Sep. 28th, 2008

strangeanimal: (obama)
How Wall Street can bail itself out

I think this is brilliant. Billions of dollars are traded on Wall Street daily. Even a tiny percentage of that adds up to millions of dollars a day, that is being generated by investors, which will be used to repay the "bailout".

The 'little people', who have a few stocks or whatever in their retirement funds, end up paying a few pennies. (Which, don't forget, we already pay in brokerage fees, commissions, etc.) This fee/tax/whatever won't bankrupt anyone.

The big players, many of whom got the markets INTO this mess, end up contributing their share to get the markets out. And since these people are ON Wall Street, or have huge investment portfolios, they're paying a small percentage to save their own asses... if you can make million-dollar trades, you have the assets/liquidity/whatever to absorb the few hundred bucks on top of the million. Again, this won't bankrupt anyone.

The (briefly) economics major in me would love to see this happen. The journalism school graduate knows there's no hope in hell, and that something ridiculously risky and convoluted will be passed instead. :p

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strangeanimal

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