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Bailouts

Posted by aftercancer • 9/19/08 • Subscribe to this Discussion [RSS] • Report This Topic
Topics: bailout, bush, Economy, mccain, republican, subprime, Wall Street

I’ve had it. When are the American people “too big to fail”?

I don’t know about you but I wasn’t getting a check from Bear Sterns to pay my medical bills or put gas in my tank.

In 2000 Phil Gramm dropped an amendment into the budget bill. The effect of this bill? Regulators could not have control over credit swaps, things like taking “sub-prime” mortgages and selling them as an investment. With this law the Security Exchange Commission and the Commodities Futures Trading Commission or energy trading markets were told that they could not investigate firms to be sure that they had the assets needed to cover the losses they were responsible for.

We’ve been here before. There were two primary reasons for the Savings and Loan crisis in the 80’s? Deregulation and “imprudent real estate lending”. Of course this would also lead to discussion of the “Keating Five” and I’ll let you explore that yourself.

The American people have been through hard times and have made it through. We’ll figure out how to get through a crappy economy. But I expect to find a way through, not my children or grandchildren.

But. If I have to pay for their mistakes I want their cars and jets and jewelry. I want the CEO’s pensions. I want to put these folks on a salary of $50,000 a year and let the rest of the money go to help the Americans that are suffering. I know it won’t happen but it doesn’t make me want it any less. Well those cars haven’t disappeared. Let’s sell them on Ebay. Even if it didn’t work for Governor Palin.

What do you think? I am the only one thinking like this?

User Comments

9/19/08

jafabrit

It is odd seeing this country embrace a nanny state for the rich investors and gamblers.

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9/19/08

fated82

In 2002, Warren Buffett's annual reports to his share holders did mention that this would happen. he once again predicted it but no one listen...Now its happening and everyone suffers. He did say this time, it would last a very long time.

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9/19/08

aftercancer

I know. We can't have universal healthcare because that would be "socialized medicine" but socializing banks, investment firms and and insurance companies is just fine.

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9/19/08

tjefferson85

Well if Wal-Mart and McDonalds fall that's when you know we're in trouble!

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1. 9/19/08
  
  Ranu
  
  I think they will further grow. People are now more looking for cost effective places.
9/19/08

aftercancer

I don't know if they're going to go anytime soon but I'd be watching out for Starbucks, Banana Republic, and watch the holiday sales patterns.

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9/19/08

tjefferson85

Yeah i see the Starbucks one coming, but Banana Republic is a surprise.

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9/19/08

tjefferson85

I also believe, because of the fierce competition, a cell phone or computer company will tumble.

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9/19/08

aftercancer

You may be right, particularly about the cell phone. That's an area where people can choose to downgrade when renewals come due and if they are worried enough about the economy they just might. As for Banana Republic, that's just my feeling.

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9/19/08

tjefferson85

Oh yeah, i see that, that could be devestating, because as incomes fall they will start reduce cell phone usage and for those that have children with cell phones they will take them away to reduce cost.

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9/19/08

aftercancer

So now it looks like "the government" is going to guarantee all these bad loans. So we're on the hook for the rich yet again.

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