A Few Thoughts On the Financial Crisis

You know, the smart thing to do regarding this financial bail-out for the ‘bad’ debt mortgages, is to simply give those homes to the homeowners and wipe out their debts.  This makes a lot more sense then bailing out those corrupt financial institutions, which should be allowed to fail.

By giving the homes to their occupants (paying off their mortgages), this would be a huge financial ‘charge’ to the system, and helping those that actually need the help the most.  And by letting these financial institutions fail, they don’t get rewarded for their stupidity and no golden parachutes.

Think about it.  We don’t “need” mortgage companies (or Wall Street for that matter).  But we do need homes.  And we need Americans debt free.  And unfortunately, working.  If they lose their homes, they can also wind up losing their jobs, or already have.  Only by keeping Americans in their homes can we stave off more disaster.

These executives and loan sharks on the other hand, can kiss my ass.  They don’t need my help or yours.  They need to pay for their crimes.  Let these firms fail and these scum sucking bottom feeders can go get real jobs and actually work for a living.

This does not answer any of the other bad debts out there, such as junk bonds.  These should have never been legal or allowed.

After the government attacked the United States on 9/11, the stock market was suspended.  This could be done again.  Erase these bogus debts entirely, giving the assets and ownership back to the people (if there actually is any, and it’s not just vapor-paper) and let these institutions vaporize.  We could do it in a week if we were allowed.

admin

admin at survivalacres dot com

17 thoughts on “A Few Thoughts On the Financial Crisis

  • September 23, 2008 at 11:54 am
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    In connecting the dots, who appoints the Treasury Secretary … the President. Infowars.net:

    Androvna is echoing the comments of historian John Steele Gordon who told reporters “It sounds like Paulson is asking to be a financial dictator, for a limited period of time.” She is also repeating a stark warning provided by Frank Razzano, a former assistant chief trial attorney at the Securities and Exchange Commission now at Pepper Hamilton LLP in Washington, who stated that the Bush administration is seeking “dictatorial power unreviewable by the third branch of government, the courts, to try to resolve the crisis.”

  • September 23, 2008 at 12:11 pm
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    “You know, the smart thing to do regarding this financial bail-out for the ‘badâ’ debt mortgages, is to simply give those homes to the homeowners and wipe out their debts.”

    Jesus John, you are smarter than this. I think you wrote on emotion.

    Give the flippers and lier loan liars the houses for free. And screw the old ladys pension plan that holds the mortgage. This is the worst choice.

    Let the people walk away from the homes, like they should, free and clear. Let them rent like everyone else who was smart or honest enough not to over pay. Let the house prices fall to what the market will pay. This will screw the bankers (who have bet on margin), give the pensioners what they deserve (market value), and let prices fall to a more affordable level for everyone to choose whether or not to buy or rent.

  • September 23, 2008 at 2:28 pm
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    If your going to give money away, who would you give it to? House prices will fall anyway, that’s just a matter of time.

    The pension plans (played in the markets) is another issue.

  • September 23, 2008 at 5:06 pm
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    Exactly, Admin.

    BTW, you ever want to run for prez, I’m ready to send a check! 🙂

    Seriously, restructuring all distressed homeowner loans would be far more likely to shore up commercial banks than paying “cash for trash.”

    The paper isn’t worth anything. What Bushit is asking Congress to buy is paper bets backed by collateral based on mortgages, mortgages that have been falling in value because the loans that were sold were at loan shark rates with balloon payments, etc. People were also told that real estate doesn’t ever fall in value, and so they go out for more house than they can afford on the assurance of the broker that the value will continue to rise.

    Beyond this idea of helping to restructure loans so people can stay in their houses, their should be aggressive criminal investigations into these firms to deal with all the fraud, embezzlement, and outright stealing that has gone on.

    Finally, we need to end The War on Terror (TWOT). TWOT is costing us trillions, all borrowed. The result, as Martenson and Bartlett both reveal in their presentations, is inflation of the dollar, devaluing everyone’s nest egg. Eliminating the TWOT outflow, refusing to bail out the big scam artists, and using the savings to refinance those that are facing foreclosure while investing in our grid and subsidizing renewable energy would accomplish much – including slowing global warming.

    I’ll be attending the solar show in San Diego next month and will let you all know what I find out. I know that the current thrust of the R&D is in efficiency, producing more electricity per cell. Several companies and universities that are engaged in this research could use seed capital to produce to bring their ideas to market and property owners could use subsidies to make early buying more cost effective. Right now the Japanese and the Koreans are eating our lunch in this area.

    Another green industry that makes sense to develop is retrofitting existing homes and building to make them more efficient. Instead of the “remodeling” to keep up with the trendy bullshit, why not make homes and buildings more energy efficient, thus reducing our carbon footprint.

