Comments on: Another Day, Another Bail-Out

By: KevinE

KevinE — Wed, 17 Feb 2010 12:47:49 +0000

Isn’t the ultimate ‘truth’ of all this; that none of the participants will allow the music to stop playing (this is a game of musical chairs, or maybe hot potato)? Each time the debt moves farther from the periphery towards the center, it grows through accumulation, but also comes into stronger hands capable of doing something with it (i.e. settlement). As long as someone/thing can absorb it, or at the least hold it on or off balance sheet, no panic ensues. Losses are surely being taken by the weakest holders as they pass it along to stronger ones. There is no incentive for anyone who matters (the big folks) to make the call on the notes. Ultimately they need only let the toxic garbage degrade over time hidden away off balance sheet, and it will be as if a slow motion Jubilee had taken place.

By: Brad Thrasher

Brad Thrasher — Mon, 15 Feb 2010 05:48:17 +0000

“The money powers prey upon the nation in times of peace, and conspire against it in times of adversity. The banking powers are more despotic than a monarchy, more insolent than autocracy, more selfish than bureaucracy. They denounce as public enemies, all who question their methods or throw light upon their crimes.”

Abraham Lincoln.

By: Paul

Paul — Sat, 13 Feb 2010 07:46:28 +0000

Brad Thrasher :
Rob a bank with a gun and you get a minimum 5 years in a federal prison. Rob a bank using a computer and you’ll likely get a job as a security consultant. Own a bank and rob everybody and you get a bailout and a bonus.

PRICELESS!

By: Brad Thrasher

Brad Thrasher — Fri, 12 Feb 2010 05:14:10 +0000

Agreed Jason C. Additionally, the ire of what’s left of the middle class will boil over when the paper money boys’ President and Congress confiscate our pensions and convert them into annuities via Treasury notes or savings bonds.

We are sadly, no longer a republic but a plutocracy, plutarchy or corporatocracy.

By: Jason C.

Jason C. — Fri, 12 Feb 2010 01:44:41 +0000

Won’t the bond market impose austerity once the Maginot line on bail-outs is crossed? Bill Gross’ peeps estimate that 80% of U.S. bonds are purchased by the Fed using back-door monetization already. I think the ire of what’s left of middle class America will be raised toward politicians if a few more big bail-outs come down the pike that somehow never trickle down past the politically well connected.

By: Brad Thrasher

Brad Thrasher — Thu, 11 Feb 2010 06:45:44 +0000

Oh come on Nelson. You’ve never taken a contracts class? Fraudulent inducement and fraud are not the same tort. Secondly, you paper money boy sympathizers all whistle the same tune. You apply buyer beware standard shall to the little guy who gets ripped off. You support bailouts and bonuses for the white collar crooks.

That wasn’t even a good try Nelson. I didn’t make Mr. Rubino’s point. I pointed out his double standard.

By: Nelson

Nelson — Wed, 10 Feb 2010 16:03:34 +0000

Thrasher, I think you just made Rubino’s point. Unless you’re suggesting the $11/hr woman had a gun to her head to make her sign that deal, or unless the lender committed fraud, then she must not have had the intelligence to say no to the condo deal. Or if she knew it was a bad deal, she didn’t have the courage of her convictions to say no.
She apparently decided to trust someone who was not trustworthy; oh well, live and learn. Like Dave Ramsey would say, she now gets to pay her “stupid tax”.
All she had to do was tell those condo guys “NO!”, walk out of the room and get on with her nice life. Not to say that you or I would have done better or worse in that particular situation, but the borrowers must take responsibility for their actions.

By: Morning Coffee Market Nut

Morning Coffee Market Nut — Wed, 10 Feb 2010 12:13:44 +0000

[...] Another Day, Another Bail-Out (John Rubino) [...]

By: BlackVoid

BlackVoid — Wed, 10 Feb 2010 09:15:45 +0000

They are actually doing that already. Geithner was not kidding when he said US will keep AAA rating. No credit agency would dare to lower it.

By: BlackVoid

BlackVoid — Wed, 10 Feb 2010 09:14:19 +0000

“So it could easily be the U.S. which sees Treasury demand evaporate, followed by a spike in rates and a plunging dollar.”

No, that will never happen. They will just print money and buy up the bonds.