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Bailout Pill Poison for Readers

Steve Pearlstein, the Post financial columnist, writes today that "Treasury Secretary Hank Paulson seems to have finally won the power and money he asked for to mount an unprecedented rescue of the financial system."

Pearlstein recently won a Pulitzer prize in large part because he fired highly accurate warning shots about the mortgage crisis long before it was called a crisis. He assumes this rescue package will be approved.

It is obvious, however, that many of our Readers Who Comment remain very angry with the whole idea. However, the tone of the comments has moderated some over the weekend and there is occasional if reluctant recognition that some kind of congressional action is required. Several suggest that legislation is an inappropriate answer for what is proposed and that a constitutional amendment is required. There is also one call for a return to the gold standard. Some beliefs are hard to shake.

We'll start with Aprogressiveindependent, who said, "No matter how many politicians and commentators try to justify this bailout, the fact is the vast majority of Americans who were not reckless in their spending, who did not buy homes they could not truly afford will pay... This will likely inhibit the next president and Congress from funding education, health care, public safety and infrastructure improvements at necessary levels..."

But LW22 wrote, "My Dad told me enough about the Great Depression that I don't want to experience anything like it. It seems as if there is enough in there for taxpayers and mortgage holders that we should support it. I just don't want to gamble that everything will fall apart if the banks all fail..."

AJAX2 said, "Congress does not have the power to transfer this much power to the Executive Branch, without amending the Constitution. This bailout of Wall Street robber barons is a massive restructuring or our government and financial systems that should not be made without modifying the Constitution..."

jdadson agreed, writing, "We want our Constitution back! Call your representatives and senators. Jam the phones. Jam the email boxes. Empty the fax machines. This must be stopped."

But b-elliott wrote, "There are times when you have to stop and start over. This is one of those times."

whiteagle38 noted that "Its a hell of a lot more than Herbert Hoover did after the crash in 1929 until 1933 when FDR took over. It's a start, regulation has always got to be part of the equation...It is a good thing wall street wasn't "taking care" of our social security monies!!!"

But fzdybel wrote, "Yes, the spoonful of sugar for the dipwads who bought houses they couldn't afford will make every renter in the nation delirious."

jheubusch warned, "Maybe we don't have any choice at this point to swallow this medicine, but future generations are going to be paying for this for a very long time..."

scientist1 asked, "Why no equity share for the taxpayer? This is still a ripoff and Democrats are stupid to vote for it. Republicans will use it against them for years to come."

kyprios928 said, "Mr. Pearstein... is so mellow towards the culpists of this unprecedended economic catasrophy.Why is it that he never speaks about punishing these thieves? It is always , from now on we shall do things differently, except that we shall always have the American tax payer pay."

Taylorsucram wrote, "...The value of the dollar has gone DOWN. I think all Americans should be required to read "The Rise and Fall of the Roman Empire". HISTORY DOES REPEAT ITSELF. We just put the inevitable off until the next Administration."

syoung29 said succintly, "What the taxpayers want is CRIMINAL LIABILITY"

catweasel3 writing about the proposed compensation limit of $500,000 for some top corporate executives, said, "...That's nice, but that's still too high. The limit of their salary should have been $400,000. Why should greedy executives who are now begging for money from the gov't make more than the president?"

Craazyman wrote, "...good work to congress on this one, to at least get some moral hazard protections into this bailout -- i.e. executive pay limits, potential future corporate tax if the assets don't recover, etc. Enough blame to go around on this one, but maybe we'll all learn a big lesson here. "Don't trust financial engineers bearing gifts of innovation, and the lobbyists who tout them."..."

lindakinne said, "Too bad the government never painted a clear enough picture of the everyday consequences to Americans of not doing this bailout. If it had, and those outcomes were as dire as the Great Depression, more people might be willing to support this deal... if the plan succeeds, the people won't appreciate what's been avoided. And if it fails, no one will understand just how complex the situation was and how difficult to fix..."

ucantmakeitup wrote, "So if I'm having trouble paying my bills because I was legally issued a credit line that I couldn't afford to pay off, and a mortgage I was legally told I could afford, and a car loan I was legally qualified for and oops, I got sick and incurred outrageous medical bills that help keep me alive... Does this mean I can go to my government and they will bail me out if I promise to pay it all back with interest IF I get a job? Gee, what a great country we live in."

