Re: Does anybody else find the timing odd
- From: "Hobart Floyt" <AlacrityFitzhugh@xxxxxxxxxxxxx>
- Date: 28 Sep 2008 07:32:25 -0400
"Diorite" <diorite@xxxxxxxxxx> wrote in message
news:diorite-251B6D.08434126092008@xxxxxxxxxxxxxxxxxx
Just a few hours after the big bank bailout
"deal" went south WaMu was seized by the
government and sold to (politically connected)
J.P. Morgan Chase for less than 1% of the value
of their assets. Kinda makes you wonder if
the bogeyman isn't a marionette. Yeah, we've
got problems, but some of the crisis seems
manufactured.
The only odd thing about the timing is it
happened BEFORE the election.
Given personal and company debt rates similar to
those in 1928, speculation in derivatives and
hedge funds, the subprime loan meltdown, etc,
it was only a matter of time. I figured it
would be after the Olympics (when China didn't
have to be on their best behaviour) and the
US elections (because Congress HATES doing stuff
like this just before an election).
All those financial companies "factor" (sell)
loans and receivables to each other or put them
up as collateral. When one bank went, the money
multiplier effect (aka "liquidity") went into
reverse and spread to other banks and related
firms and then to the general economy.
A lot of it is Clinton's fault for undoing the
laws put into place after the 1929 crash to
prevent speculation without the speculator being
able to cover it in the event of a wrong gamble.
Also Clinton's budgets NEVER had surpluses.
The "surpluses" were really "off balance sheet"
loans from foreign countries (like China).
There probably would have been a recession or
two due to normal business cycles which would
have been no fun, but more manageable than the
spectacular wipeout in process.
And what happens when evil auditors try to
warn people? We get FIRED because the stuff
we dig up is a "PR problem" for management.
.
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