The Bailout is a Fraud

Why the bail out will fail, as I was reading this story from economyincrisis.org I came to the determination that the author of the article, Paul Craig Roberts is right.

The bail our is focusing on the financial markets and not the core problem,

As one reader put it, " We have debt at three different levels: personal household debt, financial sector debt and public debt. The first has swamped the second and now the second is being made to swamp the third. The attitude of our leaders is to do nothing about the first level of debt and to pretend that the third level of debt doesn't matter at all."

As Koppell and Goetzmann point out, the financial instruments are troubled because of mortgage defaults. Stopping the problem at its origin would restore the value of the mortgage-based derivatives and put an end to the crisis

.

www.economyincrisis.org...

This approach has the further advantage of stopping the slide in housing prices and ending the erosion of local tax bases that result from foreclosures and houses being dumped on the market.

Addressing one of the problems and focusing only on the financial institutions will no work, the core problem is on the defaulting home owners and those are going to continue in record numbers as the economy will keep downgrading and the job loses keep increasing.

Congress is only listening to the corporate side as their lobbyist are the ones swamping congress and pushing this bill.

][bAlready the banks has borrowed for the last week billions of dollars and still the markets are failing.

U.S. banks' borrowed a record $367.8 billion per day from the Federal Reserve in the latest week, as financial institutions relied heavily on the lender of last resort amid the most severe 1. credit crisis since the Great Depression.

www.reuters.com...

Because the core problem has been ignored.

The economy is not going to get any better with only having financial institutions bailed out so they can keep loaning and increasing credit on a population that lacks means to support this loans and credits.

The vicious cycle that started the crisis will continue.

September jobs numbers will tell anybody how bad the nations is doing when it comes to the consumers and their lack of faith on spending as unemployment keeps souring.

There was a net loss of 159,000 jobs in September, the ninth straight month the U.S. economy has lost jobs. The August job loss was revised to 73,000 jobs, taking year-to-date job losses to 760,000.

Economists surveyed by Briefing.com had forecast the loss of 105,000 jobs in the month. It was the largest monthly job loss total since March 2003, when payrolls were down 212,000, and the second-largest decline since the months that followed the Sept. 11 terrorist attack in late 2001.

money.cnn.com...

The bail out is nothing than a big fraud

haha it's funny, cause right after the bill passed the DOW and american dollar started dropping, that hilarious in a way, but scarry in another way.

reply to post by Trayen11


That is due in part to the Federal Reserve about to lower the interest rates, (that will kill the dollar) gas prices will increase, (that will kill the American consumer) and adding more debt on the national debt is not good for our creditors the Asian banks and lenders.

Get ready for the roller coasted that is coming.

From my previous thread that was pretty much ignored by everyone:
(note to self: Must not use word REVOLUTIONARY)

If the FED is busy printing money to help their foreign buddies, does that devalue and then bankrupt the Dollar?
Check! Looks like the Dollar and the Street began to fall as soon as the vote passed.

Does the current BAILOUT scheme place all of the foreign and Wall Street debts on the shoulders of the American Taxpayer?
Check! Well Duh! which of course leads to the following two questions I asked.

With a newly devalued Dollar from printing trillions of dollars for this bailout, does that place the United States in a state of Bankruptcy?

If the above happens will the FED call-in all debt from the American Citizens and literally own America?

reply to post by 2stepsfromtop


Thanks for your input, usually threads that addresses the problems rather than push propaganda tends to get lost amid other threads in this boards.

Now to the last question on your post, I have to tell you that we are already a bankrupt superpower that is not doubt about it.

We have not means of producing wealth anymore, at least for the hard working America but for those in the financial institutions elites they own our government and hey do as the masters tells them.

Just look how this anti American citizens bill was passed.