We'll close with afalty2, who said, "It appears to me that this law is not liked by anyone out there. This is a sign that it is a good law because it doesn't completely please everyone that it has affected. Everyone involved on Wall Street must "feel the pain" for their shenanigans."

All comments on this analysis are here.

By Doug Feaver  |  September 29, 2008; 8:50 AM ET
Categories:  Congress , Economy Watch , Fed , Mortgages  | Tags: Paulson, bailout  
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Next: Bailout Rescue Derided

Comments

If Congress gives Paulson $700 billion dollars do any of you know how I could get my hands on say $10 million or $100 million without anyone noticing. I would like a little bit of money that I do not have to pay back and which no one can find.

What do I do? How do I get it? If the FBI comes to my door do I say: 'Don't look at me. I do not know what you are talking about.'

Does anyone have an idea or two. Will Paulson keep the money under his bed? Where will it go?

Please help me because I need a few bucks right now.

Posted by: Robert James | September 30, 2008 9:47 PM | Report abuse

Here is a link to a very factual and informative video that sums up how we got in this mess and how we as individuals can help prevent it from ever happening again. http://www.youtube.com/watch?v=TxgSubmiGt8

Posted by: George Johns | September 30, 2008 5:08 PM | Report abuse

First, to "GOP REPUBLICAN WALL STREET" etc: You don't expect anyone to read that crap, do you? Though I imagine your time isn't worth all that much, it was still a waste of your time.

Addressing the post: Just read Pearlstein and you'll see why this bailout is a poison pill to some of us. He explains that this "solution" is to seize the bad debts, refinance, restructure, etc., etc., and then turn it right back to the same type of private enterprise that got us into this mess to begin with. Fix it then turn it back over! No. My mechanic gets paid to fix my car. The plumber gets paid to fix my toilet. They don't pay me for the privilege of fixing stuff. American taxpayers, as a class, should not have to pay to fix this mess. There are a dozen ways Wall Street itself can fix its own debacle. If I have to pay to fix it, then I get to keep it. Plain and simple. Once it's nationalized, let socialism run its course.

Not that any of the solutions proferred by Bush or Congress so far would actually address the underlying problem: homeowners unable to pay off their mortgages. Find a solution to that and we wouldn't have to worry about the banks. They're just ambushing us anyway.

Posted by: GalapagoLarry | September 30, 2008 1:46 PM | Report abuse

The focus has been on the greed of top bank executives. How this bill will help them out of a mess they created. I think more focus needs to be put on the thousands of other people in banking who are not executives and who didn't make those bad loans. They are being punished for something they had no control over. Thousands of hard working Americans in the banking industry will lose their jobs because several politicians were more worried about re-election than helping the economy.

Everyone who is ranting and raving about the greedy GOP and this and that... It's all a lot of hot air. In a few months you are going to go apply for a mortgage and have to jump through hoops to get it. Forget about non-essential loans (boats, ATVs, luxury cars, credit cards, retail sales financing, etc...). All banks are about to have to tighten up big time. Unless you have ultra premium credit, you will be jumping through hoops to get any kind of credit.

We're in trouble. I hope for the best.

Posted by: This is not a joke | September 29, 2008 6:19 PM | Report abuse

Open letter to Obama and McCain:
What will happen to the actual physical property??

For those loans to be "purchased" by the government, who will be responsible to foreclose on and evict those (poor, minority and disadvantaged) families from their homes??!! Or will these deadbeats merely be allowed to live in the homes for free, even if they can afford to pay some/most/all of their mortgage?? Is this a bailout of Wall Street, a free home program for Main Street, or BOTH??

Greedy loan agents/banks/investors should not be rewarded for making (a commision on) a bad loan just because it was backed by Fannie/Freddie. Wall St. severance packages should not exceed that which might be received from a formal failure in bankruptcy court.

People making their payments should not be evicted because they can not make an absurdly adjusted ARM payment amount. Nor those with short term loans that can not be refinanced because the property is now worth less than they owe. If the government is going to absorb the drop in property values, why not let the homeowner "buy" their home at the foreclosure value, instead of giving all the money to the bank??

However, people that are not paying what they can afford should not be allowed to keep their home, just because the bleeding heart liberals don't want to evict them.

