Time To Act

“The new law of evolution in corporate America seems to be survival of the unfittest. Well, in my book you either do it right or you get eliminated.”
Wall Street

On Saturday night at 2:40am outside a bar I got to talking with a group and it somehow led to the financial mess (this being DC and all). I expressed my staunch opposal to any bailout of the bankers and one of the girls in the group said the following: “So you want the next Great Depression?”

Bailing out big banks will not avert anything. Not a single foreclosure will be avoided. Not a single, honest middle class job will be saved. Not a single home will go up in price. The only job created will be the bureaucrat in the treasury writing checks to Washington Mutual, Wachovia, Goldman Sachs, Merryl Lynch, and so on. This bailout will only prop up bank’s paper mortgage security holdings so they can survive. They will be rewarded for speculation and fraud and you will be stuck with the bill. The dollar will fall and generations to come will be dealing with the mess. Don’t believe what Comrade Bush, Paulson, and Bernanke are telling you.

The U.S. debt obligations ($10-12.7 trillion, depending on who you ask) will never be paid. The faster it goes up the sooner we face end game—default or hyperinflation, maybe in our lifetimes. Congress will soon vote for a bill on this latest bailout. They will approve it and slap those in the face who are prudent with their money, save, and follow the rules.

Earlier in the night I talked to a friend who works for a Congressman. I asked her, “Does it really matter if I write to my Congressman?”

She said, “Well if a lot of people do, yeah.”

Take five minutes right now and write your representative, even if it’s just a two sentence message stating your opposition. Tell them to filibuster the thing if they have to. And then do it again tomorrow. You either believe in free markets and capitalism or you don’t.

For more on what you can do read the following by Mish:

Lies From Paulson Keep Stacking Up: What You Can Do About It

And here’s a no bullshit interview with Ron Paul describing why this bailout is a horrible idea.

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Tampa
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Tampa
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I understand you frustrations.. But you are misguided. This is no time for principal. The freakin house is burning to the ground, and you want to make sure that the drunk ass who left his let cigar by the gas tank gets punished. This country was about 36 hrs from a total run on the bank. People were pulling there money out of money market funds at a historical rate. The crashing of the market would have destroyed 100’s of millions of American’s retirement nest eggs. They talk of a 700 billion dollar bailout and without it, there could have been 5 trillion dollars in personal equity vanished. All those people with money in Vanguard, Fidelity, Putnam – it would have all been just about gone. I asked my co-worker where he had his money, he said the “Fidelity 2045 fund.” I printed out a year to date prospectus, his fund is down 21% and Fidelity is one of the most conservative money managers in the business. I thought he was going to cry. I asked him where he had his “safe” money? He said a money market. I said “those aren’t protected(this was pre-thursday – before the government offered to cover 1-1 principal in money markets) and he about shit his pants.

Dude – the country was about to implode. Total collapse. 20 years of hard work for many suburbanites would have vanished and they would have all been the last one out the door of their respective funds.

It was a titanic like ship, about to sink right to the ocean. You argue against a bailout, because you probably have under 50K in investments, you don’t have private sector job, and you Wachovia going bankrupt doesn’t effect you in the near term.

Over 50% of the country has 90% of their personal wealth (outside their home value) in that market.

It was about to crash. What they should do, in my eyes, is pick 3 banks, bail them out totally, and let everyone else fail. Trying to save everyone is going to result in saving nobody.

I say we bail out Bank of America, Wachovia, JP Morgan Chase and Goldman.

Thats probably 70% of the wealth. Then lets move on. Sorry WaMu – but its over.

Steve
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The government is bailing out the super-rich, at the expense of the poor.

They are taking our money to the tune of many, many, many thousands of dollars EACH.

They are taking our wealth in the most cowardly ways: by taxes aka gun-point (see what happens if you don’t pay) and the Invisible Tax (inflation).

They are handing this wealth to rich people. You know, the folks who have been gaming the system for years, leeching tons of capital while producing exactly NOTHING. Now when the fraudulent system they created collapses, they need us to… pay them?

Then the talking heads come on TV and tell us that it was necessary.

Necessary, just like the next massive wealth transfer from poor to rich will be necessary.

Cat
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Dude, stick to writing about pick up,travel & personal development which is generally pretty good.
Your rant about the financial crisis bailout is naive & idealistic.

speakeasy
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I’m not sure I agree with Tampa. I’m the first to admit I’m not an economist or expert in these matters, but I just don’t find your armageddon scenario particularly convincing. I think the direction this country is moving is unprecedented. We now have a corporate socialism system, yet for the little guy, it’s free market. If Wall Street gets in trouble, they get billions of dollars from tax payers, but if some working class family can’t afford healthcare and file for bankruptcy due to medical bills, they are on their own. It’s just sickening. I think Wall Street is feeding this propaganda about a meltdown to get the average person complicent. They want to say, “hey, if you don’t give us billions of your taxpayer money, YOU are the ones that are going to suffer for it.” Everyone instantly believes it and forks over their money to Wall Street.

