September 28, 2008

The $700 Billion Casey Serin Angelo Mozilo Housing Gambler Bailout Bill of 2008 will be announced tonight. So, what does it mean?



1) For home prices?

2) For the US stock market?

3) For foreign stocks?


4) For bond interest rates?


5) For the US dollar?


6) For gold and oil?


7) For capitalism and democracy?


8) For the average American?


9) For the GOP?


10) For you?

And... the biggest question - is this the beginning of the end, or just the end of the beginning? Is this the last bailout? Or just another one in, before another one, before another one?


58 comments:

bailout doctrine said...

7) For capitalism?


The New Capitalism: A Kleptocracy in the guise of a Fascist State.

Mark in San Diego said...

A nice article on Reuters that sums up the 700 Bill - cites S&L Bailout, Japan's lost decade, Swedish Bailout, etc. Basically, it will be 2 -5 years before the US economy recovers - the bailout will just prevent a depression:

http://news.yahoo.com/s/ap/20080927/ap_on_bi_ge/bailout_fallout;_ylt=AnS1FxjwmTRSiTvgKoSXVc6yBhIF

wc said...

There is no stopping this train wreck. No amount of money will buy confidence in the current economic system. They will pass this bailout which may slow down the train but everything is going down except the cost of food and energy.

Anonymous said...

Why in the hell would this be the end of the bailouts. 700 billion dollars and all you had to endure was some harsh rhetoric. The banks OWN the politicians and they know it. They will be back for more until the dollar is completely toast and they can loot no more. If you can keep fucking over the American public, why would you ever stop?

Anonymous said...

USA 2008: Crony Capitalism dressed up in Ayn Rand's trampsuit.

Anonymous said...

This is just the start it ain't over yet by a long shot. And I like to know if all the people who sold in 2005 & 2006 and made money get a write down now ? YOU BROUGHT A HOUSE IN 2003 FOR250,000 .SOLD IN 2005 OR 2006 MADE 150,000 PROFIT.TAKE PROFIT AND GO AND BUY A HOME 500,000 NOW IT'S WORTH 350,OOO DO THEY GET A WRITE DOWN .? I JUST DON'T SEE HOW THIS WORKS AM I WRONG SO THEY SAVE THE GAINS FROM FIRST HOUSE.? THAT THEY LOSE ON THE SECOND HOUSE AND WE HAVE TO PAY THE BILL.? AM I SEEING THIS RIGHT ?

Anonymous said...

1) Basicaly, the idea here is to try to make credit available again in hope it will end house depreciation. Unfortunately, to achieve that, you have to rely on the same toxic credit instruments that led us here, because the bailout doesn't make people more solvent than they were before. And I don't foresee banks doing that again, unless they plan to ask for another bailout 4-5 years from now.
So house prices will fall back to affordability levels.

2)Stock market should rally in the short term. After that, it all depends on money markets stabilizing or not.

3)same here

4)Here it all depends on foreigners's will to buy U.S. debt. I can't begin to imagine what kind of concession to foreign debt holders we'll have to make.

5)Depends of 4) and other currencies health. But I don't really see how "the Plan" would enhance confidence in the US$

6)If the real economy is back on track, expect oil going up and gold down.

7)We officially came to be ruled by bankers. It was already the case, but more so today. Congressmen vote for their wall street buddies, not their electors.

8)The average American doesn't care. He'll be watching American Idol as usual.

9)See 8), Fox news will turn this capitulation to Bankers into a triumph of democracy and freedom. In some weird way, they'll thank god for the GOP being in charge in such times.

10)I had some hope the corrupt liars would pay for this. How foolish was I! I may instead turn into a corrupt bastard. It seems to be the way to win at life.

Anonymous said...

THE GIFT THAT KEEPS ON GIVING.

image009 said...

I predict that the DC Capitol building will be burned down in the ensuing protests. If it isn't, it should be. We need some violence and destruction. Some assassinations also.

consultant said...

Beginning of the end.

Read the Long Emergency by James Kunstler.

It is profoundly disturbing to see a once proud nation reduced to mere back alley hustlers.

