Who Are We Bailing Out? And Why?
When the framers of the Constitution thought about the future for American capitalism, they certainly didn’t think the government would be taking this giant leap that last night’s financial bailout represents.
We know it will cost us money, no matter what the politicians promise. As anyone in finance knows, dollars today are worth a lot more than tomorrow’s dollars, so the upfront cost should be kept as small as possible.
The question in the public’s mind is this: Exactly who are we bailing out? Why?
The why part is easier to answer. The CDO that is talked about is like you selling your car to Joe, but not getting any money today for it. Joe is going to pay you next year. As soon as Joe gets your car, he rents it to Jim. Jim doesn’t pay him, but offers to pay him monthly for the use of the car. Jim sells the car to a chop shop. The chop shop pays Jim a commission, and sells pieces of the car at a profit to Tim, Tom, Dick, and Harry. Harry buys Dick’s pieces, and puts together a new car — but has an accident. How is Joe going to collect? Who really owns the car? Of course it’s more complicated than that, but you get the idea. The government is going to bail out everyone, or pick a person in the chain.
The real issue the government should focus on is the credit market, not the stock market. The interbank market where banks and very large entities borrow and trade with one another is broken. Banks no longer trust the collateral that is being posted to trade with. Accounting standards are fuzzy, so they don’t know how to value collateral. Without the interbank market, the stock market fizzles. Eventually, it means that John and Jane Doe on the street cannot get credit that they desire to start or expand a business, or buy or fix up a home. The government in the past year since the credit crunch manifested itself, has put a band-aid on a problem that needs a tourniquet.
Won’t the threatened crash be followed by a recovery? Good investments reflect real assets and honest equities, just as true creditworthiness finds capital.
What should be the instrument of the needed adjustments, the inept and untrustworthy Congress, or the invisible hand of Adam Smith? Whom do you trust? The congressclowns you can see, or the less obvious economic realities of the market?
We are bailing out the Democrat Slave Plantation and keeping the ACORN Slave Masters fully funded, that’s who.
Well now, do you really think that printing up billions of dollars in bailouts will do anything other than cause a hyperinflation like the prewar Weimar mefo bill or current Zimbabwe cases? You illiterate bloggers have lost your marbles (if you ever had any.) How moronic is the true rallying cry of the Fed and Treasury: “Save the bubble, blow it up bigger than ever, that’s the ticket!” There are none so blind..
The real issuse,which not many are talking about is the leverage involved in these CDO’s. They know the value of these CDO’s and other instruments;and in many cases there is no value or pennies on the dollar.There isnt enough money in Washington or anywhere else to fix this problem
If highly leveraged loans and a loose money policy are the fundamental problems that created the artificial demand that caused the housing bubble, then it might not be a bad thing for some or many of the credit products to disappear from the market.
Bad debt must be allowed to be liquidated, maybe under the auspices of an RTC type structure.
And more importantly, more capital and wealth must be allowed to be created. This can be done with a moratorium on capital gains taxes coupled only with a dramatic reduction in government spending. And remove the stasis causing regulations and taxes upon the productive energies of individuals and businesses.
Based on the anti-capitalist mindset of most Americans today, we can probably expect a more socialistic solution.
“With elections on the line…”
Am I the only one in the world who questions the timing of all this?
This problem has been coming on strong for a decade at least. If it happens 6 months ago, all this is sorted out by now. If it happens just a couple months from today, there is no effect on the election. Why just 6 weeks before a presidential election?
The media has been screaming that the sky is falling for a year now, just as they did every election cycle where there was no democratic incumbent, in order to help the democrats on the issue where they poll the best, the economy. Everything that could possibly be interpretted as bad economic news was held up as proof that McBusHitler was evil, and was deliberately causing the economy to go south to help his Big Oil buddies.
There is much speculation that this constant barrage had the effect of undermining the country’s confidence in the economy, causing people to spend a little less, and companies to delay expansion. Pretty soon the cumulative effect is to make the sky start dropping.
