Fed Cuts Rates By A Quarter Point
On a Sunday? Bernanke must be panicking at the thought of another bearish day in the stock market Monday. The ironic thing is that these rate cuts actually have the opposite effect of that of which they seek: more people who are on the border of not being able to afford loans are given loans and then if they default, the cycle starts all over again. Economist Dr. Ravi Batra has spoken against these Greenspan-esque attempt to correct the market.
Sean-Paul at The Agonist has more:
The Federal Reserve reduced the rate on direct loans to commercial banks by a quarter-point and said it will allow primary dealers to borrow at the rate in exchange for a ``broad range'' of investment-grade collateral. . . The central bank, in a statement today in Washington, also extended the maximum term of discount-window loans to 90 days from 30 days. The Fed approved the financing arrangement announced by JPMorgan Chase & Co. and Bear Stearns Cos. JPMorgan separately agreed to buy Bear Stearns for about $2 a share.Pretty damn busy for a Sunday night. Man, they are running scared aren't they? I imagine the dollar is going to get clobbered today.
The BearStearns deal looks like quite the bargain for JPMorgan. A nice little bailout from the Fed, and still bargain basement pricing per share? Don't look now, but I think Bernanke got snookered.
So did Jim Cramer.
Bush economics: Privatize the profit, nationalize the risk.
And its just complicated enough so that Joe Sixpack has no idea someone just stole a trillion dollars from the treasury. Again.
"Don't move your money from Bear (or my stocks will go down)!"
I watched "Zeitgeist" last week. Everybody should see it. Maybe it's over the top on some of the conspiracy stuff, but the section on the history and working of the Federal Reserve really opened my eyes. Somehow all the news makes sense now!!!
Socialism for the rich, but we'll hang the poor bastards out to dry because we believe in the free market!! Great stuff eh?
So I don't know where I've lost the most value in my retirement investments...The falling price of the stocks, or the falling value of the US Dollar! Either way it's a double hit for the likes of me. At least I do have work...for now! Too bad I'm not one of those investment bankers who can count on Bush and company to come to their rescure!
What a chump if he followed his advice. He deserves to lose his money if he listens to him.
Hank Paulson has to protect his CEO-in-returning position at Goldie. That's the reason for the rate cut and the Bear bailout.
err, uhm... rescue! Rescue!
The Stock Markets this morning opened with a large fall,
then it started to make a pretty good rally and almost got back.
Then Bush spoke.
Need I say more, it is now down 190 something.
Bush is so much an imbecile that every time he speaks, America suffers.
Cramer's credibility is dropping faster than the market.
Old Billy Hussein @ 1:
I can't get my head around this, and besides...it has no impact on me. I need to know the real news...is Obama a Muslim? Is he patriotic enuf to be President? Who's taking care of Britney's baby these days and most importantly...when is my refund that Bush promised me coming.
When do the soup lines begin?
Where's the outrage from the right-wing free market worshipers? The fed bails out Bear Stearns with 200 billion of tax payer money, and not a peep. I guess the free market should decide things only when it comes to the little guy, not big business. Can you hypocrisy?
Pity the employees of BS, their retirements, their college funds for their children, their jobs, all gone. And Cramer still wants us to believe they should just sit tight? Their stock went from $150 per share to $2 per share ... Yeah Cramer, your a freaking economic genius.
It's easy to snooker a dumbass who lives inside a bubble. "pop"
When the great minds on Wall Street screw up they do it royaly, but they had plenty of help along the way with their friends at the Federal Reserve as well as Congress. The following might sound like conspiracy theory, but sadly it's not and we will all pay for the greed of ruthless bankers.
On the night of December 23, 1913 the United States Congress passed the Federal Reserve Act and thereby committed the greatest act of TREASON in history. It surrendered this nation's sovereignty and sold the American people into slavery to a cabal of arch-charlatan international bankers who proceeded to plunder, bankrupt, and conquer this nation with a money swindle.
The "money" the banks issue is merely bookkeeping entries. It cost them nothing and is not backed by their wealth, efforts, property, or risk. It is not redeemable except in more debt paper. The Federal Reserve Act forced us to pay compound interest on thin air. We now use worthless "notes" backed by our own credit that we cannot own and are made subject to compelled performance for the "privilege".
From 1913 until 1933, the United States paid the "interest" with more and more gold. The structured inevitability soon transpired: the Treasury was empty, the debt was greater than ever, and the United States declared bankruptcy. In exchange for using notes belonging to bankers who create them out of nothing on our own credit, we are forced to repay in substance (labor, property, land, businesses, resources - life) in ever-increasing amounts. This may be the greatest heist and fraud of all time.
