The US Govt has come to the rescue of the financials - here is what it means
- Govt will give hundreds of billion $ to buy bad debt/mortgages the financials are stuck with. That means that mess is as big as most thought (1 trillion $)
- At what price the bad debt will be bought is not known - unclear
- Will use Tax Payers' money to fund this bail out
- Also will use the $50 billion Exchange Stabilization Fund created to protect the $ - They need all the money that they can
- Can print extra $ ? Dollar to fall ?
What it means for US citizens
- May get home loans again ;-) - would anyone qualify for such a loan anymore
- You are screwed, because there is not going to be any CHANGE - be it from Obama or McCain - they are gonna tax you higher for sure
- Temporary relief - many can still get to keep their jobs
- Interest rates won't come down - because your govt has bought all this mess and they want to recover that money from the existing owners
- Paulson doesn't have a clue as of now how this plan is going to work otherwise he would have answered lot more questions
Feel free to leave a comment of what you think!
- Govt will give hundreds of billion $ to buy bad debt/mortgages the financials are stuck with. That means that mess is as big as most thought (1 trillion $)
- At what price the bad debt will be bought is not known - unclear
- Will use Tax Payers' money to fund this bail out
- Also will use the $50 billion Exchange Stabilization Fund created to protect the $ - They need all the money that they can
- Can print extra $ ? Dollar to fall ?
What it means for US citizens
- May get home loans again ;-) - would anyone qualify for such a loan anymore
- You are screwed, because there is not going to be any CHANGE - be it from Obama or McCain - they are gonna tax you higher for sure
- Temporary relief - many can still get to keep their jobs
- Interest rates won't come down - because your govt has bought all this mess and they want to recover that money from the existing owners
- Paulson doesn't have a clue as of now how this plan is going to work otherwise he would have answered lot more questions
Feel free to leave a comment of what you think!
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