Comments on: Bailout's Passed - Now What?
The Ultimate Effectiveness Of The Historic Financial Rescue Plan Remains Unclear
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- My example for "trickle-down" economics is food and water going into one end and feces and urine out the end that we get.
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- ibsteve2u: The upcoming earnings reports will likely be atrocious. That''s why you saw the stock market plunge on Friday, instead of rise as expected upon news of the bailout plan''s passage.
Posted by incog-nito at 12:26 AM : Oct 05, 2008
Oh, I know. I had "But I doubt it..." right after that paragraph, but I ran into CBS'' 1500 character limit and had to start paring non-essentials out.
When this "bailout" first sprang into the news, I suspected that it had another purpose, that of providing "tight credit" as a convenient scapegoat for what will happen to the stock market and thus obscure the underlying causes of our economic rot:
Inequitable free trade and "trickle-down" economics. - Reply to this comment
- This is not the reason that this happened.
"ibsteve2u: The upcoming earnings reports will likely be atrocious. That''''s why you saw the stock market plunge on Friday, instead of rise as expected upon news of the bailout plan''''s passage.
Posted by incog-nito at 12:26 AM : Oct 05, 2008"
It was because after the Bailout the foreign banks no longer trust the US, they believe that we are going to default on all of their loans. Additionally, we rewarded the criminals instead of prosecuting them. They would have prosecuted them, like the Europeans, or executed them like the Russians or Chinese. That is why the Chinese stopped loaning us any money. Today the Europeans announced that they would prosecute anyone in their countries for this. Confidence in their markets went up. - Reply to this comment
- ibsteve2u: The upcoming earnings reports will likely be atrocious. That''s why you saw the stock market plunge on Friday, instead of rise as expected upon news of the bailout plan''s passage.
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- Wish I could; but, we are fighting these Corporate Wars for Natural Resources (Oil). Do not believe that Halliburton, KBR, British Petroleum, Standard Oil (aka Chevron), etc. will let us come home. Also the Law protects them, by preventing US Military from Military actions within the US. This prevents the US Military from overthrowing the US Government.
"Just think, our soldiers are fighting and dying to support this corrupt 110th Congress, while their elected politicans ruin the lives of their families at home. We need them to come home and protect us all from the politicans, those politicans who voted for the corrupt ridden bail-out are our enemies.
Good night all.
Posted by cattieJ at 12:16 AM : Oct 05, 2008" - Reply to this comment
- Just think, our soldiers are fighting and dying to support this corrupt 110th Congress, while their elected politicans ruin the lives of their families at home. We need them to come home and protect us all from the politicans, those politicans who voted for the corrupt ridden bail-out are our enemies.
Good night all. - Reply to this comment
- This is what I meant distracted by the distraction during a Magic Trick. By the way it was the Corporations incorporated in Delaware that dictated what they wanted. Look it up. Just like I mentioned before the Europeans got it right.
"I think the people of California should impeach Nancy Pelosi. I think Senator Harry Reed should be impeached by the people of Nevada. The Democrats have been fools to follow George Bush''''s instructions. The smile on Nancy Pelosi face, Bush and Paulson''''s face says it all....they got their''''s and made fools of all the poor and middle class taxpayers. Now we are might as well elect a King or Queen, because our system of American government is gone.
Posted by cattieJ at 12:10 AM : Oct 05, 2008" - Reply to this comment
- The great fallacy of running an economy on credit because you offshored all of the jobs is that the banks will not play ball and give unlimited credit to people who cannot find decent jobs.
Maybe this week''s earnings reports will all be glowing, temporarily stabilizing the house of credit cards the Republicans have transformed our economy into with their "trickle-down economics" and "free trade".
Ironically, the high cost of energy and its wide-ranging impact on all consumer goods, at least in my mind, pushed a lot of mortgage holders over the edge.
Now the economy is slowing and energy demand is down, so in combination with T. Boone Pickens and others making enough noise to make the Oil Boyz worry about getting cut out of the loop, energy prices are declining.
