You have touched base on a couple of issues and while they are interconnected and related, they are not necessarily directly tied to each other and are not impacting each other in the way that the media is portraying it.
With respect to to the real estate market. I am a real estate Broker as well and have been in real estate for about 12 years. What is happening now is a natural part of the business cycle, especially the real estate cycle. The market was OUT OF CONTROL and out of control markets can never sustain themselves. Nothing out of control can ever sustain itself and the natural order of things swoops in with it's corrective measures to bring balance to instability which is exactly what we are experiencing in the real estate market at the present time. It is the natural order of the cyclical market. AN out of control rise inevitably leads to an out of control fall.
Lenders are lending, they are simply no longer lending to unqualified parties as it should have always been. I am preparing an article that includes this reality aspect of the market. Any qualified party can still obtain a loan. There are still 100% FHA loans out there, with only $100 down and even a few that will allow $5000 seller's concessions toward improvements and remodeling for QUALIFIED BORROWERS, meaning those with a good credit history, 2 year solid employment record - all things that were require before lenders blatantly encouraged unscrupulous lending practices.
Our government is broke. We have no cash. So in order to infuse the markets with $700 billion (it's actually 1.5 trillion if you total all the bailout packages to date) THE MONEY EITHER HAS TO BE BORROWED OR PRINTED. Additionally, the $700 billion is only an arbitrary figure that Paulson pulled out of thin air (he appears to enjoy creating things out of thin air) and most likely is only the first "installment" of several more to come. Many economists, including Nobel prize laureates, estimate the real bailout cost to be in excessive of $5 Trillion which includes the bailing out of FOREIGN Investment firms. Let that sink in. The American Tax Payer will be bailing out FOREIGN Banks with this bailout package that provided Hank Paulson with Dictatorial control over the nation's finances and monetary policy as monetary policy is directly related to the crisis.
The borrowing of such an extraordinary amount of money will further our ridiculous national debt and forever in-debt our grandchildren and great grandchildren. Our current Federal deficit of 11.5 Trillion is equal to about $37,500 due from each man, woman and child in the United States. That is the legacy you are handing down to your children and grandchildren.
If we can't borrow the money, then we must print it. Our currency is "faith" based and has nothing of value to back it up. The gold standard was dropped in 1971 and we've been operating on a "faith" based currency ever since. In reality, it has no more value than that of Monopoly money. The people's willingness to accept it as a means of exchange is where it derives it's worth and value. The printing of money, creates "inflation". The effect of this inflation is similar to a stock split where the total value of the stock remains the same, simply the number of shares increase thereby making each share worth less, and in the case of the dollar, rapidly becoming worthless. Inflation, in effect, becomes a tax because your dollars are worth less while your wages remain the same. So, you are paying out more and more, or more and more of your income is taken from you, hence the tax analogy.
The money generated from the bailout will directly benefit those at the top of the pyramid and will NEVER make it down to the common man. According to Bank of America, Goldman Sachs will be the single greatest beneficiary of all the bailout proceeds. The bailing out of AIG, Fannie Mae, and Freddie Mac directly benefited Goldman Sachs who held $20 Billion in toxic securities assets of AIG alone.
Henry (Hank) Paulson worked for Goldman Sacks and cashed out his $575 million of stock in order to take his current position. In addition, he earned $53 million in his last two years with Goldman Sachs, "for innovations such as a new line of "Mortgage Backed Securities." Gambling more than a trillion dollars on risky subprime second mortgages, Paulson cleverly converted them into AAA-rated "secure" investments by purchasing guarantees from the American International Group", according to a Global Research article (https://www.globalre search.ca/ index.php? context=va&aid=10433).
According to the same Global Research article, "...Wall Street has contributed more than $1.1 billion dollars to congressional candidates since 2002. Nine of the top ten House recipients of Wall Street largesse, who each received an average of $1.5 million, are on the financial oversight and taxation committees."
I posted an article about who received what from Goldman Sachs and it is worth noting that McCain received over $200,000 from Goldman Sachs and Obama received more than $600,000!
