News Item: Wall Street Bailout-4 Weeks Urgent
(Category: Pre 2008 Election)
Posted by Toddy Littman
Saturday 04 October 2008 - 19:05:57
Well I hear it's 4 weeks or so before treasury receives the first 250 billion (urgent my arse), and I believe there is an appropriations process which could decide to give Paulson much less or nothing at all since they do have to create these funds. If there is an appropriations process there is another vote.
A key part of this to me is that the stock market, that was 300 up when they started voting, dropped to -150 by the time they were through. If by some strange occurrence the market was stabilized or on a somewhat reasonably established upward trend 4 weeks from now, there may be leverage to appeal to representatives, if an appropriation vote comes up, to reject it.
A surprisingly disappointing part of this is that with some of these loans the borrowers had taken them out with no money down and no interest, the borrower hadn't made the payment, and further, in some cases, the loan was for more than the value of the home. (*Ding!* *Ding!* *Ding!* *Ding!* *Ding!* *Ding!* You'd of thunk that would have raised flags now wouldn't ya?) Now, if I remember correctly, legally, the borrower, has no obligation to pay as they have never "bound" the contract with any earnest money or made any payment, or, performed in any manner to admit the contract binds them to the obligations set forth thereunder. Sure the borrower's credit will take a hit, yet they can continue to be in quiet peaceful possession of the property and the bank has no direct contractual or legal authority to foreclose. Of course those loans for more than the value of the home, especially if not bound by earnest money, would easily be argued as "unconscionable" for their pure stupidity. Those loans would certainly be a toxic asset of idiocy exercised on their face, however when Fannie and Freddie, we the public, are paying for it via "quasi" government agency guarantee or outright purchase....Well you get the picture.
Now I know few will see this in this way but the banks are victims of a couple of liberal lending CEO "Czars" of a "Quasi" government agency, chartered to promote the principles of the Community Reinvestment Act, and these pseudo government agency's incentive system: FannieMae and FreddieMac. This doesn't make it right, but, like anyone else who gets screwed by government, the banks are holding Uncle Sam accountable for a "redemption." The $700 billion appears to that redemption.
The government, unable to accept the adult responsibility to reflect, apologize for their error, and eradicate the causal mechanisms as a matter of correcting the government's behavior, that is more than offensive but is in fact the initial government socialist intervention (FannieMae and it's agencies), decides instead that the same public, that allowed for FannieMae, FreddieMac, and CRA to be created in the first place, must be bilked. Easy to figure since the public is the one with the least capacity and affordability to bring action against the government, and has proven a Constitutional Right To Sleep while the government carries on in their name time and time again, government never held to answer or atone to their benefactors but at the ballot box, which can be years away.
In this current election year this estimation may, however, prove even more accurate. The compression of events to time by the almost daily "other shoe drops" election news cycle will consistently cloud the memories of many in the public, and repeatedly re-align our passionate outcry by election day to where we may not reasonably, if at all, use our sole moment of retribution upon the government by our vote.
Those leaning away from capitalism who are in the government, know that the banks can just chase credit costs up to a freeze, lower reserves even further, and have an incredible amount of leverage on the economy as a whole, which explains the Paulson knee-jerk number, to create a group of knee-jerks in support. Paulson is a private sector elitist banker first and foremost.
The long-term is no longer in view and hasn't been for quite some time. I dare say it began eroding shortly after 56 men wrote the Declaration of Independence, the birth of the first entirely non-feudal sovereign body politic. This isn't to say there was no forward thinking. It is to say that that the forward thinking principles of the Declaration became forward thinking in regard to equities alone. I guess what I mean here is, the old adage and laudable feudal tenet, "He with the gold rules," is only true if those around the one holding the gold believe it is so. We have and we do worship this ritual recognition of the sign, whatever it is, even the talley stick, an accounting that the king accepted in payment of taxes, but with no intrinsic value in itself, one could say the first working fiat currency. When one combines this with the Peter Principle competence of our government, the perceived downturns with socialist solutions to them, are a natural result which. I submit this is because we lack the capacity of diligence and adherence to America in principle, assuming we even care about what founded this nation and why that history occurred.
Thank you for reading.
