The Bailout Backfire Conspircy...

[HavocXphere]

I agree that this might be the lesser of two evils, howevert there certainly cannot be just 2 workable solutions?

There is only one workable [-]solution[/-] bandaid imo. Massive intervention...in whatever form. Nothing else will fix the confidence problem.

what other solutions are there to this problem?

I reckon they need to stabilize the market and *then* gradually fix the problem. But I'm guessing the fixing part will never happen cause everyone will be like "Its working again...whats your problem". Thats going to get interesting....

This solution impacts us heavily, however the problem doesn't.

I'm not quite clear on how the solution (the bailout?) affects us?

I think it would be good if *everything* goes electronic. atm thats part of the problem, but I think it can also be part of the solution. This business about the banks not being able to calculate their total exposure/position is not right....no wonder everyone is scared.

/me stocks up on monopoly money

 

[DJ...]

There is only one workable [-]solution[/-] bandaid imo. Massive intervention...in whatever form. Nothing else will fix the confidence problem.


I reckon they need to stabilize the market and *then* gradually fix the problem. But I'm guessing the fixing part will never happen cause everyone will be like "Its working again...whats your problem". Thats going to get interesting....

Nah, there are other solutions/bandaids. Will post some points in the morning when I am a little more coherent.

I'm not quite clear on how the solution (the bailout?) affects us?

From an inflationary perspective. I expect input costs to go through the roof again when the US experiences its inflation sneeze.

I think it would be good if *everything* goes electronic. atm thats part of the problem, but I think it can also be part of the solution. This business about the banks not being able to calculate their total exposure/position is not right....no wonder everyone is scared.

What more needs to be electronic? Are you referring to automated trades based on mathematical models or less OTC trading in the bond market? Neither IMO are feasible in the short/medium term...

BTW, I haven't read Liar's Poker yet - will check it out, thanks...