d_sander

My 2008 Predictions for Financial Catastrophe

"What makes you think you have the right to spew nonsense and waste our time?"

He has a right to spew any nonsense he wishes. He does not have a right to waste your time. Any wasting of time you eagerly assumed, as a privilege.

As far as the predictions go, barring regulatory/federal bailout, bond and mortgage insurers can not survive, and, if they fail, they will drag many big players in the banking industry right along with them. So, should the federal government bail out these ill-functioning behemoths with our pocketbooks when the vast majority of the losses to be incurred with their failures will be borne by those who currently own the vast majority of these companies and their assorted derivatives, the super wealthy? Sure, many little guys will also get tossed in the melee, but, by and large, it's big capital the federal government and its owners, Wall Street, really only care about. So, what's to be done?

Again, barring massive federal/regulatory intervention, the bond and mortgage insurance industry as we know it, along with the mega-banks whose portfolios they insure, will cease to be, to be replaced, naturally in the evolutionary process, with something that, for the time being then, will work better. During the shakeout, the vast majority of "Joe and Jane Blows" will largely not feel a thing. They will have continued to trudge on through their daily struggles of making it, or not, from paycheck to increasingly uncertain paycheck (regardless of whether corporate coffers are flowing with billions or hemorrhaging them).

So, again, what’s to be done?

It looks increasingly like the rich (no, not you, who own a few thousand shares of x and y securities, and, only in your unbridled egotism, consider yourself rich; the super-rich, whose exclusive world you can’t begin to imagine) will, once again, “take care of its own” with our hard-earned dollars.