tag:blogger.com,1999:blog-7126131564610858851.post4508970102888301963..comments2023-09-09T10:21:32.853-04:00Comments on The Hackensack: Why the Popular Opposition to the Paulson Plan?DaveinHackensackhttp://www.blogger.com/profile/01313169814904229272noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-7126131564610858851.post-26980139347595603682008-10-03T09:21:00.000-04:002008-10-03T09:21:00.000-04:00A financial system that encouraged poor capital al...A financial system that encouraged poor capital allocation is being given a $700 billion blank check. <BR/><BR/>These distressed assets should be purchased by investors who saw all this coming and had the intelligence to keep some cash on the sideline, not by the U.S. government's printing press.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7126131564610858851.post-69398811908918701352008-10-02T10:30:00.000-04:002008-10-02T10:30:00.000-04:00Just read the Epicurean Dealmaker post. Much bette...Just read the Epicurean Dealmaker post. Much better, and he neatly summarizes my main issues with Accrued Interest's post.DaveinHackensackhttps://www.blogger.com/profile/01313169814904229272noreply@blogger.comtag:blogger.com,1999:blog-7126131564610858851.post-13173357302635961122008-10-02T09:07:00.000-04:002008-10-02T09:07:00.000-04:00I saw the Accrued Interest post yesterday and foun...I saw the Accrued Interest post yesterday and found it unconvincing. I left a comment there on just one part of his post (the part where he claims college would become unaffordable) but I have other problems with what he wrote. For example, the collapse of the securitization market hasn't lead to an end to traditional mortgage lending by banks that hold their loans, and there's no reason to expect it will. You may need a 20% down payment going forward and you may need to have decent credit, so there would be less credit available, but that's an inevitable part of the deleveraging process anyway.<BR/><BR/>If you haven't seen it yet, check out my previous post about whether the credit crisis is hurting the real economy. There is a chance that it could, if left unchecked (and for that reason, I feel some sort of Congressional response is warranted), but as of now it doesn't appear to have impacted the real economy materially (beyond the unavailability of cheap mortgage loans for marginal borrowers or, perhaps the financing of new cars).DaveinHackensackhttps://www.blogger.com/profile/01313169814904229272noreply@blogger.comtag:blogger.com,1999:blog-7126131564610858851.post-9159281517587513132008-10-02T01:22:00.000-04:002008-10-02T01:22:00.000-04:00Don't know if you go to their blogs but The Epicur...Don't know if you go to their blogs but The Epicurean Dealmaker and Accrued Interest have both taken a shot (within the blogosphere) at <A HREF="http://epicureandealmaker.blogspot.com/2008/10/letter-to-bedford-falls.html" REL="nofollow">explaining</A> the credit crisis and what it means for Main Street.Danielhttps://www.blogger.com/profile/02901678973251321027noreply@blogger.com