Markets went down because the thieving banks didn’t get a blank check, plain and simple!

They just wanted another handout of taxpayer money! The banks are thieves plain and simple!

This is what is happening, the banks rule the world. When they gamble those securities,they get profits and big bonuses. When the securities go down, banks get a bailout and still get bonuses. When they get taxpayer money, they still get bonuses, plus they get the best loans for half price foreclosures for the company. Why would they want to make loans to borrowers? They already made their money.The bank will drive you out of business and buy you back pennies on the dollar. Or they can let you keep your GM or Toyota business, but will charge you the highest rates they can get.It is win win win for the banks.Unfortunately, we have made it good for them.Now we are foreclosed upon,soon Obama and everyone in congress will see it is throwing good money after bad. It is time to let some of these big ones fail. You watch,they will merge together. But if you let a few fail, we still have lots of good banks left. Gaitner said only approx 25 banks over $100 billion in assets, what about all the other 8,000 banks. I am sure they would love to see BOA or Citibank go out of their misery,it would be more money for the other 8,000 banks to make.Who needs Merrill Lynch,it costs $50,000 just to have an account! What about Charles Schwab, you only need $1,000. There are lots of alternatives. If a few big banks fail,watch the others get in ship shape! Let the government do loans for 4%, them banks will then lower their rates to 3% to get a piece of the action. Look at the Postal Service, once rates got to high or they were inefficient, UPS and Fed Ex step in to make the money.

Get ready for the next leg down in the banking system. Last year all the economists, media perma-bulls and anyone else who was clueless, including Henry Paulson, Ben Bernanke and our beloved tax-dodging Tim Geithner, said that the fall-out in the financial system was because of those pesky subprime mortgage defaults, BUT that the damage would be limited to subprime paper. Paulson went as far to say in April ‘08 that the banking sector had “bottomed.” Those who really do their homework, however, said that Alt-A and Prime mortgages would eventually follow the default/foreclosure curve which was carved out by subprime.

It really doesn’t matter if it is a Republican or Democrat. Any plan coming out of the Congress or the House is about spending. The trouble with any of these plans is government spending. Taxation, a necessary evil only gives politicians more reason to spend. The more they have, the more they spend. Now they believe they have free will to spend. The last plan cost 700 Billion and got us nowhere. This one will reach nearly 1 Trillion and set the base line so high, that future bailouts/stimulus packages will only cover the new baselines. Hyperinflation and the devaluation of the dollar can only be next. Our nation is made up of 545 people that spend 300million+ people’s hardworking money at a federal level. They produce nothing, just take the fruits of our labor and decide how it should be spent. Now they are spending money they haven’t even been given. When is enough?

The reason the stock market sold off is because it is clear these derivatives have no value and any vetting process will expose the insolvency in plain sight to the world. The idea that the private sector is going to come in and bid on these worthless securities is also a fool’s folly. No private money will invest in anything that will put in place restrictions as TARP 1 did. The borrowers of those funds learned they had to go out in the private market and raise capital to replace those funds. Problem is there is no capital to be borrowed and they are not allowed to return the funds to the treasury. Even if they are totally solvent.

This plan is more of the same senseless idiocy. The path we are headed for is simple. A default of government debt and currency chaos. Only fools believe anything they are being told by Wall Street and their enablers in Washington.

Related Posts:

• Financial panic: FDIC can’t insure deposit anymore!!
• Bloomberg Radio just interviewed Bob Shiller. Mr. Shiller stated “Prices still have a long way to fall”.
• The fact that Goldman used taxpayer funds via the AIG bailout to cover their bets is a pretty good reason to call it a scandal.
• My proposal to Congress to reform personal Credit.
• CIT Bankruptcy will come as soon as Monday morning

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