On Thu, Mar 26, 2009 at 1:44 PM, michael perelman <[email protected]> wrote: > There is one bailout bill waiting for some action. The Los Vegas casinos are > hurting. I know: boo hoo. How could the government bail them out? They > could lend me money to gamble. I will be obligated to share my winnings > with the government, but they agree that I do not have to repay the loans if > I lose. So, I would stand to gain a great deal with little risk. > > How is my casino plan different from the present plan of creating a market > for "legacy" [Isn't that nicer than saying toxic] assets, other than that > financial firms will have to put up a wee bit of their investment.
I agree with you on the substance of your rant, but I think you are being too harsh on the new bailout proposal. It is hardly a giveaway to speculators like everyone is suggesting. From my rough understanding, anyone willing to participate in this "partnership" has to put up about 10% in equity and then leverage it approximately 10 times. But then they absorb the first losses. This is more than "a wee bit of investment". It disgusts me to see even a penny of government money go to financiers, but the reality is this new plan is actually an improvement to what we have had so far. At last the financiers are being asked to actually take some risk to make profits rather than being given cash with no conditions. -raghu. -- Never get into fights with ugly people, they have nothing to lose. _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
