Forecast: Bleak, With Major Chance of Closings

[dj_genesis]

So I decided it was high time I caught up on the whole mess with the financial markets in the U.S. and namely, why my bank was, well, now former bank, was seized by the FDIC and sold to J.P. Morgan. It's a rather bleak outlook for the financial stability of not only our nation but the world. If Wall Street falls, which it seems very likely right

Comments

[marframil]

You're correct, things will get worse before it gets better. We allow the banks to fail, as they should, and face the horror dead on, yet the bailout will only lengthen the economic depression. There's no way out of this. The only choice is...do we want a shorter depression or a much longer one. Yet, this was in the cards long ago. The dollar is meant to be imploded as well as this country's economy. The history of bankers have control of one's currency is what leads to this. Bankers, with this bailout, will only turn around and do exactly the same thing they've always done-buy up real assets, and further degrade the dollar. When things become so bleak, you'll have Americans begging for a new currency. One the banks already planned. I've seen this coming for a long time. Sadly, we might become the full fledged fascist regime no one thought we'd become. It's sad indeed.

[erse]

Some in the govt saw this coming (like McCain in 2005). Some on Wall Street are making a killing with no bailout, shorting banks to zero & betting against mortgages.
What I glean from the bailout:
Banks will sell bad mortgages to the govt for say 30 cents on the dollar. That means banks lose 0.70/$1. Say a house used to be worth $300k, but depreciated to $200k. The govt will get them at a value of >$150k. When housing prices rise again, the govt then makes a ton of money. So in the end, the taxpayer doesn't pay anything.
This worked before in 1992. I'm unsure if I like it, but the alternative is banks like JP Morgan continue buying smaller banks cheaply, or the banks die and the FDIC pays out tons of money. Rich folks pull $$ from banks since their accounts are not covered by FDIC which in turn means banks can't lend money to anyone, which is pretty much the case right now.

[erse]

P.S.- I'm not sure I like the idea of the semi-nationalization of some banks that the Dems are pushing. When they say they want the taxpayer to have an equity stake, theat sounds like code for, congress want the banks to pay some of their profits to congressmen. Frank, Dodd and Obama have already lined their pockets this way.

[dj_genesis]

I'll put it like this, McCain is the only man I trust right now to step into the White House and get things under control. He's the only man I think can step in even if we go into a depression, which we are on the literal edge of right now, and set things right. People forget what McCain has gone through in his life. The man is a tough one and a take no bullshit kinda guy.

Obama, he's got no real experience and looks at all this with weak, unchallenged eyes.

My father once said the one of the reasons we've had such shitty luck with the presidents over the past years is because we had guys with no real military experience, wartime experience. There are some things you only learn in trial by fire. No one can argue that.

[erse]

Hate to join in Obama-bashing, but in the debate, McCain sounded presidential, while Obama sounded like a teenager wanting the keys to daddy's car.