And the Left thought that Bush was vile. This scenario this guy lays out is so likely as to be unstoppable. And it would explain why the supposedly brilliant Geithner is acting so tongue-tied: he can't really talk about the fact that his plan is a complete bail-out not just of wall-street's corporations, but of its investors too. The only up-side is that many of those investors are pension funds. Mixed-feelings ahoy....
Oh, and when he says "The Fed", don't forget that he's not talking about the Treasury -- he's referring to the FDIC! These fuckers (Obama & co.) are going to save Wall Street's investors by wiping out the fund that's supposed to secure the bank accounts of every Mom & Pop in the USA (I say "supposed to" because reserves are effectively less than 1% of liabilities).
PS. If you want to see the plan fixed, edit the word "non-recourse loan" from it and make the money from the FDIC get repaid. Then you'll see all those eager participants run to the hills immediately, because that leverage simply will not be repaid. As it is, the "responsible" plan is just like taking out a loan from the bank to buy stocks with, with the only collateral the bank gets being the stock itself -- who wouldn't jump for that deal?
8 comments:
Dude, if you haven't already figured out that these boneheads are totally clueless in regards to finance you have been living on the moon (and I am saying that for the general public, I know YOU know this already).
Time to buy silver coins and .38 Special Ammo. Hell, at the rate things are going, the ammo is going to be worth more than the silver...
And in doing so, we're going to inflate the currency all to hell and screw the Chinese. Lovely.
This explains Russia and China trying to go back to the Gold Standard?
Unfortunately, they're not clueless - clueless could almost be forgiven. This is corrupt - the shining paragons of transparency are engineering the mother of all bail-outs, trashing capitalism and doing it all under the radar. It's just disheartening.
James is asking me to add that he is disheartened because he was expecting incompetence, but this is just slick, greasy even.
Following up from last night, I *expected* cluelessness. My entire advocacy of Obama was a lesser-of-two-evils approach grounded on the anticipation that he'd reprise Carter.
Instead we've got a group that Machiavelli would be proud of, and still no signs of any real fiscal conservatives in the Repubs (besides those that're conveniently so as a minority stance).
@Russ: it's odd -- it looks like they're trying to demolish the currency, and with the given deflation on, they may end up doing so without causing inflation here. The problem with that, though, is that if that comes to pass, eventually commodity prices will increase and kill us with a nasty stagflation that would only be solvable with even nastier interest rates.
Bleah. I agree on the whole "making me sick part". It hurts to watch this happen. God, why can't we actually LEARN from history JUST ONCE?!?!?!?! Socialism and all of this anti-capitalist crap doesn't work. Damn, why do we have to try everything before we figure out something DOESN'T WORK?
Oh no, we have just enough idiots who think they will be the ones to make this work this time, while not realizing they are being used by power hungry MoFos to get yet more power. And the MoFos are too stupid to realize (or short sighted or just don't care so long as they hve the power) the damage they are doing.
(*&#*&^@#. Not exactly on topic I know, but it all relates.
I'm going to buy some more silver eagles. I can't get anymore ammo.
Are you really sure its the FDIC and not just more "Federal Reserve" he's going after? Unless I'm ignorant and FDIC IS part of the Federal Reserve, which is usually the capitol hill speak term I hear and most other people assume for "the Fed."
Now, if it is FDIC I'm pissed...but yet resigned to the fate. Since practically no one saves money these days except for the elderly and those of us here, no one really has much money left to insure now do they? It's all in worthless pension funds and/or stock that everyone was buying with home equity they didn't have.
So....we may all be pissed but if the majority comes out smelling like roses and the minority gets screwed - what else is new? I'm thinking instead we may enter a brand new financial system, where perception matters more than what something is actually backed up with. Then again, maybe we're there now.
Hmmmm.....a government controlled economy that grows at unbelievable rates based upon the huge labors of its citizens....sounds like Geitner and colleagues learned something from the Chinese and are repaying the favor - just instead recovering all the money we've exported to China through the almost worthless loans that we've convinced them to buy.
I'm rambling - but mostly because I'm resigned to my fate and if this crew is competently machiavellian then none of us can really see where they're going yet. We can only guess.
IIRC from the details a bit ago, the loan is coming from the FDIC, which if I understand correctly, belongs to the Fed.
That would be quite different then, since in the past the federal reserve funded the FDIC and in this case the FDIC is being asked to fund this program. Further, the FDIC was created to cover banks that were not part of the Federal Reserve system so they may not be one and the same.
Ultimately I don't know. But it looks like your video is someone's interpretation of the plan, so for all we know something crucial is missing here.
Regardless, we are about to see the economy get a lot more controlled for the short term and maybe long term. Whether that is good or bad I cannot say since just about every economy in the world today is controlled to some extent or another and now ours is about to be more controlled than we are used to. Not that I ever played much in it to begin with so to some extent I think I'm blase about this because I don't know what I'm missing.
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