When a government goes bankrupt, it loses its sovereignty.
In 1933 the United States declared bankruptcy, as expressed in Roosevelt's Executive Orders 6073, 6102, 6111, and 6260, House Joint Resolution 192 of June 5,
1933, confirmed in Perry v. United States, (1935)
294 U.S. 330-381, 79 L.Ed 912, as well as 31 USC 5112, 5119, and 12 USC
95A.
The bankrupt United States went into receivership, reorganized in favor of 115 creditors and new owners. In 1913, Congress turned over America... lock, stock and barrel to a handful of criminals whose avowed intent from the beginning was to plunder, bankrupt, conquer, and enslave the people of the United States of America and eliminate this nation from the face of the earth. The goal was, and is, to absorb America into a one-world private commercial government, a "New World Order."
From the Bonddad link:
When. Not if.
This is what bottomless dumb looks like.
As I posted earlier, I got emails last evening from friends in the US who are buying 50 pound sacks of rice and filling up their canned food larders.
The effect of this market will be seen in next months groceries.
Everything will go up.
Yes indeed Ol Hedge Fund Cramer.
BUY BUY BUY!!!! Take my advise and don't think twice!
Cue the Paulettes: The Fed is EVIL!!
It's corrupt, but its not evil. You got a better idea?
The last eight years of bush politics goes to show you what happens when you only think in the short term. Get it now, to hell with the future.
L.A. Confidential @ 19:
Those sounds you hear in the clip are not off-stage sounds,
They are echo's from inside Cramers head.
Old Billy Hussein @ 1:
Uhhh I got news for you it is more like about $21 trillion when you count in Reagan, Bush 1, and Bush 2.
What is it going to take to stop the Bush onslaught?
Vidal: Economic collapse. We are too deeply in debt. We can’t service
the debt, or so my financial friends tell me, that’s paying the
interest on the Treasury bonds, particularly to the foreign countries
that have been financing us. I think the Chinese will say the hell
with you and pull their money out of the United States. That’s the
end of our wars.
http://hubble.quantumlinux.com/pipermail/hnet-bigmindmedia.com/2006-Augu...
Old Billy Hussein @ 20:
Shit, don't solicit them. Now someone will wander in and start flapping their gums about the gold standard...
The rate cuts achieve exactly (well, not quite) what they are designed to achieve: greater rate spread premiums for the Fed's member banks.
Also, consolidation of weaker banks into larger ones.
What? You thought the Federal Reserve had the interests of the American citizens on its mind?
Guess the 70+% of Americans that supported Bushies 911 World Revenge Tour must feel kinda sheepish right now. Without 2 invasions and occupations, this mess wouldn't be happening. Ah well, what's a few more trillion in debt, to bail out the rich peoples before the Dems get elected.
how is this related to SPITZER???
Do you know who Spitzer really is? Do you know what he was up to?
From theory to conspiracy:
"While New York Governor Eliot Spitzer was paying an ‘escort’ $4,300 in a hotel room in Washington, just down the road, George Bush’s new Federal Reserve Board Chairman, Ben Bernanke, was secretly handing over $200 billion in a tryst with mortgage bank industry speculators.
Both acts were wanton, wicked and lewd. But there’s a BIG difference. The Governor was using his own checkbook. Bush’s man Bernanke was using ours.
This week, Bernanke’s Fed, for the first time in its history, loaned a selected coterie of banks one-fifth of a trillion dollars to guarantee these banks’ mortgage-backed junk bonds..."
read more:
http://www.gregpalast.com/elliot-spitzer-gets-nailed/#more-19
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Ron Paul is right. Get rid of the Federal Reserve.
This nation was built on the Gold Standard.
Now look what's happened since we went off it.
miss_kitty Hussein @ 25:
As IF our money was actually backed by Gold.
Not anymore, they just print the useless paper, it more like monopoly money in the World Market.
NEW YORK (MarketWatch) -- Analysts who cover broker Lehman Bros. were laying low Monday, saying they did not want to add to market speculation that the firm may be the next major brokerage under the gun.
http://www.marketwatch.com/news/story/lehman-shares-tumble-more-30/story...
Take your money and run!
lucid fiction @ 11:
No soup for you!
Here's whats happening.
Derivatives trading, particularly in credit default swaps, is oftentimes exceeds the value of the underlying asset many times over. (Derivatives are what Buffet referred to years back as Weapons of Mass Destruction)
Credit Default Swaps are financial instruments that are based on loans and bonds that speculate on a company's ability to repay debt. (a type of unregulated insurance) The CDS market is roughly $45 trillion, whereas, the aggregate value of the US mortgage market is only $11 trillion; four times smaller. That's a lot of leverage and it can have a snowball effect when the CDS trades begin to unwind.
