A Completely Different View On "Bailout"

Now, calling it a "bailout" stirs up all the fear and anxiety that the reptilians so very much love to feed on. I'M JUST KIDDING - I'M NOT GOING THAT DIRECTION...

But, it does touch on my point. What if we called it bold, but wise investing?
What the heck are you talking about Verbal?

I'm a good example. I am currently buying a house. A little over a year ago, I was unsuccessfully TRYING to buy a house. I simply could not afford one. Back then, the house I'm purchasing now would have cost me $250-$300k. I'm buying it now for around $100k. The deals like this one are not uncommon.

It would seem to me, that to purchase $700 billion worth of these properties, in not too long of a time, would be worth from $1-$1.4 trillion. Is it possible that this bailout could instead be spun as an investment and actually be a vehicle for making a dent in our national debt (in the long run)? If it's not set up this way, and is the ridiculous plan being discussed, COULD WE SET IT UP THIS WAY? I really just don't know. Could those of you that do give us some input?
-v

I think you're way off, the plan is in order to create more debt, where do you think this $700+ billion is coming from??? That's right the federal reserve and how much is the government supposed to pay back to the federal reserve? Well your guess is as good as mine, but this has all be orchestrated to make someone that little bit richer, but good for you anyways it's definitely a buyers market.

Verbal, actually, the Federation of Light will be here, October 15 to collect 2 Trillion from Bush.....

They would like you to buy the house before this.

Also I was thinking if a persons house falls into enough negative equity (thanks to rigged house prices increases then falls) it would be more viable for the owner to call a bankruptcy and get out before to much of a loss is incurred. Does anyone have any figures for the actual stats between negative equity against house repossessions, because I can't see it myself that so many people would have the lack of intelligence to get a mortgage that is so much beyond their means that they can't pay for it.

Someone please explain this to me?? Does the housing market work differently in the U.S.??

Originally posted by dgtempe
Verbal, actually, the Federation of Light will be here, October 15 to collect 2 Trillion from Bush.....
They would like you to buy the house before this.

October 15th? okee dokee. Thanks for the tip! My only question is, what's the fuss about? Can't Bush just have his Fed buddies crank him out 2 trillion when the time comes? How does October 15 relate to all the drama of the last 8 years?

SPITEFUL - you bring up a good point - it really is mind boggling that so many people would sign mortgages that they could not afford. WTF? But then again, we didn't get the reputation (Americans) of being fat and stupid by executing good judgment.

Have the American people been given the estimated cost of the bailout in terms of tax increases yet? Because I'm assuming that borrowing $700Bil+ from the FED is gonna mean you have to payback $875bil (not too sure on the FEDs interest rates so I'll assume 25%, hopefully much lower??). Now I think I heard that it will cost every American Man Woman and Child £1250 ($2300?) so I would think that if you consolidate that to Tax payers only it's going to be about ($6000?)

So you guys are going to be paying $6000 more tax over whatever period the payback is....... I certainly would be peeved off about this and would not stand for the bill what-so-ever. If the banks collapse what is the consequence to the public? Surely the outstanding debt will be bought up by another bank so what's the issue?

Anywho I've probably got a few things wrong there since I'm not economically savvy as I'd like to be.

There seems to be a couple of pressing reasons for the panic in Washington.

The end of the USA financial year is on Tuesday (30th Sept.) USA banks will not be allowed to trade after this date unless they reveal ALL of the previously hidden losses and "make them good"
The Federal Reserve Banks are collectively bankrupt and cannot reconcile their own books by this date.
They need to create another illusion by coercing the government to agree to a 700Bn USD "bailout", but the Government does not have ANY MONEY, the Government borrows the money FROM the Federal Reserve, this bailout BS is actually an authorisation for the Federal Reserve to BORROW another 700Bn USD.

Problem is that NOBODY is willing to LEND the USA any more cash. The USA can't repay it's current debts absent the promised War on Iran with it's subsequent LOOTING of the IRAN central bank's gold and theft of Iranian Oil.
Martial Law would have provided sufficient distraction away from these mundane matters of financial accounting.

Unless somebody actually agrees to lend the USA this 700Bn USD, it is nothing more than a pipe-dream and accounting trick that makes the FedRes appear to have balanced books, which it will not unless it has managed to mug another sucker to lend it this sum of cash. The USA treasury certainly does not have a cash-pile. The treasury borrows what it spends from the FedRes.

So what you have is an illusion, the FedRes will claim that it has been bailed out by the treasury, while failing to point out that the treasury usaually get's it's cash from the FedRes. Any Bill agreed by the government is nothing more than "permission" to BORROW more cash from other countries.

Basle II has been adopted by all other countries except the USA. If the USA is not complient with Basle II by Wednesday (1st Oct 2008) then the USA will be EXCLUDED from the global banking network - it will simply be disallowed from all international banking operations - period. The USA has delayed and avoided Basle II compliance since Jan 1st 2008 but is now realising that it can no longer avoid the inevitable - hence the massive panic in washington.

China knows this very well - hence the Chinese Government placed a ban on ALL of it's banks lending ANY MORE CASH to the USA. The cash cow just stomped on the head of the FedRes.

There are now serious moves towards a Gold/metals backed global financial system with each participating major country issuing new currencies that are backed by precious metals. The dollar is dead outside of the USA.

Now, IF the USA has ANY gold in the vaults, it too can participate, but what are the chances of the USA Bullion Vaults containing anything of value ? (other than a pile of IOUs from previous occupants of the White House).

USA - You have been ROBBED and the thieves are trying to mug you again.

Interested to know what Paulson's view of the DERIVATIVES MARKET is, some observers have quantified this pile of worthless paper at 500 TRILLION Dollars - with ZERO real collatoral to support this fantasy.

DEBT FORGIVNESS (starting with ordinary people's debts) is the ONLY way to get things moving again, along with a tamper-proof metals backed currency.

reply to post by spitefulgod


I dunno, but it seems kinda silly to give a government a bunch of your earned cash
so that they can begin confiscating your civil rights and liberty.
So that they can kill hundreds of thousands of people in the middle east.
So that they can bailout the banks as the population goes broke.
So that they can prop up a system that's been f'ing it's citizens for over 100 years.
So that they can create pain and suffering in the US and the world over.
Maybe I'm looking at it wrong, but it appears we shouldn't be giving jack ####.
I think we need to grow some bolas.