The Cellar - View Single Post

tw · 11-24-2008, 11:00 PM

We can now ignore the wacko extremist's attack on others, and return to topic and problem. The numbers. Citigroup has maybe $2trillion in obligations. AIG only had $1trillion. Whereas we once thought the investment banks would harm the economy, well, future (and not yet seen) damage will be even greater. Citigroup now needs a second government lifeline.

This is a complete shock even to me. Citigroups was once considered a more responsible financial firm which suggests how deep George Jr's deregulation has created economic cancer.

The entire world wealth measured something over $70trillion. According to Bloomberg, the US Treasury has provided corporate welfare amounting to $7trillion. This from a government that had chalked up record deficits because Cheney said, "Reagan proved that deficits don't matter" (he still will not admit to any mistakes).

Well, someone must still provide money for that new $7trillion debt. We have yet to start selling off America and taking second jobs to pay for that new debt.

Put $7trillion into perspective. The S&L crisis that so harmed American during the days of the Keating Seven - that shocking bailout was only $0.22 billion with symptoms such as the 1987 stock market crash. Deregulation created that economic mess and harmed the American economy. Today's numbers say that is next to nothing - trivial. $7 trillion on top of a $1 trillion "Mission Accomplished" on top of massive debt obligations also imposed by George Jr and massive debts made worse by tax cuts to the rich and 50% of American companies not even paying any incoming taxes.

By the numbers, what a mess. And we still don't know how many more companies have Enron style balance sheets - will be in line for government bailouts.

We have no reason to believe the bottom is yet in sight. One study using 1929 as an analytical basis says a bottom will occur when stocks have dropped by 80% of their 2007 value. That's additional $7trillion of Treasury debt we must get by selling America and no longer having those profits from the newly foreign own capital earning real estate, intellectual assets, and equipment.

At this point we have no grasp how severe our economic damage is due to George Jr and legalized money games.

11-24-2008, 11:00 PM	#360
tw Read? I only know how to write. Join Date: Jan 2001 Posts: 11,933	We can now ignore the wacko extremist's attack on others, and return to topic and problem. The numbers. Citigroup has maybe $2trillion in obligations. AIG only had $1trillion. Whereas we once thought the investment banks would harm the economy, well, future (and not yet seen) damage will be even greater. Citigroup now needs a second government lifeline. This is a complete shock even to me. Citigroups was once considered a more responsible financial firm which suggests how deep George Jr's deregulation has created economic cancer. The entire world wealth measured something over $70trillion. According to Bloomberg, the US Treasury has provided corporate welfare amounting to $7trillion. This from a government that had chalked up record deficits because Cheney said, "Reagan proved that deficits don't matter" (he still will not admit to any mistakes). Well, someone must still provide money for that new $7trillion debt. We have yet to start selling off America and taking second jobs to pay for that new debt. Put $7trillion into perspective. The S&L crisis that so harmed American during the days of the Keating Seven - that shocking bailout was only $0.22 billion with symptoms such as the 1987 stock market crash. Deregulation created that economic mess and harmed the American economy. Today's numbers say that is next to nothing - trivial. $7 trillion on top of a $1 trillion "Mission Accomplished" on top of massive debt obligations also imposed by George Jr and massive debts made worse by tax cuts to the rich and 50% of American companies not even paying any incoming taxes. By the numbers, what a mess. And we still don't know how many more companies have Enron style balance sheets - will be in line for government bailouts. We have no reason to believe the bottom is yet in sight. One study using 1929 as an analytical basis says a bottom will occur when stocks have dropped by 80% of their 2007 value. That's additional $7trillion of Treasury debt we must get by selling America and no longer having those profits from the newly foreign own capital earning real estate, intellectual assets, and equipment. At this point we have no grasp how severe our economic damage is due to George Jr and legalized money games.