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pjani06 (29.10)

The bailout runs into a populist backlash - Los Angeles Times

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September 24, 2008 – Comments (10) | RELATED TICKERS: BAC , WAMUQ.DL , GS

Link to the full LA times piece here through digg: The bailout runs into a populist backlash - Los Angeles Times

This article opens up the pathway for casual readers to educate themselves about real information to what's going on and hopefully lead to the information presented on my first blog post from yesterday found here: Fix to our financial system submitted to Senate Banking Commitee ; please comment & circulate

But there are some serious discussion points needed from the LA times article. 

I commend David Lazarus for bringing this important sentiment out through a mainstream media channel and highlighting the group fedupusa.org who have lots of great information and SOLUTIONS to this mess.

However, it is not cool as he applies his personal slant and biases on the issue of the article to sway casual reader.
For example;
Lazarus: "Many people, myself included, have come to grudgingly accept that a massive bailout of the financial sector is necessary to stave off greater calamity, such as a collapse of the global banking industry or a worldwide economic depression. The stakes, by most accounts, are that high."
This sentiment is likely popular due to an uninformed public on the details of the peril (details that are not even offered by main stream media; look up $63 trillion in credit default swaps-"CDS"), but the thought that a massive bailout is necessary is WRONG. many independent funding sources fund many/most projects in the country through community/commercial banks (which join together to participate very large loans), venture capital funds, and private companies (has Buffet's berkshire hathaway seemed like a over-excited kid spending like they're on a toy shopping spree lately?) can provide funding!

Lazarus: "But as the scope of the bailout takes shape, a populist backlash is emerging, with some people concluding that the only fair outcome would be for failed firms to fail."

It's not only about fair outcomes, its about fair SOLUTIONS. avoiding the bailout package in current form will help in preserving a decent economic future for the American taxpayer. To have an economy that can support a job, and to avoid a tax burden that would take awayeth nearly any disposable income that is left by the working class-mainly all of you readers here on digg.

Lazarus: "But as I wrote in Sunday's column, market forces can't always be relied upon to determine winners and losers in the marketplace. In the absence of strong regulation, businesses can and will easily go astray amid their constant search for profit. "

Since when were financial institutions so easily at the whim of market forces? they've been predominantly driving market forces (who controls the federal reserve and business funding in the US?), these institutions are "regulated," and have had excessive leverage but still remained restrictive with caps on such leverage. These instititions and they're regulators conspired to allow two insane things happen; 1) at a time when rates were already low, credit already easy, and housing already skyrocketing-they (the SEC-the regulator) introduced allowing for leverage to be INCREASED from 12:1 up to 30:1 (think, even going to 15:1 would have been massive). and guess what? the institutions took advantage and levered themselves by as much!!! 2) the institutions created a new derivative financial instrument and let it blow up ot unsustainable to proportions - over $63 trillion dollars!!!

 

CAPpers, please help and add to the discussion here!!!

10 Comments – Post Your Own

#1) On September 24, 2008 at 8:29 PM, pjani06 (29.10) wrote:

anyone agree with my points?  someone should contact this David Lazarus character.

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#2) On September 24, 2008 at 8:41 PM, abitare (35.89) wrote:

Stealing $700 billion
takes a lot of BS. Lazarus seems to know where his bread is buttered.

FYI -

 

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#3) On September 24, 2008 at 9:11 PM, pjani06 (29.10) wrote:

Ares, I even liked better this great vid you posted recently;

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#4) On September 24, 2008 at 9:21 PM, devoish (98.37) wrote:

My solution involves a little more work. Whoever owns the "assets" can look inside the SIV and do the work they should have done to begin with. That work being to decide which loans are going to be repaid and which are not. Had they done this to begin with, they would not have made the bad loans. Once they learn what is inside their SIV, they will know what it is worth and so will any potential buyers. Then they can take their own losses. But this bailout is a terrible idea. As I speak Senator Barney frank is on CNBC saying he believes they have the votes to pass the bill. Please sign everything you can protesting this bill.

And I like what Ms Kaptur has to say.

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#5) On September 24, 2008 at 9:26 PM, LordZ wrote:

THESE GUYS should be jailed and shot dead !!!!!!!!!!!!!!!!!!!!!

Stealing a lot now a days seems to warrant no consequences.

