Exactly, thats what the US government likes to do and that's why it benefits the speculators and the risk takers. Cant afford to pay your mortgage, just ask Uncle Sam to pay for you?

That's why Rick Santelli was revolting because the US GOVERNMENT tends to reward guys with bad financial planning, irresponsible Americans.

So why pay any thing at all, when Uncle Sam will pay for you?

the logic is simple - the powerful does what they want

I also disagree to bailout those greedy banker, but what to do. There are 2 option only, either bail out or let them fail.

But it can go even worst if nothing is done and just let them fail, but future could be brighter if through this way but with a lot of pain and disastrous event.
The damage will be more severe 2x 3x than currenny scenario if let those large commercial bank fail. People will rush all the money out from those banker even good one will suffer because by then you don't know which one is good nor bad, (just like what happened in Asian during 1997) eventually causing people lose trust on banks, by then it is very chaotic for financial market even worldwide business will be affected.

See how those when credit market seized up time just after Lehman failed which send the recession wave across the world.
What we see currently is not as damaging yet, there are some room to be more worst, if one has gone through what had Asian countries experience during 1997 crisis.

If gov or tax payer of US don't want to lend them 100, their (public) deposit (can be 1000, 10,000 or 1 million) in those banks are in jeopardy. Just like you have ten or hundred or millions of hard-earned deposit in those bank, I don't think you agree let them fail and just get back what FDIC (locally PIDM) insured on. The primary reason is because public money/deposit is in stake.

Those GM or automaker, yes, you have a case and your points make perfectly sense as they (automakers) might be not competitve to survive but for commercial banks, public money or hard-earned deposit is in stake time, situation is more complicated.

No gov will let large commercial bank fail totally on its own unless gov is helpless in doing so, because the stake is too high to handle. Don't think any politician will dare to gamble on this stake.

The Obama's mortgages rescus plan indeed reward the bad behaviour and punish good honest mortgages payer, sound not right at all. It is not a good plan.

My opinon only.

This post has been edited by cherroy: Feb 22 2009, 04:03 PM

Well, if you wanna pay off a gambler's debt, you gotta make sure that he quits first. If the banks keep gambling with our money, I dont see why it should be rescued lor. Just take the pain lor. Its not only you, all are affected.

I personally dont think banks will quit their habit of easing lendings to incapable lender. Just look at our country alone is enough. Banks are very willing to lend even though they know you cant meet the end. My friend who earn RM3k has a mortgage that pays RM1k+ each month for the next 30 years, two cars that need RM1k+ for monthly installments for another 4years. Its about time we revert to our old system where people actually put their worth on the line, not just letting them have a home by merely signing some papers. Make them pay 10~20% deposit so that they feel the pain if they cant meet the end. In a world where we cant repay faith, why not just punish those who doesnt.

Fully agree those greedy and mis-managed personnels need to go.

On the other hand, if let the bank fails, CEO or company management won't be punished at all but it is ordinary people hard-earned money being punished!
It is not simple pain as we write or type here. Imagine you work hard everyday, save little by little in this 10 or 20 years time as FD, finally you have some decent deposit, then suddenly banks closed shop, anyone want or can bare this pain?

Even being sacked, those CEO previously years of lucrative wages and bonuses are already in the pocket, not to mention some company/banks might need pay compensation fee to those sacked CEO.

That's why let them fail has lot of implication which is not something that simple as we said or type a few word like "just take the pain".

As said, let the bank failed doesn't punish the origin greed and irresponsible behavious, still even so it doesn't solve and prevent future those irresponsible behaviour will happen again. As those decision makers won't be liable to their decision as it is perfectly legal to be greed, unless regulation is in place. That's why worldwide is calling for some regulation which is badly needed.

Hey.. are we still on this topic? I guess so.. since the market hasn't open yet.

IMO, well. the bad banks really gotta. It ruins everything for everybody. If they don't go, this illness/cancer will still continue in the financial market and no matter much much money the govt is pouring into the system, it will just continue to prolong problem because there is no cure. You know..like zombies in movies.. gotta kill them and shot 'em in the brain, there is no cure.. don't even attempt, they'll just bite you and turn you into one. The only people who worthy of living are those untouched by them. Once and for all, just purge them out of the system, yes, it will be a shock to the system but eventually, it will recover.

it is all the trap lah, except the senior management and their generations would like to live in jungle, if not they will bring back the economic to the glory stage in 3 -4 years, it is all about "Trap created by them". $$$ matter!

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Added on February 23, 2009, 9:22 amseem that some ppl started to accumulate stock for the next rebound.

This post has been edited by sampoo: Feb 23 2009, 09:22 AM

Asian markets down today including ours.

oo no eyes c lo .. knm, lcl, +++ all down the drain jor red red

buy some lah. good timing wat.

market coming up back up

no worries la...such low volume..in hibernating mode......ya...good time to buy imho......

CI going to be huat huat huat again

all the happiness come back lioa. heart beating slow down ..... smile .... bright future .....

Not good, not yet reload, price went up not good ~

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Added on February 23, 2009, 9:47 amI'm beginning to love the red.

This post has been edited by eltaria: Feb 23 2009, 09:47 AM

http://www.themalaysianinsider.com/index.p...bubble-to-burst

Dr Doom says US govt bonds next bubble to burst
SINGAPORE, Feb 23 – As usual, Dr Marc Faber, the author of The Gloom Boom and Doom Report and contrarian views, did not disappoint the masochist in us as he gave his spiel on the causes of the current economic turmoil at a dialogue on Friday organised by The Business Times in partnership with Julius Baer, one of Switzerland's leading wealth managers.

KLCI going up back a bit but only about 20 counters are in green and still low volume.

aiks... market going to turn green!!!

those bird weakup earlier can get some worm to eat.

tml also will up? so buy today for tml haha

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Added on February 23, 2009, 9:58 ambtw lcl up back haha

This post has been edited by mo_meng: Feb 23 2009, 09:58 AM