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 will buy them from the banks and hold them long enough to obtain some kind of magical allure. Long enough for them to be of some value to somebody! Anybody!  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, without the bailout, 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 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 means:  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 ******!

LilAnnie LilAnnie
56-60, F
14 Responses Feb 13, 2009

To be honest, I stopped paying good attention. I have heard grumbles from certain quarters that the strict reforms needed are being watered down. And that the usual cast of "our sh*t never stinks" characters are going to come out on top again. Very disheartening. All the way around.

Not a chance.<br />
The bottom is still racing up for the speculators.<br />
They may very well find themselves outlawed.<br />
Then so much for your business.

I'm glad to hear that. ur too intelligent to get into bed with the crazies. I'm having a tough time too. I sell training on financial management!! So I think they see me as part of the problem and not the solution. but maybe it'll turn around.

Hi, Steve.<br />
<br />
The above yattering is a stealth post since I am not a member of this group. I support Obama but posted here to see what the other side thinks. But there has been no takers to my bait, so far! I posted the same thing in the support obama group and had more of a discussion.<br />
Over here, the pundits on tv are mumbling about deflationary pressures, plunging prices and wages, zero or even negative growth. I can see it in my own life. Husband's work week has been shortened, I received a pay cut and didn't protest at all (I feel like a coward). My daughter was laid off from her first real job since graduating college. So, what's to come for us all? No credit, low wages, less goods produced, goodbye consumer economy. I wonder what we can replace it with? Is that the question we should be asking ourselves?

I find it worrying that the cause of the economic collapse is due to vast amounts of unsecured debt and yet the recovery plans of most nations is to try and reintroduce credit flows. Consumer spending is seen as the cornerstone of economic recovery in the UK and the housing market also plays too significant a role in the confidence and spending power of individuals. It always struck me that increasing consumer spending every year to increase the profits of multinationals was bound to run into a wall. There are hundreds of government funded projects across construction and ICT - two of the hardest hit areas - lying moribund in the bureaucracy of the public sector. Applying some efficiency to the planning process and government financing might offer an alternative that doesn't depend on credit funded consumer spending and the inflationary pressures it heralds. <br />
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Finally, how is Obama more dangerous than Dubya?!!!

False alarm. Its appeared back again in the story group. I apologize for jumping to conclusions and will change the last word in case that is too harsh. Just in case.

Wow. Maybe Tyra flagged it. She seems like the jealous type.

Ha! The story has been flagged! Somebody is extremely sensitve about their Obama hatred! How can you be sensitive about hate? It's my hate and don't make fun of it? Is that how it goes? but this story is not about anybody's support for a Presidential candidate so, yeah, I'm really curious. Wish there was a way for flaggers to explain their flag to the poster.

Remember the huge Oprah pushback from the meat industry years ago? She had done a show on meat packing, or something like that, and said that she would never eat another piece of beef in her life. Beef sales instantly fell through the floor! The industry had a fit and she had to apologize and do a big mea culpa.

Damn straight!

LOL! Lilt, that woman has power!

Stevester, China, the newest pla<x>yer in the economic capitalist game. They've stopped buying our debt. Who is going to prop us up? Really? And Blackwater! Oh boy, you opened a can of worms there! Privatizing warfare! So dangerous! And expensive! And immoral! The Iraqi's are throwing Blackwater out. But another group of mercenaries will slither out of the woodwork of private enterprise, I'm sure.<br />
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Sunny, so nice of you to say that but its not true. I am not smart, I lose chess games most of the time and that tells me all I need to know about that! What I am is interested. Very very interested.

I just KNEW Oprah had her hand in this!

Comprehensive, Shhhhh! Don't tell anybody but I am a bit of a bomb thrower by posting in this group. Look at my avatar. I don't blame Obama, I support him.

You're putting the state of this economy on Obama when it was BUSH that was in power when things fell apart! I say that he did it on purpose to make it difficult for Obama from the beginning. He knew who'd b the next President. Now Bush is off chasing cows feeling smug in what he has left on Obama's plate. If it was say John Kerry I'm willing to bet there would not be all this negative reaction and ridicule.

I think you got it in one. Deregulation of the finance system let the unfortuate immoral instincts of the moneylenders free rein. Where did America's money go: China and Blackwater.<br />
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Ur not a lone Europe is a cesspit