Posted on 11/20/2008 8:38:46 PM PST by neverbluffer
Read the article in the link provided.
Way down in the articvle is a paragraph which talks about how Hugo Chavez "nationalized" industries by buying the stocks of the corporations on the free market.
Sound familiar? Thats what Paulson is doing with the bailout money. Buying the stocks of companies (mainly banks) in effect nationalizing them like Venezuela.
SOCIALISM PEOPLE!
Do you, or anyone else, have a description of what the bailout money has been spent on thus far?
Most of what has been used was to purchase Preferred Stock in Banks, to give instant liquidity, but NO BOARD SEATS OR VOTES in bank were taken. Stock was purchased just as if you or I purchased it...no nationalism if no vote or representation on board from government. It was from Paulson that this was said at a news briefing early on after the Preferred Stock purchases.
Note to lurkers:
Please don’t write me cause I don’t give a rat’s rear what you think unless you are person the comment is addressed to, I’m just giving facts..not opinion. I am tired of stupid comments on my comments. Write Paulson or someone who cares.
thanks very much...
What happens when these business fail to pay for these generous loans? If I fail to pay my mortgage, the Bank from whom I borrowed money will most certainly take it over.
I understand they don’t have any seats or votes, the public wouldn’t accept that. But what will happen when they fail? Government should always get the heck out of the way, a better faster more improved business will take over. Just a free market fact.
Look I never said I agreed with any of this, just reporting what I heard and know to be true. I prefer the preferred stock to buying toxic mortgage paper, and I’ll tell you why. The government has never handled paper that it didn’t make a huge disfunctional beauracracy and a mess of it.
At least the Preferred Stock, when the market price goes up enough, it may make a profit when selling it off slowly. The one thing about stock purchases is that you need to be willing to hold five years, if it’s slow to return. And with that much invested it will have to be sold off in small amounts, so as not to cause a big problem later, or put fear in market with a big sale.
If they fail, we lose, and I know free market principles. My comments have nothing to do with agreeing or disagreeing, just answering the question with facts..that’s all.
Alright. I can deal with that.
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