The decision is VERY simple - People that made an honest mistake, accept responsibility for their actions and are trying to do what they can, should NOT be punished by this failed subprime (welfare) program. People that are/were trying to game the system to their advantage (whether rich or poor, personal or corporate) should NOT be rewarded. Period!!! And punished to the full extent of the law if found guilty of fraud, whether on the loan application, acceptance, packaging, resale of the loan, false financial reporting, or other actions associated with this meltdown.

You must look for and plug any loopholes that are not visible thru the rose colored glasses worn by the liberals. If you can not stop an unfair resolution, you MUST detail the potential abuses in the next debate!! The American people understand welfare abuse, so they will understand if this "solution" creates the same type of opportunities.

P.S. What about the person that lost their home last week/month/year because they couldn't refinance a loan for more than the home was worth?

Posted by: Dick | September 29, 2008 3:51 PM | Report abuse

I think that this current administration its advisors and appointees should be ARRESTED AND TRIED FOR THE CRIMES OF HIGH TREASON against the United States of America.

Posted by: JohnQPubilc | September 29, 2008 1:46 PM | Report abuse

dmm wrote: At the very least, I want the managers of the bailed-out companies to be paid on the federal pay schedule and subjected to federal ethics guidelines. What kind of salary "cap" is $500K/year? It should be $200K/year.
-----
I agree with you. CEO who leave the company will find it difficult to get another CEO or similar job as job space contraction is underway at all levels.

Posted by: Vattikutti | September 29, 2008 1:19 PM | Report abuse

One more thing: rather than bailing out financial companies, the gov't should fix the mess by offering guaranteed fixed-rate loans to any homeowner who is trying to make payments in good faith but is in over his head due to an adjustable mortgage gone berserk. I trust 10 million Americans more than I trust 10 investment banks.

This bailout is a classic case of doing what is easy rather than doing what ought to be done. Throwing money into a simplistic solution never works long-term.

Posted by: dmm | September 29, 2008 12:53 PM | Report abuse

At the very least, I want the managers of the bailed-out companies to be paid on the federal pay schedule and subjected to federal ethics guidelines. What kind of salary "cap" is $500K/year? It should be $200K/year. Keep in mind, these people ran these companies into the ground. Heck, if they had any decency -- considering the outrageous salaries they earned during the fake boom -- they would agree to volunteer until their companies are solvent again. Anyone who says, "I spent all that money; I can't get by without continually earning $500K/year" is obviously an incredibly poor money manager and should be summarily fired.

But if I REALLY had my way, these people would go to debtors' prison.

Posted by: dmm | September 29, 2008 12:45 PM | Report abuse

Have you heard of baladona. Taken in excess it kills. However in measured quantities, it serves as an excellent sedative. There are variations of snake poisons which used in measured quantities help cure certain forms of cancer.

People should understand that this bailout even though a poison will help cure some malignant cancer in economy.

People will suffer in terms of millions of job losses, prolonged recession etc, if this bailout poison pill is rejected by US congress.

More bailouts are in store as with any pill prescription. So be patient.

Posted by: Raman Vig | September 29, 2008 11:51 AM | Report abuse

Don't bail out WALL STREET JEWS!!!

Posted by: Richard | September 29, 2008 11:02 AM | Report abuse

Take the time to find out how your Representatives and Senators voted on the issues that are important to you and use your power to vote them out of office. Let us send a real message to Congress, especially the House of Representatives ALL of whom are up for re-election in November.

Posted by: gemma | September 29, 2008 11:00 AM | Report abuse

THOSE RICH WALL STREET SPECULATING GOP REPUBLICANS WHO DROVE THE BUS INTO THE DITCH, WILL NOT BE TRUSTED TO DRIVE THE BUS OUT OF THAT DITCH.

SUPER RICH GOP REPUBLICAN WALL STREET SPECULATORS AND THEIR GOP REPUBLICAN HAND PICKED STOOGES IN THE WHITE HOUSE ADMINISTRATION, SENATE, SUPREME COURT, TREASURY, SEC AND CONGRESS TOGETHER HAVE $1 TRILLION WORTH OF THE AMERICAN PEOPLE’S ASSETS (DOMESTIC AND HIDDEN ABROAD) THAT MUST BE RETURNED TO THE CITIZENS OF THE UNITED STATES.

AMERICA WANTS ITS $1 TRILLION BACK NOW AND CRIMINAL TRIALS FOR ALL INVOLVED IN THIS CONSPIRACY AGAINST THE AMERICAN PEOPLE.

