Posted on 09/23/2008 3:09:52 PM PDT by politicket
I don’t know whether folks were paying attention today. Paulson said that only regulated institutions would be eligible to sell their toxic waste to his bailout bonanza. Interestingly over the weekend GS and Morgan Stanly announced that they were abandoning their high-flying ways and becoming regulated banks.
Take a look here:
http://www.renewamerica.us/columns/zieve/080920
Many in the US cannot afford their mortgages so the US Govt Rides to the rescue by increasing the burden on all taxpayers. Thereby increasing the number of citizens that cannot afford their mortgages so the Govt has to bailout more people.
Meanwhile the two groups that caused this mess laugh as the working class is forced to take another job just to keep up.
Our tax code is broken and our country will not survive if it is not soon fixed. It maybe already to late.
1 Man 1 Vote no longer works when the majority is nothing more than a bunch of freeloaders waiting on and voting for the next Govt handout.
Warren Buffet just announced a $5 billion investment in Goldman Sachs for preferred shares and warrants.
Along with our entire economy right now. That's the problem - we will be suffering the consequences as a nation.
Yesterday, the governor of New York admitted to the CDS problem and instituted regulatory actions for some of them beginning next year.
Today - SEC Chairman Chris Cox acknowledged the CDS problem and want regulatory action to begin 'immediately'.
Meanwhile, the dolts in Congress are still arguing about a problem that is not even the one that can easily drop our economy into a deep depression.
Keep your eyes on the commercial banks. They are hoarding money right now - and there's a reason.
No, you have gone eyeball to eyeball with what you want to believe. Why did Congress people receive so much money from Fannie and Freddie. I do not know Paulson and am not in favor of any bailout. Let the market work. You that want to blame the private sector and never government do not understand that government is a parasite on the system and contributes nothing but headaches to America and Americans. Governments are the best flimflamers and fleecers ever known.
It's a whole lot more than some guy a couple of months behind on his mortgage payments.
Bingo!
And it was just announced a short time ago that Berkshire Hathaway will be purchasing $5 Billion in a special preferred stock for Goldman Sachs. Goldman is also issuing another $2.5 Billion in common shares.
Can you say "Desparation for liquidity?"
Also, now that Morgan Stanley and Goldman Sachs are going to be regarded as commercial banks they will be required to meet lower leverage requirements.
This means that they will have to somehow unwind CDS contracts to meet the new requirements.
Talk about throwing gasoline onto a raging forest fire!
I'll say it one more time - please folks - think derivatives! If the general public doesn't understand this before Thursday or Friday then we are in deep doo-doo.
Hoarding USD might not work it really has no face value. If John Q Public start making runs on their bank accounts its the great depression all over again.
The reason Fannie and Freddie gave Congress a lot of money was because they liked being told to do what they were bing told to do. That is why they pay congressmen.
Sure the government bears some responsibility, a lot of responsibility. But some cats in the private sector got very very very very fat gorging on all the government guaranteed loot that wafted past their nostrils. They sure were not issuing loud protests that the Congress was taking down the US financial system.
My advice to you. Keep your money in CDs or treasuries. You do not want to be subjecting your naivte to the frauds and swindlers in the marketplace.
Is it time for a Million Mortgagers March?
(and by mortgagers I mean those of us fully paid up on reasonable mortgages.)
BUMP!!! AND BUMP!!! AGAIN
Somehow, people need to understand this - AND FAST, my FRiend. People will be getting REALLY hurt if they don't, and it will still be very hard times if they do.
I'm not pretending that it's the ideal solution - I'm just giving people fair warning that if a bank run starts then their ability to get cash will be greatly diminished.
I also hold some silver, but that will be pretty illiquid in the first few days and weeks if the tsunami hits.
Please people - prepare wisely! - Don't panic, don't go screaming in the streets - but protect your family with wisdom.
No, the lenders should have been asking a bunch of questions regarding assets and income. If they didn't, they aided and abetted the borrowers> In fact they got a commission for destroying whatever financial status the home buyers did have.
Just today, a socialist South American acquaintance of mine is calling me for help to live with him, paying some rent, cuz he overpaid a house. When I refused because I pay less for my own modest wood shack and needed to save, he called me a fascist. I laughed at his face because the pauperizers of this society go around cussing those they murder for being dead.
Folkes, this bail out is complete fairy tale lunacy. It’s not feasable. There is no money or, if there’s a little left, it’s not to be squandered like this crazies want us to.
Even CD's and treasuries are going bizarre right now with the market illiquidity.
I don't know how many people realize that, last Wednesday, 3-month Treasury bills went to a NEGATIVE return. This means that people were willing to buy them and pay the government for the privilege!
I would agree that they are much preferable to stocks right now though...
who signed on the dotted line and took the money?
No, its the borrowers responsibility and don’t bother attempting to argue otherwise with me.
A math problem: The next guy over is willing to sell $60T in derivatives for a fee of 2.76356%. How much money are you willing to pay a quant to tell your directors that you can safely offer $60T in derivatives for 2.73153%. After paying your quant, how much money did you make for your bank? How much bonus will you ask for this year? How long do you have to abscond with the loot before see-no-evil its not regulated Cox will decide you are a problem? How long before you bankrupt your company and tank the US economy?
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