    Same with electric vehicles. Subsidize them all – lowering our carbon footprint again.

    Working to stave off global warming will require a national commitment. Instead of giving $1 trillion to the fat cats….

  • September 23, 2008 at 5:13 pm
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    What a bunch of BS. You guys are talking like it really matters. Get a GRIP. Have we forgotten…Peak Oil, Resource Depletion, Climate Change, and about 6 billion more people then the planet can sustain. Denial is a mammyjammer isn’t it? This is just the first step of a complete and total societal and global collapse. Anybody who thinks differently, well, I’m sure you can find a nice bridge for sale in Brooklyn somewhere. Then again, there is always the more important question of who was wearing what and who is doing whom at the Emmy’s this year. Just throw some more popcorn on the barby. Anybody want to join me out back while I play the fiddle for awhile???

  • September 23, 2008 at 6:24 pm
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    Just saw some new headlines. Seems FBI is investigating executives at AIG, Fannie, Freddie, and Lehman. As much as I detest the FBI, in this task, I wish them god speed.

  • September 23, 2008 at 6:28 pm
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    While all of that is true steppingup, people will still need a place to live. Kicking them out of their houses and rewarding the execs can’t be a good thing, even in the face of collapse.

    We’ll see a lot of ‘downturns’ in the days ahead, this is just the tip of the iceberg.

    A long time back, I wrote that we would have many different plateaus where things would level off temporarily, then dive down again to the next plateau. I still think this is how it will happen, and a good thing too, as it gives people a bit of time to respond to the next calamity.

  • September 24, 2008 at 3:34 am
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    It is pretty easy to look at this in a “stovepipe” way. Not enough people are saying that somehow we supposedly can afford this theft from posterity, but social security is bankrupt? Or national health care is socialism? Or it costs too much? Or free higher education would cost too much? And on, and on, and on.

    Aside from the nearly unimaginable hypocrisy of these incompetent “free market” bastards, this proposed bailout is asking to buy out worthless trash paper to reward wall street criminals. But wait, there’s more, American taxpayers protect foreign criminals too? No public scrutiny, no accountability, no recourse, and no plan. Just trust the appointed choice of the most corrupt, incompetent, and outright criminal administration in American history.

    This plan is not worth a moment’s consideration. It should be the end of the republican party for ever suggesting it. Honest to god, I never imagined anyone would have the brazen rhino balls to suggest such a total, festering, piece of shit idea.

    Admin, I agree totally. If we are going socialist, give the houses to the folks living in them. Screw the speculators, they are of the same cloth as the others. It is not like that would be a “free house”. They and we will have to pay for the 11 trillion mess of the Bush administration. They have blighted and demeaned every aspect of the American experiment and thrown away the constitution. Not that the Dems have shown any balls or inclination to stop them.

    Nothing is going to stop the collapse. But boiling down all this free wheeling garbage, if we had to make the choice to give people their homes (not speculators or developers), or line the pockets of white collar criminals, basically the super rich, there is no question which meets the criterion of “of the people, by the people, and for the people”.

    We are doomed. They know it, and this proposed solution is to make this final theft for the rich from the poor and working stiffs. That is the back story. My clear take on this is that they understand they better screw us before the collapse because soon it won’t be possible. They don’t give a damn if the bill is ever paid, they will take the money and run.

    Juxtapose this with the sudden domestic stationing of the military for domestic operations, and you can infer the future the elites see, just as we see it here clearly.

    It won’t make any difference and this game is about out. I am doing what I can to stop this travesty, but ultimately it won’t matter a bit.

    The final joke in all this is that the rich can’t eat money, or buy air. Money is worthless if there is no way to buy anything. But make no mistake, we should not permit this theft, if only on principle. It bailout won’t work, the scope of the problem is over $100 trillion.

    I see no reason to hand (future) tax money voluntarily to prosperous thieves, both foreign and domestic. Our children are already doomed financially, no reason to make it harder.

    We better get clear on who pays and who benefits. We always pay, we should benefit while we can. The one good thing in this is that it has smoked out who benefits more clearly. People are ballistic. Can the sheeple awake? We shall see, I will believe that when I see it.

    MD

  • September 24, 2008 at 3:47 am
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    This is more than just the bailout of bad debt mortgages BTW, it is the purchase of leveraged investments that are multiples of the bad debt mortgages, based on presumption of appreciation. There was no value in the multiples to begin with.

    The underlying cost of the actual bad mortgages is much less, and worse still the actual owner of the underlying mortgage is not clear.

    But these cretins wish to make not only the underlying bad mortgage debt (the only real asset) whole, they want to buy the fictitious value in the multiples of it, basically they want to buy the fraud.