The bailout looks and feels like something out of Las Vegas rather than Washington. It is a gamble of monumental proportions and it will fail in spectacular fashion.

For those who hate government, please, go at it. Release your venom. I don't hate government. I hate stupidity, cowardice, selfishness, unbridled greed, rank hatred and arrogance.

All of those terrible human traits are contained in this bill.

HPers. Hang on.

SeattleMoose said...

A short history of Hank Paulson (aka King Henry)

1) King Henry takes over Goldman Sachs in 1999 and company debt is 20 Billion
2) King Henry leaves Goldman Sachs in 2006 the company debt was 100 Billion
3) His tenure at Goldman Sachs was all about inventing new and "innovative" ways to take on more risk while maximizing profit off those risks (e.g. crap RE loans)
4) During the later years of his tenure with GS top executives received record pay/bonuses
5) Its 30,522 employees earned an average of $600,000 last year — an average that considers secretaries as well as traders.
6) When he was tapped by Bushco to become Treasury Secretary Business Week had a headline "Mr. Risk Goes To Washington"

A bigger Wallstreet shark there is not. A perfect fit for Bushco.

So one of the very architects of inventing ever more risky investments comes up with THE PLAN to bail out his WallStreet/Banker buddies due to the very risk instruments that he helped invent???

And why is it we should be just a LITTLE bit suspicious of this guy?

Wallstreet induced huge risk and paid huge salaries/bonuses during the last few gravy years. And it turns out, it was based on almost worthless assets. So in essence they charged everything to the future while partying NOW. Perhaps they knew they would never be held accountable and have to pay a dime back.

Why? Because they own our government (Bushco is full of exCEOs and Wallstreeters) and as such, they own us.

Don't you just love having to pay the credit card debts of some coke-snorting rich guy?

And now WE, the American People, are being stuck with the bill for their excesses.

So let's just take what King Henry crams down our throats like good little tax payers.

Anonymous said...

This is the beginning of the Second American Revolution.

The Sons (and Daughters) of Liberty will rise again!!!

Dummy Action said...

Welcome to the U.S.S.A.

The United Socialist States of America

Anonymous said...

A trillion here...

With All Eyes on the Bailout, House Passes Trillion-Dollar Defense Bill

A few more trillions on the bailout (let's not forget that the $700 billion was only the outstanding debt at any one time - there's no limit on the amount that can be funneled through that window).

Oh, we're going to be juuuust fine...

Ha!

keith said...

You guys realize this is just the start of the Great Unwinding still, right?

All the auto loans

All the home equity loans

All the student loans

All the credit card debt

All the prime mortgages from 2004 - 2007

And of course, all the option-arm and liar's loan mortgages ever written

It's trillions. Trillions and trillions.

And then... wait for it... you have the derivatives melting down as the counterparties fall.

And then... wait for is.. the United States is just one country. Ireland is in meltdown. Spain has fallen off a cliff. England is in freefall. One by one the European countries housing and debt ponzi schemes will fall. And then it spreads to Asia. And down under.

And as it all melts down, then come the job losses. And then come the record state and local budget deficits. And the cuts in basic services.

And then... wait for it...

Comes the social security and medicaid/medicare timebomb.

Folks, this is a disaster. There will be short term relief rallies and glimmers of hope, but this is going to be a long, drawn out process. The Great Unwinding will be the Greatest Unwinding. Government meddling just draws it out.

I think this is why you're seeing the monkeys in DC panic like they are. They know it now. They've been briefed. It's like when the insiders on the Titanic knew the ship would sink but they hadn't told the passengers yet.

Get prepared, as best as you can. Get liquid (not dollars). Get popcorn (hot buttered). Get ready for the printing presses to shock the world.

You ain't seen nothing yet.

Lady Di said...

End of the beginning. 2009 will be harsh. 2 lame duck presidental candidates - either way we are screwed, and corrupt/inept Congress/leaders in charge. The market/world will continue to punish us for our broken and useless consumption through debt model. The dollar and our standing will decline.

I expect social unrest to be an issue as people become desperate.