The two biggest failures by far, Fannie Mae and Freddie Mac, are essentially tools of the Democrats. Why would the news of their shaky financial condition and their subsequent takeover come out just after McCain’s nomination of Palin had put a crimp in the coronation plans of the Messiah?
Right on time to help The One.
What a coincidence.
You better believe the corrupt congress will benefit,as well as get off the hook for letting it happen.And which party was it that was covering for Fannie and Freddie?DEMOCRATS.
Let the chips fall where they may, because one thing is certain with any government bailout…..that fat-cat board members and CEO’s will receive huge bonuses and that taxpayers and small investors will pay for them.
MSM will never expose the Dems on this issue. They will hide all the video and transcripts ,,
One thing NEVER to be mentioned in the Media
or the Democratic Party talking venues is the role of Affirmative Action action legislation such as the Community Redevelopment Act in forcing credit to be extended to people with no
means, no job, no skills and a long long history of credit card defaults, luxury car reposessions, fraudulent insurance claims etc.
I have seen where people with provable income of less than 15K a year were given loans for 250k houses, which of course they believed was their
“right” to own.
Banks won’t stop lending. Loan interest is a major source of their continuing income. What they would do, if no miracle were forthcoming, is what they always do in similar situations: become extremely risk-averse (for a while at least) and stop making questionable loans. Capital would be harder to come by for those who lack solid qualifications, which is not a bad thing, but loans would not just suddenly go to zero. Tightening up accounting rules where appropriate (realistic asset evaluation, for example) would be a great help, but that won’t happen soon enough – nor is it so easy for the general media to understand or politicians to use as self-promotional fodder.
Democrats do not want the questionable loans to stop, and they want the bad mortgages to be rescued. Otherwise their “subprime” voter base and the minority “community” would be negatively impacted. Republicans want to minimize the general financial effects. Unfortunately, the partial overlap of objectives means some bad legislation is on the way. And one second after it passes, the likes of Reid and Pelosi and Obama will be calling themselves the saviors of America, when in fact their Party is the cause of the problem in the first place. Start carrying a large barf bag. You’ll need it.
this is not the end of the problem or more accurately, the downfall. it is only the beginning, the end of which is neither within sight or mind. the clowns in congress, democrats and republicans alike may think their free ride will continue as usual but it is doubtful. the rage of people is felt all around, and especially as regards executive pay, or should i say, executive looting, which may be the tipping point for something akin to the french revolution. lawmakers actually think they are “wrapping this up” and look forward to adjourning, if you can imagine an unknown quantity like this bailout going forward without congress in session for emergency legislation to either stop it or adjust it. europe and asia investments in our paper keep the doors open on america, the only reason for these investments is our stability, a flourishing economy, and that is gone, and so will they. such a bad time is in store for us that we have never before experienced. democracy, now riddled with fakery and lies, and without a moral conscience, that noble experiment has failed. the tyrants are coming. nothing will ever be the same again.
Look, they can kill Bin Laden and the Jihad will still continue. They can pass this bailout and the depression will still be coming. Who can trust any of them, now? This is all a charade to cover their asses. Every republican should vote no and that includes you, Mr. McCain!
Where is the outcry for the CPA firms who audited these companies like Andersen went down for Enron? Why did this happen after Spitzer got nailed for his problem? Why are Obama and Biden campaigning in the middle of this? Call me if you need me, is that our next President does he think he is Diana Ross? Hannity has a great parody if this in his radio show 200 economists some with Pulitzers oppose this. Lock Spitzer and Donald Trump in a room with these Bozos and then you will see something for Main Street. Otherwise we are going down.
Pelosi calling the Republicans unpatriotic for not voting for this bill is outrageous that’s what one Michigan Rep said in last night’s hearings. Her and Reed should be thrown in the Potomac River for their ineptness. How long would you and I last in our jobs if we performed like Congress?