And thats exactly what is happening.
While the stock markets around the world are tanking and the dollar continues to slide, guess what's going up? Three guesses and the first two don't count. Give up: Oil.
My friends...you all have the privilege of being witness to the end of the Reagan Revolution, the end of supply side economics, the end of tax cuts for the sake of tax cuts, the end of deregulation, and the end of the Laffer Curve.
The end result of a failed economic theory is always the same...the destruction of an economy.
Americans signed off on this debacle 25+ years ago, when they turned their backs on unions, social programs and "liberal" economic policies. They trusted their livelihoods to the good graces of the so-called free market, and the rich powerful white men that actually control it. They turned over their savings to unprotected investment "strategies" because they believed that there was no "downside" and that somehow the business cycle no longer existed.
Yes, its a great day. Now people can really "pull themselves up by their bootstraps and rely on their own indepedendence" to survive every day, while the same powerful, rich white men who rail against public assistance and "social welfare" turn to the government for public assistance and corporate welfare to save them from their incompetence, arrogance and greed.
It was the night of February 13 when Spitzer made the bone-headed choice to order take-out in his Washington Hotel room. He had just finished signing these words for the Washington Post about predatory loans:
“Not only did the Bush administration do nothing to protect consumers, it embarked on an aggressive and unprecedented campaign to prevent states from protecting their residents from the very problems to which the federal government was turning a blind eye.”
Bush, Spitzer said right in the headline, was the “Predator Lenders’ Partner in Crime.” The President, said Spitzer, was a fugitive from justice. And Spitzer was in Washington to launch a campaign to take on the Bush regime and the biggest financial powers on the planet.
Spitzer wrote, “When history tells the story of the subprime lending crisis and recounts its devastating effects on the lives of so many innocent homeowners the Bush administration will not be judged favorably.”
But now, the Administration can rest assured that this love story – of Bush and his bankers - will not be told by history at all – now that the Sheriff of Wall Street has fallen on his own gun.
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Gold is only valuable because we assign it value, just like paper and coin. Gold itself can't feed, clothe or shelter. Only real goods can do that.
Liberal AND Proud @ 35:
It ain't over yet. Stay tuned.
"More power, I've got to have more power to the economy!"
"But Cap'n, don't'cha recall? Y'sold th' engines t'the Klingons!"
"Dammit Scotty, but the economy is hurtling towards the planet!"
"Tha's why I've got a parachute. Alba gu Brath!"
Uhh! Tell me again why these guys are paid good money to give us advice over cable and the airways.
Who cares about the tanking economy, crashing stock market, record high gas prices, and worthless dollar bill…we NEED to focus on Obama’s middle name and former pastor!
Screw Cramer!!! This guy talked up NLY all last week to $20 a share, and now it has nosedived to $13.
I'm voting against EVERY incumbent (municipal, state, and federal) in November and voting against everyone runnning on "experience". These people were so smart and so experienced that they threw out more cash than a football player at a strip club to people who didn't deserve it the last 10 years! So now our banks and investment firms or literally collapsing from their own stupidity!
But these millionaire and billionaire idiots are getting more government assistance and benefits than Katrina survivors!
Not to mention that the dollar is declining faster than a food stamp so I'll start moonlighting as a "concierge" for European tourists!
Do I need to even mention that we're spending $12 billion a month in Iraq? For that much scratch the government could've paid off ALL of the outstanding mortgage and credit card loans this year! But that would make too much sense, because we all know that we need to pay off all three sides to temporarily stop fighting in their own civil war!
ConcernedHusseinCanuck @ 38:
It's all over but the cryin'.
miss_kitty Hussein @ 37:
Speak for yourself! I'm wearing gold lame undies, in my solid-gold kitchen, eating a bowl of gold-covered corn flakes! *Koff* Okay, that last one still needs work...
Heck of a job Benny!
Now watch this drive.
You want to know what's wrong with the world and what's wrong with our media? The fact that any news source gives the actor "Jim Cramer" any recognition. Where was this guy a year ago and why does he matter now? He just serves as a tool to put panic in our minds where panic isn't there, essentially a panic 'mask'. so we don't see the real issues at hand. Turn off your televisions.
Or telescreens as it were.
And don't panic.
Leslie @ 34:
Thats because investors and speculators are bailing out of "worthless paper" and putting the money into Oil.
It keeps driving up the price. It's a no win situation these maniacs are out of control.
What happens when business faces $5 and $6 Diesel fuel at the pumps?
