bobbobwhite

Wall Street Breakfast: Must-Know News

The lack of reserves required is the main reason these financial houses got "too big to fail". And, thanks so much to the gov't for allowing its Wall Street cronies to "do business" this fatally risky way. When nearly nothing is required for reserves and controls are removed on growth, the sky is the limit in boom times and the only disaster backup becomes the taxpayer's wallets. What could be more obviously wrong than that, and why didn't "our best and brightest" see this coming and better protect us as is their duty? That corrupt system can only work well when everything is going gangbusters, and will not work even in a slow growth cycle, let alone in a recession, so what were they thinking they would do with that mess when business slowed? That's the American economic "system" today...."do what you can to make a killing today, and we'll worry about tomorrow tomorrrow."

For the religious out there, where would we be if Noah thought that way?


On Mar 27 10:47 AM axelrod608 wrote:

> Credit default swaps (seekingalpha.com/symbo...) are nothing
> but "insurance: without the reserve requirement to back them up (
> insure them). In AIG's case, the backup is being provided by taxpayer
> funds. It is time for a requirement for mandated reserves for any
> and all financial products. And it is time that any and all "financial
> products" be approved before they can be sold - just as insurance
> products are now. And it would be wise to require banks and other
> financials to do as reserve insurance companies do now - prrovide
> the backup for any company that fails. If a reserve insurance company
> goes under, the other reserve insurance companies cover the products
> of the one that failed. Time to make the financials do the same.
>
>
> If this kind of requirement had been in place, none of those idiotic
> MBS's would have been approved or sold, and the industry would have
> screamed bloody murder at AIG writing tons of CDS's without sufficient
> reserves.
>
> If "too big to fail" is a reality, it's time to lump them together
> and make them each others' reserve. Make the financials police each
> other. Why have the gummint do it ? Any financial institution that
> KNOWS it will be held responsible for its competitors' failures will
> make sure its competitors don't screw up.

Wall Street Breakfast: Must-Know News

The military/industrial complex warned of by Eisenhower has, in 50 short years, morphed into the gov't/military/industr... complex of today. This unchecked and unbalanced triad runs everything and everyone in this country for its own benefit, with little to no concern for "we, the people".

As gov't public service for a term or two for previously accomplished professionals has also morphed into lifetime poiltical carreers for nearly all gov't elected officials, our gov't has truly changed from being one of short term service of public good to one of career deal making, power building, empire building, enemy busting, personal enriching, and doing anything and everything it takes to keep these lifetime entitlements coming in uninterrrupted until far after typical retirement age for the people they supposedly serve.

If we, the sheep, continue to allow this practice without some form of revoulution to correct it, it will continue to progress to the point where these types don't even try to conceal their selfish purposes, as thereby become as overt and even more harmful than terrorists, the mafia, drug lords, and street gangs combined. Do the names of Hitler, Stalin, and Hussein bring any fear to mind? Are our "elected officials" to this point already?

Wall Street Breakfast: Must-Know News

1929, 1987, 2000, 2008.......Has anyone noticed that the big national breakdowns are occurring at an ever increasing rate and are closer and closer together each time? And, that's not even including the real estate bubble popping in 2006. What's next ...one of these events every year, month, day? How many can America take?

Heaven help us all.