Bailout comming in too late ?
 

From what I understand, the short term problem they want to fix here is trust between financial institutions. I would love to have input from guys who know the market better then I do.

How would the bailout FIX anything except restore confidence and get the markets going again for a short time? And do you really think it will make a difference after the roller coaster going on at the white house ?

The bailout might have been a great idea, if it would have been applied instantly, but is it still the best idea after weeks of negociation and lost of trust ?

The problems of the US economy foundamental... housing price bubble, credit bubble, war spendings, trade deficit, energy crisis, all at the same time.

Don't the financial institution are well aware now that the AAA Credit rating is bull... and that lending more money to people in a country that isn't solvant isn't really the best thing to do ?

When they run out of money how will they afford the gas money to fly all the soldiers home?

Banks still aren't lending to each other. SOMETHING has to be done to get banks to be ok with lending to each other. Only borrowing going on right now is banks borrowing from the FED.

Sure we might get a recession either way at this point. the ISM manufacturing index today dipped to 43 which is usually recessionary. Both times under 45 in the past 20 years were associated with the two recessions we had.

But if banks aren't lending to each other it's gonna be a whole lot worse recession than would be otherwise.

The bailout is pretty much some more of the same of what got them there.

Way too late

If the bailout passes,will this send the US dollar spiraling down ? I think it would, but im not 100% sure.

I totally understand the point of the bailout. I've been reading the news too.

The two questions I'm asking is :

1 : Will it really give banks confidence to trade with each other ? The bill is about 5 % of the value of bad mortgages...
2 : If it does indeed restore trading between banks, will it really matter ? Will it change anything except destroy the dollar's value and keep the bubble going for a little more ?

Or do you think the US can turn arround, liquidate their bad paper and fix the problems with the economy ?

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