This news item is from ChangingWind.Org
( http://changingwind.org/rename/news.php?extend.3 )
(Category: Pre 2008 Election)
Posted by Toddy Littman
Saturday 04 October 2008 - 19:05:57
4 Weeks Urgent? That's A New One!
Well I hear it's 4 weeks or so before treasury receives the first 250 billion (urgent my arse), and I believe there is an appropriations process which could decide to give Paulson much less or nothing at all since they do have to create these funds. If there is an appropriations process there is another vote.
A key part of this to me is that the stock market, that was 300 up when they started voting, dropped to -150 by the time they were through. If by some strange occurrence the market was stabilized or on a somewhat reasonably established upward trend 4 weeks from now, there may be leverage to appeal to representatives, if an appropriation vote comes up, to reject it.
A surprisingly disappointing part of this is that with some of these loans the borrowers had taken them out with no money down and no interest, the borrower hadn't made the payment, and further, in some cases, the loan was for more than the value of the home. (*Ding!* *Ding!* *Ding!* *Ding!* *Ding!* *Ding!* You'd of thunk that would have raised flags now wouldn't ya?) Now, if I remember correctly, legally, the borrower, has no obligation to pay as they have never "bound" the contract with any earnest money or made any payment, or, performed in any manner to admit the contract binds them to the obligations set forth thereunder. Sure the borrower's credit will take a hit, yet they can continue to be in quiet peaceful possession of the property and the bank has no direct contractual or legal authority to foreclose. Of course those loans for more than the value of the home, especially if not bound by earnest money, would easily be argued as "unconscionable" for their pure stupidity. Those loans would certainly be a toxic asset of idiocy exercised on their face, however when Fannie and Freddie, we the public, are paying for it via "quasi" government agency guarantee or outright purchase....Well you get the picture.
Now I know few will see this in this way but the banks are victims of a couple of liberal lending CEO "Czars" of a "Quasi" government agency, chartered to promote the principles of the Community Reinvestment Act, and these pseudo government agency's incentive system: FannieMae and FreddieMac. This doesn't make it right, but, like anyone else who gets screwed by government, the banks are holding Uncle Sam accountable for a "redemption." The $700 billion appears to that redemption.
The government, unable to accept the adult responsibility to reflect, apologize for their error, and eradicate the causal mechanisms as a matter of correcting the government's behavior, that is more than offensive but is in fact the initial government socialist intervention (FannieMae and it's agencies), decides instead that the same public, that allowed for FannieMae, FreddieMac, and CRA to be created in the first place, must be bilked. Easy to figure since the public is the one with the least capacity and affordability to bring action against the government, and has proven a Constitutional Right To Sleep while the government carries on in their name time and time again, government never held to answer or atone to their benefactors but at the ballot box, which can be years away.
In this current election year this estimation may, however, prove even more accurate. The compression of events to time by the almost daily "other shoe drops" election news cycle will consistently cloud the memories of many in the public, and repeatedly re-align our passionate outcry by election day to where we may not reasonably, if at all, use our sole moment of retribution upon the government by our vote.
Those leaning away from capitalism who are in the government, know that the banks can just chase credit costs up to a freeze, lower reserves even further, and have an incredible amount of leverage on the economy as a whole, which explains the Paulson knee-jerk number, to create a group of knee-jerks in support. Paulson is a private sector elitist banker first and foremost.
The long-term is no longer in view and hasn't been for quite some time. I dare say it began eroding shortly after 56 men wrote the Declaration of Independence, the birth of the first entirely non-feudal sovereign body politic. This isn't to say there was no forward thinking. It is to say that that the forward thinking principles of the Declaration became forward thinking in regard to equities alone. I guess what I mean here is, the old adage and laudable feudal tenet, "He with the gold rules," is only true if those around the one holding the gold believe it is so. We have and we do worship this ritual recognition of the sign, whatever it is, even the talley stick, an accounting that the king accepted in payment of taxes, but with no intrinsic value in itself, one could say the first working fiat currency. When one combines this with the Peter Principle competence of our government, the perceived downturns with socialist solutions to them, are a natural result which. I submit this is because we lack the capacity of diligence and adherence to America in principle, assuming we even care about what founded this nation and why that history occurred.
Thank you for reading.
This news item is from ChangingWind.Org
( http://changingwind.org/rename/news.php?extend.3 )