironic...

"Those who would give up Essential Liberty to purchase a little Temporary Safety deserve neither Liberty nor Safety" Ben Franklin

He is willing to give up the liberty of the free market and mortgage our children's future with a huge debt so that he doesn't suffer some temporary minor losses in his retirement savings.

 

[Crabtownboy]

I find Crabby's tag line to be quite ironic...

"Those who would give up Essential Liberty to purchase a little Temporary Safety deserve neither Liberty nor Safety" Ben Franklin

He is willing to give up the liberty of the free market and mortgage our children's future with a huge debt so that he doesn't suffer some temporary minor losses in his retirement savings.

I am willing to give credit to any person or political party that follows policies that saves the market. Apparently you are not willing to do so. The market was in a meltdown mode. The bailout, which I was not at all sure about at the time, saved it from melting down. Are you so inflexible that you cannot change you mind? Our children would have had a far worse future if the market had not been saved.

Now politicians need to cooperate together, forget worrying about who gets credit, and do what is right for the American people. Pay off the debt and stop spending excessive amounts of money. Actually the Republicans should work hard with the Democrats. Why? The Democrats seems totally incapable of making their successes known to the American people. The Republicans are much better in that regard and in blowing smoke and obscuring Democrats success. They, the Republicans, if they think about it have nothing to fear if Obama succeeds. Why? For the reason stated. The Democrats are incapable to taking credit of success. It is a very strange myopia.

 

[Earth Wind and Fire]

You've had 3 concentrative political administrations who have been hostile to laws set up to restrict & regulate the banking industry in order for wall street to make a buck, sequentially allowing this particular industry to fleece the citizens & conduct corrupt business practices that have bankrupt us & caused great damage to the financial conditions of future gens. So what do we do, we reward the crooks & then give them a pass by very ignorant statements that its good for us. Better yet, make them heroes. Right?

No, Im not buying it. I have worked on Wall Street & I know too much. You are being BS'd & you are buying it hook line & sinker. And if you think your out of the woods, wait for it....you haven't seen anything yet.

 

[Earth Wind and Fire]

I find Crabby's tag line to be quite ironic...

"Those who would give up Essential Liberty to purchase a little Temporary Safety deserve neither Liberty nor Safety" Ben Franklin

He is willing to give up the liberty of the free market and mortgage our children's future with a huge debt so that he doesn't suffer some temporary minor losses in his retirement savings.

Yea...that does illuminate it doesn't it.....now lets go beat up the unemployed cause their taking our money. Never mind the Corporate Communists put them there in the 1st place to enrich their own selfish selves.

 

[Crabtownboy]

You've had 3 concentrative political administrations who have been hostile to laws set up to restrict & regulate the banking industry in order for wall street to make a buck, sequentially allowing this particular industry to fleece the citizens & conduct corrupt business practices that have bankrupt us & caused great damage to the financial conditions of future gens. So what do we do, we reward the crooks & then give them a pass by very ignorant statements that its good for us. Better yet, make them heroes. Right?

No, Im not buying it. I have worked on Wall Street & I know too much. You are being BS'd & you are buying it hook line & sinker. And if you think your out of the woods, wait for it....you haven't seen anything yet.

I've never said we are out of the woods. We are not. The world is to interdependent and there are big problems in various parts of the world that may yet cause the US great harm. I am not sure what the Irish bailout will mean to the US. The Euro is going to take a big hit. Some say this will be the death of the Euro. Time will tell.

I do agree with your sentiment that the huge bonuses should not be allowed. I'm not in charge. If I had the power you can bet your bippy they would stop.

I do know that if nothing had been done in 2008 we would be in a huge depression. Did the Bush and Obama follow the optimum policy? I don't know. I do not believe anyone knows.

It was excesses in the financial industry, especially the dangerous trading of derivatives that played a large part in causing the economic problem. Of course the housing bubble also plays a huge part ... and we now know that was also largely because of the sloppy work and lack of internal oversight in banks. Profits were more important than safety or the economy.

That being said, what do you feel was the proper response to the impending economic meltdown in 2008?

 

[targus]

The Democrats seems totally incapable of making their successes known to the American people.

No mystery there.

The demoncrats haven't had any successes.

Only a deludinoid would believe in these mythical invisable non-existent demoncrat successes that fill your days with lemondrop trees and marshmellow clouds. :laugh:

 

[Earth Wind and Fire]

I've never said we are out of the woods. We are not. The world is to interdependent and there are big problems in various parts of the world that may yet cause the US great harm. I am not sure what the Irish bailout will mean to the US. The Euro is going to take a big hit. Some say this will be the death of the Euro. Time will tell.

I do agree with your sentiment that the huge bonuses should not be allowed. I'm not in charge. If I had the power you can bet your bippy they would stop.

I do know that if nothing had been done in 2008 we would be in a huge depression. Did the Bush and Obama follow the optimum policy? I don't know. I do not believe anyone knows.

It was excesses in the financial industry, especially the dangerous trading of derivatives that played a large part in causing the economic problem. Of course the housing bubble also plays a huge part ... and we now know that was also largely because of the sloppy work and lack of internal oversight in banks. Profits were more important than safety or the economy.

