Bailout manipulation question.

[TNDemo]

Last night I was reading several threads about how this whole bailout thing is another shock and awe for the country and how it has been planned and Cheney has flown out of his cave to lobby for it for the first time since lobbying for the Iraq war and how it is just the last big money grab for all the Bush buddies. I have no problem believing any of this. One thing I am curious about, though, is the timing. Obviously they wanted it to happen right before congress adjourned and with the press of time upon the markets, but what about the weekend where Lehman failed and AIG, etc. Did they actually have a hand in those failures or was it just fortuitous timing?

[ixion]

1. it's been no secret that these companies were in trouble

European papers have been screaming for months that the US financial system was on the verge of collapse, however this was never reported in the US media. This plan has been in the works for some time. It would be a very small thing to have it waiting in the wings for the right moment.

This was the whole point of that "ownership society" BS a few years back. In Bushspeak, an "ownership society" is one that is owned by the top 1%.

So you see, they're getting exactly what they desired. We're all pwned now.

[ShortnFiery]

2. There's no reason to "jump through hoops" and bail out these bastards now. eom

[screembloodymurder]

3. Zugzwang !

The failures were real, but they were publicly held companies and private equity is picking their bones for pennies on the dollar.

The economic crisis we are witnessing is a game strategy.

Zugzwang (German for compulsion to move) occurs when a player is forced to make an undesirable move. The player is put at a disadvantage because he would prefer to pass and make no move, but a move has to be made, all of which weaken his position. Situations involving zugzwang occur uncommonly, but when they do occur, it is almost always in the endgame, where there are fewer choices of available moves.

It's now being reported that the Paulson Plan is several months old. The plan was intentionally withheld from Congress until exactly one week before the election recess. It was held back to force the Democrats to make a move under intense time pressure. Think about it! Bush has used disaster after disaster to force concessions and grab power. This is a classic Bush/Cheney tactic and political extortion of the highest order.

When you are in zugzwang, any move you make is bad.

If the Democrats support the plan and win the election, they are left with no money for any social programs and effectively have their hands tied for four years. If they don't support the plan and allow more failures, they risk losing the election.

[KharmaTrain]

4. The House & Senate Schedule...

I agree with many who think the timing of this "crisis" and the way its being handled is best described as "shock & awe"...forcing a quick vote on a bail-out based on a "crisis" that is more a media manifestation than a political reality.

Methinks the GOOP powers are seeing the polls and they aren't too happy. Gramps has run an inept campaign and there's a solid chance he will lose...and with it the ponzi games and cozy Wall Street/K Street/Executive Branch games come to an end. As the old saying goes "get while the getting is good".

This "big shitpile" was the byproduct of a game this regime played for years to prop up an economy that was in decline. It created paper wealth for individuals through artificially high real estate values and real wealth for the banks and insurance companies who parlayed this rise into bonuses and big profits. Millions also benefited through their 401ks and other portfolios...all ships (or those with a piece in the game) rose. Many saw the real estate bubble and it was just a matter of time that it was going to burst...the passing of the regressive Bankruptcy Bill (also done at "gunpoint") in '05 was the start of this collapse that has been playing out ever since. The mess became obvious to many in late '07...after the market hit its peak of 14,000...and thus this "crisis" was no real surprise to anyone who saw the big mess in the foreclosure and banking market and how it would take a toll on the stock market. Hell, I am no financial genius and was advised to pare down my holdings a year ago...all housing related stocks, including banks and real estate were sold. So don't tell me this was a crisis "nobody predicted". Bullshit!

[wishlist]

5. Stock market crashed last wk to below level it was when Bush took office n/t

The bailout proposal came in right after it appeared the stock market was in danger of a total meltdown last week and had reached a level slighly lower than it was when Bush took office. Market only briefly got below that level of Jan 2001 and a major nosedive seemed imminent right before bailout was announced and stemmed the bleeding. I doubt this would have been announced had the market not been tanking so badly last week.