ACCOUNTABILITY AND TRANSPARENCY ARE THE NEW LAWS OF THE LAND.

TREASON AGAINST THE AMERICAN PEOPLE WILL NOT BE TOLERATED.

NO MORE GOLDEN PARACHUTES FOR EXECUTIVE CRIMINALS. GOP SUPER RICH REPUBLICAN WALL STREET CRIMINALS PREPARE FOR HANDCUFFS AND ASSETS CONFISCATION.

GOP REPUBLICAN CORPORATE EXECUTIVES FOR DECADES STOLE AND SQUANDERED AVERAGE AMERICANS’ MONEY ON HIGH RISK UNSECURED WALL STREET LAS VEGAS STYLE SPECULATIONS SHOULD NOT BE REWARDED WITH MULTIMILLION-DOLLAR COMPENSATION PACKAGES SUBSIDIZED BY THE TAXPAYERS.

THESE GOP SUPER RICH REPUBLICAN CORPORATE EXECUTIVES, SPECULATORS AND CONGRESSIONAL STOOGES SHOULD BE IN HANDCUFFS. ALL OF THEIR ASSETS SHOULD BE CONFISCATED, LIQUIDATED AND RETURNED THE TREASURY (AMERICAN PEOPLE).

LET THE TRIALS BEGIN: GOP SUPER RICH REPUBLICAN FLEECING OF AMERICA

CITIZENS OF THE UNITED STATES VERSUS GOP SUPER RICH GOP REPUBLICAN CRIMINALS

ACT QUICKLY, ACT QUICKLY, ACT QUICKLY
IS NOT THIS THE SAME THING THAT THOSE GOP REPUBLICAN CRIMINALS SAID TO START THE ILLEGAL IRAQ WAR!

LET THE TRIALS BEGIN: CITIZENS OF THE UNITED STATES VERSUS GOP SUPER RICH REPUBLICAN CRIMINALS (BUSH, CHENEY, RICE, PAULSON, MCCAIN) AND THEIR WALL STREET SUPERCAPITALIST SPECULATING FELLOW CONSPIRATOR FRIENDS

THE AMERICAN PEOPLE WILL PREVAIL

THIS GOP REPUBLICAN SUPER RICH WALL STREET MELTDOWN IS CRIMINAL MISUSE OF THE AMERICAN PEOPLE’S MONEY AT THE HIGHEST LEVEL (TREASON)

D STUDENT JOHN MCCAIN FEARS SHARING THE STAGE WITH HARVARD LAW PROFESSOR BARACK OBAMA

MOOSE COMMUNITY COLLEGE SARAH PALIN FEARS SHARING THE STAGE WITH LAW SCHOLAR JOE BIDEN

Hmmm, let's see. We have a bunch of republicans whining about wanting these CEOs to keep their fortunes, multiple houses and cars, and they want the taxpayers to bail them out. But when the taxpayer wanted help to keep THEIR homes, they were called a bunch of whiners by these SAME republicans and were given NO bailout.

Why are their oversized fortunes more important than the rest of America's modest and undersized ones?

Now, for the last time, once and for all, explain to me how Obama is the elitist and the republicans are "just like you and me." Go ahead. I triple dog dare you.

GOP REPUBLICAN WALL STREET SUPERCAPITALISM AT ITS WORST

Executive salaries, CEO bonuses, grand robberies of the U.S. TREASURY in the $MILLIONS, $BILLIONS, and $TRILLIONS.

GOP REPUBLICAN WALL STREET SUPERCAPITALISTS robbed the AMERICAN PEOPLE of a $Trillion. RULE OF LAW states that the AMERICAN PEOPLE will be protected and all private properties, money, and wealth domestic and abroad owned by GOP REPUBLICAN SUPERCAPITALISTS taking part in robbing the U.S. TREASURY (AMERICAN PEOPLE) will immediately be confiscated and returned to the U.S. TREASURY (AMERICAN PEOPLE).

REPLACE GOP REPUBLICAN CEO GOLDEN PARACHUTES WITH CRIMINAL TRIALS AND PROPERTY CONFISCATION. THE AMERICAN PEOPLE WILL PREVAIL AND THE UNITED STATES CONSTITUTION WILL BE REINSTATED. LONG LIVE FREEDOM AND JUSTICE. CORPORATE TRANSPARENCY AND ACCOUNTABILITY WILL BE THE LAW OF THE LAND.

