The Financial Bailout

Handloader · Posted: Mon Sep 29, 2008 9:34 pm Post subject: Re: The Financial Bailout

I was pleased to see the bailout was voted down today. The pork included in the bailout would have made a stripper blush. This Thursday, perhaps, they can get the bailout tuned to the point that it will pass.

Still, I wonder how it will help in the long run if the same companies keep doing the same thing? Seems all we are doing is postponing a financial day of rekoning. Seems like the more we meddle with the market, the worse things become. Seems like we may be ripe for a competitive third political party, one the wants the Gold Standard back and requires balanced budgets. Seems like we may be edging closer to an internal revolution if social and economic pressures continue to escalate.

So, if all we are really doing is postponing a major correction, I say bring it on now. Let's cut down the red tape, let's slash the politically correct demons from our country, let's get back to a workable and understandable economy where my dollar today will be worth a dollar tomorrow and next year. Let's git r done, the sooner the better. Let the cards fall where they may.

Incidentally, seems like our financial problems as a nation began when we abolished the Gold Standard. Seems like we have some really good economic minds on this list that could clarify that point; I know my college profs thought it was useless and that the currency was only as good as the confidence placed in it. With confidence at an all time low, seems like they were right.

dust54 · Posted: Tue Sep 30, 2008 5:51 am Post subject: Re: The Financial Bailout

OntheLasGallinas,
You stated "The lender should suffer the wrath of the stock holders for making loans that are doomed to fail." The problem is that organizations like ACORN and Congress did things that forced the banks to lend the money to folks that they knew could not pay back the loan. An example of what ACORN did was in Atlanta, several ACORN members went to the banks with bags of pennies and asked for dollar bills, then got in line and asked the bills to be exchanged for pennies, then got back in line to exchange the pennies to dollar bills. They did this until the bank management agreed to meet their demands. Their demands? Lend to people who could not meet the standards for obtain normal loans. ACORN actually got legistature from Congress to process the loans themselves and the banks must lend to the people processeb by ACORN. Barney Franks and Chris Dodd has been defending this legistature mess for years

You decide!!

OntheLasGallinas · Posted: Tue Sep 30, 2008 6:16 am Post subject: Re: The Financial Bailout

Dust,

You are right. I was just blowing steam. It is so frustrating to me that the common person can see the pending collapse of the banking system, when this is allowed, but our congressmen are either so stupid or corrupt to the point that this was allowed. I heard that only the banks that operated on their own money were exempt from this type of corrupt lending practices. I think this could be called congressional blackmail.

Cary

OntheLasGallinas · Posted: Tue Sep 30, 2008 6:21 am Post subject: Re: The Financial Bailout

Dust,

I just wonder what would have happened to a banker that refused to make those type of loans. The only recourse that congress would have would be to refuse government backing on a loan. I can understand that happening to Fannie Mae and Freddie Mac. I just don't know how they could force a private bank to do that. Maybe I just don't understand all the nuances of the system.

I started to buy 1% of a local bank in the 1980s. Now I'm glad that I invested in land instead.

Cary

OntheLasGallinas · Posted: Tue Sep 30, 2008 6:27 am Post subject: Re: The Financial Bailout

Another thing...I do know who the culprits are.

Cary

Bushmaster · Posted: Tue Sep 30, 2008 6:36 am Post subject: Re: The Financial Bailout

I have a feeling that the small country banks will survive all this...

OntheLasGallinas · Posted: Tue Sep 30, 2008 7:32 am Post subject: Re: The Financial Bailout

You're right Bushy. My bank runs on it's own money. They borrow from no other banks or the government.

Cary

vint2 · Posted: Tue Sep 30, 2008 7:57 am Post subject: Re: The Financial Bailout

We had done business with our local bank for many,many years , when suddenly they got sold, and resold, until they were French owned.
Our new bank is locally owned and very strong! Corrupt politicians and greedy business people can raise a lot of problems, as is proven by what is happening now!!
I would hope that this debacle will lead to a landslide conservative victory in November!!!!!!

Dawgdad · Posted: Tue Sep 30, 2008 8:52 am Post subject: Re: The Financial Bailout

I recently changed banks too when the local bank got bought up. I took my business to the other local bank in town. I was not alone in my trip down the street either.

TRBLSHTR · Posted: Tue Sep 30, 2008 10:27 am Post subject: Re: The Financial Bailout

Anymore I look at banking like playing the horses- I spread mine around with 4 different banks,two well known nationals and two local banks,sometimes you just have to bet across the board to cover your money.I also have some "jewish gold"just in case the market goes thru the basement.People ask me why I have that old junk laying around-I just tell them that my great grandparents and grandparents lost untold fortunes in trusting the banks back during the great depression.Some still don't get it.You always should have some sort of backup plan! Shocked

twofifty · Posted: Tue Sep 30, 2008 5:56 pm Post subject: Re: The Financial Bailout

TRBLSHTR wrote:

:wtf: Anymore I look at banking like playing the horses- I spread mine around with 4 different banks,two well known nationals and two local banks,sometimes you just have to bet across the board to cover your money.I also have some "jewish gold"just in case the market goes thru the basement.People ask me why I have that old junk laying around-I just tell them that my great grandparents and grandparents lost untold fortunes in trusting the banks back during the great depression.Some still don't get it.You always should have some sort of backup plan! Shocked

A wise man true to his forum handle.

And a great analogy to horses...

It has been about 5 years now that I mentally refer to a newspaper's financial pages as being the equivalent of the race program at the local track.

As a small investor, I'm like the guy standing in line at the $50 window who does not know that the jockeys have just finished their little conference, or who does not know that "Happy Dancer" has just gone lame with a little help from a stable hand.

Always nice when my hard-earned money helps pay some Wall St scammer's bonus.

Bushmaster · Posted: Tue Sep 30, 2008 7:15 pm Post subject: Re: The Financial Bailout

Let's see...If I spread my wealth around to four different banks I'll have $5 to $10 in each and if I buy some gold, jewish or other, I'll have a dime...No...Make that a nickel sized coin in solid gold...Yup...That'll work...

I have a better idea. My house is paid for. I owe nothing on my two vehicles and my credit cards are at $0 on one and $150 on the other...All I have are household bills like power, propane, insurance and food...As far as the propane is concerned I'll burn my own wood this winter...

I will stay with my little locally owned country bank and be just fine...Like Cary said they don't depend on the government for support of their loans. They have their own assets and loan to the local people (farmers and ranchers).

OntheLasGallinas · Posted: Tue Sep 30, 2008 7:22 pm Post subject: Re: The Financial Bailout

Darn Bushy, you and I could be twins! Of course I'm the better looking of the two!!! ROFL

Bushmaster · Posted: Tue Sep 30, 2008 7:33 pm Post subject: Re: The Financial Bailout

May God forbid... Fencing

And on the looks...That may be a toss up... Very Happy

At least I'm kind enough to hide mine behind hair... Laughing

vint2 · Posted: Tue Sep 30, 2008 7:37 pm Post subject: Re: The Financial Bailout

Am I going to have to make you two boys sit in corners for awhile?????? ROFL