The Bailout - Educating The Ignorant

[tangoll]

If the US govt is willing to stump up $700 billion, why couldn't it just use this money to buy up the properties directly? If the average house cost is let's say $250,000, that's 2.8 million units of property. Put the money right into the market and let the mortgage debtors pay the money back to the banks, and the banks clear up their mortgage problems directly. Yeah, I know, there's a lot of problems in how to value the properties, but the same problems of how to value the mortgage papers that the govt will take over is going to exist anyway. Plus, it's a lot easier to set and justify a value on real property than on a bunch of papers.

[Misty]

Any genuine reform of our monetary system must include two basic elements: fractional reserve lending (such as described

above) must be prohibited, and private banks must be forbidden from creating money, whether as

loans or otherwise. The Monetary Reform Act does both. It also incorporates means of doing this

that include paying off the huge national debt, and stabilizing the economy.

Hi Mask,

Which country has an existing system that operates in the way you propose the US's should, under the so-called Monetary Reform Act?

No country does because the central banks are controlled by the same international cartel who create the 'business cycle' for their own personal profit

it's the Borg from the gamma quadrant who are creating all these problems. we Klingons are aware of this fact since a long time and apply adequate defensive tactics. any Borg who poses as Klingon (like G.W., Greenspan, Paulson or McCain pose as Americans) is easily decloaked with a device our scientists developed a few years ago. once decloaked we catch them with steel nets (kinda.. sort of), circumcise them and send them to our colony "New Hope" to mine Trilithium.

thanks Naam, pretty much sums up my thinking regarding this thread

[Naam]

If the US govt is willing to stump up $700 billion, why couldn't it just use this money to buy up the properties directly? If the average house cost is let's say $250,000, that's 2.8 million units of property. Put the money right into the market and let the mortgage debtors pay the money back to the banks, and the banks clear up their mortgage problems directly. Yeah, I know, there's a lot of problems in how to value the properties, but the same problems of how to value the mortgage papers that the govt will take over is going to exist anyway. Plus, it's a lot easier to set and justify a value on real property than on a bunch of papers.

read the explanation member "Teatree" gave two posts before your question:

"That is only a part of the problem. The crisis may have started because of the sub-prime mortgage mess but it is the derivatives that have made the serious situation that it is now. The banks took the mortgages as if they were solid gold and leveraged them countless times until nobody really knows the extent of the black hole we are staring into. They are starting to realise that the leveraged 'assets' they are holding are not actually worth anything. To put the blame solely at the feet of the home buyers shows you pay too much attention to the propaganda spewed out by CNN , BBC etc."

[BEENTHEREDONETHAT]

Subprime 101

The easy version.

http://docs.google.com/TeamPresent?docid=d...=true&pli=1

[LaoPo]

Subprime 101

The easy version.

http://docs.google.com/TeamPresent?docid=d...=true&pli=1

Yep...that's what happened.

LaoPo

[BEENTHEREDONETHAT]

For those who would rather watch a video on the subject, this one should bring a smile and a better understanding.

http://uk.youtube.com/watch?v=mzJmTCYmo9g&...feature=related

[LaoPo]

For those who would rather watch a video on the subject, this one should bring a smile and a better understanding.

http://uk.youtube.com/watch?v=mzJmTCYmo9g&...feature=related

...Yessss they are just BRILLIANT ! Seen it before but thanks for posting again.

LaoPo

[Naam]

BERLIN (Reuters) - German Chancellor Angela Merkel will make a statement on the financial crisis and the plight of lender Hypo Real Estate on Sunday afternoon, a government source said.

Officials from the German government, central bank and financial regulator were meeting on Sunday in an effort to save the bank after a Berlin-brokered deal to rescue it unraveled.

[lannarebirth]

I think it is probably safe to say that there will be fewer banks left standing in Europe on Monday than there were on Friday.

[BEENTHEREDONETHAT]

For those who would rather watch a video on the subject, this one should bring a smile and a better understanding.

http://uk.youtube.com/watch?v=mzJmTCYmo9g&...feature=related

...Yessss they are just BRILLIANT ! Seen it before but thanks for posting again.