I’m not so worried about the ceo golden parachutes, for it is just a rouse to take the attention off of the socialist’s power and money grabs. Union members attending board meetings, skimming off the profits for ACORN and other radical organizations. I heard yesterday that LaRaza got house loans for illegals with no jobs and no credit. I want to attribute the blame of this crisis. We need to watch what the congress is doing with a microscope since we can’t trust them.
nobozons: You are a racist if you don’t vote for Obama, you are a racist for ranting against ACORN, you are a racist for pointing out LaRaza’s help to illegals. You will be prosecuted and sent to jail for spreading lies. Wait a couple of months. Just to let you know: lies are anything that are not reported by the impartial MSM.
The only bail should be to the people of this Country, stop the embezzelment of tax money to the big shots of wall street. Demand their salaries back and bonuses back, demand the political contributions back. and please put in jail the culprits of this, the Chris Dodds, Raines, Johnson, Frank Barney and any politician that voted to NOT regulate Freddy/Fanny when we could have done it. ENOUGH
This is a MUST READ at:
americanthinker.com
James Simpson’s article, “Barack Obama and the Strategy of Manufactured Crisis” posted today.
thanks to Ed Wallis’ link on another thread.
The American public needs to be informed before 11/4. I can’t be the only one who sensed there was a twisted mind behind it all…
An economic crisis will help the Dems and they know it. This crap about recessions happens EVERY Presidential election cycle, unless the sitting President is a Dem. But this is the first time they have had the “audacity” to try to destroy the economy in order to win an election. If these nit-wits want this Socialist package, they could have voted for it last week and passed it without a single Republican vote. They don’t need any Republican votes to pass this crap. So the question is: Why don’t the Democrats pass their “package”? Is it because they are afraid it will cost them some House seats in November unless they can run around claiming that Republicans support this crap, too. It is politics as usual that Obama likes to preach about changing. Hang in there House Republicans! Don’t ever support this crap. Make them pass it on their own and take responsibility for it.
I posted this on another forum but wanted to copy it here because I think it is the best way to explain why we have even come to this point. It all stems from the opaque OTC markets, and we have a solution for them.
One of the biggest problems and arguably the thing that really roiled the markets is mark-market accounting. Now I am all for it and it has been used on exchanges like the Chicago Board Of Trade for 150 years without a single default and has been the guide to margins for all futures exchanges. The problem with mark-market in CDS’s/OTC is you don’t know the market, if you want a bid or offer you have to grab a phone and call a dealer or bank. So accountants will mark the asset (CDS/Swap) to the best knowledge of the market price, which could be way off. The other problem is they bought or sold Swaps in illiquid markets because they just didn’t know and it’s nearly impossible to value something (mark it to market) in illiquid markets with huge bid/ask spreads. Lack of information, NO TRANSPARENCY!
Now this is where the exchange comes in, you open it up to everyone. Create transparent markets that Carl Capital or anyone can see the market prices. Transparency makes it a real mark to market, because the market is the visible opinion of the players and not an accountant at Lehman/AIG/Bear. The exchange controls margins, you put up or you’re out. The exchange serves as the counterparty and restores faith to the market. No one really knows how much damage is left to be done, the banks don’t trust each other and frankly they don’t know. The exchange as the counterparty serves as confidence for dealers knowing the other side won’t default. All of it is based on a benchmark index constructed by the dealers and exchange that serves as an effective hedge for risk, exchanges were initially set up as means for risk management…..
With all that said you can see the need for the exchange central clearing model. All exchanges should takeover the OTC markets. There is an ad for the Chicgao Mercantile Exchange (CME) right now and it mentions that CME successfully traded and cleared 2 billion derivatives contracts last year exceeding $1 quadrillion in value, can’t say the same for the banks and dealers…….
