Posted on 09/19/2008 7:59:40 PM PDT by hatfieldmccoy
Bush Treasury Secretary Hank Paulson just wrapped up his press conference announcing the Mother of All Bailouts. He said a “bold” approach was needed to achieve “stability” in the market.
Let me translate that.
“Bold” = Massively massive, taxpayer-funded rescue.
“Stability” = Privatizing profits and socializing losses on a scale we have never seen before in our lifetimes.
I have had it with Pollyanna conservatives who continue to parrot the “fundamentals of the market are great!” line.
The fundamentals of the market suck. The fundamentals of capitalism have been sabotaged.
(Excerpt) Read more at michellemalkin.com ...
Hmm, coincided with the spike in PG, maker of Pepto bismol.
I coulda` made a killing :-)
This week was the Titanic hitting the iceberg. They thought it was a close call too...for a while. Then reality set in, as it will for America. Prepare your affairs and those of your family’s for the times ahead. And God bless.
Too true. Too true.
Glad I have no kids as well. I’ve pretty much been a selfish puke most of my 58 years. I think I’ll spend the rest of whatever time God has allotted me helping my christian brothers in whatever way I can. I’ve got all the toys I want and had all the fun. Its time to get ready for Christ’s return.
It seems quite requisite to me that the final generation should see it all come tumbling down in just our life times. Everything that meant anything. All being swept away. Fiscal conservatism notwithstanding ... the very spirit of man is descending into hell right here on earth preparatory to the actual fall.
Funny how the quickly the financial sector turns from proponents of free market capitalism to flat out socialists when it helps them make a buck.
When do w say no to bailouts? These companies want to make the big profits, which is fine. But profit is based on taking a risk and being successful at it. When they lose, they want to socialize the risk.
The time has come to say no to these bailouts.
Can we say inflation...todays actions will at least double inflation. Major disaster.
“the Feds now basically own these companies and their holdings will be auctioned off back to the private sector.The Feds won`t be losing much if anything and have averted a total seize up of the entire banking industry.”
I don’t think this is straight. The government is not seizing bad debt, they are buying it. ALL the money they plan to use comes straight off the printing presses. They plan to buy at about 65% of paper value BUT what they will sell it for is total speculation. Could be more or much, much less. Regardless, ther will be hundreds ofbilions of funny money out there diluting the value of the dollar.
Yes. They will be auctioned off to the private sector representatives of China and the Gulf States.
The nastiest part of what's to come, is that by having all of these banks confess their sins, the world is going to discover that the banking system has no money, just the smoking remains of fractional reserve banking.
Next year will be the year of empty subdivision burnings, hosted by the government, to rid the real estate sector of massive inventory overhang.
Not when you have children and grandchildren (and in our case great nieces who we have custody of) to worry about.
I’m 37 and can’t believe how gullible we’ve become.
For over a year now, I’ve been screaming from the rooftops to the people around me that the system is going to collapse. That the lies and fraud will force their way onto these balance sheets one way or another, and that will be the end of the banking system as we know it.
No one listened, except for a scant few who were thankfully prepared to sit out this circus.
This is far from over. Anyone who thinks this two day short-covering rally is going to last, is not seeing the picture clearly. The bipartisan committee that emerged from that meeting with Paulson/Bernanke was shaken and fearful, not confident and hopeful. The CRT is a good idea on paper, but it is not going to avert a painful consequence to our economy.
I believe Paulson and Bernanke have understood this to be a foregone conclusion for many months, but the laws of survival dictate that if all one can do is buy time, then one must buy time. This foundation of this problem was laid long before they took the stage. Namely, Greenspan and the gross incompetence of the SEC.
GE was approved for the list.
Look on the bright side, gonna be some real discount real estate to be had in some areas of the country.
The sane person will buy a house that is in his means but it will cost substantially less.
I agree. Banks are going to continue to hoard money and credit will be tight for many years. With unemployment rising, there is also little pressure for wage inflation of any kind. More likely, companies will hire younger and cheaper as they go. “Early retirement” packages for seasoned, higher-salaried employees will be all the rage in the coming year, if not outright layoffs.
Wall Street, itself is deflating as an industry. How many traders and brokers are going to be looking for work in Manhattan and New Jersey over the next twelve months? A LOT.
It’s easy to look at this situation and assume some sort of Bride of the Weimar Republic is waiting in the wings. I suspect the bailout will not come from printing money, but simply taking it from the populace. I expect taxes will increase severely. They will have to.
Bingo. Michelle gets it that we have transitioned from free market 1st world capitalism to Nigerian like crony capitalism. It is a polite way of calling these guys crooks.
bookmark
That presentation is right on point.
I have some Alaska bridge bonds to sell you too.
Did you happen to notice the blurb in the news a few days back about Lehman “losing” certificates in transit? That’s the first thing that came to mind - they never had the certificates to begin with.
The sharp spike at the outset of trading today was exacerbated greatly by the absence of short sellers who normally liquify the offer. The stampede was quite impressive.
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