Protect yourself is the motto in this environment. Hold on to/find employment, eliminate financial intermediaries or investments you do not trust, hold some hard assets, buy a firearm and learn how to use it, have food/water supplies in your home.

I hope I am wrong on this, but I do not feel good about what is in store.

consultant said...

This is what the economist Roubini said today about the bailout plan,

"Thus, the Treasury plan is a disgrace: a bailout of reckless bankers, lenders and investors that provides little direct debt relief to borrowers and financially stressed households and that will come at a very high cost to the US taxpayer. And the plan does nothing to resolve the severe stress in money markets and interbank markets that are now close to a systemic meltdown. It is pathetic that Congress did not consult any of the many professional economists that have presented - many on the RGE Monitor Finance blog forum - alternative plans that were more fair and efficient and less costly ways to resolve this crisis. This is again a case of privatizing the gains and socializing the losses; a bailout and socialism for the rich, the well-connected and Wall Street. And it is a scandal that even Congressional Democrats have fallen for this Treasury scam that does little to resolve the debt burden of millions of distressed home owners."

Anonymous said...

Anyone wonder what is Hanky Panky up to these days.

http://www.reuters.com/article/
marketsNews/idUSN2834001720080928

Goldman Sachs had up to $20 bln AIG risk

Goldman was AIG's largest trading partner, the newspaper said, citing six people close to the insurer. A collapse of AIG threatened to leave a hole of as much as $20 billion in Goldman, the newspaper said, citing several of the people.

goldman sux said...

The depraved actions of a few could lead to martial law for all of us.

The Goldman Sachs Business Model has wreaked havoc and wrecked America.

Paul E. Math said...

1) For home prices?
Meaningless, they will continue to fall.

2) For the US stock market?
A significant but temporary rally, followed by incipient decline.

3) For foreign stocks?
A significant but temporary rally, followed by incipient decline.

4) For bond interest rates?
US bonds will require greater and greater rates to induce foreigners to hold anything denominated in a falling USD.

5) For the US dollar?
Fall to 0.

6) For gold and oil?
Up, relative to USD and other fiat currencies.

7) For capitalism and democracy?
Death.

8) For the average American?
Abject poverty.

9) For the GOP?
Indifferent.

10) For you?
Fear and loathing. I am not adequately prepared. My income relative to living expenses has not allowed me to save sufficient to deal with this crisis. Will work for food.

Beginning of the end. Although there is some opportunity here, even in this mess. Crisis motivates change - I can only hope that eventually more americans seriously consider the ideas of Ron Paul.

Tobby said...

This bailout bill represents the end of the Reagan Revolution. The pendulum has swung as far as it will to the right. The real question is how fast it swings back to the left. Expect heavy regulation in the coming years. Republicans have lost all credibility, or at least the voting population has finally sobered up enough to realize that they have been lied to for all these years.

This bailout bill will only soften the hammer blow. There is still plenty of pain. Housing credit is still plenty and available for those that have reasonable credit (think pre 2001). Problem is that nobody with any sense wants to buy a house right now, so housing prices will continue to plunge.

wings said...

Ladies and gentlemen, we're headed for many KAGUNGA! moments in the near future.

You like popcorn with your entertainment?

You like Coke, too?

You like your girlfriend or boyfriend to snuggle up for the heebie geebie scary show?

Well, here it is...

Folks, there is no escape. You are in the KAGUNGA! matrix with little or no hope of getting out without taking a few hard knocks.

But, hey, they've got theirs and in order to make an omelet they're gonna have to break a few eggs: heads, bank accounts, jobs, etc.

KAGUNGA!

Oh, yeah! Pass those munchies!

Anonymous said...

DO you think Mozilo is bad with the pump and dump of his Company stocks right before his Companies demise?

You ought to see the dump of stocks that Hank Paulson did with Golden Sachs right before his exit and than he became treasury sec.

I remember that Mozilo was the clown that first started calling for the government to do something ,along with Dodds trying to spin the gamblers as victims and heading up the bail outs talk .

