Comments:
You have touched base on a couple of issues and while they are
interconnected and related, they are not necessarily directly tied to
each other and are not impacting each other in the way that the media
is portraying it.
With respect to to the real estate market. I am a real estate Broker as well and have been in real estate for about 12 years. What is happening now is a natural part of the business cycle, especially the real estate cycle. The market was OUT OF CONTROL and out of control markets can never sustain themselves. Nothing out of control can ever sustain itself and the natural order of things swoops in with it's corrective measures to bring balance to instability which is exactly what we are experiencing in the real estate market at the present time. It is the natural order of the cyclical market. An out of control rise inevitably leads to an out of control fall.
Lenders are lending, they are simply no longer lending to unqualified parties as it should have always been. I am preparing an article that includes this reality aspect of the market. Any qualified party can still obtain a loan. There are still 100% FHA loans out there, with only $100 down and even a few that will allow $5000 seller's concessions toward improvements and remodeling for QUALIFIED BORROWERS, meaning those with a good credit history, 2 year solid employment record - all things that were require before lenders blatantly encouraged unscrupulous lending practices.
Our government is broke. We have no cash. So in order to infuse the markets with $700 billion (it's actually 1.5 trillion if you total all the bailout packages to date) THE MONEY EITHER HAS TO BE BORROWED OR PRINTED. Additionally, the $700 billion is only an arbitrary figure that Paulson pulled out of thin air (he appears to enjoy creating things out of thin air) and most likely is only the first "installment" of several more to come. Many economists, including Nobel Prize Laureates, estimate the real bailout cost to be in excess of $5 Trillion which includes the bailing out of FOREIGN Investment firms. Let that sink in. The American Tax Payer will be bailing out FOREIGN Banks with this bailout package that provided Hank Paulson with Dictatorial control over the nation's finances and monetary policy as monetary policy is directly related to the crisis.
The borrowing of such an extraordinary amount of money will further our ridiculous national debt and forever in-debt our grandchildren and great grandchildren. Our current Federal deficit of 11.5 Trillion is equal to about $37,500 due from each man, woman and child in the United States. That is the legacy you are handing down to your children and grandchildren.
If we can't borrow the money, then we must print it. Our currency is "faith" based and has nothing of value to back it up. The gold standard was dropped in 1971 and we've been operating on a "faith" based currency ever since. In reality, it has no more value than that of Monopoly money. The people's willingness to accept it as a means of exchange is where it derives it's worth and value. The printing of money, creates "inflation". The effect of this inflation is similar to a stock split where the total value of the stock remains the same, simply the number of shares increase thereby making each share worth less, and in the case of the dollar, rapidly becoming worthless. Inflation, in effect, becomes a tax because your dollars are worth less while your wages remain the same. So, you are paying out more and more, or more and more of your income is taken from you, hence the tax analogy.
The money generated from the bailout will directly benefit those at the top of the pyramid and will NEVER make it down to the common man. According to Bank of America, Goldman Sachs will be the single greatest beneficiary of all the bailout proceeds. The bailing out of AIG, Fannie Mae, and Freddie Mac directly benefited Goldman Sachs who held $20 Billion in toxic securities assets of AIG alone.
Henry (Hank) Paulson worked for Goldman Sacks and cashed out his $575 million of stock in order to take his current position. In addition, he earned $53 million in his last two years with Goldman Sachs, "for innovations such as a new line of "Mortgage Backed Securities." Gambling more than a trillion dollars on risky subprime second mortgages, Paulson cleverly converted them into AAA-rated "secure" investments by purchasing guarantees from the American International Group", according to a Global Research article (http://www.globalre search.ca/ index.php? context=va&aid=10433).
According to the same Global Research article, "...Wall Street has contributed more than $1.1 billion dollars to congressional candidates since 2002. Nine of the top ten House recipients of Wall Street largesse, who each received an average of $1.5 million, are on the financial oversight and taxation committees."
I posted an article about who received what from Goldman Sachs and it is worth noting that McCain received over $200,000 from Goldman Sachs and Obama received more than $600,000!
Again from the Global Research article, "Even more telling, the bipartisan Congressional "leaders" most responsible for pushing the bailout through Congress, Senators Dodd and Gregg and Representatives Frank and Blunt have taken almost $20 million from Wall Street sources during the last 20 years. Dodd recently received $6 million in contributions during his presidential primary campaign, and Frank has collected $720,000 this year."
You and me and every other average American citizen will never see a DIME of that bailout money and it will NEVER make it down to unfreeze the credit freeze. It will serve to protect the very people who created the crisis to begin with.
This entire bailout madness is nothing less than HIGH TREASON and a RAID on the National Treasury of the United States of America.
And, yes, you should be alarmed.
It will do NOTHING for the financial markets and if we do not immediately change our monetary policy, the dollar will crash and in your lifetime, in the not too distant future, you will witness the end of US sovereignty.
With respect to to the real estate market. I am a real estate Broker as well and have been in real estate for about 12 years. What is happening now is a natural part of the business cycle, especially the real estate cycle. The market was OUT OF CONTROL and out of control markets can never sustain themselves. Nothing out of control can ever sustain itself and the natural order of things swoops in with it's corrective measures to bring balance to instability which is exactly what we are experiencing in the real estate market at the present time. It is the natural order of the cyclical market. An out of control rise inevitably leads to an out of control fall.
Lenders are lending, they are simply no longer lending to unqualified parties as it should have always been. I am preparing an article that includes this reality aspect of the market. Any qualified party can still obtain a loan. There are still 100% FHA loans out there, with only $100 down and even a few that will allow $5000 seller's concessions toward improvements and remodeling for QUALIFIED BORROWERS, meaning those with a good credit history, 2 year solid employment record - all things that were require before lenders blatantly encouraged unscrupulous lending practices.