 

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#6) On September 25, 2008 at 1:19 AM, GeneralDemon (< 20) wrote:

We must remember the stated mandate of the FED and government - to keep the markets liquid - so they will try to do anything and everything, good or bad to make this happen. We have a fractional reserve system and you can bet they will protect it. The typical taxpayer has no idea - here on CAPS alot of people do get it. Doesn't it seem like it will be easy making money in the near future (for us in the know)?

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#7) On September 25, 2008 at 9:27 AM, lquadland10 (< 20) wrote:

Ok Yes all of this is true.Both sides. Now you have to add in a third side. This is all about 3 secret societies that are using their old plans and astrology to predict the new end of the era hence 2012 and who will control what. Then it will be what lies beyond in 2013. You have you have about 8 to 12 groups. Then you have the sub groups and the sub sub groups. All of these groups do not always ways work together. Sometimes they do. Lets take the the first group you are talking about. I know that the Pope of Rome is the head of this group He wants to stay in power and have control. He Gave his gold to different monarchies around the world and they gave bankers the power to back people political people and companies around the world. I call them the titans of industry that are to big to fail. They build us up and then tear us down as we gain to much power and knowledge about how it works. Everyone says the Fed like it is part of our government when it is the imf a branch of the world bank and the united nations. Who runs this is the roman cath. church. Why should we give them more power I do not know. Then you have the Protestant Lutheran and what not who broke away from the cath church.They believe in the constitution and small gov. they just can't decide who should be the new leader or how to get past the good old boy two party system and away from the world bank. Back the money by silver and gold. Less government. That is good. Then you have the evangelicals who think they will control the world and they are god's chosen people who got together and used the bible to form Isreal. Hence lou dobs term neo cons. After all of that you need to look at the new ager's. That is a whold new kettle of fish. The turn over from the world bank back to small government will haven it just depends on timing. Give the money and the Pope and bankes can have their 30 pieces of silver if that is what it takes for my freedom. Or we can crash and burn and get our freedom eithor way it will happen. Why just read this artical. http://seekingalpha.com/article/96974-high-number-of-gold-and-silver-mergers-forecasted?source=feed I just wish I had some money to invest. I just have a  401 k plan that my company decided to put into fieidlity.

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#8) On September 25, 2008 at 9:31 AM, lquadland10 (< 20) wrote:

alstry's CAPS Blog The Truth....It's Bush's and Govt's Fault...among others

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#9) On September 25, 2008 at 5:14 PM, TheGarcipian (47.07) wrote:

AresFinancial, Ron Paul has most of it right (thanks for the video plug, by the way), but not all of it. Deregulation is what got us into this mess (see my blog here for the details) and it's one reason why I believe we need some (albeit limited) regulation in industry to prevent these sorts of abuses, rather than waiting for the Enrons and Global Crossings and Tycos to rip us all off and let the market take care of it all. I believe if the market were completely left unfettered, we wouldn't have 10Qs or 10Ks and whatever public disclosure we'd get would be akin to that what the Chinese used to give (until recently) and to what the Rockefellers, the Carniges, the Vanderbilt, et. al., used to give out as "public" information. That is, not much. Oh, how quickly we forget that it was only in 1997-ish that we "little people" could finally access brokerage houses on-the-cheap.

But as Senator Paul says, we "can't deregulate [or regulate, for that matter] ourselves out of this mess."  Certainly, the easy money & loose pockets philosophy of the US government since 2000 has only served to accelerate the situation exploited by those who the deregulation laws were written for (again, see my blog entry), namely the banking and financial industry. Why else has that sector gone from 12% of GDP to a staggering 28% GDP in just 8 short years?

I am with Ron Paul on saying "No" to this scheme, though. With the strings of repayment, interest rates & other restrictions negotiated into the package, it is still a bad idea. Without those restrictions, it is a horrible idea.

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#10) On September 30, 2008 at 1:39 AM, pjani06 (29.10) wrote:

See the link below for the FULL list of representatives with first name, last name, and state represented, & indicates if they voted for the bailout or against the bailout with CLICKABLE LINKS for their contact information!!!

see this here :

Now its personal, full names & links to all the Representvs. who voted YES or NO to the BAILOUT

this is far from over! 

do something, pat them on the back or convert them or...vote them OUT!

enjoy. Report this comment

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