Bottom line, this is a VERY SERIOUS issue. If the government does not force OTC and swap dealers away from the control of their own vague markets we will continue to have problems.
Hopefully what Washington will realize is that exchanges force responsibility and effectively quantify risks. You don’t have an accountant crunching numbers and is afraid to tell his bosses the real value of swaps because he wants a bonus to buy his kid a BMW on his 16th bday. The the exchange and market will tell them the value of the swaps and the important thing is the exchange is neutral. The only interest for the exchange is making sure no one defaults, CME does mark-to-market for every positions twice a day and if a position is going the wrong way they will ask for more margin or liquidate it, no if ands or buts. You don’t have one guy saying well it’s gone down to 20 cents on the dollar now but I think the market will turn and be worth more in a month. The exchange is objective in assessing the value of positions and will make people take reasonable and responsible risks with easily quantified gains and losses. In essence the exchange forces responsibility and reality.
If the government did nothing, what would happen?
Jeffrey, in general this is a wonderful article, but you go astray here. The most important thing that would happen if the government doesn’t make the banks liquid enough to unfreeze the credit markets is that paychecks would stop being paid, and soon, from many of the largest companies in the country; someone Greg Mankiw quotes puts it thus:
The effect of the credit markets being frozen is like the effect of the power grid failing: even if there is lots of power being generated, it’s not going to be available when you flip the switch.
Link to article mentioned by “Believer” above 2:44pm:
http://www.americanthinker.com/2008/09/barack_obama_and_the_strategy.html
somewhat related…
http://www.americanthinker.com/2008/09/barack_obama_and_alinskys_rule.html
Over at Mankiw’s blog, Allan Meltzer is quoted: if they’re going to do something, then what they ought to do is make loans, which the financial institutions have to repay with interest. And if you think — that’s an idea which the Chileans have used in a bigger crisis than this for them in 1982, and it worked for them. People paid back the loans. They weren’t allowed to pay dividends until they repaid the loans. They weren’t allowed to take bonuses until they repaid the loans. I think that’s the way — if we’re going to do this, then that’s the way we should do it.
Whatever we do, we should make sure that participating in the bailout is unpleasant, not something every bank would want to do. Otherwise, we’ll just be setting ourselves up to do this again with the even bigger firms that are emerging from the mergers in this go around.
The Government-Created Subprime Mortgage Meltdown
by Thomas J. DiLorenzo
The thousands of mortgage defaults and foreclosures in the “subprime” housing market (i.e., mortgage holders with poor credit ratings) is the direct result of thirty years of government policy that has forced banks to make bad loans to un-creditworthy borrowers. The policy in question is the 1977 Community Reinvestment Act (CRA), which compels banks to make loans to low-income borrowers and in what the supporters of the Act call “communities of color” that they might not otherwise make based on purely economic criteria.
The original lobbyists for the CRA were the hardcore leftists who supported the Carter administration and were often rewarded for their support with government grants and programs like the CRA that they benefited from. These included various “neighborhood organizations,” as they like to call themselves, such as “ACORN” (Association of Community Organizations for Reform Now). These organizations claim that over $1 trillion in CRA loans have been made, although no one seems to know the magnitude with much certainty. A U.S. Senate Banking Committee staffer told me about ten years ago that at least $100 billion in such loans had been made in the first twenty years of the Act.
So-called “community groups” like ACORN benefit themselves from the CRA through a process that sounds like legalized extortion. The CRA is enforced by four federal government bureaucracies: the Fed, the Comptroller of the Currency, the Office of Thrift Supervision, and the Federal Deposit Insurance Corporation. The law is set up so that any bank merger, branch expansion, or new branch creation can be postponed or prohibited by any of these four bureaucracies if a CRA “protest” is issued by a “community group.” This can cost banks great sums of money, and the “community groups” understand this perfectly well. It is their leverage. They use this leverage to get the banks to give them millions of dollars as well as promising to make a certain amount of bad loans in their communities.