Albatross @ 39:
"No sir...I'll not bail out th' conomy...Non on th' word a that mealy mouth gentlemen from the Fed".
...I really don't think marginal people taking out loans they can't pay for is going to be much of a problem. That well dried up awhile back. Appears to me it's the banks who are taking loans they can't pay back is a tad more worrisome. Anyone check to see how their 401's are doing?
Liberal AND Proud @ 43:
The elite rich that are bleeding the world, aren't done bleeding it yet. Sure, they'll be crying, but they won't go down without a fight. There is STILL plenty of cashola to milk out of the US. This is nothing.
#47 LA Confidential:
Thats because investors and speculators are bailing out of “worthless paper” and putting the money into Oil.
It keeps driving up the price. It’s a no win situation these maniacs are out of control.
What happens when business faces $5 and $6 Diesel fuel at the pumps?
Congress ought to investigate how the Bushie-bots and countries, such as Saudi Arabia, the UAE, Kuwait, etc., are raking in the money, while everyone else is going belly up. But I won't hold my breath for that investigation.
Is it too late for me to put all my FICA contributions into the stock market?
Just keep running that play... JP Morgan wins again!
You know what is funny? No one is talking about where the other financial institutions stand and what high water they are in. All of a sudden there is quiet all at once.
Get your money out while you still can!!!!
Does anyone else find it funny that the bank that had economic problems was called Bear Stearns?
As in bear market?
Liberal AND Proud @ 35:
You are right about this...about 35 years in the making. No surplus to cushion the crash....the days of borrow and spend Republican happy economics is finally exposed, but, as usual, its the people who least contributed to the problem that will pay the biggest price.
Here's an interesting graph. Looks like the Federal Reserves cupboard is bare....wonder where the $ will come to bail out the next investment bank?
http://research.stlouisfed.org/fred2/series/BOGNONBR
L.A. Confidential @ 47:
Look north. No further north. Those prices are already here. AND. Businesses are still surviving. The one's with huge American trade are in deep shiite, but most are stable thanks to Chinese and Japanese investment. Higher the price of fuel goes though, the more income Canada has. Kind of a win/lose situation.
L.A. Confidential @ 47:
They will retire to their vaults and swim in their money like Donald Ducks uncle Scrooge. Whe they get done playing they will go to the dining room and tell the cook to fix a 7 coarse meal. They cook will serve 7 beans and tell Scrooge that since there is no one in business and no more farms there is no more food. You will have to settle for your gold.
Leslie @ 51:
That is why Cheney, McCain, Merkel, etc. are all in the middle east holding meetings with the Arabs right now!
All is quiet in the US press.
miss_kitty Hussein @ 37:
Yep... when there is no more food left, you can't eat gold.
The other problem with gold or silver is that like oil, it's a limited resource. There have been several times in the past when the well off artificially created inflation simply by hording precious metals and cornering the market. If the USD suddenly switched to the gold standard next week, who do you think will get their hands on all the gold bullion available, hide it, and then dump it at an artificially inflated cost a few years down the road? Hint: it won't be you and me.
DC @ 59:
They are over getting money. Should be some kicking around over there somewhere. I heard some idiot dropped skids full of cash in Iraq.
BobbyFlay @ 32:
To the back of the line!!!
Come back...ONE year!
Jesus, how can anybody listen to Jim Cramer? They guy rants and raves - it's like listening to a sales pitch from a syphillitic used car salesman. The guy just really gets on your nerves. "Don't worry about Bear Stearns - leave your money in". Yeah right Jim. The price of the stock went from - what? 60 a share down to $2 practically overnight. Sure, nothing to worry about there.
You know what we need to do???
We need to put all of our Social Security money into the market! (sarcasm)
Seriously, we should have known that the markets were shaky when Wall Street wouldn't even fight for Bush on this issue.
Are we really surprised that all of this is happening and will be 10x worse under a McCain administration since he has NO CLUE about the economy?
But I just saw a McDonald's ad that told me I could get a great deal for a buck. It said the dollar is strong!
Are you people trying to tell me that McDonald's, who has served, like, 65 trillion burgers, is wrong?
65 trillion burgers! That's, like, a lot of people, people. They can't all be wrong. There are just too many of them not to be right.
lucid fiction @ 11:
Mid November, probably. (Right after the GE)
Leslie @ 51:
Maybe Senator Kerry can do it. Heinz earned $8.643 billion so I know it would be extreme hardship for him to keep the ship afloat at home while going after the bad guys.
Will the soup lines accept dollars?
this just makes the dollar a less attractive investment. if will fall even faster. eventually, that will force the prices of some very valuable things to come down and than there will be a fire sale on American assets and we will be bought up by foreign interests and corporations and the wealthiest Americans.
