Say NO to the corporate bail-out!

hardtone - 9-28-2008 at 03:39 PM

The Housing bubble was created by the controlling government, when the bubble started in about 2002-2003; the mortgage back securities were rising in value to reflect the demand of residential property.

Now two things caused this issue:

1. The first was the deregulation of credit made it easier for low income families w/ bad credit eligible to obtain shady mortgages (interest only, adjustable rates) loans and allowed the lenders to rape the situation to boot. This caused that class of people to over extend themselves and dig a deep hole w/ high interest credit cards/mortgage debt.

2. Now the second was Financial Accounting Standard 157 is a regulation imposed on businesses by the quasi-private Financial Accounting Standards Board (FAS). This rule is also incorporated into the regulations of the IRS and is further enforced by the SEC and the FDIC. FAS-157 requires businesses to mark down assets to the lowest price for which similar assets have been sold in the market. The jargon term for this regulation is called "mark-to-market" Mark-to-market forces good securities to be valued at the same price as bad securities....

But once a security is sold for a low price, something startling happens. All other firms are forced to pretend that their mortgage backed securities are also worth that low price, even if none of the mortgages backing their securities are in default! This leads to a chain of catastrophic consequences...

This caused all those mortgage companies who didn't diversify enough to bite the bullet and collapse.

What those companies were doing was criminal by pushing shady mortgages on people they knew would default on their loans, and basically taking the money and run. Now let me get this straight, when the profits were zooming, they were fine with this, now that things took a turn for the worse, they want federal aid to stay in business to keep raping people?

"Privatize the profits and socialize the losses"

What these asshole want by scaring us into accepting this 700 Billion bail-out as being our only path forward. How about getting rid of ACT 157 for starters and see what happens…

That's my take on this…

Six66Mike - 9-28-2008 at 07:46 PM

I don't know about any of that shit but the public should not be responsible for private failures. From Propagandhi:

“Publicly subsidized! Privately profitable!” That’s the anthem of the upper-tier (the puppeteer untouchable). We focus a moment, nod in approval and bury our head back in the bar-codes of these neo-colonials while our former nemesis (ah, the romance!): the nation-state, now plays fund-raiser for a new brand of power-concentrate. Try again, but now we’re confused- what is “class-war”? Is this class war? Yes, this is class war.

The public should not be funding the private sector. I'm aware of tariffs and all sorts of other shit that prop up business, but handing over billions to companies in the financial industry that failed to manage funds properly for years is just a deadset dumb idea. The industry isn't going to change years of bad practice overnight, the money is a dead investment.

Own up to the recession, let the weak companies collapse, let new companies rise up from the ashes when it's over. That's what a free market economy is all about and that's what the US promotes, live up to it and weather the storm.

hardtone - 9-28-2008 at 07:49 PM

Preach on, I agree...

clevohardcore - 9-28-2008 at 08:42 PM

All I know is REPUBLICANS want less government BUT they cry and beg for help when there big business goes down the tubes. FUCK ALL THEM BASTARDS. Using our money for there failures. Were are they when we need them to help us out?

defstarsteve - 9-28-2008 at 09:31 PM

I can sum this up pretty quick
class war now...

barc0debaby - 9-28-2008 at 10:51 PM

Time to buy some more guns.

clevohardcore - 9-28-2008 at 11:10 PM

Ever heard of the sociologist EDWARD ROSS? I am writing a paper on his "eight radiant points of social control" journal right now. It still holds its own even after 100 plus years. I can elaborate but it would take a while and I am sleepy.

DaveMoral - 9-29-2008 at 12:21 AM

Quote:

Originally posted by defstarsteve
I can sum this up pretty quick
class war now...

To Steve you listen! Seriously.

I believe it was Thomas Jefferson that said every 20 years there should be a revolution... it's been what? 230 odd years since the last one? I'd say we're long overdue...

Six66Mike - 9-29-2008 at 08:38 AM

Seriously I'd lose my shit if I was there, this fucking pisses me off every time I turn on the TV and have to hear about it. The fact everyone is warning of a recession...open your fucking eyes and see you're already in one.

And that Pelosi cunt, wow. I don't remember the exact quote from the clip I saw on tonight's news, but something about Wall Street being warned and consequences... what fucking warning do you send when you hand out billions to corrupt companies and business execs?

Oh but they will no longer reap disgustingly huge bonuses regardless of performance...well that's good to know. They should actually be sent to jail for fucking robbing the country blind and ruining millions of fucking lives.

