New Bailout Change = Everything We Said Would Happen

I heard that lots of money printing has been done lately and that's bad. No, its not bad. If the money designed to keep the sinking ship afloat were taken out of your paycheck on a weekly bases, then it would be very bad. But the government cannot do that because the consumers would send the whole economy to the junkyard piece by piece. The government can't mess with people's valets this way. Instead of that, the government stuffs the banks with tons of worthless paper. We are so blinded by our rage, that we can't see a simple reality: The money is a worthless paper until it makes it out of the bank, which is very difficult these days and here is why:

The ability of the bank to lend is tied to its share price. There is a financial formula that tells you how much money the bank can lend with respect to the price of one share. Since the banks are not doing well these days, like anyone else, their ability to lend is limited. So if you stuff the vaults with bailout money, it would be sitting there useless due to the regulation. That's why the government wants to buy the stock of those "depository institutions."

Things are bit more complex then that, but that's the skeleton of the present issue.

If the government sent $10,000 check to every taxpayer, the economy would get really busy, but the government wouldn't do that. Why?

When Rockpuck comes back from work, he is going to explain why not.

Meanwhile . . .
Those Fed criminals are sucking us dry! They want to destroy the middle class to keep their power! Those power hungry Illuminati . . .

Save some of the ammo for later, because the economy will deteriorate further hitting your standard of living. And that what really matters.

NEWS UPDATE

I love how the press is still talking about Palin.
From the last few articles I've seen today, it looks like they are making her appear to support Obama.
This is what she has to say about the Flip Flop:

MIAMI, Florida (CNN) -- Former Republican vice presidential nominee Gov. Sarah Palin sharply questioned expanding the federal economic bailout plan Thursday during her first extended remarks since the end of the presidential campaign.
...
"We're hearing now more talk of additional taxpayer bailouts ... for companies, for corporations, perhaps even states now who may be standing in line with their hands out despite, perhaps, some poor management decisions on their part that helped tank our economy," she said.

"Republicans can help shore [these sectors of the economy] up without getting any more addicted to opium, other people's money. We need to have a rational discussion. What and when is enough enough?"
Source

Check out this new video:
CNN VIDEO

Its CNN, so we know there s some bias.
They are still stuck on the number $700 billion, even though we all know the actual costs are a lot more than that.
BUT, the video does do a good job of pointing out simple oversights made by Congress and goes as far as BLAMING Congress for this mess.
I'm down with that.




EDIT TO ADD:
Here's a portion of the story:

No one is keeping watch on how $700 billion of our taxes is being spent. The law requires Congress get a formal report by a certain deadline. The deadline has passed and, big surprise, there is no report.

Here's the quote The Post had from the Treasury Department's inspector general: "It is a mess. I don't think anyone understands right now how we're going to do proper oversight of this thing."

He's right. It is a mess. And who is to blame? Both the White House and Congress were supposed to nominate people to these oversight positions and confirm them.

Both the White House and Congress have dropped the ball and not done their jobs. And because of that, Paulson, a former Wall Street banker, has his blank check and our money.

We should all hope and pray he is doing the right thing, because right now, he is answering to no one.
SOURCE

[edit on 14-11-2008 by Odessy]

Alright. Can I pull my "Play Devil's Advocate" card? I love this card cos it allows me to just spin a bit and... Well... Do things like our government.

What if... Just what if the government is trying to keep the public from loosing faith in it's finacial system? I mean. Money is based on faith. the reason the Great Depression happened was people lost faith in the banks. The government is DESPRITLY trying to stop that from happening again. They are doing everythign they can to do this.

Now is there a subversive plan in there as well... Well... OF COURSE THERE IS!!!!!!! It IS after all the government.

reply to post by Jkd Up


LOL. I hope you were joking in your above post, and I think you were...

The great depression had nothing to do with people losing faith, it had everything to do with the Central Bank (the federal reserve (a completely private bank)) told all the banks that they loaned money to that they wanted it back.
Banks were forced to close of course, because they couldnt afford to pay back the feds with all the interest, thus making it impossible for people to get their money back.
Of course the stock market crash didnt help, but it was directly effected in all the banks closing... wait a sec... that sounds like exactly whats happening today!

The Great Depression was planned.
The Central Bank made a ton of money during it, and harnessed even further control into the US govt... seeming that they were the only ones with money.

Originally posted by Odessy

The great depression had nothing to do with people losing faith, it had everything to do with the Central Bank (the federal reserve (a completely private bank)) told all the banks that they loaned money to that they wanted it back.
Banks were forced to close of course, because they couldnt afford to pay back the feds with all the interest, thus making it impossible for people to get their money back.

Not quite.
The loans called were called by the banks to the consumer in a vain effort to stay afloat. The Federal Reserve didn't demand money from the banks.

Recession had already set in prior to the stock market crash. Post-crash, the Fed pumped money into the economy to try and stem deflation but it didn't work. Consumption continued to fall. The first public bank runs began as consumers lost faith in the banks, causing bank failures. As banks failed, customers' deposits are lost - both from the customer pocket and from the monetary base. There was no FDIC insurance to keep the money "in the wild." Deflation was roaring along.

As banks teetered towards failure, they began to call in the loans they'd made to individuals and businesses for immediate repayment. People went broke paying the banks, then the banks went broke anyway. The surviving banks stopped making loans and began hoarding their cash.

Deflationary spiral ensued. It's debated whether government action/inaction made the problem worse, but general consensus is that measures like raising taxes and the passage of Smoot-Hawley did not help the situation one bit.

reply to post by Odessy


You people must be more careful in editing your posts! Your information may be valid but no educated person is going to give this site (with post such as this one, containing numerous typos and misspellings) a second thought.

If its not already obvious, this is one more step to cripple an already hobbling economy. Every one has worried redistribution of wealth when it is being done before their very eyes. Yes there will be a revolt, or civil unrest, but thats what they are counting on. The ones who will stand up are the same ones who would oppose global currency and global governance. They want to squash opposition before they have a chance to educate others. Look at these threads, this first one involves the G20 summit and how they are working through restructuring the financial system.

www.abovetopsecret.com...

The second one I posted my self which is about the Single Global Currency Assn pushing the G20 to institute a Global Monetary Union and currency, which echoes the recent calls out of Europe. This post contains both source and link to SGCA web page.

www.abovetopsecret.com...

reply to post by anachryon


Thank you anachryon.
I follow your threads and posts. You have a lot of knowledge on the subject.
Thanks for the input.

They're protesting this in Iceland, why don't we?



[edit on 16-11-2008 by Shocka]

what's the difference between a bailout and a stimulus? aren't both "inputs" into our economy?

i've got 2 news threads mentioning the latest in their plans for a global stimulus...

G20 meeting looks for overhaul of global financial architecture

Chance of DEPRESSION overshadows G20 summit!!

how much longer will we continue to ignore these G20 proceedings?? i'd think that we, at ATS, would be the most interested in the events that bring our world to a change. this is going to affect EVERYONE...

reply to post by Shocka


Thanks for the video.

I've heard a lot of things going on in Iceland.

It will be a while before it reaches us I think, because we will take down everyone else first, but not too long.

all we need to do to fix these lies and conspiracies...is for every person in the US...stop working and go on strike...for everyone to say..."This is my land to, these are my rights, this is MY MONEY!!! i worked for"...we all need to stand up...over run this crap governemt this..."democracy" I would actually like to go live in Comunisim. At least there, everyone get treated equal...this...Democracy is crap...