Posted by
Locutisprime on Monday, March 23, 2009 8:15:17 AM
This morning the fed announces it's latest scheme to resurrect the
dying American economy. I call it a scheme because it definitely isn't
a plan. This time it is Tim Geithner's proposal (scheme) for the fed
and treasury to create a new mechanism (scheme) for the "buying up of
toxic assets."
Isn't that a novel way of identifying worthless paper? We will just
call them toxic assets and suddenly the world is a better and safer
place. Because that is precisely what we are talking about. Making the
world a safer place once again, after the powers that be in government
have succeeded in screwing it up once again in the first place.
Bundles and bundles of worthless mortgages on foreclosed properties
that banks were forced to make by the government in the first place,
were bundled into worthless pieces of paper that we now have to figure
out what to do with before they choke the system to death. Properties
that at best will draw 30% of their original value (now) are going to
be what? Re-bundled into more appealing bundles of horse hockey?
And the federal Government can't buy up all this loss by themselves,not
even when they are printing the money to do it. Because they don't have
the tangible assets to back it up with. Not even when they leverage it
at 100 to 1. Which leads to the interesting revelation revealed below.
<span style="font-weight:bold;"><blockquote>“We share an
upside,” said an official, who declined to estimate the amount of loans
and securities that could be purchased in the programs or estimate
potential profits or losses for taxpayers. But “if we do poorly, they
[investors] will do poorly as well,” he
said.</blockquote></span>
http://www.foxbusiness.com/story/markets/industries/government/purchase-t-toxic-assets-securities/
Here is a clue scooter..... "If the investors do poorly? Everyone does
poorly!" When the investors are driven to ground and driven from the
markets by government idiocy and government socialist Tom foolery? The
entire system suffers and collapses! When the investors and those who
actually create jobs and wealth are penalized and demonized for the
sake of socialist Utopian dream worlds and socialist models? Everyone
suffers! Including and especially those supposedly insulated government
bureaucrats that think they know how to strangle the golden geese in
perpetuity!
Personally? I am of the same mind as some of the paid analysts and
economists this morning. These corporate managers and investment
bankers have been sitting quietly for the past several weeks while the
banshees of government socialism wailed and railed against supposed
corporate greed and the AIG bailout.
But now these real masters of the universe are about to get their
opportunity to level the playing field between them and government
socialist ideology once again. For without the money and finances and
economic expertise of these people in the real world of finance, the
government can do nothing but further drive the economy into the
ground. They certainly cannot resolve or reconcile these "toxic assets"
that they themselves created without the help of those who hold the
real wealth in the world.
Therefore, watch as the real leverage is brought to bear on Obama and
Geithner and the rest of these socialist grease monkeys this week. The
big boys with the money on the side lines, are not going to continue to
play these games with Obama and his crew. Or with Pelosi and that band
of rogues. There will either be concessions and "understandings"
reached between these corporations and the government on these
"bonuses" and who has say so over what their people are paid?
Or these moguls will literally let the whole damn thing go down the
tubes, after which they will come back and pick up the pieces after it
is all over with and the government has collapsed around itself.
Something people need to realize? Even this socialist crew that
inhabits the White House and congress at the moment, is that there is
an old adage that best represents the reality of business.
"Money talks and BS walks."
And when the real money of the world has had enough of the touchy feely
world of neuvo-socialism? They will balk and they will bite back and
they will make things extremely painful for all. For the power to
really change things resides with those who hold and turn the screws on
the people. And when you make them hurt? They will make you hurt. And
they will make you hurt badly.
It's as simple as that.