Comments on: 8 Reasons Why the Bailout Bill Will Fail http://www.contrarianprofits.com/articles/8-reasons-why-the-bailout-bill-will-fail/5877 Access market-beating ideas from the world's top investment gurus on stock market investing, the gold market, ETFs, Forex trading and real estate values. Tue, 24 Nov 2009 15:08:08 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: sock puppet http://www.contrarianprofits.com/articles/8-reasons-why-the-bailout-bill-will-fail/5877/comment-page-1#comment-4932 sock puppet Fri, 10 Oct 2008 05:59:42 +0000 http://www.contrarianprofits.com/articles/8-reasons-why-the-bailout-bill-will-fail/5877#comment-4932 Credit Default Swaps (CDS) should not be covered in the bailout. A speculative derivative designed for leveraging and gambling that should be borne by the wise-guy participants ALONE. Credit Default Swaps (CDS) should not be covered in the bailout. A speculative derivative designed for leveraging and gambling that should be borne by the wise-guy participants ALONE.

]]> By: liberalhippies http://www.contrarianprofits.com/articles/8-reasons-why-the-bailout-bill-will-fail/5877/comment-page-1#comment-4679 liberalhippies Fri, 03 Oct 2008 14:01:13 +0000 http://www.contrarianprofits.com/articles/8-reasons-why-the-bailout-bill-will-fail/5877#comment-4679 1. the face value of the underlying securities is not what the bill is meant to insure. the goal of the bill is to bring *real money* investors back into the market place, in order to bring irrational prices back to normalized levels. 2. why would it be limited just to RMBS? there are many securities that are mispriced. the treasury will (and should) participate in any market that undervalues the true value of the assets. 3. you honestly think blackrock can be bribed? haha... fail. did i mention that focusing on the face value of the securities is a fundamental misunderstanding of the situation? 4. the treasury would *not* need to use up their entire line of credit on the first day. did i mention that focusing on the face value of the securities is a fundamental misunderstanding of the situation?? 5. wow. the treasury is hiring the most respected illiquid security evaluation and analyzing firm to evaluate and analyze illiquid securities. author of the story proposes hiring mcdonalds workers instead? fail! 6. the purchase price should be above fire-sale value (to encourage participation) but below the cash flow sustainability of the securities themselves (to benefit the taxpayer). 7. the banks that were prudent and didn't try to hide things under the rug will benefit. anyone who tried to hide their problems will now have to face the consequences. confidence is restored in those who were up-front and honest. 8. already covered in #'s 6 and 7. 1. the face value of the underlying securities is not what the bill is meant to insure. the goal of the bill is to bring *real money* investors back into the market place, in order to bring irrational prices back to normalized levels.

2. why would it be limited just to RMBS? there are many securities that are mispriced. the treasury will (and should) participate in any market that undervalues the true value of the assets.

3. you honestly think blackrock can be bribed? haha… fail. did i mention that focusing on the face value of the securities is a fundamental misunderstanding of the situation?

4. the treasury would *not* need to use up their entire line of credit on the first day. did i mention that focusing on the face value of the securities is a fundamental misunderstanding of the situation??

5. wow. the treasury is hiring the most respected illiquid security evaluation and analyzing firm to evaluate and analyze illiquid securities. author of the story proposes hiring mcdonalds workers instead? fail!

6. the purchase price should be above fire-sale value (to encourage participation) but below the cash flow sustainability of the securities themselves (to benefit the taxpayer).

7. the banks that were prudent and didn’t try to hide things under the rug will benefit. anyone who tried to hide their problems will now have to face the consequences. confidence is restored in those who were up-front and honest.

8. already covered in #’s 6 and 7.

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