INSIDE JOB AT THE HIGHEST LEVEL:
GOP REPUBLICAN WHITE HOUSE ILLEGAL WARS AND
WALL STREET CRIMINAL DEREGULATED SPECULATIONS

You asked for it and you got it. GOP REPUBLICANS INSIDERS McCain, Bush, Cheney, Paulson, and Rice were hired by Super-Capitalists (Super Wealthy GOP REPUBLICANS) to start Illegal Oil Wars against Oil producing Nations and DEREGULATE (eliminate AMERICAN PEOPLE PROTECTION) the FEDERAL GOVERNMENT (White House, Congress, Supreme Court), TREASURY and WALL STREET. These INSIDERS did exactly what they were paid to do. Past GOP REPUBLICANS (Nixon, Reagan, Bush I) and current GOP REPUBLICANS (Bush II, Cheney, Rice, McCain, Paulson) have a credibility factor of zero. Americans no longer believe them, the World has never believed them and now they are done. They came in with the 9/11 attack upon the AMERICAN PEOPLE and leave with the Wall Street $1Trillion attack upon the AMERICAN PEOPLE.

Wave after wave after wave the GOP REPUBLICANS attack the AMERICAN PEOPLE based on the premise of disrespect for anyone who is not a GOP RICH REPUBLICAN. Either you are in their group (GOP RICH REPUBLICAN) or out (debt ridden worker bee / victim). GOP REPUBLICANS view the AMERICAN PEOPLE as gullible sheep perpetually fattened with debt and led to the subhuman existence slaughter. When slavery (free labor) ended GOP RICH REPUBLICANS attacked and enslaved the people of the world through unbalanced trade. Now that foreign sweatshops are demanding better pay and treatment, GOP RICH REPUBLICANS are attacking the AMERICAN MIDDLE CLASS. GOP RICH REPUBLICANS are banking on the idea that the AMERICAN MIDDLE CLASS are non-thinking drones fat with artificial food, high on Wall Street sponsored imported drugs (legal / illegal), and choked with clutter, debt and noise.

Through massive GOP REPUBLICAN SPONSORED DEREGULATIONS, GOP REPUBLICAN CEOs, Treasury Secretary, Wall Street Speculators, White House Administration, Cabinet Members, and their insider friends each walked away with more than $20,000,000 annually of money stolen directly from the U.S. TREASURY (AMERICAN PEOPLE). After eight years of GRAND FRAUD AT THE HIGHEST LEVEL, thousands of GOP REPUBLICANS ROBBED OUR UNITED STATES TREASURY OF $1TRILLION (ACTS OF TREASON AGAINST THE AMERICAN PEOPLE).

The AMERICAN PEOPLE will hold ALL GOP REPUBLICANS INVOLVED in these ACTS OF TREASON accountable before a TRIAL. ALL GOP REPUBLICANS INVOLVED in these ACTS OF TREASON will have ALL OF THEIR PROPERTIES (corporate and private, domestic and foreign sheltered) CONFISCATED, SOLD and RETURNED to OUR NATIONAL TREASURY (AMERICAN PEOPLE). The UNITED STATES CONSTITUTION (WILL OF THE AMERICAN PEOPLE) shall prevail, despite the criminal efforts of GOP REPUBLICAN WALL STREET SUPER-CAPITALIST CRIMINALS.

CONGRESS WILL NOT ADJOURN UNTIL AFTER THE GOP REPUBLICAN PARTY FIX THEIR COLOSSAL MESS

GOP (GOOD OLDBOY PRIVATEERS)


GOP REPUBLICAN JOHN MCCAIN WALL STREET DEREGULATIONS
GOP REPUBLICAN JOHN MCCAIN ALSO WANTED TO PRIVATIZE SOCIAL SECURITY (BONEHEAD)
GOP REPUBLICAN JOHN MCCAIN sponsored landmark legislation in 1999 that removed the walls between banks, investment firms and insurance companies. GOP REPUBLICAN JOHN MCCAIN bill allowed a company like AIG to expand beyond its traditional insurance business (which is still profitable) into exotic new extremely high risk products that brought the company down and created this colossal mess.

