Why they're bailing out BSC

[Rich]

I've asked and have been asked at least a dozen times by friends,
"WHY THE HECK DOES THE GOVERNMENT BAIL OUT THIS COMPANIES BUT NOT THE LITTLE GUY!?"

Well, some of the explainations may be here, and its frightful.

Go to this link and advance to 15:10 minutes. A special report on how there are 681 Trillion dollars in derivatives and if they didn't jump in for BSC it could have effected the entire financial market.

I have no idea how to post the portion that contains this report so you just have to click the slider ahead until you get around the 15 minute indicator. Its a seven minute report.
Rich

http://www.cbn.com/media/index.aspx?s=700club

[Gzapper]

of course ron paul is the way to show off that pee wee herman and natalie merchant should truly decide to dictate a more voyage towards cheddar cheese pie ... OH DEAR! NOT THE DRY WHEEL!!!!!!!!!!!! tell me its more subtle...tell me its more hotter... tell me its more than you will fly around when it shows off a bitter dairy deal!! :s:

[ChartShark]

they're...

[Rich]

of course ron paul is the way to show off that pee wee herman and natalie merchant should truly decide to dictate a more voyage towards cheddar cheese pie ... OH DEAR! NOT THE DRY WHEEL!!!!!!!!!!!! tell me its more subtle...tell me its more hotter... tell me its more than you will fly around when it shows off a bitter dairy deal!! :s:

???????????????????????????


My only desire was to share the report on derivatives, you turn it into cheese, ron paul, a hot wheel?
Must be late <g>

BTW, where have you been hidding Zapper? I've missed your posts, they're so, different <g>

.
Rich

[freakscene]

dude has talent

not sure what its good for, but i know i couldnt do it, with as much zooberance

:biggrin:

[Hondaboy]

Lets be happy they helped them out.

[freakscene]

Do you not see a logical argument questioning why tax payers are responsible for their bad decisions?

Can I expect tax payers to "bail me out" if I make bad decisions?

[aiki14]

Do you not see a logical argument questioning why tax payers are responsible for their bad decisions?

Can I expect tax payers to "bail me out" if I make bad decisions?

The taxpayers are typically not in possession of all the facts. The Gov't in representing the taxpayers may well have saved them a lot of grief in this mess. I am a believer in that assessment of the recent FOMC actions.
I do see the logic behind your statement, but there is a deeper layer to this onion. The short view is that by saving one link in the chain you are favoring that link, the long view is you're saving the chain.

If you start your house on fire, you probably can bet on your fellow taxpayers bailing you out, they'll come in the red trucks, asking for nothing. They're doing you a favor bailing you out, but they may also be saving your neighborhood. That's analogous to the FED actions and BSC in a way.

[John Law]

Hmmm...except that my tax dollars are already paying for the fire trucks,etc. whereas the fall of Bear Stearns would have had no effect on me personally. It may be true that the financial world would all have trouble, but I question whether banks exist for my well being, which seems to be your premise. I am realizing more and more that banks are more the problem and less the answer. It's true that people need capital for business, etc. but if this derivative thing is so far-reaching, maybe it's time to find another way to finance business.

[Gzapper]

peanut butter on the thighs is quite the solution for mosquito bites and rashes from mom hitting u with the kitchen can opener imo

[freakscene]

The taxpayers are typically not in possession of all the facts. The Gov't in representing the taxpayers may well have saved them a lot of grief in this mess. I am a believer in that assessment of the recent FOMC actions.
I do see the logic behind your statement, but there is a deeper layer to this onion. The short view is that by saving one link in the chain you are favoring that link, the long view is you're saving the chain.

If you start your house on fire, you probably can bet on your fellow taxpayers bailing you out, they'll come in the red trucks, asking for nothing. They're doing you a favor bailing you out, but they may also be saving your neighborhood. That's analogous to the FED actions and BSC in a way.

I understand and do not disagree entirely Aiki.