Again from the Global Research article, "Even more telling, the bipartisan Congressional "leaders" most responsible for pushing the bailout through Congress, Senators Dodd and Gregg and Representatives Frank and Blunt have taken almost $20 million from Wall Street sources during the last 20 years. Dodd recently received $6 million in contributions during his presidential primary campaign, and Frank has collected $720,000 this year."
You and me and every other average American citizen will never see a DIME of that bailout money and it will NEVER make it down to unfreeze the credit freeze. It will serve to protect the very people who created the crisis to begin with.
This entire bailout madness is nothing less than HIGH TREASON and a RAID on the National Treasury of the United States of America.
And, yes, you should be alarmed.
It will do NOTHING for the financial markets and if we do not immediately change our monetary policy, the dollar will crash and in your lifetime, in the not too distant future, you will witness the end of US sovereignty.
Another thing that I feel is important:
By creating another $700 billion out of thin air, in addition to the $630 Billion they created the day before yesterday (are you aware of that?...without anyone's consent, they did that), you are depreciating the value of your dollars to save the credit industry that got us into this mess in the first place. It's not going to solve anything because it will only drive up inflation, excessively. So, now, the price of everything is going up, (most likely will triple before all is said and done because of hyper inflation), but, Jon, where is your income going, what direction?
Who gives a rat's butt if you can or can't get a loan at that time because guess what? Based on your income to cost ratio, you're not going to be able to afford it anyway.
Also, libertarianism is not something you can subscribe to and then just leave. Libertarianism is a belief; it's an understanding of what is. I'm a life-time republican who is discovering that my principals fall in line with the libertarian belief. I am constant, and stick to my principals. I'm not a wishy-washy sort of person who jumps from one bandwagon to another because of my emotions or my personal financial situation. I am fiersly independent and I live to do what is right for all. I am the least selfish person you will ever come in contact with. My opinion and perspective come after great contemplation, tremendous unbiased thought, and incredible amounts of research. I try to always make certain I know exactly what I am talking about. It is never about me. It is always about what is right and what is best for everyone. That makes all the difference in the world in deciding what is best for the next 7 generations to come for that is who will be affected by the extremes of this mess. It will be far worse for them than it will be for us
Paulson, Bush, Obama, McCain, Wall Street lobbyists, and a slew of others have one goal - TO PROTECT THEIR INTERESTS. That $700 Billion will NEVER make it to the credit market allowing for you and me to obtain a loan that we would not otherwise have received. It will be absorbed by the top of the pyramid and if you think otherwise, my dear friend, you're not understanding the magnitude of those at the top of the pyramid and how and where that money will go first. They are THIEVES attempting to raid the national treasury and you are advocating for them to do so. Shame on you. I still love you and I think yo are great but shame on you for promoting such a horrible thing. Innocently or not, ignorance is no excuse.
Please, take a little bit of time to learn about the Derivatives market. Once you do, you will learn that this $700 billion is an effort to line THEIR pockets before everything crashes just as it was to bailout AIG, Fannie Mae and Freddie Mac. Those three institutions were bailed out because of the DERIVATIVES. Don't get sucked into that MSNBC crazy think. I watched Suzie on Larry King the other day and her crazy rants about credit, credit, credit. She's wrong, John. Just like those FAUX News bubbble heads who were bullying Paul Schiffer, those idiots are all wrong.
They're wrong because they're not thinking about what is best for the country and the entire country's economic system because they don't understand it. All they have learned through their financial exerience is how to make money for themselves. They're thinking about what is best for their own pockets without realizing how terrible that is for our country. That is where so many are going wrong. It's not about each of us, it's about our Country and the nation as a whole and saving our dollar before it's gone. That is the real issue. The $700 billion won't save our dollar; it will ENSURE that it fails.
John, credit IS the problem. LOANS are the problem. The natural or of things is correcting itself by the credit crunch.
...because, as their actions show, they DON'T CARE abut the American people; they only care about themselves and are concerned with protecting their own self interests. It's not that they are not wise enough to figure all of this out, they simply don't care other than about what is best for themselves.
