Joined: Apr 27, 2007 Posts: 4353 Location: The Great Sonoran Desert
Posted: Thu Feb 07, 2008 11:29 am Post subject: The Socialization of Private Risk
Quote:
This is being sold as for the benefit of the banks and homeowners and the economy of course; in reality, it is simply the socialization of private risk. Global capital has manipulated every political and economic system to ensure that it either gets repaid by the original borrower or gets reimbursed by someone else. It once was that foreign capital bullied Third World countries through puppet institutions like the IMF and World Bank, but foreign capital has its bullseye squared right on the globe’s biggest debtor nation. The op-ed’s author implies that the situation could be dire if foreign capital were to stage a full-scale strike of U.S. debt, which would cripple the Wall Street-controlled global finance monster:
Under this arrangement, American banks would have an incentive to buy back the subprime debt now being held by foreign banks and other financial institutions. American banks could buy the securities at a discount to face value (reflecting the continued low teaser rates) and then, thanks to the government guarantee, hold them as capital assessed at their full value. That, in turn, would allow the other financial institutions to reinvest in other sectors of our economy.
Once this is passed...you can expect the middle class to vaporize like the planes of 911. _________________ "There must be a bogeyman; there always is, and it cannot be something as esoteric as "resource depletion." You can't go to war with that." Emersonbiggins
"... hope is a rotten-thighed whore" Niko Kazantzakis
Joined: Oct 03, 2004 Posts: 522 Location: Washington State
Posted: Thu Feb 07, 2008 9:26 pm Post subject: Re: The Socialization of Private Risk
Wow, looks like nobody really wants to think about this. I've heard the pundits talking about the "elimination" of the concept of risk. This must be their means of doing it. After all, it's just 1's and 0's right? Don't these boneheads realize that without the middle and lower middle class buying crap there is no economy. They wil end up like the lords of the late middle ages, spending their money to keep an appearance of wealth and power while they slowly slip into poverty. And the middle/lower middle class is turned into serfs or soldiers, while there is somebody still able to support them.
Romney saw the handwriting on the wall and wants no part of the coming carnage. The message to those seeking public office "pity the fool"
Keep the info coming Roccman. Thanks! _________________ This is where everybody puts profound words written by another...or not so profound words written by themselves
Highlander 2007
Posted: Fri Feb 08, 2008 12:05 am Post subject: Re: The Socialization of Private Risk
Quote:
Wow, looks like nobody really wants to think about this.
We would love to think about this, if it had a chance in hell of passing. Voters love seeing bankers lose money; nothing makes someone happier than to see someone they do not know suffer. That is why Jerry Springer gets ratings, so there is no chance in hell of a government bailout, especially of foreigners, regardless of the made up consequences some congressman thinks up.
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