11/18/2008 11:10:07 PM EST
USF
posted by sisco66
The numbers speak for themselves, yet we still have these supply side idiots with major news platforms, like Larry Kudlow telling us all is well. The market is not the all knowing omnipotent being that we should all pray to. It is merely legalized house of ill repute where suckers send their hard earned money in the form of Roth Ira’s and 401k’s for the promise of a tax sheltered retirement account only to have the principal and gains wiped out by unbridled short sellers and hedge fund managers.
No amount of money or capitol is going to save the banks that are overleveraged on credit default swaps and mortgage backed securities. The wave of foreclosures has not slowed, and may be accelerating. The bail out has been nothing more than a short covering for the banks.
The difference between banks and the auto industry is that the government is already in the business of lending and borrowing money. We don’t need the banks. On the other hand, the government is not in the business of building cars and manufacturing. We need to restore the manufacturing base in this country, across the board.
If a bank goes under, another bank will just buy them out on a sweet heart deal. If the Big 3 go under, we all go under. Add another 3 million foreclosures and bankruptcies to the list, game over. For less than 10% of what we Fed and Treasury have handed out in stop gap measures we could revolutionize the US auto industry.
The 2 trillion pumped into the banks, on and off the books, by the fed and treasury over the last 2 months has amounted to just adding water to the lake without fixing the hole in the dam. The entire supply side economic model is a farce. Demand for goods and services are what drive profits, not excess money supply. Excess money supply drives inflation and debt.
The numbers speak for themselves, yet we still have these supply side idiots with major news platforms, like Larry Kudlow telling us all is well. The market is not the all knowing omnipotent being that we should all pray to. It is merely legalized house of ill repute where suckers send their hard earned money in the form of Roth Ira’s and 401k’s for the promise of a tax sheltered retirement account only to have the principal and gains wiped out by unbridled short sellers and hedge fund managers.
There was a reason why we had a 70% tax bracket, higher capitol gains taxes and regulation over the sales and issuances of securities related insurances, it was called the Great Depression. We have systematically removed all the safe guards that were put in place to prevent this from happening again. Needless to say the reason theses companies and pension plans are broke is they have all been looted under the free for all created by 40 to 1 leveraging, the absence of oversight and regulation as well as the ridiculously low short term capitol gains rate.
What else do you need to know?