WALL STREET SRO - SELF REGULATORY ORGANIZATION
THE GOP REPUBLICAN RUN Government (GOP President, GOP Congress, GOP Supreme Court) looked the other way, while GOP REPUBLICAN Super-capitalist Obscenely Rich WALL STREET SRO Speculators Robbed Our U.S. TREASURY and Forced the $Trillion Debt Upon the AMERICAN PEOPLE.


Average Americans are becoming poorer, because GOP REPUBLICAN WALL STREET super rich SPECULATORS and corporate CEOs are paying themselves, business partners, friends, and family members at least $20,000,000 annually from MONEY STOLEN FROM THE U.S. TREASURY. These major crimes committed by WALL STREET SPECULATORS AND CEOs have gone beyond greed and into acts of treason against the AMERICAN PEOPLE. Seize the stolen money and properties valued in the $TRILLIONS back from these super criminals for attacking America. Those stolen $MILLIONS / $BILLIONS / $TRILLIONS belong to the AMERICAN PEOPLE.

RULE OF LAW states that the People of the United States will be defended. Those who attack American Citizens will be prosecuted. WALL STREET SPECULATORS and CORPORATE CEOs dictatorship over the AMERICAN PEOPLE is over. Average Americans are not going to accept WALL STREET CORPORATE CRIMES anymore. Rights of Citizen and Average Workers of the United States will be enforced. The AMERICAN PEOPLE will always come before corporate interests, because Americans Love America more than Wall Street Speculators love greed.


GERMAN, FRANCE, ENGLAND HAVE GREATER CITIZEN-WORKERS’ RIGHTS AND DOMESTIC TRANQUILITY THAN GOP REPUBLICAN WALL STREET RUN AMERICA. AMERICA WILL HONOR AMERICAN CITIZENS WITH WORKERS’ RIGHTS AND DOMESTIC TRANQUILITY.

NO MORE WALL STREET IMPORTATION OF ILLEGAL CARTEL DRUGS
NO MORE WALL STREET MASS GUN SALES
NO MORE WALL STREET ILLEGAL WARS
NO MORE WALL STREET WILD SPECULATION AND IRRESPONSIBLE LEVERAGE
NO MORE WALL STREET SOFT PORNOGRAPHY ON PRIME TIME TELEVISION
NO MORE WALL STREET MASS VIOLENCE ON PRIME TIME TELEVISION
NO MORE WALL STREET HATE RADIO
NO MORE WALL STREET UNAUTHORIZED SPYING ON AMERICAN CITIZENS
NO MORE WALL STREET ILLEGAL CREDIT SCORES
NO MORE WALL STREET OVERSEAS TAX HAVENS
NO MORE WALL STREET OUTSOURCING AMERICAN JOBS
NO MORE WALL STREET BUYING AMERICAN POLITICIANS

GOP REPUBLICAN WALL STREET $TRILLION FRAUD AGAINST THE AMERICAN PEOPLE

Direct impact of GOP McCain sponsored deregulations
Bankrupt and floundering
Failure of the investment bank
Government's takeover

GOP REPUBLICAN WALL STREET's business model has collapsed

Greed and fear routinely govern GOP REPUBLICAN WALL STREET financial markets and GLOBAL CRISIS.

GOP REPUBLICAN WALL STREET (giant investment houses, brokerage firms, hedge funds, "private equity" firms) irresponsibly TRADED the savings of average Americans (placed LAS VEGAS STYLE BETS on extremely high risk stocks, bonds, and other securities).

DUBIOUS MORTGAGES were PACKAGED into BONDS and SOLD and TRADED. Investment houses had huge incentives to increase LEVERAGE (OBSCENELY HIGH BORROWING).

GOP REPUBLICAN WALL STREET compensation is heavily skewed toward annual bonuses, reflecting the profits traders and managers earned in the tune of lavish base salaries and obscenely high annual bonuses of $20,000,000.

GOP REPUBLICAN WALL STREET relies heavily on OBSCENELY HIGH LEVERAGE (OBSCENELY HIGH BORROWING). $3 Trillion (stocks, bonds, other securities) backed by only $80 billion in shareholders' equity while the $2.8 Trillion was LEVERAGE (BORROWED).

Leverage (huge borrowing) can create huge debts (huge principal and interest obligations)

GOP REPUBLICAN WALL STREET is a manic machine for gambling.
Traders and money managers are given huge incentives to do whatever would increase short-term profits.

