Toxic Legislation for Toxic Debt

Detox That Debt!!!

Somehow, this toxic debt must detoxed by lowering the risk and auctioning it off to the highest bidder. It is only toxic because the orginal purchaser was mislead by bullstuff. The risk can be lowered by refis, payment adjustment or other means and an auction allows for price readjustment by market forces. What is really worrisome about this entire mess is that while talk has been about the bailout, the original cause continues to exist. These markets must be reregulated before bailout!!!

Ray Fisher of NM @ Sep 28, 2008 13:21:12 PM

A Manufactured Crisis

Hi Everyone,

The reason I am writing this is to remind all those that may have forgotten, or never even heard of, how our current economic crisis mirrors the Stock Market crash that created the Great Depression. I understand that many people know about how terrible the Great Depression was and how it effected our economy. What most people don't know is how it was manufactured and how closely our current economic crisis resembles the Great Depression.

In the roaring 20s Wall St. banks decided it would be a good idea to allow regular people play the stock market by buying stocks with only 10% actual currency while the bank retained the remaining 90% ownership, yet allowing the trader to maintain 100% of the control. The catch was that the bank could call in these loans at anytime and the loan had to be paid within 24 hours. The loan was called a margin loan and when it was called in, that was called a Margin Call.

So, the sleeze behind the Banking system, names like Warsburg, J.P. Morgan, Rockefeller, Roosevelt and most notoriously, Rothschild, made the decision to deliberately crash the market by doing a widespread Margin Call. Calling in all these loans simultaneously resulted in many thousands of traders being forced to sell their stocks in order to immediately pay back their Margin Loans. This in turn led directly to the collapse of the Stock Market. There is a lot more to this story and many other BIG names to mention, but you can go Google that yourself. Just look it up and you'll find the truth.

Now let's come to present day with the Predatory Lending scandal that has ultimately led our economy to this point. Back in 2003 and 2004 several huge lenders owned by the same family names as mentioned above decided it would be a good idea to lend a great many billions of dollars to millions of Americans that simply could not afford the large loans they were receiving from these people. In turn, this created an inflated market value of Real Estate because so many people were competing to "flip" homes with their overrated loan approvals. This process created a housing market bubble that would last across a 3 year period. By late 2005 this bubble began to deflate, real estate values dropped like a rock and the crisis had begun.

At this point I would like to deviate for a moment to another event that occurred around Christmas time in 2005 that most people don't even know about. While most of Washington was away on winter vacation for the holidays, a most sinister agreement was pushed through Congress, the Senate and signed off on by President Bush himself. This agreement is called the North American Union Agreement (NAU) and basically makes Canada, the United States and Mexico borderless. This agreement ties the three economies together and essentially "Unifies" the three sovereign nations under one umbrella.

Read more here:

http://www.johnnyk4congress.com/blog/viewtopic.php?f=5&t=26

Agent Orange

Agent Orange of FL @ Sep 27, 2008 22:22:32 PM

Bailout?

This sounds more like a slush fund for banks so when they go bad again, the public does not have to know about it. They just call the government and ask for more money.

of IN @ Sep 27, 2008 13:30:12 PM

Public gets screwed no matter what

No matter how you look at it, the American public comes out on the short end. Every way any bailout is presented equals this simple truth: American taxpayers are being asked to loan our money to banks and lending institutions so that they can loan it back to us with interest attached to earn profits for themselves. I know, I know, silly me for not liking to to know beyond a shadow of a doubt that I'm being screwed. JPMorgan/Chase just gained nearly $500B in assets by purchasing WAMU for less than $2B. Thats the same thing that has been the American way of life for all of my 40+ years. Ask any homeowner who lost their home due to foreclosure how much bailout from any branch of our government they recieved. Responsible companies should be allowed to buy up these irresponsible companies and I don't care about their executives losing their severance packages. Legally, once their company goes out of business they are no longer entitled to them. Big business has been using that legal argument for years every time they needed to justify cutting back (or eliminating) employee health packages and retirement benefits. It was always fulfilling the responsibilities to shareholders. Its time congress fulfills it responsibilities to the American taxpayers. Bush is only concerned with his own agenda, namely the family oil business that he will return to next year. I would not be the least bit upset to learn that his failed policies have put him in the poor house with soo many honest (not bush, HE has never been anything close to honest) and hard working Americans that he has ruined. I'd say that he should be impeached, but why waste the time when he will be gone anyway after November.

MET9 of CT @ Sep 27, 2008 11:31:28 AM

Mind the Pennies

Don't forget the mortgagees losing their houses. Help them rather than the Banks. Refinance the sub prime with a government authority. If $700 Billion is used to refinance mortgages, then home owners stay put, banks get their loans back, dud securities become valuable again, and those banks don't need a bail out. Buying dud securities with taxpayers' money will not keep people in their homes, but it will keep unethical financiers in their mansions and out of jail.

Looks like a giant shell game to me. The catch was there was no pea under the shell. Pursue and prosecute those who commit fraud. Mind the pennies and the dollars will look after themselves. All the best.

Ian McKirdy @ Sep 26, 2008 18:40:35 PM

Toxic Debt

Junk debt is more like it. "Mortgage backed securities" are what? Are we helping people going into or in foreclosure? No, investment bankers and hedge funds will sell the government these securities that were over valued first due to speculation and are now worthless, and will be worthless in the foreseeable future because home prices will never rise to what they were before the bubble broke. Let them keep them.

of AZ @ Sep 26, 2008 16:53:25 PM