Im not sure Jim Rogers agrees, but the question was merely posed to see if the poster it was directed towards could understand why some people believe it wasnt the Feds job.

http://seekingalpha.com/article/69938-jim-rogers-on-investment-bank-bail-outs-and-the-federal-reserve

You know the reason they did it this way was because, if Bear Stearns had to declare bankruptcy, you'd realize that Bear Stearns paid out billions of dollars in bonuses in January - six weeks ago. If he let them go into bankruptcy, they all would have had to send back their bonuses.

This is what they're doing, they're doing it so they don't have to give back their bonuses. That's why they didn't put them into bankruptcy. Jamie Dimon has gotten a great deal because the Federal Reserve is paying for it. The Federal Reserve is using taxpayer money to buy a bunch of Bear Stearns traders' Mazeratis/


cheers !

[bigzip]

Hmmm...except that my tax dollars are already paying for the fire trucks,etc. whereas the fall of Bear Stearns would have had no effect on me personally. It may be true that the financial world would all have trouble, but I question whether banks exist for my well being, which seems to be your premise. I am realizing more and more that banks are more the problem and less the answer. It's true that people need capital for business, etc. but if this derivative thing is so far-reaching, maybe it's time to find another way to finance business.

I agree with you John. I think the banks have been rewarded for their own ineptitude, and I'm not convinced the world would have ended if BS wasn't bailed out.

I have a problem with privatizing profits and socializing debt.

[Jelly]

My forecast of civil war has started with the demonstration in the BS lobby. As soon as the idiots who hug trees turn their attention to money people there will be a lot of burnt luxury cars and maybe worse.

Nothing better than a populous cause to rally the troops. And this one is effecting virtually everyone.

[cramerica1972]

My forecast of civil war has started with the demonstration in the BS lobby. As soon as the idiots who hug trees turn their attention to money people there will be a lot of burnt luxury cars and maybe worse.

Nothing better than a populous cause to rally the troops. And this one is effecting virtually everyone.would you not agree that subprime loans should be made illegal?they are a subtle form of racism and discrimination.The bulk of subprime loans were or are held by blacks and latinos.

[Jelly]

would you not agree that subprime loans should be made illegal?they are a subtle form of racism and discrimination.The bulk of subprime loans were or are held by blacks and latinos.

It's easier to get $1 from a million poor people than to get $1,000,000 from one rich person (although that is changing).

No regulation need be put in place for mortgages.....they've self regulated for now.

*Point: I know a mortgage broker who put her own son in a neg-am loan 2 years ago.

[Rich]

One thing we DONT need is the Federal Reserve to have more power!!
Are people crazy!!!

http://www.youtube.com/watch?v=ji_G0MqAqq8

Ron Paul is right, and the Feds are built upon those who wish to 'control' everyone.

ALSO, watch this and see if you want the Fed boys to have MORE control!
My God, this if they get more power I believe we have enslaved ourselves forever.

http://www.youtube.com/watch?v=_dmPchuXIXQ

The real truth of the matter is that a financial element in the large centers has OWNED the government since the days of Andrew Jackson........Franklin D Rossevelt.

"If you want to REMAIN slaves of the bankers and pay for the costs of your own slavery, let them continue to create money and control the nations debt"......

"The Morgan interests took advantage to precipiatate the panic (of 1907) guiding it SHREWDLEY AS IT PROGRESSED".....lIFE mAGAZINE


Bush should set up another meeting at JO Morgans Jekyll Island!!!! That is where the BANKERS wrote the Federal Reserve Act, NOT by Congress!
After signing it into law Woodrow Wilson stated:

"I am a most unhappy man, I have unwittingly RUINED my country. A great insustrialized country is now ruled by IT'S SYSTEM OF CREDIT. We are no longer a country by free opinion, no longer a government of conviction and the vote of the majority, but a government by the opinion and duress of a small group of dominant men."

Senator Mc Fadden stated that a WORLD BANKING system was established when the Fed Reserve was voted in!

