Update Goldman: After the party, the hangover, buying an AIG lifeinsurance now?
Who ever will buy now a lifeinsurance policy from AIG, not trustworthy you may say.
Who ever will invest in Goldman & Sachs, still healthy, can they repeat to make profit
on short selling of mortgage contracts? Update Sept-22: Goldman converted sunday night to an ordianry COMMERCIAL BANK, Flash READ MORE > with holding, to receive money from FED and US saving accounts; investment banks are dead at Wall street, as I predicted : Sept-16: "End of wall street bull fight, Investment bank dead, the Winner is the Commercial bank"
The rescue plan is just another shifting for
one year. The melt down comes now 2009 sept. Either the companies fail or the dollar. No change from Investment speculation to production in sight.What is with the Big 3 GM, Ford, chrysler. They are the next to bail out, $100 bn sufficient?
The party’s over, the hangover is about to set in. Friday’s relief at news at the U.S. government’s bailout plan which sent stock markets soaring is set to be tempered this week by thoughts of what next?
Yes, Henry Paulson rode to the rescue of the world’s banks by announcing that he was set to exorcize them of the toxic debts that were dragging them and us towards financial meltdown. BUT — and it’s a big but — the devil will be in the detail.
Is Mr. Paulson going to pay the full write down cost of the bad debt when he takes it off their hands — at enormous cost to the U.S. taxpayer? Or will he play hardball for a discount to the market price — leaving banks to take more pain and reluctant to lend to each other and us? In which case, we’re back where we started.
And of course Hank’s plan still has to get through Congress. In an election year!