Reply #37: With all due repect... [View All]

[galileoreloaded]

The reality is that

1. if the bill passes as drafted, COMMERCIAL MBS/Derivatives/securities are inclusive. This is a patent bait and switch. Who is talking about Commercial??? Ok, a dumb homeowner, sure. But a commercial development with lawyers and due diligence/acquisitions guys? Come on, they know better and they knew exactly what they were doing.

2. the bill proposes a 700B carry at any given TIME. Little scenario. Take 700B of shit on the books at 100% value. Sell the best performing stuff, say half at an 80% discount to a banker (20 cents on the dollar), then write down the remaining 350 billion by 80%. Now you have 350 billion on the books that no one wants, but you have valued it at 70 B, so we go out and meet requirements and buy another 630B. See what happens, this ain't that hard to figure out, they are piling shit on shit. It is WRONG, and if I figured this out in 10 seconds, other REALLY smart guys will too. Not only that but you are proposing we citizens have limited oversight and just not ask questions??? Not me.

3. This bill does NOTHING to solve the problem. ZERO. It just creates a wasteful clearinghouse for additional government giveaways. If you are in the business, i believe that your scared witless, because you realize your business is gone as sure as probably your standard of living and all the time you spent in the mortgage business creating a career. I can relate.

4. I read the Shock Doctrine, and thought "Meh, whatever", and I still think that, so I am NOT a drinker of anyone's Kool Aid. BUT, this is how you get stuff done. Humans seek comfort, and will do or say anything to maintain the status quo. We also think we are alot smarter than we are, and give alot of value to those in authority. Think about it, if you get pulled over while driving, the cop KNOWS there is a 98% chance you will do what he wants because you give him that power by the virtue of his uniform, not his gun. Secretary of the Treasury, forget it. Most Americans want and NEED him to tell them he can maintain the comfort zone.

Summary.

Classic abuse of power right out of Machiavelli, with the added twist of a massive austerity program ala Argentina. All so we don't have to get dirty as a society, and our overreaching desire to be proactive feed this. No worry, we'll be very dirty soon enough.

This is why the Indians and Chinese always win. 75% of their citizens already LIVE in poverty, makes it easy for them to make hard decisions, but impossible for us as we utter the phrase "by GAWD I'm an AMERICAN!!!"