I don't even live there and this just drives me crazy.

clevohardcore - 9-29-2008 at 01:05 PM

Pelosi is a huge liberal who is vocal about the bailouts being a bad idea simply because of the Bush administration wanting them. That is the only reason. IN fact you can blame her for a lot of this when she voted for loans to be made easier to very low income individuals. That being said we all know we are in a recession. It's the talking heads that refuse to state it yet simply for a scaring people.

defstarsteve - 9-29-2008 at 02:33 PM

dow down 600 points and falling
and they voted NO!!!!!!

take amercia out of the hands of huge coporations and give it back to mom and pop stores

clevohardcore - 9-29-2008 at 02:43 PM

right on!

jonnynewbreed - 9-29-2008 at 03:39 PM

one of the major Icelandic banks has just gone under. This thing is affecting far more than just the US. I wonder what the trickle down in Canada will be.

clevohardcore - 9-29-2008 at 03:47 PM

Canada is Americas #1 favorite importer/exporter. Even much more than China or Mexico.

barc0debaby - 9-29-2008 at 05:13 PM

Some banks in Europe went under too recently.

Siczine.com - 9-29-2008 at 06:20 PM

Quote:

Originally posted by clevohardcore
Canada is Americas #1 favorite importer/exporter. Even much more than China or Mexico.

We import far more from China than Canada.

Six66Mike - 9-29-2008 at 06:28 PM

You'd be surprised, Canada is #1 trading partner. Year to date ending July total trade:

Canada $364.23bn
China $228.60bn

By far Canada is the US #1 trade partner. http://www.census.gov/foreign-trade/top/dst/2008/07/balance....

*EDIT* This is combined Import & Export trade. Based solely on Imports yes China is #1 by $10m over Canada based on 2007 data I can find, back in 2005 Canada was #1 import partner so it seems to go back & forth annually.

Waking up to the news that the deal failed to pass Congress was exciting to say the least. However it's obviously not over & they will go back & try again & again.

Siczine.com - 9-29-2008 at 07:18 PM

Quote:

Originally posted by Six66Mike
You'd be surprised, Canada is #1 trading partner. Year to date ending July total trade:

Canada $364.23bn
China $228.60bn

By far Canada is the US #1 trade partner. http://www.census.gov/foreign-trade/top/dst/2008/07/balance....

*EDIT* This is combined Import & Export trade. Based solely on Imports yes China is #1 by $10m over Canada based on 2007 data I can find, back in 2005 Canada was #1 import partner so it seems to go back & forth annually.

Waking up to the news that the deal failed to pass Congress was exciting to say the least. However it's obviously not over & they will go back & try again & again.

I know the US exports a ton to Canada but what do we take in from Canada? I am guessing a lot of timber and raw materials?

I guess it just seems like EVERYTHING is made in China.

defstarsteve - 9-29-2008 at 07:48 PM

if I'm not mistaken we get 40% of our oil from canada...

Canada remained the largest exporter of total petroleum in July, exporting 2.383 million barrels per day to the United States, which is an increase from last month (2.359 thousand barrels per day). The second largest exporter of total petroleum was Saudi Arabia with 1.673 million barrels per day.

http://www.eia.doe.gov/pub/oil_gas/petroleum/data_publicatio...

Six66Mike - 9-29-2008 at 07:58 PM

Yeah mostly you get natural resources from Canada like oil, wood, natural gas, water etc. There's also the American-owned company factories in the US that export to the US market.

TSX in Toronto looks like it took the largest hit for the day, Australian markets haven't been open very long, down over 100 points already. Hang Seng & Nikkei will drop pretty large today no doubt.

clevohardcore - 9-29-2008 at 09:29 PM

Quote:

Originally posted by Siczine.com

Quote:

Originally posted by clevohardcore
Canada is Americas #1 favorite importer/exporter. Even much more than China or Mexico.

We import far more from China than Canada.

^^^^^^^^^^^ WRONG. We bring in and spend more money with Canada than anyone else. Serously

clevohardcore - 9-29-2008 at 09:32 PM

Lumber, oil, coal, iron pellets. Canada is our buddy. Without them we would have major issues. Plus the beer is pretty good.

Six66Mike - 9-29-2008 at 10:49 PM

Haha according to FOX Canada is extensibly far left and vulgar :bouncy:

http://cosmos.bcst.yahoo.com/up/player/popup/index.php?rn=22...

upyerbum - 9-30-2008 at 01:30 AM

That was hilarious, I don't think she understood a word he said. Blame Canada! Taxpayer funded doesn't mean government controlled, fortunately. Fox news is the biggest farce going. Corporately funded I might add.

BDx13 - 9-30-2008 at 11:03 AM

funny that FOX is outraged.

Six66Mike - 10-1-2008 at 11:58 PM

This has passed the Senate now, but needs to go back to the House for approval before it goes anywhere.

http://www.cbc.ca/world/story/2008/10/01/us-bailout.html

Six66Mike - 10-4-2008 at 05:33 AM

:ticking:

Passed into law by Congress & Bush last night, so shit.