Saturday, October 16, 2010

The New Government Scam Bailout Coming?

You should probably be a buyer of Bank of America right now. I never thought I’d find myself typing those words. I’ve been a huge critic of Bank of America for years. I'm bearish on the financial supermarket model. I don't think the acquisition of Merrill Lynch is working out. I still don't understand the logic of buying Countrywide.
But Bank of America's recent decline—down almost 10% this week—is driven by fears that the bank could be hit with huge liabilities for faulty mortgage pools. And I’m pretty sure that is not going to happen.
Why not?
Because the politicians will not let the financial stability of the largest bank in the nation be threatened by contractual rights. Not when there’s an easy fix available that won’t cost taxpayers a dime.
Here’s what is going to happen: Congress will pass a law called something like “The Financial Modernization and Stability Act of 2010” that will retroactively grant mortgage pools the rights in the underlying mortgages that people are worried about. All the screwed up paperwork, lost notes, unassigned security interests will be forgiven by a legislative act.


  1. This is nothing new.

    - The banks commit fraud and break all kinds of laws.

    - Just yesterday I hear that the founders of Country Wide get to walk free, rather than be charged and convicted of Insider Trading and other sins against the American public.

    If I were to commit grand theft, no doubt I would go to prison. They would put me in a cell and weld the door shut, yet BofA gets a free ride.

  2. Not any of the RICH will get off free if we have CLASS WARFARE.They will go broke trying to hire
    enough security.

  3. Trod... Chill dude. Class Warfare is something you can fantasize over, but I wouldn't wish for it. There would be lots of innocent victims.

  4. Another thieving Joo with his brilliant suggestion-wipe out goym savings with inflation! Yeah! Brilliant!

  5. I find myself agreeing with Paul Krugman for the first time in my life. We do need $8-10 trillion in QE (printing press money). That is if we want to put off this economic collapse for another year or two we need to do this. Of course it won't prevent it and in fact it wil make it all the more inevitable and disasterous when it does happen. But from Krugman's standpoint, i.e. to prop up Obama and the Democrats, we do indeed need to keep printing money. Screw the people but get us to the election in 2012 without a total collapse and MAYBE Obama will be reelected.

  6. Anonymous said...
    "Trod... Chill dude. Class Warfare is something you can fantasize over, but I wouldn't wish for it. There would be lots of innocent victims."

    Just so ,as we can see in the present class war.
    Millions of "innocent" victims as the middle class savings and assets are devalued and more millions are thrown onto the unemplyment garbage pile to live as food stamp rejects .

    The Great ponzi economy has imploded into an orgy of asset stealing for the future benifit of the ruling elite class.

    The ruling class or elite are getting richer than ever after the bi-parisan finacial coup to socialise their losses and get lost capital replacement by free access to the printing press of the US treasury.

    As if they care whether Obama or another political leader is elected to the talking shop to manage the class war austerity strategy or any rewrites of US contract laws for property rights and titles ,political management for keeping the bailouts and the fiat paper presses rolling whatever the US Constitution once said.

    While this current class for robbery is actualy being waged in the economics sector over future asset contol by the ruling elite ,they divert attention away from their past and current crimes into party political circuses .Party circuses that blames this or that other polititian or even diversions into the critisism of the odd bankster or Maddof.

    While laughing all the way to the bank at the sucsesss of their current class war .

  7. No one asked the middle class American if they wanted a global economy. The rich and the elites chose that for us because it would make them more wealthy. The kids who got into the movie and entertainment business and became wealthy make trips to third world countries and see how destitute and horrible those people have to live... have now decided that you and I must give up our standard of living to equalize and share the wealth. i.e. the third world countries should not have to rely on my generous gifts/donations, but they should make 12.00 an hour for their labor and all high paying blue collar jobs should not exceed 12.00 an hour. That sounds fair and good to the man or woman with 300 million in the bank and more on the way. They (politicians, rich and elite) choose for us. They decided this world economy was the best. Best for them... not me. I am going to pay dearly for their ideas/ideals and so are you.

  8. I hope and pray that Obama spends trillions and trillions more to hold us together just a little longer. I am liquidating some of my stuff so I can buy more food and metals. The continued spending will buy me more time. The countries economy will go down regardless of who is running things (republican or Dems) and regardless of how much is spent to hold us together. The only way to stop the madness is to cut at the snap of your fingers, half of all government jobs. We simply wont do that. Sooo, we are going down. Period, end of story.

  9. Krugman is a Corporate State supporter not a 'left wing socialist" trying desperately to save the current economic system and seemingly saving the middle class by more bailouts .

    Actualy ,playing for time and for one more oportunity for the ruling elite to continue to
    loot the assets of the middle class by devaluing the value of their savings in paper dollar terms with low interest rates eating away at their savings by hidden inflation.

    More government "stimulus" by money printing means more oportunity for the money power to buy treasury bills so as to capture any future government revenues.
    The Corporate State Elite will competly own the federal State through owning the extra output of treasury bills for the debt creation .

    Where else can the money power invest with a guaranteed investment return in a bankrupt Ponzi?

    Keynes would be rolling in his grave at Krugman being called a Keynesian . Just as Marx said one time about political and economic scammers "If these creatures are passed off as "Marxists" , I am no Marxist.
    "Nor was Keynes a Keynesian of the criminal Klugman bailout money printing school .
    Keynes ,during the last depression , supported money printing,for government credit for industry and job creation ,to get the industrial sector functioning again as a kickstart for industry and to expand the markets for industrial products in a wage receiving working class. Not much can be sold when the people are unemployed and living on food stamps and dole handouts.
    Not money printing foer welfare but initial austerity for the working class as a kick start for industrial capital, allowing wages to rise again later to create a market for the incresaed production.
    Keynes then bdid not propose handout money printing for the benifit of bankrupt finance capitalists for socialising their past losses.
    But old style real Keynesianism for industrial stimulus is not realy valid in this growing US depression.
    Keynes would be asking Print money for What? :
    Where are the commodity producing industries in america ,a services based Ponzi economy that was already running on foreign supplied vendor finance to finance consumption.
    And where the government has already bankrupted itself by deficit spending/ money printing by issuing Treasury debt for wars and for tax cut subsidies for the rich. As well as for bribes for the unproductive of real profits , labor aristocracy middle class?
    Yet Even this crazy US money printing in porosperity has been called "military keynesianism ."

    America is already de-industrialised and an industrial working class is non existant.
    The major remaining industry is the military sector and that only blows up taxpayers wealth but does not create commodity goods wealth for people.

    On the other hand, the Corporate State of Hitler in the depression , encouraged printing money for stimulating german industry ,infrastucture and armaments for wars .
    In order to pay these debts off for the state,Hiler turned to War.
    So I can see where Klugman the 'lefty' "keynesian socialist" might be headed with calls for more bailout money printing for capitalist losses might be headed.

    More Wars for paying the US treasuries increased unsustainable debts?


Everyone is encouraged to participate with civilized comments.