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alstry (35.03)

The Zombulator injecting SERIOUS PAIN!!!!

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August 02, 2009 – Comments (17)

THE FIRST COUNTY IN AMERICA TO SHUT DOWN!!!!!  IF AMERICA DOESN'T RESTRUCTURE ITS DEBT WHERE EVERYONE, INCLUDING HOSPITALS AND CITIES, NOT JUST WALL STREET BANKS BORROW AT 1% OR LESS.....UNEMPLOYMENT WILL EXPLODE AND GDP WILL CONTRACT OVER 50% AS AMERICA SHUTS DOWN.

THE FED SIMPLY INFECTED OUR NATION WITH A DEBT LOAD THAT CAN'T BE SERVICED AT CURRENT INTEREST RATES

Why should banks borrow for free and not citzens......unless we restructure...the PAIN WILL BE INTENSE!

Dozens of Jefferson County workers and taxpayers staged a rush hour protest calling for a change in county leadership. They want the governor to intervene to remove Commission President Bettye Fine Collins from office and reinstate pay for the 1400 workers who will go on administrative leave.

Some Jefferson County employees left work Thursday with boxes tucked under their arms, pausing to wave goodbye.

"My heart goes out to them and their family ,and I'm sorry they are in the unemployment line because we have leaders that can't do any better than what they've done," said Vi Ballard, a McCalla resident who came out to the rally to support the Sheriff's Office and other employees.

"We feel their pain. We feel sorry for them and know how they feel," said Linda Kreider, a county employee.

The pain inflicted by budget cuts is all too familiar for all county employees.

http://cfc.abc3340.com/printstory.cfm?id=645286

Banks with negative capital operating?  Counties shutting down?   FDIC running out of money?  State Workers going on strike?  Goverments running out of money?  Hospitals can't service debt?  School systems about to go bankrupt?  Universities closing departments and delaying graduations?

Welcome to reality folks...if we don't restructure debt...GDP could contract much more than 50%....or else our currency will collapse under the wrath of destruction from the Zombulator.

Benny the B says Bend Over my little Rover....how do you like it?

17 Comments – Post Your Own

#1) On August 02, 2009 at 9:22 PM, alstry (35.03) wrote:

WHAT A RIDICULOUS JOKE!!!!!

Aug. 3 (Bloomberg) -- U.S. lenders bailed out by the government are returning the favor by stepping up purchases of Treasuries, helping to temper a rise in borrowing costs.

FAVOR??????????????????????????????  Are you kidding me????

Borrowing money from the taxpayer at 1/4% and loaning it back risk free at 3%?

Why don't we let cities do that?  And hospitals?  And school districts?

Loan Alstry a $100 million at 1/4% and I will give the taxpayer a much better deal...I will loan it back at only 1%...one third the rate being charged by the banks!!!!

Why are we giving bankers free money who are giving themselves billions in bonuses while America shuts down due to an inability to service debt?

America shuts down as bankers laugh in your face watching families thrown out on the streets due to their reckless behavior!!!

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#2) On August 02, 2009 at 9:26 PM, alstry (35.03) wrote:

Increased demand for U.S. debt by lenders may help keep a lid on yields as the government sells what Barclays Plc estimates will be a record $2.1 trillion in securities this year and the Fed comes to the end of its Treasury purchase program.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aKKgluIR_pqQ

$2 Trillion at a 2 and 3/4% spread....$27.5 Billion....Hmmmm.....couldn't some states benefit from that spread?

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#3) On August 02, 2009 at 10:16 PM, DownEscalator (22.43) wrote:

For others who stumble on to this, this is Jefferson County, Alabama.  Not California or Arizona or Florida.  Alabama, as in the county that has Birmingham in it.

Unpaid leave is for 45 days, possibly up to a year.

And the financial crisis is supposedly ending...

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#4) On August 02, 2009 at 10:27 PM, alstry (35.03) wrote:

Just wait for Corus, Colonial, and Guaranty to shut down...that should break the FDIC requiring it to need a bailout.

The only question now is when will the citizens get mad enough for them to demand a bailout?  Right now it is only going to Benny the B's buddies.

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#5) On August 02, 2009 at 10:27 PM, OneLegged (< 20) wrote:

http://www.newsobserver.com/front/story/1630011.html

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#6) On August 02, 2009 at 10:50 PM, OneLegged (< 20) wrote:

http://www.nytimes.com/2009/08/03/business/economy/03economy.html?_r=1&ref=business

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#7) On August 02, 2009 at 11:17 PM, awallejr (82.72) wrote:

Man I hate when you mix the absurd with the accurate.  Personally I think it detracts from the message.

Best revenge against the bankers is to keep those bankruptcy filings going.  If we can't inflate the debt away, then let us "poof" it away with the Bankruptcy Court Judge's magic gavel.

