"No matter how paranoid or conspiracy-minded you are, what the government is actually doing is worse than you imagine." - - - William Blum

October 10, 2008

A cynical, yet reasonable, view of ongoing government bailouts of the U.S. housing market:

"....What is the point of dropping the [prime] rate when people are flat broke? This is the problem when people do not understand what mainstream America is battling with. If you watch many news stations they forget that nearly 50% of households have no 401(k) since they cannot afford one to begin with! Yet they operate under the impression that everyone is gambling in the world casino market.

"Normally, a major Fed cut would have a major or at least positive impact on the market. Now, it is like spitting into the ocean. Earlier this week, I posted an article that compared the velocity of the 1929 crash to our current market. We have now surpassed the velocity of the crash during the Great Depression! From the peak in September of 1929 to September of 1939 the DOW was down 36%. From the peak in October 2007 to October 2008 we are now down 39%! But aren’t you glad that we are not officially in a recession? Otherwise things would really be bad.

"No matter how you slice the market whether you look at the NASDAQ, DOW, or S & P 500 they are all getting hammered without prejudice. Can you believe that I heard some blowhard trying to blame this on the sub-prime market? Bwahahaha! Yes, let us blame poor people for crashing the most sophisticated global markets by buying inner city homes at overvalued prices. Give me a freaking break. The sub-prime problems now seem like a welcomed distraction in comparison to the credit market freeze, the credit default swap market, and now the consumerist global markets slamming on the breaks. You know why the global markets are crashing? Because people turned markets into Ponzi schemes of global proportions. Now that we have to reconcile reality with values their simply isn’t a correlation. That is why paying face value for mortgages is absurd. These places are going to fail anyway. Why give money to these criminals?

"You want a novel idea? How about we raid the bank and investment accounts of CEOs complicit in this credit casino and use any money we find to fund loan workouts? We need to get this passed ASAP since those investment accounts they have are taking a beating so we want to make sure we liquidate right now in case the market goes any lower. If we wait any longer, their account might look like the 401(k) statement of many Americans. Can you believe that one contention in the bailout bill is about how much money we should give CEOs? Are you kidding? We should be talking about how much time they are going to get in the slammer not the size of their golden parachute...."

My friends, we are fucked. Wealthy people like John McCain are insulated from all of it. I really didn't want to spend the last couple of decades of my life (based on average life expectancy) living through The Second Great Depression. My only solution is to get rich quickly. Anyone have suggestions on how to do that? Legally?

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