See basically we are dealing with the MOZILLO/DODDS/HANK PAULSON Bill .


When all is said and done ,it will be viewed in history that the above parties were the most evil men in history for destroying us
for their own personal gains and obstruction of normal Justice . These parties are trying to determine who the winners and the
losers will be ,and guess who gets to be the losers ,as well as Justice against these clowns never gets done.

Oh well ,the mainstream news will never draw the connection between these parties .

The biggest crooks in the Business world and Politics are the ones brokering and Masterminding the Bail OUT .

bitterrenter said...

So Keith, you're predicting the end of capitalism?

GOOD.

It's amazing how much we have in common.

Markus Arelius said...

Keith,

If $400 billion doesn't do the trick, then $700 billion won't either.

Andrew from Russia said...

> 1) For home prices?

Definitely not enough to dampen the fall.

> 2) For the US stock market?
> 3) For foreign stocks?
> 4) For bond interest rates?

A near-term sigh of relief, what else?

> 5) For the US dollar?
> 6) For gold and oil?

Well, this is as irrational as it gets! Let's put it this way: if there's a sudden near-term surge in PMs prices, I liquidate my pool accounts. Shall the PMs decline, I'll be coming back for more in a couple of months. I'm not yet disposing of greenbacks.

> 7) For capitalism and democracy?

FUBAR.

> 8) For the average American?

For the average Russian: inflation scare, perhaps more talks of a "default" (in Russian the loanword "default" is an catchall term for financial crises in uninformed speech - referring to the 1998 debt default which is the least likely event to repeat today).

> 9) For the GOP?

For the United Russia party: nothing of immediate concern. :)

> 10) For you?

Getting psyched for more dynamic events to unfold.

bitterrenter said...

Just a friendly reminder that this was the course of events precipitated by the adoption of a decidedly conservative ideology starting around 30 years ago.

You remember that, right? When you rejected "the liberals" because Reagan told you they were going to take all your money and give it to poor blacks on welfare? When you started voting your greed, ignorance and fear and abandoned any shred of idealism you had?

Well, isn't it funny how the people running off with the goodies have been the rich white people? LOL, this is all so satisfying for me I don't know where to begin!

See you in the tent cities and unemployment lines, suckers! And don't forget:

McCain/ Palin in 08 to save the country!

HAHAHAHAHAHAHAHAHAHAHA!!!!!!!!!!!!!!!

Anonymous said...

OK ,the Gov. will do the bail-outs and continue to do the bail-outs in a manner that will put the true burden on the taxpayers for years and years to come .

When I first starting predicting that the government would resort to major bail outs (more than a year ago) ,I thought they would only absorb a third of the costs of the bad guys . Guess not .
I would post the Master Plan that I thought that Paulson and the gang was setting up ,to the point people thought I was a nut .

So if the government is going to bail out this thing to buy time for the market to recover (which will take years ) than you have to plan on what investments
will be good .

If I have to have some form of this Paulson plan crammed down my throat ,than at least they should round up the bad guys and go for recovery of assets and prosecution of those thieves . These bad guys in effect have change the future of millions of people for many years to come ,maybe generations.

The thought of those fat cats keeping their high end life style while the rest suffer and pay for their sins is really annoying .

One of the moral hazards of this bail out is that the people might revolt ,or the people might get angry and do weird things .The bail out is sitting the stage for people to bail on the government or their mortgage even more than they would of .
Will the bail-outs prevent a worse future for the majority or is there any merits in their plan ,as massive as it is ? I think this BAIL OUT takes away money that could of been better spent to offset risks of a depression,but that's just my opinion .So effectively it will make a down turn last a lot longer than it would of .it will delay the government from taking effective step at putting money to causes that will really stimulate the economy and create jobs .

Imminent Repossesion said...

This is just another round of "Kick The Can", only this time, their at the wall and the can is comming straight back and beaning us in the forehead. Their printing money to solve the problems printing money caused. what else would you expact from politicians on the take.

Anonymous said...

gold up
djia up
housing down
lending dead
problem delayed
recession on

patrat said...