For decades, GOP REPUBLICAN JOHN MCCAIN sponsored legislation that broadly deregulated WALL STREET banking and insurance industries.

GOP REPUBLICAN JOHN MCCAIN swept away Consumer Protection legislation and opened the way for a less restricted high risk financial marketplace.

While the GOP REPUBLICAN WALL STREET boom continued, government (White House, Congress, Supreme Court) looked the other way.

GOP REPUBLICAN Congress resisted tougher regulation and permitted WALL STREET to run out of control at obscenely high LEVERAGE (OBSCENELY HIGH BORROWED MONEY) RATIOS perpetrating intentional fraud against the AMERICAN PEOPLE.

GOP REPUBLICAN WALL STREET leaders intentionally deceived customers and lenders into taking hazardous risks for short-term rewards regardless of the long-term dangers to the AMERICAN PEOPLE.

Mortgages went bad. The powerful high leverage went into reverse. Losses eroded firms' capital bases and raised doubts about their survival.

Financial firms took major stupid and wasteful risks that severely damaged the American Economy and impeded economic recovery.

GOP REPUBLICAN STOCK MARKET $TRILLION FRAUD has deepened consumers' pessimism, fear and reluctance to spend. There may be more failures of FINANCIAL FIRMS.

GOP REPUBLICAN WALL STREET financial crises resemble the GOP REPUBLICAN illegal miscalculated war.


How were we ever made to believe that the now-collapsing GOP REPUBLICAN WALL STREET model ever made sense? Common sense should have told us that making RISKY BETS with HUGE AMOUNTS of BORROWED MONEY was a DANGEROUS GAME; if the bets pay off you make money beyond your wildest dreams, but if they go bad you face utter ruin.

Common sense should have told us that betting fortunes on meaningless fluctuations in stock, bond or currency values (McCain sponsored deregulated hedge funds) was about as productive as a trip to Las Vegas. Common sense should have told us that buying and selling exotic securities based on other securities based on bundles of mortgages that were treated like mere numbers on a balance sheet (no recognition that the whole iffy construct was based on real people living in real houses that they might or might not be able to afford) was not an intelligent endeavor.

Somehow, we all forgot that "HIGHLY LEVERAGED" is just another way of saying "DEEPLY INDEBTED." Now we've had a wake-up call, and maybe the erstwhile Masters of the Universe will have to stop playing with imaginary money and go back to using the real stuff.


RULE OF LAW WILL ENFORCE CONFISCATION OF ALL GOP REPUBLICAN WALL STREET SPECULATORS’ AND CEOS’ PERSONAL PROPERTIES RESPONSIBLE FOR OUR ECONOMY’S MELTDOWN. All money and properties of the Super Rich CEOs and WALL STREET Speculators domestic and abroad will be confiscated and returned to the United States TREASURY and the AMERICAN PEOPLE.

WALL STREET SRO - SELF REGULATORY ORGANIZATION
OUR GOP REPUBLICAN RUN Government (GOP President, GOP Congress, GOP Supreme Court) looked the other way, while GOP REPUBLICAN Super-capitalist Obscenely Rich WALL STREET SRO Speculators Robbed Our U.S. TREASURY and Forced the $Trillion Debt Upon the AMERICAN PEOPLE.

GOP REPUBLICAN LIARS SUPER RICH WALL STREET GET RICH QUICK GREEDY
BILLION DOLLARS RISKY UNSECURED LOANS RISKY UNSECURED LOANS RISKY UNSECURED LOANS
REPACKAGED AND SOLD TO THE AMERICAN PEOPLE.

GOP REPUBLICAN LIARS SUPER RICH WALL STREET ROBBER BARONS
COMMIT TREASON AND GRAND FRAUD AGAINST THE AMERICAN PEOPLE.


WALL STREET SRO - SELF REGULATORY ORGANIZATION
OUR GOP REPUBLICAN RUN Government (GOP President, GOP Congress, GOP Supreme Court) looked the other way, while GOP REPUBLICAN Super-capitalist Obscenely Rich WALL STREET SRO Speculators Robbed Our U.S. TREASURY and Forced the $Trillion Debt Upon the AMERICAN PEOPLE.

Posted by: GOP REPUBLICAN WALL STREET FRAUD AGAINST AMERICA | September 29, 2008 10:40 AM | Report abuse

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