That has a curious effect: It brings short term relief to the American consumer, but it eliminates the possibility that higher transportation costs would offset the cheaper wages and lack of environmental laws offshore and so force the return of jobs to America.
Frankly, our necks are in an ever-tightening noose of our leaders'' making.
It all makes me wish that the Presidents that we have elected would have had the capability of seeing the "big picture" and so would have blocked inequitable "free trade" rather than place the American people in such jeopardy.
Or in the case of Clinton, the moral fiber and loyalty to put the American people before the greed of our nation''s CEOs and wealthy elite. - Reply to this comment
- Parody on Rachel Ray.
"What''s for dinner tonight?" MMMMMMMgood.
"Depression Era Dog Food Stew" MMMMMMgood.
"Stretch that one can of Dog Food out to one week." "Yes, you can."
Difference Between:
Depression, those that caused the failure lost everything and jumped off the tops of buildings.
Recession, we pay those that caused the failure, so that they can come back again and ask for more money. - Reply to this comment
- I think the people of California should impeach Nancy Pelosi. I think Senator Harry Reed should be impeached by the people of Nevada. The Democrats have been fools to follow George Bush''s instructions. The smile on Nancy Pelosi face, Bush and Paulson''s face says it all....they got their''s and made fools of all the poor and middle class taxpayers. Now we are might as well elect a King or Queen, because our system of American government is gone.
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- Bob Chapman almost sounds like he''s lost it.
http://theinternationalforecaster.com/International_Forecaster_Weekly/Bailout_Creating_a_Financial_Black_Hole_to_Suck_Us_All_In
''If you were wondering why all the healthier financial institutions, and of course we say that with tongue-in-cheek because we know they are all eventually slated for destruction by the explosive blast of a Quadrillion Dollar Derivative Death-Star, were buying all the gargantuan commercial and investment banks that are laden with toxic waste, you now have your answer.
This is why all the shareholders in these zombie-acquisition deals are getting vaporized. Their assets were more valuable than they thought, because unbeknownst to them, the US Gov was about to pay far more for these assets than they were worth.
M3 is about to explode as these many monetizations and the Fed''s Trillions in liquidity injections continue to flood the fiat money and credit system, which will continue in its cryogenic state despite the Paulson Ponzi-Plan that will now be implemented in an attempt to re-inflate the credit markets, which are the lifeblood of our debt-based, fiat money system. Everyone on Wall Street knows that the subprime paper is not the real problem. The real reason they distrust one another, and will not lend to one another, is the unknown counterparty risk that will go into a plasma state when the Derivative Death-Star detonates.''
Things may be worse than We thought. - Reply to this comment
- Monday morning, when our bank opens we are going to take our money out and put it in a safer place. With a depression coming and in our 70''s we can''t afford to lose everything we have worked for all our lives. We have both worked since we were 13 years old. We educated our kids, paid our bills and thanked God we lived in America. Now we are scared to death. You know how it feels to be 79 and worry about losing what little money you have been able to save? It feels really really bad. We appreciate all the good comments that people write in..it makes us feel that we are not alone. Thank you to everyone who also show there feelings on this serious matter.
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- See I told you so.
The Europeans are not as stupid as ""U" Stupid of America", USA.
They are criminally proscuting those responsible announced today. The last time something like that happened the Finance Minster Germany committed suicide.
They know that it is not a Political issue.
Instead USA gets diverted by the diversion in a Magic Trick blaming Politicians, Political Parties, Government, Government Regulations, Laws, etc.
Instead of concentrating on the cause(s). Unpunished Criminal Activity by Corporate Board Members. Corruption of Politicians by Corporate Board Members. Corporate Board Member Greed.
Oh, forgot we cannot because of the Court of Chancery, Delaware, Senator Joseph Biden''s Senate seat. - Reply to this comment
- Uh Oh..
When Jim Sinclair says what he just said, you need to listen.
www.jsmineset.com
''Maybe you should consider a visit to your local bank for their abbreviated Saturday hours.. What do you have to lose? That all depends on how much you have deposited there...
If major banks can be torn apart how can we have faith in the small local institutions that hold most of your ready cash?