From sister of patrat:
I am against the bailout. Let the whole thing go down. If it is a depression let it happen. I'll move in with my family or get a roommate. We'll help each other out. This is just going to keep the fat cats fat and keep us "owned" by foreigners. It's time to be humbled, It's time to level the playing field. We'll all be the same, but at least we will have a country. I't been gross indulgence on credit. It's time to grow up and realize we can't have and don't need everything. And if we can't pay for it we can't have it. It's been a period of gluttonny and excess and even if there is a bailout, you won't benefit by it, you will be poor anyway. The bailout just keeps it going. So if it's a depression, bring it on. If you want a country in the end, bring it on. Let the good times roll!

Anonymous said...

Once again the minorities get bailed out at the expense of the hardworking white man. White man, when will you regain your pride and wake up?

Anonymous said...

Forget someone stealing your identity - you need to develop a separate identity of your own starting today! When TS really HTF you need to quietly slip into your new identity, leaving your old one behind. Dubya's already got his - I think it's something like Juan Gonzalez - complete with Paraguayan papers! Look for him to start growing a handlebar.

Anonymous said...

Blogger keith said...

You guys realize this is just the start of the Great Unwinding still, right?

All the auto loans

All the home equity loans

All the student loans

All the credit card debt

All the prime mortgages from 2004 - 2007

And of course, all the option-arm and liar's loan mortgages ever written

It's trillions. Trillions and trillions.

And then... wait for it... you have the derivatives melting down as the counterparties fall.

And then... wait for is.. the United States is just one country. Ireland is in meltdown. Spain has fallen off a cliff. England is in freefall. One by one the European countries housing and debt ponzi schemes will fall. And then it spreads to Asia. And down under.

And as it all melts down, then come the job losses. And then come the record state and local budget deficits. And the cuts in basic services.

And then... wait for it...

Comes the social security and medicaid/medicare timebomb.

Folks, this is a disaster. There will be short term relief rallies and glimmers of hope, but this is going to be a long, drawn out process. The Great Unwinding will be the Greatest Unwinding. Government meddling just draws it out.

I think this is why you're seeing the monkeys in DC panic like they are. They know it now. They've been briefed. It's like when the insiders on the Titanic knew the ship would sink but they hadn't told the passengers yet.

Get prepared, as best as you can. Get liquid (not dollars). Get popcorn (hot buttered). Get ready for the printing presses to shock the world.

You ain't seen nothing yet.

September 28, 2008 6:44 PM

Keith, so will we have hyperinflation or a bad deflation? Also, what will happen to someone like me who lived below my means and has savings? Thanks for everything.

cloud buster said...

This will be cake, in compare to whats waiting in the pipe for Europe.

it will get ugly across the pond

i've had it said...

The govt is going to purchase every toxic loan and forgive the amount of the loss to the borrower. This will set a new price floor for housing in the not to distant future. So, for examplr, a house purchase at 500k with no money down that is worth only 250k now will have half the loan forgiven and they will print money to pay back the bank that made the loan.so, in effect the govt will be giving flippers ans speculators free money.I also predict they will many houses that they purchase off the market in order to drive prices back up. Then they will bulldoze houses to get rid of them so they can't come back onto the market, thus reducing the supply permanently.

Those bastards.

Anonymous said...

News Flash ...The Bill has been submitted to the news . Its a 106 page document . From what I have heard so far ,Its basically the Paulson Plan with a whole lot a horse shit to lead the public to believe they got protections . Its all in the language my friends and its a deceit job .

The CEO's have been limited to 500 thousand a year in Salary but they can have stock options and other forms of compensation . This is a con job folks .

Yep, they spent many days trying to figure out how to keep what Paulson wanted ,and fool the public with the disclamers .

In addition the people who will be the regulators are Cox , Paulson,
The Fed Chairman and some other cat that cause the problems.
This is a insult from what I have read so far .

Lawyer language designed to get what Paulson wanted so far . Lipstick on a pig .I need not read any more.

Anonymous said...

