On Tue, Oct 7, 2008 at 1:43 PM, Jim Devine <[EMAIL PROTECTED]> wrote: > ken hanly wrote: >> I don't see how the bailout could work. It is to take until the New Year >> until the bailout starts bailing. Who knows what will happen in the >> intervening months. I thought the crisis was now and that is why action had >> to be so fast. But no immediate action takes place just preparations to do >> something next year.< > > it's supposed to help expectations become more optimistic.
And by the way, expectations ARE part of what has to be done. Yeah this is a bursting bubble represents real losses. But you not everything is toxic and some of the toxic stuff has real value. So the point of this was to manage expectations so the exchange value of stuff that does have use value does not drop to zero. In that sense, the bailout can work or fail long before the first dollar is spent. On the bright side, we know that the absolute maximum number of the days the stock market can drop this far is 19. Because, thanks to limited liability, the value of stocks can't drop below zero. In fact given the quality of the paper printing used in producing stock certificates, they will always retain some use value as decorative wall paper. _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
