Bail out bull shit

[adrastos12]

So the government keeps bailing out all these companies, but should they let some of them go under? I was thinking about this earlier today... 40 billion dollars would pay off a shit load of mortgages, so why is the government giving money to companies that finance so much? Think about it, they are giving billions of dollars to companies that are too loose with their money. Instead of giving tons of tax payers money to companies, only to see the same companies lend more money and get further down in the hole, why doesnt the government use tax payer's money to pay off a tax payer's mortgage? This way, it wipes out the debt owed so the bank doesnt have to foreclose, it puts more money in the banks hand so it can lend a much needed home loan, and the tax payers are getting money back instead of pouring it into a company that will probably tank anyway? This would increase consumer spending which would stimulate the economy, rather than make the problem worse.
What do you thing NGers?

[JudgeDredd]

At 11/12/08 12:09 AM, adrastos12 wrote: So the government keeps bailing out all these companies, but should they let some of them go under? I was thinking about this earlier today... 40 billion dollars would pay off a shit load of mortgages, so why is the government giving money to companies that finance so much? Think about it, they are giving billions of dollars to companies that are too loose with their money. Instead of giving tons of tax payers money to companies, only to see the same companies lend more money and get further down in the hole, why doesnt the government use tax payer's money to pay off a tax payer's mortgage? This way, it wipes out the debt owed so the bank doesnt have to foreclose, it puts more money in the banks hand so it can lend a much needed home loan, and the tax payers are getting money back instead of pouring it into a company that will probably tank anyway? This would increase consumer spending which would stimulate the economy, rather than make the problem worse.
What do you thing NGers?

40 billion? I think the total bailout is already about 40 times that amount. Of course it's hard nail down an exact figure because there's a lot of jugging going on. Anyway, it's not like it's a big pile of surplus cash laying around. It's taxpayers money from the future.

Here's the best description i've heard so far..
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"Joe goes to the track and bets $2 on a horse.

Two guys standing nearby get into a discussion and Fred says to Sam, "I'll bet you $5 that Joe wins his bet."

Next to them are Bill and Bob. Bill says: "I'll bet you $10 that Fred welshes on his bet if he loses."

Next to them is Sally. Sally says: "For $3 I'll guarantee to Bill that if Bob fails to pay off, I'll make good on the bet."

Sally then goes to Mary and borrows the $7 needed in case she has to ever pay off and promises to pay back $8. She doesn't expect to ever have to pay since she believes Bob will always make good. So she expects to net $2 no matter what happens to Joe.

A quick calculation indicates that there is now 2+5+10+3+7 = $27 riding on the outcome of the horse race.

--
Question how much has been "invested" in the horse race?
Answer: $50,000 by the owner of the horse who is expecting to recoup his investment from the winnings of the horse and other future deals. Everyone else is gambling, not investing."

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The bailout itself is really a double down on lost bets. And signs are the Fed is prepared to bankrupt America's future to double down again if that's not enough, as in the case of AIG.

[Ynek]

At 11/12/08 04:37 AM, JudgeDredd wrote: Stuff

That is possibly the best description of the problem that I have ever heard. Kudos on that.

My question is: Isn't there some way for us to solve this problem with meaningless violence and orgies?

[JackTipper]

Nov. 10 (Bloomberg) -- The Federal Reserve is refusing to identify the recipients of almost $2 trillion of emergency loans from American taxpayers or the troubled assets the central bank is accepting as collateral.

Fed Chairman Ben S. Bernanke and Treasury Secretary Henry Paulson said in September they would comply with congressional demands for transparency in a $700 billion bailout of the banking system. Two months later, as the Fed lends far more than that in separate rescue programs that didn't require approval by Congress, Americans have no idea where their money is going or what securities the banks are pledging in return.

You can click the hyperlink to see the full article. The private banks that our tax dollars are going to don't want to tell congress where our money is going to. The bailout is bullshit and America is getting robbed.

[JudgeDredd]

NOTE: The Treasury set a deadline of THIS FRIDAY for institutions to apply for capital investments under the Capital Purchase Program announced last month.

Cash infusions are available to "qualifying U.S. banks, savings associations, and certain bank and savings and loan holding companies, engaged ONLY in financial activities."

Goldman Sachs and Morgan Stanley got rapid approval to became bank holding companies to tap into that fund. American Express just recieved approval to also transform itself into a bank holding company, making it also now eligible for direct infusion of capital.

It sounds like General Motors Finance will tap in "somehow" (directives to push out more cheap car loans from propped up banks perhaps..) but considering Friday's deadline, many troubled industries are taking this opportunity to apply for reclassification as a bank or savings and loan holding company.

So who's Next...?
.
.

[Grim]

At 11/12/08 12:28 PM, JudgeDredd wrote: It sounds like General Motors Finance will tap in "somehow" (directives to push out more cheap car loans from propped up banks perhaps..) but considering Friday's deadline, many troubled industries are taking this opportunity to apply for reclassification as a bank or savings and loan holding company.

Bing, Bing
You are correct sir -

http://www.banking-business-review.com/a rticle_news.asp?guid=D2A3000E-8F65-4A5C-
8EA9-8B3AAEF98147%20target=

[JudgeDredd]

At 11/12/08 12:48 PM, Grim wrote: Bing, Bing
You are correct sir -

http://www.banking-business-review.com/a rticle_news.asp?guid=D2A3000E-8F65-4A5C-
8EA9-8B3AAEF98147%20target=

muchas gracias amigo!

I was typing it just as Paulson spoke. *winks* :-P

[JackTipper]

Wow, that is ridiculous. My pops just told me Sears was a bank at first and looking into it I found lots of information on Sears Canada Bank. This looks like a perfect example of the big corporations eating up the little one and wreaks of a scam.