Feds Nationalizing Financial Services Industry

The financial bailout to the tune of $ 700B to 1T will consume any disposable revenue that might have been available for some form of Uni healthcare... Also, McPalin can forget about those tax cuts too...

Effectively, the next POTUS has been nutered this week by the actions of the US Treas... They can begin writing the script of reasons why they were unable to implement their plans, laying all the blame at the feet of the Bush 43 admin... Of course the source of the problem goes way beyond that, but politics being what it is, the truth isn't required.
 
Do you think they haven't begun that script already?

SportsNut said:
They can begin writing the script of reasons why they were unable to implement their plans, laying all the blame at the feet of the Bush 43 admin... .
Click to expand...
 
SportsNut said:
The financial bailout to the tune of $ 700B to 1T will consume any disposable revenue that might have been available for some form of Uni healthcare... Also, McPalin can forget about those tax cuts too...

Effectively, the next POTUS has been nutered this week by the actions of the US Treas... They can begin writing the script of reasons why they were unable to implement their plans, laying all the blame at the feet of the Bush 43 admin... Of course the source of the problem goes way beyond that, but politics being what it is, the truth isn't required.
Click to expand...

Yes, of course they can try, but this goes back waaaaay further than GWB. Can anyone spell Clinton???

OpenMarket.org » Archive » Clinton Pressure to Promote Affordable Housing Led to Mortgage Meltdown
 
I'm not sure why everyone blames the president (or any president), they're just pawns at the mercy of the Fed and whomever control the money.

"Give me control of a nation's money and I care not who makes it's laws." - Mayer Amschel Bauer Rothschil

"History records that the money changers have used every form of abuse, intrigue, deceit, and violent means possible to maintain their control over governments by controlling money and it's issuance." - James Madison
 
The problem is this: people want the government to hold their hands, or else they would be ascending on Washington with pitchforks and guns and shovels and such. They do not revolt against all this hand-holding, so they are content with it.

The American people go along with it. They vote for idiots, then put their hands out and ask the idiots to pay them. Big business goes along with it, the people lay down and take it, or go along, or do nothing. It's a mess. Basically, it probably does not matter which side of the ticket the political *** is on- when he gets to Washington his main job will be to rob money from Peter to pay Paul, and to make sure most of the money does not get to Paul in a timely and accurate fashion. Republican or Democrat, take your pick, they are all just idiots who move money around in a cluster of a fashion, and we are all suppposed to just be good with it. If we speak up about it, we have no compassion, so we are to just sit back and shut up and take it.
 
HomeService said:
The problem is this: people want the government to hold their hands, or else they would be ascending on Washington with pitchforks and guns and shovels and such. They do not revolt against all this hand-holding, so they are content with it.

The American people go along with it. They vote for idiots, then put their hands out and ask the idiots to pay them. Big business goes along with it, the people lay down and take it, or go along, or do nothing. It's a mess. Basically, it probably does not matter which side of the ticket the political *** is on- when he gets to Washington his main job will be to rob money from Peter to pay Paul, and to make sure most of the money does not get to Paul in a timely and accurate fashion. Republican or Democrat, take your pick, they are all just idiots who move money around in a cluster of a fashion, and we are all suppposed to just be good with it. If we speak up about it, we have no compassion, so we are to just sit back and shut up and take it.
Click to expand...

As sad as it makes me I believe it was inevitable that the govt would have to begin a new regulatory regime. The derivative and securitization markets had gotten too large because of the creation of hedge fund. Suddenly stocks that could only be moved by institutions such as mutual funds could now be moved by a shadow economy of private investors acting in unison. Shorting vast amounts of stocks became commonplace and this caused increased volatility in the market. This played havoc with you if you are a small trader, however if you are a large one you can manipulate price.

The institutions that purchased these bonds found they were worth less thats why all the write downs and mark to market for something there is no market for. Essentially an artificial accounting method.

The companies that provided insurance on these bonds like AIG suddenly found they were victims of the equivalent of margin calls as they had to increase collateral to keep contracts insured or suffer default.

The last straw was when the first money market fund went below a par value of 1. Suddenly you were losing principal in the market and then the govt had to act.

The end result is the following if nothing is done.

1) Extreme Crash on dow approx 33% or more as companies cant borrow cash to fund operations

2) Many recourse loans would be called

3) Credit Cards would be revoked and interest rates increased as companies try to raise cash

4) The credit markets for car home, boats etc would seize up as less money would chase more borrowers increasing inflation.

5) Massive job layoffs as demand is destimulated

6) Worldwide cascading depression coupled with massive inflation

7) Political unrest and war and eventually world wide conflict

8) Basically the worst parts of the Book of Revelations

This is what Treasury and the Fed told Congress and is why there has been little resistance

Our market is built on trust between counterparties if there is no trust there is no trading, no extension of credit and no market.
 
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