The problem is also with the people. The people have to understand what is true and real so they can demand the right things being done. Unfortunately, so many of the people are just as selfish. They are not concerned about what is best for our country, and our economy as a whole, they are concerned only what is best for their own individual needs. I saw one such remark today by a fellow greaser and that person was angry that the bill failed and others were happy about that because their own portfolio took a dive yesterday. It was all about their own self interests and not what is right as a whole. So, you see, the selfishness is at all levels and until we rid ourselves of that selfishness, we'll continue to have these crises that spring up and devastate our world.
The current crisis we are dealing with has been in the making for 20 years. A balloon being blown up for over 20 years, even past it's bursting point (but crooked policies and practices have allow them to keep patching the spots where it starts to leak), and what happens when that baby goes? It has to go. It can't remain in that state.
The $700 billion bailout is just pumping an excessive amount of air into an already over inflated balloon. The money that is pumped into it will only reach the hands of the extreme wealth at the top of the pyramid. It will NEVER make it to the hands of everyday Americans and anyone who thinks that it will is living in a fantasy land and doesn't understand the system and the failed economics behind this mess to begin with
Here's a god article that will help make some sense of our monetary existence and current situaton:
https://mybloggers.com/whereabouts/money_3.html
Yes, all of those recommendations will be very good! Sarbanes-Oxley "Sarbox", limits corporations under 500 million in revenue from out market due to the cost of implementing the plan. For large companies over $5 billion, the total outlay cost for compliances is about .06% where for companies $500 million and under, the oulay for compliance is about 2.5% which is HUGE.
It is a bailout. Whenever new money is created, as would be the case with this $700 billion, inflation goes up and that depreciates everyone's cash value. All new money that is infused into the market is absorbed at the top tier of the pyramid. Little to none ever trickle downs to you and me.
John, this plan, and any like plan, is not the answer and serves to only exasperate the problem. The problem at hand is a devaluing of the US dollar. And printing $700 billion more dollars only compounds that problem in a very serious way.
If you study the depression of the 20's and 30's, you'll see that the government's interference in trying to "prevent" a crash, trying to maintain prices, constant interfering with the natural cycle of business is WHY that depression lasted for 16 years.
CREDIT is the problem, not the solution. The credit market will tumble no matter what. Just like the housing bubble, and any other out-of-control market, it can never sustain the bubble indefinitely and it's bound to burst. The longer you attempt to patch it with temporary solution, the worse you make the crash when it inevitably comes, and it will come.
There is a much greater monster boiling out there that is the Derivatives market which is a 1 QUADRILLION disaster about to be unleashed upon the globe. The derivatives market is simply legalized gambling on debt. With the Global GDP only equal to about $60 Trillion dollars, how in heavens could the Derivatives market climb to 1 Quadrillion? Because people placed "bets" with money they did not and do not have and those people will be unable to pay those bets when they come due, as they very well expediently will.
The crisis in the Derivatives market is WHY we had to bailout AIG, Fannie Mae, and Freddie Mac. The Derivatives most widely used form was that of the CDS - "credit" default swaps. People bet (invested) on the debt exchanging hands. No that those "bets" on all those mtg debts are coming due because those mortgages are failing and there isn't any money to pay for them, the "Fed" swooped in and manipulated Congress into bailing out these firms, but really it is to protect the crashing Derivatives market from all their careless gambling on the excessive and toxic credit debt.
The money being provided to infuse these failing firms and the economy goes to those on the TOP of the pyramid. Again, you and me and the rest of the common man will NEVER see even a trickle of that money. So, yes, this is a BAIL OUT of Wall Street.
It is the most sophisticated, most high profile money laundering scam of counterfeit dollars that has ever been perpetrated on global mankind.
OMG, look how tiny you are! How cute!
I, too, am a life-time voting republican and I agree with this author's take on Palin and McCain. I do not agree that Obama would not make a world blundering decision. I do, however, agree that he would, none-the-less, surround himself with top people.
Here is my own article on Pail and McCain:
Sarah Palin Interviews on C B S. Whoah ... https://mybloggers.com/whereabouts/sarah_palin_interviews_s_whoah.html
This is the first chance that I have had to watch any of the Sarah Palin interviews and I couldn't even make it through the first video to the end. I stopped it because I was too embarrassed to hear anymore.
