Savage Beatings Posted October 2, 2008 Share Posted October 2, 2008 (edited) Hey Wiegie, Could you give your feedback on this article (Bailout Truth: Inflationary Crony Capitalism)? It's a very condemning article on what this bailout is really all about. The real reason that the bailout is "necessary," and "essential" is not that credit markets will freeze or that the world will end. By forcing the takeover of WaMu and Wachovia, the Bush Administration, Citi and JP Morgan have bet that together they can coerce and lobby Congress into passing a law that will allow Citi and JP Morgan to dump their newly acquired subprime loans on the gullible and unsuspecting taxpayer. If the bailout is successful, Citi and JP Morgan will have scored a two-fer. Not only will they have vastly increased their market share and asset base in the FDIC orchestrated takeovers, they will also be first in line at the fiat money creation trough as the Fed prints the money that will fund the Treasury’s above-market purchase of their subprime booty. Nice work if you can get it. I'd also love to see your thoughts independently on the Austrian school of Economics vs. the Chicago school of Economics. Thanks! Edited October 2, 2008 by Savage Beatings Quote Link to comment Share on other sites More sharing options...
wiegie Posted October 2, 2008 Share Posted October 2, 2008 The term "Austrian Economics" comes from its early Austrian proponents (particularly von Hayek and von Mises). I am a big fan of von Hayek and I make my Comparative Economics Systems students read some of his work. However, my honest opinion of Austrian economics is that it seems to me that most of the people who call themselves "Austrians" today are ideologues who view economics the same way that religious fundamentalists view religion (i.e. that they know how the world works and generally choose to either ignore facts that contradict their views or they twist the facts to fit their agenda. (There is a very good reason that the vast majority of economists today do not subscribe to the Austrian school.) As for comparing Austrians with the Chicago School of Thought, the Austrians are like Chicagoans on steroids. Quote Link to comment Share on other sites More sharing options...
Savage Beatings Posted October 2, 2008 Author Share Posted October 2, 2008 Cool... thanks! What about the article? What do you think of the conspiratorial aspect of the current financial crisis? Quote Link to comment Share on other sites More sharing options...
jetsfan Posted October 2, 2008 Share Posted October 2, 2008 they know how the world works and generally choose to either ignore facts that contradict their views or they twist the facts to fit their agenda. It is a good thing the open minded folks in the tailgate don't subscribe to this. As full disclosure, I am an engineer. I read the article, and there are certainly some truths in it. It has been a very long time since the United States government passed any legislation that benefits her people. Quote Link to comment Share on other sites More sharing options...
Pope Flick Posted October 2, 2008 Share Posted October 2, 2008 Cool... thanks! What about the article? What do you think of the conspiratorial aspect of the current financial crisis? Why is it conspiratorial? We're giving the guys who cocked this up to begin with a cool 700bil to fix their own chit? If people would pull their hyperbole driven panic blinders off for a second they'd realize we're giving our money to criminals who stole from us (basically) already, knowing they could lobby their way off the hook. And that is what's going down. And there is still no mention of prison time yet for anyone. That better change. Quote Link to comment Share on other sites More sharing options...
H8tank Posted October 2, 2008 Share Posted October 2, 2008 The more I learn about this 'crisis', the more I want Washington to stay out of it and let the cards fall where they may. Quote Link to comment Share on other sites More sharing options...
Savage Beatings Posted October 2, 2008 Author Share Posted October 2, 2008 Why is it conspiratorial? We're giving the guys who cocked this up to begin with a cool 700bil to fix their own chit? If people would pull their hyperbole driven panic blinders off for a second they'd realize we're giving our money to criminals who stole from us (basically) already, knowing they could lobby their way off the hook. And that is what's going down. And there is still no mention of prison time yet for anyone. That better change. Agreed 100%. Quote Link to comment Share on other sites More sharing options...
westvirginia Posted October 2, 2008 Share Posted October 2, 2008 Why is it conspiratorial? We're giving the guys who cocked this up to begin with a cool 700bil to fix their own chit? If people would pull their hyperbole driven panic blinders off for a second they'd realize we're giving our money to criminals who stole from us (basically) already, knowing they could lobby their way off the hook. And that is what's going down. And there is still no mention of prison time yet for anyone. That better change. Pope, I :heart: you! Will you be my huddle buddy? Quote Link to comment Share on other sites More sharing options...
wiegie Posted October 2, 2008 Share Posted October 2, 2008 If somebody could tell me what people did that was criminal, I would be glad to listen. Quote Link to comment Share on other sites More sharing options...
Pope Flick Posted October 3, 2008 Share Posted October 3, 2008 If somebody could tell me what people did that was criminal, I would be glad to listen. Loaner and lonaee knowingly falsifying income. Bank managers falsifying income after the fact (without loanees knowledge) in order to get more loans approved. Those are the primary instances where criminal prosecution should be pursued, along with any internal aiding, abetting or otherwise encouraging (implied or direct) fradulent loaning behavior. wiegei - are you implying this is nothing more than an "Opps!" and no criminal activity took place? I ask because you knew full well the type of activity I described took place. Quote Link to comment Share on other sites More sharing options...
Savage Beatings Posted October 3, 2008 Author Share Posted October 3, 2008 If somebody could tell me what people did that was criminal, I would be glad to listen. Fanny Mae cooked the books (so to speak - false signatures etc.) in order to ensure that the executives would continue to receive Millions of dollars in bonuses. This information was brought before Congress which did nothing about it. And here we are. Quote Link to comment Share on other sites More sharing options...
wiegie Posted October 3, 2008 Share Posted October 3, 2008 Loaner and lonaee knowingly falsifying income. Bank managers falsifying income after the fact (without loanees knowledge) in order to get more loans approved. Those are the primary instances where criminal prosecution should be pursued, along with any internal aiding, abetting or otherwise encouraging (implied or direct) fradulent loaning behavior. wiegei - are you implying this is nothing more than an "Opps!" and no criminal activity took place? I ask because you knew full well the type of activity I described took place. No, I am not saying that this was just an oops. But (as I said in a previous thread once) I agree that the main place that any illegal activity took place was early in the loan origination process and not really among the executives of the firms that got us into this mess (unlike the Enron and Worldcom situations). Quote Link to comment Share on other sites More sharing options...
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