That being said, what do you feel was the proper response to the impending economic meltdown in 2008?

I would have let the banks fail.

 

[targus]

Here is the bottom line on the supposed "profits" of the bailout of AIG

"The government now has a 79 percent stake, which will rise to about 92 percent, in the form of common stock, under the exit plan. "

http://www.nytimes.com/2010/10/26/business/26tarp.html?_r=1

How does the government sell their 92% publicly traded common stock interest in AIG without the bottom falling out of the share price when they move to sell?

Answer - they don't.

All these supposed profits are based on the prediction that the government will be able to sell the stock at the current market price - which won't happen.

 

[Crabtownboy]

Here is the bottom line on the supposed "profits" of the bailout of AIG

"The government now has a 79 percent stake, which will rise to about 92 percent, in the form of common stock, under the exit plan. "

http://www.nytimes.com/2010/10/26/business/26tarp.html?_r=1

How does the government sell their 92% publicly traded common stock interest in AIG without the bottom falling out of the share price when they move to sell?

Answer - they don't.

All these supposed profits are based on the prediction that the government will be able to sell the stock at the current market price - which won't happen.

The sell slowly and cautiously. Investing 101.

 

[Crabtownboy]

I would have let the banks fail.

In your opinion what would the fallout of the bank failures have been?

Would the fallout have been anything like the fallout from the 1929 bank failures?

 

[targus]

The sell slowly and cautiously. Investing 101.

Over how many years?

And I will say it again.

So far they have gotten only 2/3 of the money back.

The supposed profits are based on future sale of the stock over a long period of time.

As an investor do you count your profits before selling the stock - especially if you know that it may be years before you will be able to sell?

I doubt it.

Then why are you touting this as government profits from the bailout?

 

[rbell]

Your opinion is well known, but you do not back it up with any facts.

This is hilarious, coming from you.

And remember the first bailout was under Bush and IMHO this is one thing he did right during his term in office.

Here's why virtually no one takes you seriously here. Here's why your intellectual dishonesty is legendary.

The man's in office 8 years, and you're telling us that there's not another, single, solitary act he did that was right?

I've met weirder folks on here. Meaner ones too. But I don't think I've ever met a more intellectually dishonest person on the BB.

 

[Crabtownboy]

Over how many years?

And I will say it again.

So far they have gotten only 2/3 of the money back.

There is no way to know the answer to your question. When I buy stock there is no way to know how long or how short I should hold it. But I watch it and the market and sell at the signal to sell.

In the market, do not try to hit tops and bottoms, but get a nice slice out of the middle of the trend ... or in another way, bulls can make money, bears can make money but hogs will lose every time.

As an investor do you count your profits before selling the stock - especially if you know that it may be years before you will be able to sell?

I doubt it.

Yes, I keep a close watch on both what paper profits and what paper losses I have. I set a point and if the stock, or profit, back off I sell at the profit point I have set.

The same with a paper loss. I set a loss point and sell if it hits that price.

As I said in another post, cut your losses short and let your profits run. Keep rising the profit sell point as the price climbs.

Then why are you touting this as government profits from the bailout?

Because without it we would be in much worse shape now. As I said, when the bailout took place I was not at all sure it was the way to go. I now see it was much better, IMHO, than doing nothing and letting the banks go under.

 

[targus]

There is no profit until the transaction is completed.

You do not know at what price the stock will eventually be sold - so you cannot say that there is a profit.

How do you know that it would have been worse if the government had stayed out of it?

Do you have access to some sort of parallel universe travel machine?

 

[Crabtownboy]

There is no profit until the transaction is completed.

You do not know at what price the stock will eventually be sold - so you cannot say that there is a profit.

Just as in investing, there are indicators. You just have to know how to read them. I will not invest in a stock where the indicators do not suggest it will double in price. Do they all double in price? No ... some do not. Some are sold at a loss. But some not only double but triple and more. Those are the ones you ride and let the profits run.

How do you know that it would have been worse if the government had stayed out of it?

History! We may be doomed to deflation and that certainly would have happened if the government had not acted. Deflation is more dangerous than inflation for most people ... not all of course but for most.

“Those who do not learn from history are doomed to repeat it”
George Santayana

Do you have access to some sort of parallel universe travel machine?

History. Read, read, think, think ... come to an understanding. You may not be right all the time, but you will be wrong less often. And you learn that the simple, emotional answers are always wrong.

 

[Earth Wind and Fire]

In your opinion what would the fallout of the bank failures have been?

Would the fallout have been anything like the fallout from the 1929 bank failures?

I dont deal in opinions. Would the government have put together legislation to eliminate further fraud? Would Glass Steigle have been redeployed? There are too many variables to address before I can even think of answering. Could we also than have gotten rid of Geitner, Benny the B & Larry (I almost bankrupted Harvard) Summers & indeed got Obama to start operating like a capitalist rather than a wimpy socialist?

Crabby you should decide if in fact you are a stalwart capitalist of a socialist before even considering posting.