posted on Mar, 5 2009 @ 01:14 PM
I have a theory. Maybe someone with more knowledge in this area can help, or correct it.
I think I know why the gov. had to bail out all of these banks even though they and the bankers know most of them are going to fail eventually anyway.
This also applies to some of the car companies, except maybe Ford.
They had to orchestrate this massive bail out in a broad way so that the banks and car companies didn't all collapse at once.
They were on the verge of collapsing like dominoes. Can you imagine waking up one morning to discover citi, Chrysler, GM and a few other banks have
all collapsed. That would have created mass hysteria. That would have been very dangerous.
Instead, they had to throw a lot of money at these companies knowing that most will fail anyway, eventually.
So now you have a prolonged effect, which will take months and slowly one by one these companies will claim bankruptcy, or dissolve. This effect will
have less of an impact on the economy and society than if they had all collapsed at once, or within the range of a few weeks of each other.
In other words it's much easier to absorb these blows slowly over time than to absorb it all at once, which is what would have happened.
*As evident in the actions of bank and auto executives, and members of congress.
Why in such a critical time, using "emergency funds" do the bank/auto execs arrange parties and get-aways? Because they know this is all a charade.
In their minds it's over already, they might as well take advantage of this money and have some fun during their "last stand."
Same goes for member of congress. They don't seem worried at all, maybe a little concerned. But they also know this was all a charade, meant to only
stave off the inevitable and to lessen the impact of collapse. This is why, in this extremely critical time they add all kinds of "ear marks" and
"pork" to the bill. If things were really so critical there wouldn't be any of this nonsense happening in congress.
If the car/bank execs were really serious about saving their companies and saving thousands of jobs, they wouldn't be throwing their hands in the air
and arranging parties, buying jets and luxury get-aways.
I hope that the companies will start closing up shop, sooner rather than later, so that we can get on with things.
One of my questions is, is all of this money really coming from China? In other words, is China really fronting this money. That could not ever be
revealed. A communist country buying out America.
(I believe it is, but I am really not very knowledgeable on this subject.)
Take a good look at the president, members of congress on TV. They don't have a (real) care in the world. They seemed very worried a couple of months
ago, but now very calm, relaxed. Maybe because they already know how this will play out: A bunch of companies will fail over a prolonged course, we
will slowly absorb the blows.
After all of this we'll all be buying our cars from China as well as most of our goods including food products.
The debt will be owed to China, not our gov. (maybe).
[edit on 5-3-2009 by Electro38]