The Conservative Cave
Current Events => The DUmpster => Topic started by: franksolich on September 28, 2008, 04:08:58 PM
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http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x4099305
Oh my.
Personally, I think there's no difference between bailing out big corporations, and bailing out the subway cat so she doesn't have to be a productive, contributing, member of society; it's just a matter of degree, nothing more.
undergroundpanther Donating Member (1000+ posts) Fri Sep-26-08 05:49 PM
Original message
Where is the $700 billion coming from?
And have you heard one question asked as to where Paulson is going to get the $700 billion in bailout money from?
From a conflict of interest perspective, the Fed has approved Goldman Sachs to be a bank holding company. Just what banks do they plan on buying and what is going to happen to the mortgages those banks hold? Isn't there potential for huge abuse of the price paid for mortgages held by banks Goldman Sachs acquires, since Paulson was the CEO of Goldman before becoming Treasury Secretary? What about Carlyle Group and the insider connections they have (Including Papa Bush who was a senior adviser before he retired)and the fact that a mortgage backed securities firm they ran collapsed and is just about to be re-organized? Who is going to supervise the prices they get for any mortgages they decide to sell? Clearly, Warren Buffett thinks there is some kind of edge for Goldman Sachs becoming a bank holding company. Less than a week after Goldman announced that the Fed had approved it becoming a bank holding company, Buffett, the man who always looks for the investment edge, announced he is investing $5 billion in Goldman. And, within 24 hours of Goldman receiving approval by the Federal Reserve to become a bank holding company, private equity (read Carlyle Group) was approved by the Federal Reserve to increase stakes in bank stocks up to 33%. Again, isn't there potential for huge abuse of the prices paid for mortgages held by banks Carlyle invests in? Why the sudden rush by Carlyle and Goldman to position themselves to buy into banks, when there is supposed panic everywhere?
From a political perspective what happens if some political pressure group wakes up to the fact that the United States government controls $700 billion in mortgages and decides certain special interests groups within that pool of mortgages held by the government should receive reduced mortgage payments and that others should receive increases in their mortgage payments. Is this not socialism?
From a long-term perspective, how is this bail out to be financed? Will it be an increase in taxes? Will the Fed just print the money? Will the Treasury just issue more debt and hope foreigners buy it, and at the same time crowd out private borrowers? Will it be a combination of the three? Any of these options will most assuredly suffocate the economy.
http://www.economicpolicyjournal.com/2008/09/bad-news-b...
It's a pretty small bonfire, not worth getting out the boat and rowing over to Skins's island.
The subway cat explaining money to us is like Pedro Picasso explaining the fall of the American dollar to us.
Some things are best left to experts, not to primitives.
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"There are times, however, and this is one of them, when even being right feels wrong. What do you say, for instance, about a generation that has been taught that rain is poison and sex is death? If making love might be fatal and if a cool spring breeze on any summer afternoon can turn a crystal blue lake into a puddle of black poison right in front of your eyes, there is not much left except TV and relentless masturbation. It's a strange world. Some people get rich and others eat shit and die."
—Gonzo Papers, Vol. 2: Generation of Swine: Tales of Shame and Degradation in the '80s, 1988
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Well, there ya go. After all, who knows more about money and finance than UGP?
:rotf:
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And her economics degree was from where again?
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I was about to say that post is the most coherent thing UGP had ever written. Then I realized it was just a copy'n'paste.
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I'm sure that the SheManPersonCat is very concerned about this deal. After all, the more people/groups leeching money from the government the bigger the chance that the money she leeches will dry up. She figures that she should have dibs on bleeding the government dry.