reply to post by Buck Division
to buck division:
No. I'm not sure where you got that idea from, but you're missing a very important part of the situation.
The lenders didn't "loose" $700,000,000,000.00. The people proposing this "bail out" aren't simply proposing that we just pay the banks back
what they have lost.
The largest of the investment banks purchase packages of debt (including mortgages) from the smaller banks, whom may or may not be the bank that
financed the original bank to begin with. The original lending bank never expected to wait the full 30 years or whatever the terms of the loan were,
to collect their money. They planned on selling it soon after completion and they did. Now the larger investment banks, who have purcahsed the debt
don't expect to wait for the full course of the loans in their purchase packets to expire either. They intend to and they do sell them to other
banks, and governments. Every "owner" of the debt along the line will add their own fees to the pot, change the terms of the original loan as much
as they legally can to maximize profit. The changing terms of those loans often -not always, but often- turn out to be too much for your average
struggling family, just trying to keep their heads above water.
The executive committees in these large investment banks don't "create" any new product or service. They literally just buy and sell debt. And
they make unholy profits doing this.
Now that more and more people cannot afford to keep the new terms of the loans -the terms that they never expected in the first place-, for the first
time in modern American history, these large packets of debts are hard to sell to other investment banks. They can still sell, just not as easily as
That's it! That's the big mystery that they expect the public to fund for them. They expect the public to pay for them to continue to earn
outrageous profits and bonuses.
Put it in another context. California, the largest state, the state with more than one eighth of the population of the entire country, finally just
passed a $145,000,000,000.00 budget. That's the budget for ALL of the social programs, ALL of the schools, ALL of the prisons, ALL of the police,
ALL of the state programs in the most populous, and most progressive state. For a YEAR!
And they really expect the public to literally give them almost five times that number AND to codify into law that they can spend it any way they
choose, and that not congress, not the courts, nor any other public body can EVER do anything to demand it be spent in any particular way... AND to
also codify into law that Paulson, or the current "owner" of the new $700b bank has immunity, and cannot be prosecuted for anything done with any of
And then also remember that the Federal Reserve just finished giving away "bailouts" of 240,000,000,000.00 JUST THIS MONTH!!!
There is no value in this "bailout". I know that it sounds crazy, but many people have remarked that they will do this to perpetuate American debt,
and to "keep us enslaved". I know that's not the mainstream thought process. But think about it. Think about where you get your information.
Think about who owns the companies that own your newspapers and television channels, and radio stations, and so on. If you owned a newspaper, would
you pay your staff to write bad press about you? Really?