What's the big hold up with this bailout? When do you think it'll get pushed through?
Answers
115 points
SamCollins answered one year ago …
I addressed this in more depth in today's Daily Market Outlook, which you can find here:
http://optionszone.com/trader-alerts/daily-market-outlook/09/9-23-08-polit icos-thwart-progress.html
But the short story is that both political parties are holding things up with their rhetoric.
The Democrats are insisting that executives be limited to salaries equivalent to senior government workers and are balking at the Treasury Department's move to take an equity stake in the troubled financial companies.
Meanwhile some Republicans are carping about the philosophical problems inherent in government “bailing out” private sector companies.
There's talk of compromise by dividing the package with some of the Treasury’s points receiving swift approval and the rest to be worked out later. I hope that works to restore investors’ confidence by providing a more reasonable approach rather than pushing to “get something done immediately” while ignoring the consequences of what could be just a quick fix.
249 points
engcomp answered one year ago …
I think the holdup also has to do with the CEOs of failed institutions wanting their multi-million dollar golden parachutes guaranteed before they will agree to be bailed out.
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engcomp answered one year ago …
I look at it this way.
The bailout surely comes with conditions.
One of them is that I have to give up my golden parachute.
If I don't accept it, I can keep on screwing the shareholders.
There is no law against it.
I have done it successfully for years.
Why should I give it up? To save the economy?
435 points
larryat36 answered one year ago …
It will get pushed through. The unknown at this time is WHAT will get pushed through.It seems that everyone of the pols wants to hang another condition on the bill. Going from a two page bill now at 40 pages and still growing. The Christmas tree effect could give us something that was never intended to be.
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112 points
helmuto2021 answered one year ago …
Some kind of government financial support will occur before Wednesday, along with a quarter point fed cut. There will be a brief surge in the indices as financials recover, followed by a slow sideways consolidation period until after the presidential election. Once home lending gets back on track with qualified buyers and sensible loans, (10% down, 45 year note??) Wall St. will rally for long term gains. Its all about confidence.
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3963 points
MNSL answered one year ago …
There is no doubt it will get pushed through sooner than later.
Momentum will gather in the market in October and November irrespective of passing this plan or not. Now confidence is building up slowly and some bigger investors and foreign funds are investing even in the financial sector through out the world.
Some sectors and companies will make surprise earnings in the third quarter very soon and this also will add further momentum.to the market.
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