A man named Bruce Marks became quite notorious during the last decade for pressuring banks to earmark literally billions of dollars to his organization, the “Neighborhood Assistance Corporation of America.” He once boasted to the New York Times that he had “won” loan commitments totaling $3.8 billion from Bank of America, First Union Corporation, and the Fleet Financial Group. And that is just one “community group” operating in one city – Boston.
Banks have been placed in a Catch 22 situation by the CRA: If they comply, they know they will have to suffer from more loan defaults. If they don’t comply, they face financial penalties and, worse yet, their business plans for mergers, branch expansions, etc. can be blocked by CRA protesters, which can cost a large corporation like Bank of America billions of dollars. Like most businesses, they have largely buckled under and have surrendered to their bureaucratic masters.
Consequently, banks in every community in America have been forced to hold a portfolio of bad loans, euphemistically referred to as “subprime” loans. In order to compensate themselves for the added risk of extending these loans, many lenders have increased the lending fees associated with mortgage loans. This is simply an indirect way of doing what banks always do – and what they must do to remain solvent: charging effectively higher rates of interest on riskier loans.
But this is discriminatory!, complained the “community organizations.” Thus, if one browses the ACORN web site, one can read of their boasts of having “predatory lending laws” passed in numerous states which outlaw such fees, prohibiting banks from protecting themselves from the added risk involved in making forced loans to “subprime” borrowers.
These are price control laws, and price controls always cause shortages. Normally, banks would respond to such laws by extending fewer riskier loans. But in this case the banks are forced to continue making the marginal loans by their bureaucratic masters at the Fed and the other three federal bureaucracies mentioned above. So-called predatory lending laws therefore force the banks to “eat” the losses. This is undoubtedly a contributing factor to the bankruptcy of dozens of mortgage lenders over the past year.
Then of course there is the issue of the Fed’s monetary policy having created the housing bubble, characterized by a spectacular escalation of real estate values in every American city over the past decade or so. This created a further problem for the financial institutions that are victimized by the CRA. They are forced to make a certain amount of bad loans, but because of the Fed-created explosion in housing prices, many thousands of subprime borrowers no longer qualified, by a long stretch, for conventional mortgages based on their incomes.
The only way these borrowers could qualify for their mortgage loans (even ignoring their bad credit ratings) was to take out adjustable rate mortgages, some of which had astonishingly low first-year rates in the 3 percent range, and sometimes lower. This is what has largely fueled the subprime mortgage meltdown – the inability of thousands of subprime borrowers to afford their mortgages now that their rates have adjusted upward. Thus, the combination of the Fed’s enforcement of the CRA (with the help of political pressure groups like ACORN) and its post 9/11 monetary policy in general are the reasons for the bursting real estate bubble and the “subprime” mortgage meltdown.
Don’t expect to read about this in the “mainstream media,” however, which generally views groups like ACORN as heroic champions of the poor, laws like the CRA as anti-discrimination laws, and places all of the blame for the subprime mortgage meltdown on greedy capitalists, especially mortgage brokers. Encouraged by such reporting, the odious Senator Charles Schumer of New York has promised federal legislation that will reign in these miscreants, while the Bush administration is proposing an indirect bank bailout by having the Federal Housing Administration cover many of the bad “subprime” loans. This will create what economists call a “moral hazard” by encouraging even more bad loans to be extended in the future. Every banker in America will be glad to extend loans (at high rates of interest) to the most uncreditworthy borrowers if he thinks there is no possibility of default with the FHA effectively guaranteeing the loan.
September 6, 2007
Thomas J. DiLorenzo [send him mail] professor of economics at Loyola College in Maryland and the author of The Real Lincoln: A New Look at Abraham Lincoln, His Agenda, and an Unnecessary War, (Three Rivers Press/Random House). His latest book is Lincoln Unmasked: What You’re Not Supposed To Know about Dishonest Abe (Crown Forum/Random House).