    I thought fraud was supposed to lead to jail, not reward by extortion.

    Give the little people their homes, it is much less expensive.

    MD

  • September 24, 2008 at 7:01 am
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    Connecting the dots again, you know it’s a power grab when “Cheney heads to Hill to lobby for bailout plan”.

    Also, it seems to have been in the planning stages for some time. It’s beyond the point of congress being dealt a bad hand. They should never have allowed the game to played with the economy. Market Ticker:

    We learned today that The White House was planning this little piece of financial dictatorship for quite some time:

    “Fratto insisted that the plan was not slapped together and had been drawn up as a contingency over previous months and weeks by administration officials. He acknowledged lawmakers were getting only days to peruse it, but he said this should be enough.”

    What a tangled web we weave when we practice to deceive.

    If this was being prepared for “some time” then the “emergency” status was manufactured. Instead of bringing this before Congress “months and weeks” ago for consideration where it could be debated and passed, ready if necessary, The White House and Treasury instead back-pocketed their plan and then sprung it on Congress with an outrageous and ill-advised “bump in the night, Freddy Kreuger style” scare campaign at the last possible minute in an attempt to give Treasury dictatorial power over our entire financial system.

  • September 24, 2008 at 8:46 am
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    Of course the Fiat Emergency (War on Currency) was manufactured, just as TWOT is a totally manufactured highly profitable scam (categorically bogus), Thieves, COn-artists and dictators know nothing else.

    For levity, from Colbert Report

    (on why Congress isn’t leaping into financial extortion)
    “Rome wasn’t bankrupted in a day.”

    (on lessons learned – or not)
    “Hindsight is $2020 billion”

    (new – aka same ol’ Bush rule)
    “Losers Keepers”

  • September 24, 2008 at 10:21 am
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    Dmitry Orlov seems to have called the events pretty accurately: Dmitry Orlov: Adieu, stage 1 collapse!:

    The bailout is actually going to be financed by foreign interests that hold US Dollar assets. Yes, the value of their holdings will go to zero, but they do not want this to happen suddenly. They wish to continue redeeming their US Dollar holdings for all manner of things of value, from capital equipment and intellectual property, which can be expatriated, to farmland and other means of production, which can be used in situ to grow food, mine ore, and so forth, which are then expatriated. There is some optimal function for this great unwinding, which will allow foreigners to expropriate the maximum amount of value in the minimum amount of time before their efforts to redeem their remaining US Dollar holdings stop paying for themselves in terms of the value of the available stuff.

    As this process runs its course, the US will lose access to imports. Most significantly, it will find it more and more difficult to obtain the 2/3 of the transportation fuels that come from abroad, which are needed to keep the economy functioning. And that will bring on Phase 2: Commercial Collapse. That is probably what we are getting for Christmas this year, or shortly thereafter.

    In the meantime, enjoy Stage 1. You will miss it once it’s over.

    ~~

  • September 24, 2008 at 10:31 am
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    Sounds reasonable to me. I already miss $3 gasoline, and I don’t drive. Sounds like everyone is going to try to bleed us dry.

    Reminds me of the Andromeda Strain movie, where the blood of the victims turned to dust.

  • September 24, 2008 at 11:40 am
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    Ashes to ashes….

    I thought I’d add these two to the reading for today (thanks for the Orlov link, btw).

    1)Courtesy of Eric Janszen at Itulip.com –
    “Stock market falls 372 points, gold back over $900. Another ho-hum day at the government run casino….”
    http://www.itulip.com/forums/showthread.php?p=49468#post49468

    Itulip’s ever-growing glossary is also worth a read just for the laughs (my favorite, the ‘bonar’)-
    http://www.itulip.com/glossary.htm

    2) From What Really Happened-
    “Bailout And The New ‘Lost Generation'” (one of the best articles I’ve seen in a long time)
    http://whatreallyhappened.com/WRHARTICLES/fflaw.php

  • September 24, 2008 at 1:30 pm
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    Here’s an interesting development (link):

    John McCain said he and Democratic rival Barack Obama should suspend their presidential campaigns and delay Friday’s scheduled debate to work with lawmakers on a plan for addressing the financial-markets crisis.

  • September 24, 2008 at 3:33 pm
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    http://www.marketoracle.co.uk/Article6428.html,
    The Paulson Bail-Out Plan is Mortgage Fraud on Historic Scale?[

    “Maybe it’s because this latest piece of “mortgage fraud” is designed mainly to keep the economy afloat until the presidential election, because a collapse would drag down John McCain and the Republicans with it. And heaven forbid that anything should ever be proposed that would threaten the stranglehold the banking industry has over every man, woman, and child in America.”

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