Gingrich on the bailout

http://abcnews.go.com/video/playerIndex?id=5903025

Anonymous said...

so i can reset what i owe and keep my hummer..awsome

patrat said...

To have a democracy, you need a middle class.

patrat said...

Keith, maybe you could post those Congress email addresses that you posted a few pages back. I am having a real hard time finding them by Googling them.
Thanks,
patrat

area 51 said...

1) For home prices?
Stable for a short time, then continue down to long-term Case-Shiller trend.

2) For the US stock market?
Sharply up, then down as reality and recession hits.

3) For foreign stocks?
Strong, they are bailing out NO ONE, while the US bails out their banks.

4) For bond interest rates?
Upward, then down as reality and recession sets in.

5) For the US dollar?
Sharply up, then down as massive US debt becomes clear.

6) For gold and oil?
GOLD: Sharply down, then up as realty sets in.
OIL: unknown, maybe same but weak world demand may dampen price.

7) For capitalism and democracy?
KAPUT, DONE, FINITO, HISTORY

8) For the average American?
No change, liberal ghetto whiners will get freebies from govt., McDonald's $1.00 meal will stay the same. No change until foreign govts stop purchasing US debt, public and corporate.

9) For the GOP?
Transformed possibly back to conservative roots.

10) For you?
Can ex-pat the US easily.

patrat said...

Swedes tried to bail it out. 60,000 businesses went bankrupt. I think the Swedes are still around.

patrat said...

But at what cost?

Anonymous said...

You lose doomers....

Anonymous said...

.



Back to business as usual

Another Rolex

New BMW

Coach bags for the daughters

D&G shades for the wife

and a new Escalade while I'm at it!


God Bless Amerika and it's Lemmings

Anonymous said...

No, you lose buddy. Your stuff is mine. Watch out.

Anonymous said...

WC I totally agree. There is no stopping this train wreck.

Tom Joad said...

Much as I hate him for what he did in 2000, inflicting Dubya on us, Ralph Nader had an insightful statement the other night, to the effect that it really doesn't matter what kind of loans, bailout, or short-term illusory recovery there is, as long as the fundamental systemic problem continues unchecked.

And that is that the greedy players on Wall St. continue to make money off money making money making money. It's pixie dust. There is no value being created with these derivatives and complex schemes that nobody understands. Until the whole house of cards collapses, whatever we're doing will be nothing more than trying to fill in the crater from 9/11 with a jar of spackling paste.

A commenter above name-checked the French. I think that America's long-cherished notion of being "special" is about to go down the tubes. All those yahoos who beat their chests and stick out their jaws to the "America F*** Yeah!" rhetoric are in for a long, long painful period of disillusionment.

Of course, they will probably never come to realize that it was they, themselves, that destroyed that which they (professed to) love. Much in the same way that Scottsdale Frank will never allow himself to realize that it was his heroes, and his blind political faith in a bankrupt ideology that led to him living under a bridge, giving handjobs to visiting Chinese bankers for soggy rice balls.

Anonymous said...

From BitterRenter:

Just a friendly reminder that this was the course of events precipitated by the adoption of a decidedly conservative ideology starting around 30 years ago.

You remember that, right? When you rejected "the liberals" because Reagan told you they were going to take all your money and give it to poor blacks on welfare? When you started voting your greed, ignorance and fear and abandoned any shred of idealism you had?

Well, isn't it funny how the people running off with the goodies have been the rich white people? LOL, this is all so satisfying for me I don't know where to begin!


You stupid idiot! No mention of how the Democrats and George Bush (who is no conservative) mandated that banks give sub-prime loans to low income, illegal aliens and other high-risk people. You are such an idiot!

To everyone, notice how BitterRenter never responds when challenged? That's because he/she is a coward and has the debating skills of a 3rd grader.

went2puke said...

What kills me is that those Dem morons standing for a photo op with the disgraced Paulson think they are doing a favor to America!!! Reid, Dodd and Pelosi, you are nothing but three bags full of vomit. You just exposed your shortsided policies and your ignorance. History will judge you as the three dumbest democrats on the Hill and the American people will punish you for what you have just done.
Notice the hands of those jerks in that first frame-- thay are all making the ZERO sign!! And that's the zero mark that should be given to all those of us who have voted for Bush and Cheney, Reid, Pelosi and Dodd. Throw all the f*cking incumbents out!! Let's start over again, from ZERO!