David Alexander
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The government is bailing out the super-rich, at the expense of the poor.

Yes, since as we all know, if we don’t bail out the super rich, the poor will magically become less poor right?

For all intents and purposes, if the rich become poor, you’ll simply become poorer as the rich won’t have the money to employ your ass.

David Alexander’s last blog post: The Words Finally Have Meaning.

The G Manifesto
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Yep. Corporate Socialism.

– MPM

The G Manifesto’s last blog post: Wale – I Will feat. Xscape.

JC
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JC
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These corporate asshole criminals that go on and on about the “free market” system and other such nonsense go squealing to Governments to bail them out when everything turns to shit.

What hypocrisy.

They are Criminals.

speakeasy
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You know, there were people who made off like bandits during this ponzi scheme. The CEO of Merrill Lynch got something like a $60 million severance package. People like Angelo Mozilo, CEO of countrywide, one of the biggest subprime lenders made more wealth off this bubble than you could ever count. We should be going after them, instead of the taxpayer. They extracted the housing bubble wealth, they should be subject to a huge retroactive windfall tax. Why stick me with the bill? I’m a guy that lives in a small apartment and can’t even afford a house where I live.

monohechomierda
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“Bailing out big banks will not avert anything. Not a single foreclosure will be avoided. Not a single, honest middle class job will be saved. Not a single home will go up in price.”

Completely untrue. Doing the bailout will get the commercial paper markets moving again and get capital formation going again. Without the commercial paper market the economy will grind to a halt and money solvent companies will have to lay off employees.
It’s funny that Roosh is specifically advocating the same monetary policy that the U.S. followed right before the Great Depression whcih actually caused the Great Depression. Not funny as in ha-ha he’s advocating the entire destruction of the U.S. economy, but funny in the sense that he is unaware of even the basics of the financial history of the United States but confident in how he opines on it.

Anonymous
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this is so boring its not even funny. go back to writing what you know, not pretending your at all qualified to discuss financial markets

Nina
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yeah! It’s comming again.
The crises in 1929,1987 and 2000. It’s going on again, in this time seems worst at least if comparated with the last 2.
John Gailbraith, a economist that I respect, said that people has a very short “financial memories”. It’s sounds funny, but actually it’s not. They believe that they can earn a lot, without the “real” production. It’s just paper. Money buying money.
This “religious” faith in the “fast cash” creates a euphoric psychosis on people. People are more idiot when they are happyer.
The economy is not plain; it is politics, historical, psychology… Human being…
But, Masters of Universe of Wall Street are in general more optimistic, they will stimulate the delirium of the investors. They act as Free Market is a “unflexible” truth.
And then, they didn’t intervined before, now they have to pay for it and will cost Trillions…
MUCH MORE THAN IRAQ’S WAR.
:american:

JC
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JC
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In a tougher , crueller world, all the white collar criminal cock suckers responsible for the financial mess would be lined up in their respective hierachies of power and shot in the head.

Sweatpants
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“Yes, since as we all know, if we don’t bail out the super rich, the poor will magically become less poor right?”

You miss the point. The point is: Why do we reject socialism so vehemently, only to turn around and embrace it when it comes to the people who royally screw up running these financial institutions? How come it’s not OK for the government to pay the rent of a person who frittered away all his money, but it is OK for the government to pay hundreds of billions to the people who did basically the same thing?

I keep hearing that if we don’t do this, people will lose their pensions. Why are we allowing these institutions to hold pensions hostage?

We sure as hell weren’t talking about socializing any of these companies when they were making money hand over fist, when housing prices were skyrocketing. If we have to cover their downside, how come we weren’t sharing in their upside? If I have to write them a check to bail them out now, then how come as a taxpayer I wasn’t receiving checks from them during the fat years?

Lastly, if these institutions are so important to our well-being that our government is willing to rush in and help them, how is that different from a state-sponsored business? Why are we even acting like these are private organizations? When push comes to shove, they are not.

Peregrine John
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On the up side, maybe this will shake people’s rose-tinted glasses off their nose at last. It’s already got my Democrat friends talking like libertarians, at least about this topic. The coming entitlement disaster will dwarf the banking idiocy. Perhaps some good will come of this national ass-fucking after all.

monohechomierda
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“Not a single, honest middle class job will be saved.”

The first shoe to drop of a credit crunch. Caterpillar, (fucking Caterpillar!) could barely get their loans rolled over today. They had to pay up huge from just one month ago. If a firm like Caterpillar has to pay this much for debt god help any smaller firm who needs to roll over debt. And oh yeah, there is $800 in corporate debt that needs to be rolled over next month.

Joe
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Joe
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I feel like I should care about this hoopla, and to some degree I do because I realize the severity and implications…I’m reading The Power of Now by Eckart Tolle and he’s helped me realize worry is all in your mind. Life will go on.

Of course, I’m a 25 year old OC native with little education…my disposition might change if I have no food, no job, etc.