Copyright © 2007 LewRockwell.com
Congress – What Were You Thinking
Congress ..What Were You Thinking?
You destroyed our country. You cannot repair the damage now! It is Too, Too, Too late.
If you gave the people on wall street, who are licking their lips on the anticipation of filling their pockets, 50 trillion dollars, it won’t help. I personally hope none of you can sleep at night, knowing what you have done. Especially all the old-old-old ones that have been they’re over 20 years.
DEREGULATION – DEREGULATION – DEREGULATION
When you deregulated Mergers – You told the lobbyist and American business community, move overseas, move your tax base there, keep the foreign cheap labor, Get rid of your American labor and break the unions. You should also merge enough so you are too big to fail. That way you can always count on a government bail out as a last resort. Your plan worked perfectly. We hope you are proud!
We lost
Our good paying jobs.
Our pensions.
Our 401 contributions.
Our middle class.
Our Insurance.
Our homes.
Our freedom and security
Our hope.
Our tax base – except government and wall street workers. They still make good money.
We just can’t find the words to tell you how grateful we are.
CONGRESS, we will touch bases with you again in about 6 months, as soon as the bail out money is gone.
We are GOING DOWN no matter you do.
Welcome to the Americans people world. Now you can suffer with us!
THANK YOU CONGRESS!!!!!!!!!!!
PS. After you all vote on the Bail Out, could you please post on the web, how each one of you voted This way we can see who we need to give an attitude adjustment in the coming ELECTION
geokstr;
No you are not. There are actually two problems here. One is a liquidity crisis, the other is a loss of confidence in the markets. The liquidity crisis was created by Congress messing around with supply and demand. Supply and demand won.
The Market crisis is caused by the market being manipulated. The SEC started an investigation on the 19th. So we will eventually know how, who and why.
JBJ, not all deregulation is the same. You speak as if it were.
Deregulation to help business be more efficient is good. Deregulation that helps crooks steal is bad. What we the people need is a deregulation impact statement, sort of like the environmental impact statement, only for deregulation. Sort of a best guess as to what the affect of the deregulation will be.
Deregulation is not the problem. Going forward, what in this bail out bill changes the structure of the market-and don’t tell me we have federal oversight-we saw how that worked for Fannie and Freddie.
How are we going to create a market for these securities?
None of this is in the bill. Right now, it looks like a cash infusion, with the ability for Congress to Christmas Tree the future cash infusions that are authorized.
Virtually every investment bank in the world is insolvent. Many of the premier banks in the world are insolvent.
This bill is like shooting bb’s at a running bear. Might sting the bear a little, but you are still going to feel it when it runs you over.
Re:Judy,NYC,
“Such a bad time is in store for us that we have never before experienced. Democracy, now riddled with fakery and lies, and without moral conscience, that noble experiment has failed. The tyrants are coming. Nothing will ever be the same again.”
I agree will all you said except “The tyrants are coming.” Let me explain, please. The tyrants have been amongst us for awhile, behind the scenes pulling the strings of all puppets that put us in this designed mess. Soon they will come out of the shadows.
Re:Richard,
“Look, they can kill Bin Laden and the Jihad will still continue. They can pass this bailout and the depression will still be coming. Who can trust any of them, now? This ia all a charade to cover their asses.”
It is precisely as i see it-a charade. How pathetic to commit financial treason against the very nation they should have been obligated to represent.
Re:Believer,
“I can’t be the only one who sensed there was a twisted mind behind it all…”
No, your not alone. I stand by you….hope others do to or will see things clearer.
Re:Joe Bill Jones,
“Congress-what were you thinking”
“Congress..what were you thinking?”
“You destroyed our country. You cannot repair the damage now! It is too, too, too late.”
How can they repair the damage they wittingly or unwittingly created? They are hired guns of their masters. The masters that funded them indirectly or through controlled third parties.