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#8) On August 02, 2009 at 11:21 PM, alstry (35.03) wrote:

awa,

Just think, if everyone, business and municipality that is over leveaged goes bankrupt....our GDP will shrink 50% or more....how hard is that for you to see?

You think the bankers give a damn if their loans go bankrupt?  You obviously have very little understanding of Credit Default Swaps or the propensity of the Fed to bail out the banks at the expense of the American citizens.

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#9) On August 02, 2009 at 11:51 PM, awallejr (82.72) wrote:

Because it won't be an overnight event and then all that debt can be accumulated all over again.  Short term GDP killer, long term GDP grower I suppose.

Seriously, there really are only so many ways to deal with it.  Bankruptcy/foreclosures will poof some of it. Earnings being applied to pay down debt will poof some of it.  Cost cuts/taxation will poof some of it. Good old inflation will poof some of it.  The Chinese won't like the inflation part of it but tough, they made their wealth off the US happily and without questioning.

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#10) On August 02, 2009 at 11:54 PM, davejh23 (< 20) wrote:

"IF AMERICA DOESN'T RESTRUCTURE ITS DEBT WHERE EVERYONE, INCLUDING HOSPITALS AND CITIES, NOT JUST WALL STREET BANKS BORROW AT 1% OR LESS.....UNEMPLOYMENT WILL EXPLODE AND GDP WILL CONTRACT OVER 50% AS AMERICA SHUTS DOWN."

Are you proposing that we allow everyone to borrow at 1%?...new borrowing?  I agree that restructuring existing debt could help, but I don't think we should be encouraging individuals, businesses, etc... to be taking on new debt.  Maybe restructure existing debt, and raise borrowing costs to 30 year highs for new borrowing.

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#11) On August 03, 2009 at 3:05 AM, alexxlea (58.63) wrote:

Alstry is right if they were smart about the whole thing and kept people's rates where they were they could have eased people into manageable 100 year loan terms and the problem would never have cropped up. Seriously. At least that way most everyone would be happy.

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#12) On August 03, 2009 at 3:20 AM, alstry (35.03) wrote:

The issue was created by the FED making credit so easy, it effectively cut the affordibility of homes and commercial real estate in half so demand exploded, prices more than doubled, and the world went nuts borrowing and taxes to states exploded and the economy boomed.

The fed tightened 17 times, affordibilty dropped in half, prices crashed, sales slowed and taxes evaporated and the economy is imploding.

The consumer and government are about all of GDP.  Now both are dying and there really is very little money out there.....here is a good article on the subject.

http://www.scribd.com/doc/18033191/Macro-Research

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#13) On August 03, 2009 at 9:51 AM, awallejr (82.72) wrote:

Shame on you, you had it right in another blog.  The issue was created by Congress and Clinton in 1999 when they changed Glass-Steagall Act and allowed shadow banks to get into the mortgage business, compounded when the leverage rate which was raised from 15-1 to basically anything goes.

Had those 2 things been left alone Lehman and Bear,Stearns would stil be in business.

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#14) On August 03, 2009 at 10:00 AM, alstry (35.03) wrote:

awa,

you are truly an idiot.  If you make guns legal, it doesn't rise to taking that gun and shooting someone in the head.

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#15) On August 03, 2009 at 10:11 AM, awallejr (82.72) wrote:

Alstry look in the mirror first. I'm sorry, you simply don't know what the hell you are talking about.

This whole mess occurred because Congress allowed shadow banks into the mortgage business.  Prior to that change to Glass-Steagall, banks required 20% downpayment or PMI (mortgage insurance).  Incomes were verified as well.  There was a healthy real eastate market.  Once they allowed for the shadow banks they came into the market, offered ridiculous programs such as 1st/2nds with 6% closing cost credit on mere stated income.  These shadow banks then securitized the hell out of these products and kept churning away making profits.  Banks had no choice but to do the same in order to compete, tho Chase did slow down alot sooner than the rest.

Increasing the leverage rate made it even more riskier.  I am telling you now, if they had NEVER made those changes we would never be in this fix we are in now.  I don't give a shit if you believe that or not because you simply aren't in the real estate business to begin with. 

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#16) On August 03, 2009 at 10:32 AM, alstry (35.03) wrote:

I understand what your telling me...and the repeal of GS was stupid.  But in no way does it vitiate my logic.

If God never gave man a penis, man would never sodomize others.

Should we blame god for forcilbe rape?

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#17) On August 03, 2009 at 10:44 AM, awallejr (82.72) wrote:

You are a buffoon, who occasionally makes a good point but you have to sift through a mountain of retardation to find it.

Did you not say this?

"The issue was created by the FED making credit so easy, it effectively cut the affordibility of homes and commercial real estate in half so demand exploded, prices more than doubled, and the world went nuts borrowing and taxes to states exploded and the economy boomed."

Demand exploded because of the shadow banks.  Period.  It was no coincidence that the real estate market exploded once they were allowed into the business.  The FED was adding fuel to the fire, but they did not create the fire.

 

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