Assets My ***!

O k.  I know nothing.  I am a school bus driver.  I dropped out of three colleges. I don't know if I'm for or against the bailout.   But my simple mind has always assumed that an asset is a good thing.  No?  Am I crazy?   So why is it that every time I see the word Asset in connection with this current economic crisis, they are talking about financial products that are nothing more then packaged debt.  Apparently, we should all be hoping and praying that the "private sector" will be enticed to eventually buy back these bundled "assets"  which are really bad loans (that they issued in the first place) as long as the gov't first buys them up and holds them long enough for them to obtain some kind of magical allure. Long enough for them to be of some value to somebody!  If it wasn't so sad it would be funny.  Am I understanding correctly?  Is it the case that all the orignal bail out money was used by the banks to pay out dividends and keep their stocks viable because they have nothing of worth at all in their coffers?  All their assets are red, it is ALL DEBT! Do our higher institutions of capitalism have no capital??!!   Where did  the wealth of the nation go? 

My daughter had to bob and weave to avoid the credit cards they were throwing at her on admission day at college .  The child had no job!  The same people who the credit industry have been granting all this credit to for DECADES, the Consumers of Our Vaulted Consumer Economy,  have not have seen their real incomes increase since the G Damned 70's! I betcha anything that Oprah and that lesbian financial woman had a lot to do with the rug being pulled out from under these Wall St. clowns.  They were each on a campaign to get the housewives of America to pay down their debt, stop buying, and get off the crazy train. So, let's say, people listened to them  and imagine if the majority of household's balances were, indeed, paid down, therefore the fees and interest penalties paid to the banks decreased.  So, greatly decreased revenue for the bank at the same time that the remaining "assets" left in these bank's books are mainly bad mortgages from sub prime loan walk aways and bad credit debt from defaults on credit card balances swollen from high interest and penalties.  Show over, Mr. Titan of Finance, grab your stuff and hit the exits.  No?

The Princes of Capitalism charged exhorbitant interest rates and traded these assets of doom back and forth, up and out, to each other and the world, patting each other on the back for their ingenuity as they cashed their bonus checks.  The whole house of credit cards is one big huge scam. Let's hope our debit cards hold out, but don't count on it.  Our only native export is finance, and it is a huge game of three card monty.  Always has been.  We are so f*u*c*k*e*d! 

LilAnnie LilAnnie
56-60, F
5 Responses Feb 11, 2009

I think we have discovered that those who believed capitalism means they have the "freedom" to make as much profit as humanly possible under their own custom made conditions, are dangerous to society. They cooked the books by manufacturing phantom products with no intrinsic value. Their only value was their ability to be traded blind. The free market as a utopia of no holds barred, non-regulated, every man for his own self interest free for all is a pipe dream. Capitalism must exist within a fr<x>amework of strict laws and regulations. The titans of finance did the right thing as far as their philosophy is concerned...they made as much as they could, their pockets were and are still full! Its the rest of us that has to deal with the destruction of their money grubbing benders. I hope to God the Dems in Washington have financial overhauls next on the agenda.

i dont think there is a such thing as too much capitalism, i think one of the reasons were screwed is cause we left capitalism. any company that cannot keep it's books balanced obviously isn't doing its job and should stop doing it's job, no matter how big or small. we should not be bailing out business banks wallstreet and detroit for their inability to run their businesses. and we need to tear down the federal reserve, im suprised nobody mentioned that here. they wont even tell us how much money they are printing now, we don't know how much of our own dollar is in circulation, so we don't know how much inflation is, but it's huge.

Really. This is what happens when we take things to the extreme. Apparently, there can even be such a thing as too much capitalism! LOL! Oh for the days of good sense and old fashioned Federal banking regulations!

Isn't strange (for those of us old enough to remember) our Presidnet used to encourgae Americans to save so that the enconomy would grow and stay strong. Now we are told to spend what we don't have and what we can not pay back.<br />
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This is crazy and the clowns in Washington all need to be bussed off in straight jackets to padded rooms.

You are absolutely right. It breaks my heart to think of all the people who sacrificed their lives for this country. For what? So our greed, lack of fiscal discipline, and corrupt politicians can chuck the whole thing away? Welcome to the USSA.