Our government is broke. We have no cash. So in order to infuse the markets with $700 billion (it's actually 1.5 trillion if you total all the bailout packages to date) THE MONEY EITHER HAS TO BE BORROWED OR PRINTED. Additionally, the $700 billion is only an arbitrary figure that Paulson pulled out of thin air (he appears to enjoy creating things out of thin air) and most likely is only the first "installment" of several more to come. Many economists, including Nobel Prize Laureates, estimate the real bailout cost to be in excess of $5 Trillion which includes the bailing out of FOREIGN Investment firms. Let that sink in. The American Tax Payer will be bailing out FOREIGN Banks with this bailout package that provided Hank Paulson with Dictatorial control over the nation's finances and monetary policy as monetary policy is directly related to the crisis.
The borrowing of such an extraordinary amount of money will further our ridiculous national debt and forever in-debt our grandchildren and great grandchildren. Our current Federal deficit of 11.5 Trillion is equal to about $37,500 due from each man, woman and child in the United States. That is the legacy you are handing down to your children and grandchildren.
If we can't borrow the money, then we must print it. Our currency is "faith" based and has nothing of value to back it up. The gold standard was dropped in 1971 and we've been operating on a "faith" based currency ever since. In reality, it has no more value than that of Monopoly money. The people's willingness to accept it as a means of exchange is where it derives it's worth and value. The printing of money, creates "inflation". The effect of this inflation is similar to a stock split where the total value of the stock remains the same, simply the number of shares increase thereby making each share worth less, and in the case of the dollar, rapidly becoming worthless. Inflation, in effect, becomes a tax because your dollars are worth less while your wages remain the same. So, you are paying out more and more, or more and more of your income is taken from you, hence the tax analogy.
The money generated from the bailout will directly benefit those at the top of the pyramid and will NEVER make it down to the common man. According to Bank of America, Goldman Sachs will be the single greatest beneficiary of all the bailout proceeds. The bailing out of AIG, Fannie Mae, and Freddie Mac directly benefited Goldman Sachs who held $20 Billion in toxic securities assets of AIG alone.
Henry (Hank) Paulson worked for Goldman Sacks and cashed out his $575 million of stock in order to take his current position. In addition, he earned $53 million in his last two years with Goldman Sachs, "for innovations such as a new line of "Mortgage Backed Securities." Gambling more than a trillion dollars on risky subprime second mortgages, Paulson cleverly converted them into AAA-rated "secure" investments by purchasing guarantees from the American International Group", according to a Global Research article (http://www.globalre search.ca/ index.php? context=va&aid=10433).
According to the same Global Research article, "...Wall Street has contributed more than $1.1 billion dollars to congressional candidates since 2002. Nine of the top ten House recipients of Wall Street largesse, who each received an average of $1.5 million, are on the financial oversight and taxation committees."
I posted an article about who received what from Goldman Sachs and it is worth noting that McCain received over $200,000 from Goldman Sachs and Obama received more than $600,000!
Again from the Global Research article, "Even more telling, the bipartisan Congressional "leaders" most responsible for pushing the bailout through Congress, Senators Dodd and Gregg and Representatives Frank and Blunt have taken almost $20 million from Wall Street sources during the last 20 years. Dodd recently received $6 million in contributions during his presidential primary campaign, and Frank has collected $720,000 this year."
You and me and every other average American citizen will never see a DIME of that bailout money and it will NEVER make it down to unfreeze the credit freeze. It will serve to protect the very people who created the crisis to begin with.
This entire bailout madness is nothing less than HIGH TREASON and a RAID on the National Treasury of the United States of America.
And, yes, you should be alarmed.
It will do NOTHING for the financial markets and if we do not immediately change our monetary policy, the dollar will crash and in your lifetime, in the not too distant future, you will witness the end of US sovereignty.
comment by whereabouts on Oct 4, 2008 1:38 PM (CST)
7 comments on Understanding the Economic Crisis: Help!!!!!!!!!!!!!!!!
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Obama got how much from Goldman Sachs? Last I looked he had received no more than $450. dollars from PAC money. If we are looking at private donors who just "work there" that may be a different matter.
http://www.opensecrets.org/pres08/sourceall.php?cycle=2008
His highest individual contribution was $30,800 by a man named William Budinger in Colorado...
All this financial stuff the last two weeks has made my head want to explode. While I agree the Bail out is highway robbery, I disagree that what we are seeing is part of a normal business cycle...
P.S. like the new Avatar
What new avatar? Mine?
The housing market downturn is absolutely part of the normal buisness cycle. There is no question about that. The problem has been exasperated over the past several years BECAUSE they kept artificially inflatng the market with low interest rates to give the "perception" of a great market when, in fact, it was a very weak market. The manipulation of the natural cyclical manner of the market itself is what has created this immense crash. Remember, the high of the artificial high will determine how hard the fall is and that is exactly what you are seeing now.
Make the time to listen to this for it is essential info in order to understand the reality of the financial situation: The B E S T Explanation to the Financial Crisis
As to the campaign contributions, I'm quoting from the article (url above) but also from other sources that you can get on my other blog.
No, my new one...isn't it showing?
No, not yet. I'm seeing Lil ole Georgie Pooh sticking up his middle finger! I'll refresh....
haha! Now I see it. Funny!
refreshing to see someone who understands how all of this happened. I too am a Realtor, and saw first hand what was happening. In fact my wife has been in the mortgage industry for 30 plus years and actually sat on the Fanny Mae panel during the time of "red lining." She not only called this, but tried her best to never put anyone into one of these loans. Some people however insisted. Even knowing the risks. Thanks for your knowedgable input here, and of course, thanks for backing Ron Paul. Maybe in four years the people will be ready to listen to reason!