Congress rejects $700 BN rescue plan

[#1]

This is what George Soros thinks of the whole situation. By George Soros "Hank Paulson's $700bn rescue package has run into difficulty on Capitol Hill. Rightly so: it was ill-conceived. Congress would be abdicating its responsibility if it gave the Treasury secretary a blank cheque. The bill submitted to Congress even had language in it that would exempt the secretary's decisions from review by any court or administrative agency - the ultimate fulfillment of the Bush administration's dream of a unitary executive. Mr Paulson's record does not inspire the confidence necessary to give him discretion over $700bn. His actions last week brought on the crisis that makes rescue necessary. On Monday he allowed Lehman Brothers to fail and refused to make government funds available to save AIG. By Tuesday he had to reverse himself and provide an $85bn loan to AIG on punitive terms." I (Mthimbane) think this (rejection of $700BN rescue) is a blessing in disguise for those who are in the market for a long term because markets offer more value over long term, shares are cheap and we can all buy in them. Good investors make money even when the markets are down.

[john_1]

Nice post and juicy gap awaits.

[_nova]

Mark 30 September 2008 as the date the 2nd Great Depression started. Nice post M! Sorros has for years been saying to bet against the US economy and it's appetite for credit. He has never made a secret of it and he has always disagreed with Mr Buffet on this subject. Of course, ole Warren quietly gave up on his own principles when he started diversifying into offshore markets since around 2002. The two top traders in the world are moving abroad in a big way. Bad news for all but a long term hope there. This crisis is going to hit the entire world and hit it hard. Cash is king for the next 5 years at a minimum and we'll be lucky to see any kind of recovery, any kind of real liquidity before 2015

[Mr_S]

so whats going to happen now? are they just going to let more and more banks fail or are they going to come up with another rescue plan? this seems like its going to turn into a GLOBAL DEPRESSION, i mean already Europe is scambling, Asia is scrambling, this is big, im jus going to keep buying..perfect fit with my long term strategy :-) more panic please :-)

[#5]

Lets face it guys, the banks fail not because of the US Treasury but because of their directors, execs and others involved in the running of them. It seems as if those CEOs they employ don't have any idea about economics let alone running a lending institution. How do you justify a CEO getting $50 Mil pay when the company or bank made a loss in that year? The mortagage problem which i believe is the root of the financial crisis should have been avoided had the banks done their homeworks. How can a bank invest 90% of their resevres on mortagage lending and give everyone loans(mortgages) when they know that growth in employment has slowed, how will borrowers repay those loans when they unemployed? This financial crisis will last for the next 5 years and this represents a buying opportunity as shares are cheap and when you invest long term value shall prevail. Now im busy shopping around for cheap shares that have suddenly dropped, who wanna join me in my search for these shares and since im investing long term good returns shall prevail. Watch the space MTN will be a big buy soon, i am not buying yet as i beleive it will drop even further to about R80 per share, also watch for SASOL. In the next coming decade Silver will be next big thing as GOLD reserves run low, uranium will also offer good returns as world coutries race to have nuclear power.

[Hibiscus]

Do you really think the market will move sideways for the next five years. You should not buy now but wait!1

[am_1]

Ditto to John's comment.