Anonymous said...

I read the 110 page bail out bill draft and I'm depressed .

In general if you read the bill closely ,Paulson has authority to do anything he wants . Any reviews are after the fact ,therefore they have no teeth . Paulson has immunity for most part for anything he does .
Whatever protections for the taxpayers have no real legal teeth
to collect .
Anything they gave the taxpayers ,they take away by putting other clauses that make taxpayers protections secondary to Paulsons Authority to make choices .
Paulson can pay whatever he wants in whatever manner he wants for the toxic loans . Paulson is authorized to give cram downs at his choice .Paulson has ability to get more than 700 billion .

I could just go on and on . They betrayed us those Politicians . I can't believe that they spent those many days coming up with a
Bill that was filled with this sort of legal trickery that would screw the taxpayer as well as give this sort of Authority to Paulson .
The fat cat Banks and Wall Street lobbyist must of got to them .I guess they figured the public wouldn't read the Bill or understand the Bill. Hell a good majority of those Politicians must of not read the bill themselves. .

k.w. - Southern Ca. said...

Housing prices have no choice but to continue to plummet.

What this congressional dolts don't understand is that the consumer/tax-payer is hurting at a basic level.

This "bail-out" does nothing except save the ass-sets of corrupt wall-street execs. and bankers, while making US tax-payers that much poorer.

The avergage tax-payer will still be in deep trouble, and their children will have it even tougher.

k.w. - Southern Ca. said...

Excellent points Keith - and, unfortunately all too true.

The derivatives losses alone exceed the housing losses on a magnitude of 40:1!

As more and more folks lose jobs, the new 700bil+ debt will take that much longer too pay off - leading to massive inflation (especially gas, water, electricity and food) for those who still have jobs.

Real Economists (i.e. Nouriel Roubini) have warned us just how much worse this crisis will be extended if this "bail-out" were to pass.


keith said...
You guys realize this is just the start of the Great Unwinding still, right?

All the auto loans

All the home equity loans

All the student loans

All the credit card debt

All the prime mortgages from 2004 - 2007

And of course, all the option-arm and liar's loan mortgages ever written

It's trillions. Trillions and trillions.

And then... wait for it... you have the derivatives melting down as the counterparties fall.

And then... wait for is.. the United States is just one country. Ireland is in meltdown. Spain has fallen off a cliff. England is in freefall. One by one the European countries housing and debt ponzi schemes will fall. And then it spreads to Asia. And down under.

And as it all melts down, then come the job losses. And then come the record state and local budget deficits. And the cuts in basic services.

And then... wait for it...

Comes the social security and medicaid/medicare timebomb.

Folks, this is a disaster. There will be short term relief rallies and glimmers of hope, but this is going to be a long, drawn out process. The Great Unwinding will be the Greatest Unwinding. Government meddling just draws it out.

I think this is why you're seeing the monkeys in DC panic like they are. They know it now. They've been briefed. It's like when the insiders on the Titanic knew the ship would sink but they hadn't told the passengers yet.

Get prepared, as best as you can. Get liquid (not dollars). Get popcorn (hot buttered). Get ready for the printing presses to shock the world.

You ain't seen nothing yet.

Anonymous said...

All the student loans

------------------------------

yea, the student loans. another bubble. not sure how you would calculate it but the PE for a lot of degrees just doesn't pencil out.

Anonymous said...

Just a friendly reminder that this was the course of events precipitated by the adoption of a decidedly conservative ideology starting around 30 years ago.

==================
BS BS BS, it started almost 70 years ago.

Anonymous said...

bitterrenter == yamyam?


sorry if I am wrong but the blowhard socialist rhetoric is very similar.

consultant said...

"Once again the minorities get bailed out at the expense of the hardworking white man. White man, when will you regain your pride and wake up?"

You are fu#king insane!