Housing & Economic Collapse - In Progress

Eli

Well here is this video that should make every US citizen sick.

Video

It should not come as a surprise but the Fed bailout of Bear Sterns is going to be paid by the US taxpayer. Paulson sent a letter to the Fed saying yes the loss from the Bear deal can be sent to the Treasury of the United States.

The taxpayer is now bailing out billionaires that made horrible speculative bets. The Fed has also promised there will be more to come if necessary. This is nothing less than the rape of the middle class by wealthy elites.

Iaato

Speaking of sick to my stomach, I caught a bit of John Snow on Charlie Rose last night (previously Secretary of the Treasury, in case you can't remember the parade of names from this admin). I had to turn it off after about 3 minutes. From the bit I heard, his main goal was to plant the idea that our financial system needs the ability to "be creative," and that Paulson's plan is a good one because it will promote "more creativity."

Fractional reserve banking dictates that we grow the fiat or it collapses. How do you grow from $600T in creative-but-not-connected-to-reality paper? Is it possible for them to come up with one more pretense?

I can't watch your video, Eli. I'm nauseated, and I think I just threw up in my mouth, a little.
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"When fascism comes to America it will be wrapped in a flag and carrying a cross." --Sinclair Lewis

Cloud9 · Light Sweet Crude Joined: Jul 26, 2006 Posts: 1041

Hoover found money for Wall Street but precious little for the common man. That ended Republican rule for two decades.

smallpoxgirl · Moderator Joined: Nov 08, 2004 Posts: 5734

threadbear · Expert Joined: Jan 22, 2005 Posts: 7508

Eli

The US Treasury and the Fed are bailing out billionaires and it has little or nothing to do with the Republicans, both parties are owned and financed through large donations from Wall Street.

Iaato

I guess this one should be subtitled, "Let's throw the clearly discredited to the wolves; maybe that will slow down the mobs and give the appearance that we're doing something Oh, and distract and entertain the onlookers over at po.com."

http://www.fbi.gov/hq/mortgage_fraud.htm

Newly created website from the FBI.
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"When fascism comes to America it will be wrapped in a flag and carrying a cross." --Sinclair Lewis

shortonoil · Fission Joined: Dec 02, 2004 Posts: 2684 Location: VA USA

Iaato said:

Ferretlover

Yet again it happens.

I think that if an institution is in Big Trouble, indeed, possibly failing, their stock should collapse to nearly nothing.
But, nnnnooooooo, the market does the exact opposite, and takes off as though it was a bright, shiny new orbiter!!
UP 373.+! Sheesh!
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"RRrrruuuunnnn!!!" ~Apocalypto

patience · Expert Joined: Jan 04, 2008 Posts: 1521

shortonoil,
My thoughts exactly. Nothing can be done to stop the financial carnage, so we'd better do CYA. It's not even a very entertaining sideshow at this point, unless you are into tragedy.
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Local fix-it guy..

newman1979 · Heavy Crude Joined: Sep 25, 2006 Posts: 104

Change the Government in November. The Country has a federal deficit of $10 trillion, a negative net worth of $60 trillion on a GAAP basis and a running trade balance of $700-800 billion a year. We now longer have a free market economy. The constant federal intervention in the market over the last 6 months has shown the world that our markets are as government run as any in the industrialized world and most of the rest of all but the most centralized economies in the world.
This is truly a government of the rich/cronies, by the rich/cronies, and for the rich/cronies. In November, we have a chance to bring it back to Lincoln's words.

dorlomin · Light Sweet Crude Joined: Aug 05, 2007 Posts: 1063

All of this stems from the subprime mortgage debacle initialy. Sub prime mortgages track the LIBOR rate in London although I dont know how often they adjust. Everytime the banks have a 'loss of faith' in each other the LIBOR goes up, alot.

If as we suspect the financial industry aspect to this crisis will keep rumbling on until we have had $600 billion to $1 trillion in write downs there will be constant shocks to the banking system and the LIBOR will go up. Everytime it goes up it will squeeze more subprimes to the wall.

If I have that part right then this is a genius of beauty amoung Fark.

patience · Expert Joined: Jan 04, 2008 Posts: 1521

Well put dorlomin! I guess we gotta laugh to keep from cryin', huh?
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Local fix-it guy..

shortonoil · Fission Joined: Dec 02, 2004 Posts: 2684 Location: VA USA

Growth of Domestic Non-Financial Debt:

dorlomin · Light Sweet Crude Joined: Aug 05, 2007 Posts: 1063