axelrod608

Wall Street Breakfast: Must-Know News

>> "People spending more than earning is to blame for losing their jobs and houses." >>

Sure, but they couldn't have done it without the government policy of easy cheap unlimited credit for all, even the uncreditworthy. You must be a young person with a limited understanding of history. When I bought my first house, if you didn't have 20% down, they didn't take the application.

As for your comment that it's not the fault of this administration, sure enough that';s true. But what';s also true is that both of the ruling parties and all their administrations is that there's no difference - BOTH have championed the stupid, shortsighted policies that have brought us to this sorry state of affairs.

Finally, if you really, honestly think that pouring a decade's worth of tax receipts down the drain in an attempt to "fix" this mess is a good policy, all I can ask is "Do you believe in magic ?" In all of history, it has never worked before.

A very wise man, Albert Einstein, once observed that the most powerful force on earth was the power of compound interest. The formal IOUSA policy is to go against this power by continually running the government as if this was not true. We have neverending deficits and an evergrowing national debt that we can NEVER hope to repay. NEVER.

And the power of compound interest is 100% working against us. The IOUSA is unsustainable. There are only two options - default on the national debt or devalue the currency enough to make the natuional debt serviceable..

We have two ruling parties that have ZERO control over spending and a policy of "cutting taxes". Both have conspired to bring us to unsustainability.

Next time you go to the voting booth, remember - IF you vote for a Republicrat, YOU are the problem.

Wall Street Breakfast: Must-Know News

I find it hard to believe that anyone took seriously the idea that the taxpayers could make any money on the bank welfare plan. From inception every facet of the plan was designed to benefit the financial corporations at taxpayer expense. Of course the government will allow them to buy back their warrants at a fraction of their market value. Duh.

C'mon, folks. We all know how to tell if people in the government are lying. Their lips move.

Wall Street Breakfast: Must-Know News

Thank you Edward Liddy. You volunteered for a hopelessly difficult job that paid $1 a year, took the unwarranted insults of ignorant Congresscritters, and by my estimation have brought AIG through the worst of a difficult restructuring. You followed the instructions of the Fed and Treasury even though they were hopelessly flawed. You performed with professionalism and distinction.

This nation needs more men like you and a whole lot less Alans, Hanks, Bens and Timmys.

Thank you for your service sir. You are a gentleman and a patriot.

Wall Street Breakfast: Must-Know News

>> "Citigroup (C) and Morgan Stanley (MS) confirmed they're merging their wealth management units" >>

Job cuts will surely follow. Just another example of corporations using their bailout money to buy up assets and lay off more workers. .

Wall Street Breakfast: Must-Know News

>FDIC keeps Fed in mind. The FDIC may exclude the shortest-term loans from a $1.4T debt-insurance program>

You can call this mess a "credit problem" but credit doesn't exist without DEBT. The Truly Unbelievable Reflation Program - TARP - is merely a smokescreen to avoid scrutiny of debt, or more specifically BAD debt carried in Level 2 and 3 portfolios but not on the books. And the reason why banks won't lend to any company with derivatives hiding in level 2 and 3 portfolios is simply that no certain assesment can be made of that company's solvency.

The truth is that while nobody knows the exact amount of bad debt held in American companies, the total is well into the tens of Trillions of dollars. And NO amount of extra "liquidity" is going to fix the problem.

The ONLY Constitutional method of solving debt problems is bankruptcy. The government's current liquidity blitzkrieg is designed to avoid the Constitutional solution. We have a herd of yokels in DC, all of whom swore an oath to support and defend the Constitution who are all breaking their word. It's no wonder real Americans have little or no faith in their "representatives".