Comments on: For bailout to work, housing market needs to mend

By: Bloviating Zeppelin

Bloviating Zeppelin — Sun, 05 Oct 2008 17:51:52 +0000

The bully in gradeschool who says: “Give me a quarter and I won’t hit you,” — you pay him a quarter. Will he come back again for a subsequent quarter?

Will people come back for more bailout “infusions”?

Not a real tough one to answer, that.

By: Pandora39

Pandora39 — Sun, 05 Oct 2008 07:02:10 +0000

This will probably surprise you, Fred, but I am against the bailout. Totally. But I’m past the point of anger, now I’m just wondering who will hire a 66 year woman with heart problems.
My 401K is tanking and so is my husbands but I believe that they will tank much worst with this bailout.

People are going to lose their homes anyway regardless of how much money we, the American taxpayer, pour down that rat pit as Ablur said. This is what most people do not realize: the bailout monay does not come from the government, it comes from us, you and me. The ten trillion dollar debt is not the debt of our government but it is our debt, the taxpayer. We are the ones who will have to pay it back, either through higher taxes or through inflation or both. No matter what, we lose.

Check out Cato at Liberty, the blog for Cato Insitute members.

By: BobF

BobF — Sun, 05 Oct 2008 01:25:29 +0000

ablur, with this type of gift it’s always better to give than receive. A single gift of 230 grains is usually sufficient but you may need to double it occasionally.

By: ablur

ablur — Sun, 05 Oct 2008 01:00:53 +0000

Those are the precious metals that mean the most when given away. Usually at incredible speed. Always make sure anyone who needs one of these gifts gets it hot and fast.

By: TexasFred

TexasFred — Sat, 04 Oct 2008 23:41:56 +0000

ablur, I am seriously invested in precious metals, lead, brass, steel…

By: ablur

ablur — Sat, 04 Oct 2008 23:06:20 +0000

this is a cycle, Housing, precious metals, stocks and bonds, housing…..

The bailout is congresses attempt at short circuiting the cycle and jumping over precious metals back to stocks.

Precious Metals are the ultimate confidence investment. When money and governments become secure people are willing to take small investment steps in stocks to test confidence and solidity in the market place.
If these small investments pay off people will be willing to take larger investment risks in land and housing. The stock step infuses cash into the banking system and allows for loans to become available.

We could have just tossed our money down a rat hole. Will confidence be restored on the backs of future tax payers or will the inevitable cycle play its course?
Bad debt or unsecured debt is how we got into this mess. This smacks of speculation that so many of us were outraged about when it came to oil.