A world banking system has been set up here, A Superstate controlled by International Bankers, acting together to enslave the WORLD for THEIR OWN PLEASURE. The Fed has upsurped the the Government.......... Sen Louis McFadden

Interesting that the excuse for the Fed's creation was for STABLIZATION !!

Don't loose sleep about it, they Feds WILL get the power that they wanted. They brought down this economy on purpose, it was THEIR BANKERS who created this problem now they want MORE POWER to stop it? GIVE ME A BREAK!

Rich

[Jelly]

All these theories from so many different places..........OMG! They can't all be wrong.

Ever since I became aware of how much credit debt people where putting on I've always looked ahead for the inevitable outcome. Add insanely cruel manipulation from banks and politicians and you have a truly dismal potential to the downside.

Only this time, the internet will keep a billion times more people informed and prepared.

[netwrangler]

Ever since I became aware of how much credit debt people where putting on I've always looked ahead for the inevitable outcome. When I was a young economist [Yes, Virginia, there actually was such a time.] the Democrats were the party of fiscal irresponsibility, and the Republicans were the ones arguing for a 'balanced budget' and a reduction of 'the deficit'.

My how times have changed.

Now the Republicans are the ones who don't want taxes to go up, because that would hurt the economy. [Now now, you cynics, it's the economy the Republicans are worried about, not their personal income.]
And the Democrats are looking for ways to raise taxes [on the 'rich', of course] in order to reestablish some reasonable fiscal policy.

Back when I learned economics, Keynes and Galbraith were the fiscal guys. Milton Friedman was just establishing 'Monetary Policy' as the new way to look at things. But none of those folks [as I recall] recommended raising taxes as a way to deal with a recession.

=====
War-time economies are always a little strange. Paying lots of bucks to make things that go 'boom' is inherently inflationary. I mean, please explain the value to the consumer of 'boom'. Yet 'The War' [and is there any other war for my generation?] got us out of the depression of the '30's.

Looks like Bush will mark time on the Iraq war until the next election.
After the election, whoever wins will have some tough decisions to make.

Gotta say, I think many Wall Street folks are looking at this issue from the wrong end of the telescope.

=====
So, we can try to bail out BSC — indeed maybe we should.
But what bails out the USA is far more complex, and involves measures that are far more long-term, than just an investment bank going under.

As this issue is resolved, I see political rhetoric [on both sides] as our enemy, not our friend.

[Thunderbolt]

Anyone for a little "hair of the dog that bit you"?

There is Rob Paul calling for abolishing, or at least restricting, the powers of the Federal Reserve to avoid a collapse of the dollar and credit crunch.

So what does the Adminstration and Congress do when the stuff begins to hit the fan, why call for expanding the powers of the Federal Reserve naturally. :argh:

http://news.yahoo.com/s/ap/20080329/ap_on_go_ca_st_pe/fed_overhaul

[aiki14]

Anyone for a little "hair of the dog that bit you"?

There is Rob Paul calling for abolishing, or at least restricting, the powers of the Federal Reserve to avoid a collapse of the dollar and credit crunch.

So what does the Adminstration and Congress do when the stuff begins to hit the fan, why call for expanding the powers of the Federal Reserve naturally. :argh:

http://news.yahoo.com/s/ap/20080329/ap_on_go_ca_st_pe/fed_overhaul

This reminds me in a bizarre way of that super gung ho volunteer firefighter that gets the promotion to assistant chief for his valorous acts, but has a secret, he's the serial arsonist. Giving the Fed, who's recent actions I have admittedly praised, more power is giving that fire guy a weedburner and a get out of jail free card.

[Rich]

Anyone for a little "hair of the dog that bit you"?

There is Rob Paul calling for abolishing, or at least restricting, the powers of the Federal Reserve to avoid a collapse of the dollar and credit crunch.