Folks, this crisis is a stepping stone to a NWO/One World Government. A plan in the works for over a century. The invasion of America has been under-attack from within by false agents of the Elite Central Bankers. Since America cannot be overtaken by military means, to attack it economically & financially is finally showing the fruits of their labour. What better way to introduce a global system ruled by a tyranny few, when the masses are starving for scraps of food in a great depression.
Our imaginary friends in Washington that happen to be a frigment of our imagination are voting if whether the tax payer’s should bail-out a manipulated financial system with 700 billion dollars. Really, all it will do is help delay a global financial crisis. This temporary band-aid only covers an infected financial wound. Problem is, the deadly bacteria in this massive wound won’t be delt with. Why? Because this infection is HIV without a cure. These secretive powers have overtime infiltrated our most important institutions-White House & Senate included. They hold every single individual hostage with such immunity. 700 billion is not nearly enough, a few trillion’s is more likely. How will America recover from that? It won’t: Impossible without our standard of living dropping to a third world reality check with a Mount St. Helen’s high debt. If America cannot pay it, our crucial assets & sovereignty will be taken as collateral.
Many reliable, so called “conspiracy theorists”, have been warning the masses about a powerful secretive agenda not exposed through this fraud called MSM. Yet the theorists were/are still mocked at, as people still continue to listen & believe this owned & controlled (by them) scam called MSM.
Soon, as Judy,NYC explained: “The tyrants are coming. Nothing will ever be the same again.”
I am no financial expert, instead of the bailout, could the Federal government create a “limited life” government owned financial corporation with the initial capitalization of the 700 billion that will then buy out all the “toxic” mortgages from the troubled banks out there, with the explicit stipulation written into law that the corporation needs to be put up for sale, dissolved or otherwise privatized after a stipulated period of say 10 years or when the market improves whichever is shorter, with all the proceeds of the corporations’ liquidation going towards Federal debt repayment or to shore up Social Security.
The video Ed Wallis linked on another thread, THAT WAS TAKEN DOWN, I found at American Thinker’s comment section:
uk.youtube.com/watch?v=NU6fuFrdCJY
sorry, guys, haven’t learned yet how to make it all blue and pretty…
No one in Senate or Congress who voted FOR JAILOUT PACKAGE should be reelected
names of scum must be widely published
Believer,
You left oout the “http://” part when you did your cut and paste. Notice how I put that is quotes? Quotes tell your browser that it is a text string NOT instruction. Without the quotes the browser sees the “http://” and thinks you want a hot link;
http://uk.youtube.com/watch?v=NU6fuFrdCJY
Make sure you hit CR (carraige return or enter) at the end of the line, so the browser doesn’t think everything after the instructions is a URL.
Nirm
Yes they could. That approach was suggested but didn’t fly. It didn’t fly, like the dozen or so other proposals that were put forth, because there was no way for the crooks to skim millions off. Remember the REAL purpose of this legislation is to make millions (maybe billions for some of them) for certain parties. Mostly the people who created this mess in the first place. They all understand that nothing will stop the oncoming depression.
It is like building a camp fire in front of a Glacier. The fire may keep you warn for a while, but it won’t stop the glacier. Throwing money on the campfire will make it burn hotter for a while, but that won’t stop the glacier either. And sooner or later you will run out of money to throw on the fire.
The answer is to move south and do everything possible to increase global warming. It helps to move south with a lot of money, hence the bail-out scam.
My proposal is more radical. Stop pegging the economy to GDP. Get rid of ALL taxes excepta VAT or POS tax. Peg the economy to the money supply.
This will spread out the tax burden to those that spend the most ( ie: the rich). It will also put a halt to social engineering thru taxes. Get rid of the CRA, Mark to marketing and ALL deritives. Rebuild the firewall between savings (retail) banks and investment banks. No derivatives. When an institution buys an instrument, that is it. Wall street would scream, but fuk ‘em and feed ‘em fish heads.