LaoPo

LaoPo You are very welcome glad yoou enjoy them.

I agree that those guys are great and have several other videos that are as good.

[Naam]

I think it is probably safe to say that there will be fewer banks left standing in Europe on Monday than there were on Friday.

that sounds like a logical conclusion.

[dotcom]

"Ominously, Burgess also commented, 'Mr. Speaker I understand we are under Martial Law as declared by the speaker last night.'"

You mean Leonid Breznev Pelosi?

Yeah you dumb dems got hi-jacked by your person in charge (can not call her leader).

[dotcom]

Some of you peeps need to get FOX News.

They are running a special today to explain where we are & how we got here.

They said that 6 times since the great depression we have faced a crisis due to "Collateralizied Debts Obligations.

Taking worthless mortages & selling them like securities.

So I guess we'll never learn

Kudos to Jimmy Carter BJ Billy Schmuckey schumer Chriss dodd & barney frank for inflating the bubble.

50,000,000 more kudos for trying to pin this on President Bush. keep trying fools. LOL.

[Naam]

Some of you peeps need to get FOX News. They are running a special today to explain where we are & how we got here.

whom did Bill O'Reilly blame? the usual suspects like bin-Laden? the democrats? the insurgents in Iraq? the lack of family values in Duluth, Minnesota? the illegal producers of white lightning in the Smoky Mountains of Tennessee?

[LaoPo]

I think it is probably safe to say that there will be fewer banks left standing in Europe on Monday than there were on Friday.

that sounds like a logical conclusion.

Well, as far as I know some banks have been saved and no (large) banks have fallen over during the weekend. See reports elsewhere about Belgian/Dutch FORTIS and German Hypo Real Estate.

UniCredit SpA, Italy's biggest bank by assets is planning to increase it's capital with € 6.6 Billion.

Iceland's Glitnir Bank was bailed out by the government but didn't fall.

I think the tide has turned and if necessary more banks will be saved, bailed out or nationalized.

There is little else as an option...if they don't... the entire card house will fall.

Europe, IMHO, is handling the banking crisis a little different than the US, although the US government, apart from the $ 700 Billion rescue line, saved and/or nationalized the Fannie's and Freddie's and the like as well.

From: http://news.bbc.co.uk/2/hi/business/7644238.stm

LaoPo

[The Mask]

I think it is probably safe to say that there will be fewer banks left standing in Europe on Monday than there were on Friday.

that sounds like a logical conclusion.

Well, as far as I know some banks have been saved and no (large) banks have fallen over during the weekend. See reports elsewhere about Belgian/Dutch FORTIS and German Hypo Real Estate.

UniCredit SpA, Italy's biggest bank by assets is planning to increase it's capital with € 6.6 Billion.

Iceland's Glitnir Bank was bailed out by the government but didn't fall.

I think the tide has turned and if necessary more banks will be saved, bailed out or nationalized.

There is little else as an option...if they don't... the entire card house will fall.

Europe, IMHO, is handling the banking crisis a little different than the US, although the US government, apart from the $ 700 Billion rescue line, saved and/or nationalized the Fannie's and Freddie's and the like as well.

From: http://news.bbc.co.uk/2/hi/business/7644238.stm

LaoPo

By jumping in and bailing everyone out the governments are making exactly the same mistakes the Japanese made in the 90's - resulting in a dead decade and zombie banks.

These bailouts are just for the benefit of the bankers - Bernanke and Paulson are interwoven with the banking elite and are just interested in helping their buddies on Wall Street.

It seems that increasing the national debt by a trillion dollars which will lead to inevitable inflation and a serious depression in the future is more important than some bankers losing their maseratis.

This whole fiasco is just welfare for the rich, it is pure socialism and has nothing to do with free market economics. Let everyone go bust, liquidate the bad debt, have a recession for a couple of years like Russia/South Korea and start again fresh.

Edited October 6, 2008 by The Mask