Bailout!!!
- Thread starter AndyMarquisLIVE
- Start date
Chasey_Lane
Salt Life
You've talked a lot of gay smack lately. Maybe YOU are the one hiding something.
At a time when many of us are having to accept cutbacks in pay, higher gasoline and food prices AND higher heating prices, it is quite satisfying to watch the truly greedy dangle in the rope of their own making. An MBA does not an economic expert make.
NO Bailout for the well heeled.
NO Bailout for the well heeled.
Chain729
CageKicker Extraordinaire
They understood exactly what they were doing. Risk = reward. The guys behind these machines make NASA look like idiots.
Two scenarios:
1. Big payday. Everybody's happy.
2. Gov't bailout. Nothing lost.
So... They took on a crap load of "risk" with no real risk, but all the benefits when it did well. Who's really the fool? The rich banker or the gov't?
do you remember the quote from one of the failed ENRON exec's wives"
"Things were so bad for our family economically, that we were forced to sell one of our houses"
Gee, wish the rest of us had it that bad.
As long as it was risking someone else's money as well as skimming off the "fat", these useless POSs were considered brilliant and role models.
The sheen is off the shineola .
"Things were so bad for our family economically, that we were forced to sell one of our houses"
Gee, wish the rest of us had it that bad.
As long as it was risking someone else's money as well as skimming off the "fat", these useless POSs were considered brilliant and role models.
The sheen is off the shineola .
Chain729
CageKicker Extraordinaire
They made money off of someone else going broke. Guess they're the idiots.
You are a tool.
Pete
Repete
The problem is that those you wish to see suffer wont. They already have assets and cash and will continue living well.
On the flip side of the coin if they do not do some sort of bailout and the mortgaged based securities take down many of the financial companies things will get hard for US.
1. If credit tightens or stops interest rates will skyrocket.
2. If interest rates go up, the opposite will happen to what happened in 2002-2005. When interest rates were low people could borrow more for houses and house prices went up. If credit tightens and rate go up dramatically housing prices will continue to plummet because people cannot borrow. If housing prices continue to deflate it makes the bad loans worse.
3. Consumer credit will suffer big. Interest rates will increase on consumer financing from auto loans to revolving accounts (credit cards) People will stop buying cars and big screen TV's.
4. If people stop buying things manufacturing takes the hit.
5. Other countries financial institutions awash with money will come in to out finance things we cannot finance ourselves. Look how big HSBC is already.
In a nutshell as easy and popular as it is for people to say "Screw the elitist jackasses on Wall Street who did this to themselves" it just ownt happen that way. The guys replaced as CEO's are still wealthy, we will suffer way worse than they will.
Pete, you are quite correct. Those who should suffer , don't. They have planned long and set their assets in untouchable offshore refuges. The ones who suffer are those who can only plan so far with limited resorces, such as my in laws. I worry about their future as well as ours.
Where to start ? The paths are many and varied and none I feel are correct.
Do we start with the freshmen in college , especially on registration day and the credit card companies are hovering like rabid sharks ? Do we rid ourselves of commercials on the telly telling us that we would be happy if we possessed this item or that, and that we are total failures and idiots when we can't achieve the means to acquire?
Keeping up with the joneses has been as American as apple pie, and the decade of the 50's and 80's accenuated this always tommorrow attitude that failed to take in account that tomorrow never comes.
Where to start ? The paths are many and varied and none I feel are correct.
Do we start with the freshmen in college , especially on registration day and the credit card companies are hovering like rabid sharks ? Do we rid ourselves of commercials on the telly telling us that we would be happy if we possessed this item or that, and that we are total failures and idiots when we can't achieve the means to acquire?
Keeping up with the joneses has been as American as apple pie, and the decade of the 50's and 80's accenuated this always tommorrow attitude that failed to take in account that tomorrow never comes.
Pete
Repete
I don't know about off shore accounts and other sinister things like that but the sheer volume of money they have made over the years will weather them through. Say Steve McBigwig has $9M saved up and invested. So he takes a big his and he converts it to cash and now he only has $4.5M. Steve McBigwig lost 50% of his savings but he is still wealthy. Now apply that to Joe Average. How many Average people can take a 50% hit? Granted many.....strike that.....MOST Americans do not have anything saved. If your buying power either in cash or credit decreased by 50% you would surely suffer.
It is true that Americans have gotten punch drunk on credit. Can you fault someone for buying something they want on credit? Not really, you can fault them for not using common sense and buying a TV on terms that will take them 30 years to pay for or in the case of the mortgage crisis for buying something they can barely afford on loans that are certainly adjust up.
In my mind there are 2 givens you must understand and accept to understand this crisis.
1. People are generally stupid and agreed to things that were really stupid.
2. Banks totally abandoned any sense of risk management while taking advantage of stupid people.