Raw Dawg Buffalo Radio  

Want to start out by saying, told you it wouldn't’t work. The bail out that it is. Jobs still being loss, home values are still falling, and stocks too. Check the Hang Seng, the Nikkei, and the UK FTSE if you still more concerned about Jennifer Hudson New Album or Beverly Hill Chihuahua. France's economy, the second largest of the 15 countries sharing the euro, reported they were in an economic recession for the first time in 15 years. Germany's Hypo Real Estate may be the next major world bank to fail. The Munich-based bank is a conglomerate which contains DEPFA Bank, Hypo Pfandbrief Bank International and Hypo Public Finance Bank. Reports from Germany suggest that the bank needs 20 billion euros by the end of next week just to stay solvent. Even emerging markets, where it used to be safe are taking a hit. The two bills we just past are merely topical and shows how short sited our political leadership is in general. They seem to only see wall street, and not the world, let alone the street or the back road in this issue.

What the f*ck does bicycle paths, tax breaks for race-track owners, for rum imported from Puerto Rico, or Hollywood film and television production companies have to do with the economy or bailing out Wall Street? The 451-page Senate bailout bill, called H.R. 1424 has dozens of tax breaks for companies. Some of the specific pork dollar values include: a $100 million tax break to benefit auto racetrack owners; $2 million tax benefit for makers of wooden arrows for children; and $192 million in rebates on excise taxes for the Puerto Rican and Virgin Islands rum industry.

I know its just me, but I never saw what these political bills, let alone 700 billion dollars (which will likely be 900 billion - a trillion) can do for the national or the global economy. Throwing money away has never been the solution for anything. They are still throwing them at bad assets. Banks all around the world are failing. These folk so myopic and ill-informed that they aint even see the chance that asset markets would possibly close one day, especially given that lenders were the one who distressed the value of the paper they held. Its cool if u got loot, or capital, but most folk now days have less than 5% capital, or liquidity on hand compared to back in the day when folks had at least one dollar for every dollar loaned.

Federal policies created this, no matter what folks say, for with out them, folk who could not afford to buy a house with zero down would have never got them – and the truth is the banks and financial institutions lobbied for these changes.

But yawl don’t hear me though. Lets look at the world around us. The Turkish government issued new Turkish lira banknotes and this past Friday. This recapitalized of its banking system included tighter regulation under a $10 billion IMF-backed lending. And we finna have a new currency standard in a few for I wont be surprised if the dollar will be 60 cents to the Euro by the endo of the year.

 
All I am saying is that stability of the dollar is paramount in any economic solution to this current mess; I see a secular decline in credit just as what happened in Japan. My consternation is that neither McCain nor Obama is addressing this.

We really have not had a loss in capital across this great nation, that is not the issue, but we have not had any gain in capital - that is the problem. To solve this conundrum means we have to gain more capital. Tell me how we do this Jones, fu*k the dumb sh*t, we are thinking and breathing Americans and I say we at least deserve that. You cant take money from the private sector (as the government is doing when they take over and bail out banks) and give it back to the same said private sector. To me that is just like rearanging the furniture in your house. The 700 billion wont do jack, businesses on wall street or in the stock market dont make money unless people spend money or have money. Shold have gave it to the common person. Add to that we only have fiat money, no money of real value, in the 1930s we had real money which was on the Gold standard, and after the early 70s, no longer is our money based on the gold standard. We just print money and throw money at the problem as if it is the answer. All our politicians are doing is stopping the bleeding so the patient don’t die, or worse, just re-arranging the furniture in the house. vote

Posted 10/6/08 Torrence Stephens, PhD. Raw Dawg Buffalo
http://rawdawgb.blogspot.com/search?q=rearranging+the+furniture