There is no way to NOT agree with what Cafferty has to say about this. He is appalled and rightfully so. This is not a person who is in any position to fill the 2nd highest official position in this nation. It is an utter disgrace to think that there were people out there who thought otherwise.
Good Lord, did anyone even interview Palin before choosing her as McCain's running mate? Compared to her speak, she makes Bush look like Archimedes!
Laura/whereabouts
As an FYI this means, essentially, that the bill will not be published a full 24 hours before voting on it.
By-the-way, There was a no vote, Jerry Weller, who I know...and, well... Let's put it his way, when I first met him back in 1991 he was one of those newbies who really wanted to make positive change, then somewhere along the line he allowed himself to get sucked in. He was a huge advocate and promoter of the corn-based bio-fuels and that really disappointed me. SO much so that when we were both at a political outing about two years ago and he walked my way, I turned and acted as if I didn't see him. VERY disappointing.
Oh, my, Gawd - I'm THRILLED! I have been so anxious during all this time and it was a complete nail biting experience during the session, especially watching the votes tally. I am feeling just as I feel after a major storm has ripped through and I've been out trying to get the generator running to make certain the basement doesn't flood because the power went out! Meaning, it's time for a drink!
Also, knowing that it's not over yet so my brain is reeling with ways to ensure that another bailout package doesn't make it through.
I followed each representative in the house who spoke prior to the vote on HR 3997 (and took notes that I will publish here), and from what I can see, there are SO MANY representatives out there, both democrats and republicans, who are clearly clueless about the true economics behind the crisis. They simply don't get it and, to me, that is a very, very scary thing. They'll vote simply because someone persuaded them to do so but literally having limited to no economic understanding. So, so scary.
Cheney is the epitome of evil.
That is a GREAT photo! Hope you guys had a fantastic time!
The following are copies of other's comments via Email that came fro a forum discussion group I am part of: ----------------------------------------------------- So this starts with one person thoughts on the Economic Recovery Plan, with some good facts, which should be enough to really open your eyes about how much the last Republican Congress and the Current Democratic one are sinking us in debt, as they don’t have to pay off loans, we do, yet both of them spend freely.
Second comes my friends comments, separated by ******** and then my comments last.
Remember 85 BILLION DOLLARS on this one item alone. This isn’t such a great amount for Congress to deal with if you have followed their spending patterns the last TWELVE years or so.
Scott -----------------------------------------------------
VERY interesting idea...but you KNOW that as soon as it happens there will be a HUGE raise in prices on Everything....putting us in a depression as soon as everyone's done buying their fancy cars and all.
but...it would SOOO put the economy back on its feet. and the banks would go crazy with all the new bank accounts, cuz you couldn't just go down to a check cashing place and cash a $425,000 check...heh heh!
hell, if we're going to jack up the National Dept....might as well let Everybody play!
someone SHOULD start a mail campaign to the senators and Reps. it would be fun to see if any would have the balls to entertain an actual bill to be presented.
Papa T **************
Only problem is that the USA doesn’t have 85 Billion dollars, they have to get the federal reserve to print this worthless paper, backed by loans they get covered from China.
And it is still 85 Billion, as it would have to be borrowed from some country that has the money................... and congress would spend the taxes immediately, likely on war or pork.
How about instead, each Federal Representatives that supports this, donate 12 years of their salaries to bailing out those that have invested so heavily in them, that they made legislation that went around the bankruptcy and Depression style faults, that would have protected our nation from another 1929.
That Act was the Glass Steagall Act, run though by a bi partisan Congress and Senate and signed into law by Clinton, the main supporters of the WTO and NAFTA agendas.
This way the USA doesn’t have to borrow any money, and those who have benefited the most from bypassing legislation that was in place to protect our economy from what is happening now, can do the responsible thing and fix the errors of their ways.
$425,000 dollars per person, whether they make minimum wage or are financial secure, is an awful lot to give gamblers, who got to keep the profits when they won.
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