So what does the Adminstration and Congress do when the stuff begins to hit the fan, why call for expanding the powers of the Federal Reserve naturally. :argh:

http://news.yahoo.com/s/ap/20080329/ap_on_go_ca_st_pe/fed_overhaul

I Agree
They want to increase the powers to those who created the problem!!!!
The Federal Reserve are BANKERS and it was they who created the problems!
This country has become a bunch of fools, refusing to learn the lessons of those of the past!

I encourage everyone to watch the two videos, especially the second one.

[Thunderbolt]

According to the article; "the Paulson plan is expected to generate intense debate in Congress". :laugh:

If things go true to form expect this "overhaul" to get rammed through Congress with little serious discussion.

[John Law]

One thing we DONT need is the Federal Reserve to have more power!!
Are people crazy!!!

Ron Paul is right, and the Feds are built upon those who wish to 'control' everyone.

ALSO, watch this and see if you want the Fed boys to have MORE control!
My God, this if they get more power I believe we have enslaved ourselves forever.

http://www.youtube.com/watch?v=_dmPchuXIXQ

The real truth of the matter is that a financial element in the large centers has OWNED the government since the days of Andrew Jackson........Franklin D Rossevelt.

"If you want to REMAIN slaves of the bankers and pay for the costs of your own slavery, let them continue to create money and control the nations debt"......

"The Morgan interests took advantage to precipiatate the panic (of 1907) guiding it SHREWDLEY AS IT PROGRESSED".....lIFE mAGAZINE


Bush should set up another meeting at JO Morgans Jekyll Island!!!! That is where the BANKERS wrote the Federal Reserve Act, NOT by Congress!
After signing it into law Woodrow Wilson stated:



Senator Mc Fadden stated that a WORLD BANKING system was established when the Fed Reserve was voted in!



Interesting that the excuse for the Fed's creation was for STABLIZATION !!

Don't loose sleep about it, they Feds WILL get the power that they wanted. They brought down this economy on purpose, it was THEIR BANKERS who created this problem now they want MORE POWER to stop it? GIVE ME A BREAK!

Rich

Rich, just FYI, that quote from Woodrow Wilson, while ubiquitous on the internet, is not legit. I love Ron Paul and I think the Fed is out of control (literally) but a lot of mis-quoting is being done to support that position.

[John Law]

I agree with you John. I think the banks have been rewarded for their own ineptitude, and I'm not convinced the world would have ended if BS wasn't bailed out.

I have a problem with privatizing profits and socializing debt.

Privatizing profits and socializing debt..HA! What a great way to describe our current banking/business/governmental system. You know, they always say don't invest more than you can afford to lose in the stock market, but I think that under the current regime, you can't afford to invest anywhere else. As bearish as I feel about the economy, it's obvious that Fed policy is to sell everyone else out in favor of banks and businesses.

I have been looking at this housing thing from several different angles, and it seems really, really bad. If it was left to itself, it would kill quite a few banks in this country. I think the only way to fix this is by massive inflationary policy, just like during the Depression. Where does that leave anyone who put their retirement money in CD's or annuities? Old people better prepare to be royally screwed.

[bigzip]

I will be very interested to hear exactly what the new Fed powers will be. If that isn't the fox guarding the hen house I don't know what is.

[freakscene]

I will be very interested to hear exactly what the new Fed powers will be. If that isn't the fox guarding the hen house I don't know what is.

and more evidence that the Bush administration is NOT conservative

[netwrangler]

and more evidence that the Bush administration is NOT conservativeEvery once in a while, I wonder what you would think if you ever met a real socialist. :D

[bigzip]

and more evidence that the Bush administration is NOT conservative

Definitely not. In fact, the whole Republican party has shifted away from conservatism. McCain is a freakin' liberal as far as I'm concerned. Hillary and Obama socialists. Thank you Neo-cons. I think the Bush administration would more accurately be described as fascist in the corporate sense, and certainly has exhibited disdain for the individual and our Constitutional rights.

"The Constitution is nothing more than a G.d. piece of paper" - George W. Bush