When I said ''This is IT,'' it is not something that I take lightly. Never in 49 years in finance have I seen a set of circumstances so challenging to the man in the street.
What I am getting at is a simple question. Are you prepared? You have heard us talk repeatedly on removing financial intermediaries between you and your assets, but the time has come for us to recommend going one step further:
Hold enough cash at your household to last you a month or two. It may be largely unnecessary for the majority, but what do you have to lose? If your bank should fail this will save you a lot of grief in the short term. If they do not, you still have all your cash that can easily be deposited back into your account.'' - Reply to this comment
- When the banks/mortgage companies once again loan money to people who can''t pay it back, because they lost their jobs and they bought property they couldn''t afford, then the major, major, major, Deep Depression of the finincial type will come about.
I suggest that we all immediately stop using our credit cards, if you buy a car, buy America. Stop buying so much junk made in China. If you talk to someone on the phone that are talking to you from India, China, or any foreign company, tell them you want to talk to someone in the United States. If they won''t transfer you, hang up and call the home office of the company directly. It is time for us to stand up for ourselfs, because our elected politicans are not going to help us. We are on our own. All the CEO''s of these corrupt, cooking the books companys and the politicans who voted for the Bank Bandit Bail-Out, should be hounded out of office. They all probably have Swiss bank accounts (as another person commented on this). - Reply to this comment
- S,now we gonna go out and buy the wooden arrows, we probably WILL go out & buy the rum that the rum-producing industry in Puerta Rico was given in this bail-out. All this in the news today that employeers have layed off another 159,00 employees. It seems to me that with the increase of more than the orginal 700 Billion that Bush and company we asking for that we are indeed "being taken to the cleaners, folks".
Neither Obama or McCain are going to make a good President for us, the American people. Palin is a joke to worse kind. It is time to start looking for someplace else to live besides the United States..only trouble is, we are welcome anywhere. What a mess you have gotten us into, George. - Reply to this comment
- Sure, we know what''s next. No one listened to Dave Ramsey''s plan. What''ll happen is that banks will continue to loan money so people can buy houses they cannot afford. Later, again, the houses will have negative equity and the banks will be have to be bailed out again. Those smartest at the dollars did not plan the smartest, so now we are in more debt. America will go broke, people will lose millions, and Washington will fall apart.
(There''s gotta be a glimmer of hope somewhere, what ever happened to "We The People")? - Reply to this comment
- Prediction:
April 2009, Congress will be putting forward another stimulus bill to try and prop up a sagging economy.
They just don''t get it. - Reply to this comment
- So some changed their vote based on promises of what would come "if elected"? Well here is a news flash, the bill is enacted now! These guys have to go!
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- Global Derivatives Market now valued at $1.14 Quadrillion!
http://jutiagroup.com/2008/07/24/global-derivatives-market-now-valued-at-114-quadrillion/
''The Bank of International Settlements, has recently reported that global outstanding derivatives have reached 1.14 Quadrillion dollars: $548 Trillion in listed credit derivatives plus $596 Trillion in notional/OTC derivatives.
Derivatives, are essentially unregulated, high risk credit bets. Unlike the earnest farmer who might employ a futures contract to hedge the price of the beans he''s worked so hard to grow, many of today''s institutions use futures, forwards, options, swaps, swaptions, caps, collars and floors - any kind of leverage device they can cook up - to bet the hell out of virtually anything.
Despite calls for more regulation from such mandarins of the finance world as George Soros, it seems that the value (and consequently the risk) of this ''derivatives time-bomb'' is exponentially increasing. As Bershire Hathaway''s 2002 Annual Report stated: We view them as time bombs, both for the parties that deal in them and the economic system.
That time bomb almost went off in Mar 08 with the Bear Stearns debacle. The title of an article by noted analyst Ambrose Evans-Prichard, ''Fed''s rescue halted a derivatives Chernobyl'', says virtually everything you need to know.''
Unfortunately, the Freddie/Fannie debacle relit the Fuze - The Fuze runs out the week of Oct 6th. - Reply to this comment
