Does Anyone feel like Bailing

[TheMercenary]

The Game Changer

By Bill O'Reilly for BillOReilly.com
Thursday, September 25, 2008

The financial meltdown will change many things in America, and we can start with campaign promises. You can say goodbye to universal health care, a cornerstone of Barack Obama's campaign strategy. Massive medical benefits are now impossible because the bailout will take all the money.

Also, sayonara to John McCain's across-the-board tax cuts. The Democrats will likely control Congress again and, in the face of a $750 billion expenditure, there is little chance taxes will decline in any significant way.

So, both candidates find themselves losing a major core issue because of the greedy, stupid mortgage scandal.

Polls show that the folks are angry, as they should be. A Fox News survey puts President Bush's approval rating at 26%. Shortly after 9/11, the President had an approval rating of 88%, so you can clearly see how the once-mighty have fallen.

Just two weeks ago, the Palin bounce had John McCain leading Barack Obama in just about every national poll. Now McCain has fallen behind Senator Obama, and it's directly because of the economic madness.

Some Americans object to the feds bailing out companies that trafficked in risky mortgages. But if the government does not allocate taxpayer money to stop the economic bleeding, then what? Do you let the United States slide into a depression? The American economy is greatly dependent on foreign investment—oil sheiks and Chinese entrepreneurs buying our stocks and bonds. If overseas investors believe the U.S. economy is fundamentally unstable, they will pull their money out. That would be catastrophic for America.

Basically, the feds are playing a confidence game right now. They are assuring the world that our economy will not collapse. That assurance is vital.

But, once again, it is the folks who have to pay the bills, and pay we will. For the next four years, our tax dollars will be basically used for two things—fighting terrorists abroad and bailing out greedheads on Wall Street.

The FBI is investigating some corporate managers who made big money while their companies burned. People like former Merrill Lynch CEO Stanley O'Neal who allowed his company to buy bad mortgage paper and then, when things went south, walked away with a reported $150 million severance package. Meanwhile, millions of Merrill stockholders got hammered.

In any federal bailout, two things have to happen. First, the companies involved must pay back any "loans" after they get back on their feet. Secondly, the government must control the pay of the managers. That is non-negotiable. No more tax dollars for greedhead incompetents like O'Neal.

In the end, the American working person will pull the country out of this mess, just like we always do. But no longer can we the people trust the government to look out for us. The covenant between the folks and Washington has been badly damaged, there's no question about it.
And that may take a longer time to repair than the stupid mortgage mess.

[HungLikeJesus]

Basically, the feds are playing a confidence game right now. They are assuring the world that our economy will not collapse. That assurance is vital.

From Wikipedia:

A confidence trick or confidence game, also known as a bunko, con, flim flam, gaffle, grift, scam, scheme, or swindle is an attempt to defraud a person or people (known as the "mark") which involves gaining his or her confidence.

[Pico and ME]

Oh yeah...I see the trick now.

[Undertoad]

My shitty mortgage is with Chase, and Jackie works there. Company is solid. I hope to remortgage soon, if somebody will let me.

[Trilby]

Stealing and cribbing, stealing and cribbing. It's how I get thru my classes.

[Clodfobble]

Originally Posted by xoxoxoBruce

They would let their companies go belly up, so they could walk away with bulging pockets? This tells me, if a firm dies, the executives should too... shoot every last one of them.

At my previous employer who went spectacularly bankrupt (this was over four years ago, and the bankruptcy case is still going through the court system) there were a half-dozen banks willing to give the company plenty of financing, with the only condition being that the CEO step down from the board. He refused, and chose to take the whole company down instead.

[tw]

Originally Posted by Clodfobble

... there were a half-dozen banks willing to give the company plenty of financing, with the only condition being that the CEO step down from the board. He refused, and chose to take the whole company down instead.

The reason for problems is not accidental. Lessons were learned long ago. 85% of all problems are directly traceable to top management.

Where were the Board of Directors or stockholders? Or was this a private company where the CEO would rather lose everything rather than be fired?

[Clodfobble]

The stockholders were among the many people who sued. That's one of the reasons the bankruptcy case is still ongoing. Maybe in another four years I'll get the paychecks they owe me.

[tw]

Originally Posted by Clodfobble

The stockholders were among the many people who sued. That's one of the reasons the bankruptcy case is still ongoing.

And the Board of Directors? Their job is to avert such problems - to represent the stockholder's interests. Where were the BoDs - or are they also properly being sued?

[Clodfobble]

I think the board was technically only 3 or 4 people, and at least one of them was an immediate family member of the CEO. It was a public company, but he was the company's founder and had maintained pretty significant control over the years.

[classicman]

Got this from a friend this am.

What Caused Our Economic Crisis?

It gets rather interesting at the 4:40 mark. Just some food for thought.

[tw]

I am looking at the losses only for today. A snapshot of what happens when a wacko administration fixes an economy by through money at the rich.
Agilent Technology - down 5%
Apple - down 18%
Arch Coal - down 21%
Adobe - down 8%
AIG - down 13%
Applied Materials - down 6%

Most of these have no operations in the financial industry. But again, Deja vue. When the income of the richest was increasing massively AND the average man's income dropped (ie 2% under George Jr), then four years after a stock market meltdown, massive numbers of jobs are lost.

Remember when one was warning of the dangers in what is now called "Mission Accomplished". How many years later did the warning come true? At least four. When another was warning about the massive housing crisis, how many years later did the warning come true? Three years. When the stock market crashed in 1929, how many years later were jobs lost? Four years.

What other warnings were pooh-poohed four years ago by wacko extremist propaganda. This is what happens when a political agenda replaces 'working for America'. The spread sheets are again reporting what actually existed four and more years ago.

Who will prosper? Who do you think will step in to provide an "economy saving" capital? Europeans, Chinese, Japanese, etc. Even if the government bails out Wall Street, well, where does government get that cash? Saudis, Israelis, Russians, French, etc.
The party is over. And what was George Jr back in college? The social chairman - a party planner.

Today, Wachovia, that was once considered a savior of Morgan Stanley, no longer exists. A stock that was selling for $15 a share last week dropped massively every days; is now worth only dimes. In one day, Wachovia Bank dropped 80%. How many others have been lying on their spread sheets? Enron was the warning about how our finance people. Did your stock broker warn you last year? Why not? Those warning to prepare were posted in The Cellar.

Is your broker still saying to hang in there? Was he saying what goes down will rise back up? Is he worried about losing you as a customer - or representing your interests?

[TheMercenary]

Originally Posted by tw

I am looking at the losses only for today. A snapshot of what happens when a wacko administration fixes an economy by through money at the rich.

Wacko administration????

This is a problem of Congress. If all the demoncrats voted yes it would have passed. Bush already said he would sing it. There is enough of this shit sandwhich that everyone gets a bite, righty tighty and lefty loosey.

[Griff]

Originally Posted by TheMercenary

Wacko administration????

This is a problem of Congress. If all the demoncrats voted yes it would have passed. Bush already said he would sing it. There is enough of this shit sandwhich that everyone gets a bite, righty tighty and lefty loosey.

You misunderstand, tw is the good conservative on this one. The shit sandwich has to be eaten. Congress did the right thing.

[Bullitt]

Professor of mine today mentioned today that we should watch to see what the hedge funds do tomorrow as a serious indicator of further trouble.