The prices of imported goods will rise as the dollar falls.
Prescott Bush and Henry Ford are smiling from their places in hell. They'll thank the boosh son and grandson when they arrive.
DC @ 59:
Not all, Heather Mills got 48 million+.
I am waiting for the rapture to come and cleanse the earth so that the rest of us can live in peace and harmony...
Conservativeslayer @ 12:
Like someone else said here yesterday about the top 1% wealthy: Privatise the profits, socialise the losses.
Leslie @ 68:
Probably only Euros as corrupt as this system is.
Mister Anderson @ 64:
And that very same day the bail-out was decided – what a coinkydink! – the man called, ‘The Sheriff of Wall Street’ was cuffed. Spitzer was silenced.
Do I believe the banks called Justice and said, “Take him down today!” Naw, that’s not how the system works. But the big players knew that unless Spitzer was taken out, he would create enough ruckus to spoil the party. Headlines in the financial press – one was “Wall Street Declares War on Spitzer” - made clear to Bush’s enforcers at Justice who their number one target should be. And it wasn’t Bin Laden.
http://www.gregpalast.com/elli.....d/#more-19
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Another thing the MSM isn't covering is Foreign Investors with U.S. assets and investments are screaming bloody murder at Bush to GET IT TO HELL TOGETHER and with public funds-money.
When April 15th arrives you can kiss your tax dollars goodbye.
Bush will come out with "we need to cut more social services and other essential services to balance the budget blah blah blah."
DC @ 3:
YES YES YES - see Zeitgeist and learn about the Federal Reserve - all of the rest of the conversations/debates mean nothing if you don't know about the pupperters - also check out Aaron Russo interview http://video.google.com/videoplay?docid=5420753830426590918&hl=en
Russo's movie Freedom to Fascism is also worth watching - skip past the IRS part and get to the Federal Reserve part towards the end.
http://video.google.com/videoplay?docid=-1656880303867390173
As much as parts of Ron Paul's positions were off the wall he was the only one talking about monetary policy and the Federal Reserve - which is neither Federal or nor a Reserve. Time for all of us frogs to get out of the boiling water before it is too late.
geneHUSSEIN214 @ 63:
BUYBUYBUY!! - Kramer
Earth Abides @ 71:
...the hell with that. I'm goin' home and get laid.
Government intervention into markets is bad, except when it's to bail out capitalists.
Does Cramer have a response to this yet? That about as bad all call on a stock as you can make.
Old Billy Hussein @ 1:
Well said about privatizing profit and nationalizing the risk.
Bear Stearns should have filed Chapter 11 rather than let the taxpayers underwrite their arrogant folly.
DC @ 54:
It's all useless pieces of paper anyway, unless you spend it on food that you can store for a couple of years or three.
Bush will probably come on TV and say that we need to move the SS Fund into equities because it will reinvigorate the market and help grow the economy! Privatizing SS is PATRIOTIC!!
L.A. Confidential @ 73:
Brother-in-law just got back from New York. Businesses actually WANTED our dollars. That's a new one. For years all our dollar ever got from your side of the border was ridicule. My how times change.
I'm not into conspiracies, but there are threads here that I think people should be linking. What caused this Bear's mess, well it's was caused by the lack of confidence and collapse of Carlyle Capital. Who owns. Carlyle Capital? The Carlyle Group owns them, but is the Carlyle group and what is their connection to the Bush family? Why is the Fed more involved in this case than any other.
Seems to me that maybe the Fed had "inside" information and they were trying to hedge what they knew was coming, but clearly it didn't work as the 'inside' has already shown it's intelligence or lack of.
Final question how did W, Papa Bush, Carluci and Baker profit from 14,000 people losing their jobs?
CheneyIsADick @ 83:
Good point. Look at Italy. Need a loaf of bread? Get wheelbarrow, fill with money, go buy bread.
With the dollar tanking, a perfect time for...Change for the Better!
Look the economy is simply out of balance.
I think that the President should tell the energy companies to take their profits and buy up all these bad banks.
Thank you for exposing Cramer. I used to watch him religiously until I realized he was a republican shill.
And watch out for anything coming from Thom Hartmann's favorite guru, Dr. Ravi Batra. Back in the '90s, Batra used the FEAR CARD to convince people that a great depression was going to happen in/around 1999...and he sold a ton of books based on this fear. He's resurfaced, but only to sell more books...we certainly don't need his sage advise now that things are crystal clear, even to morons. Please reconsider mentioning his name again.
Is this bushs' true "Mission Accomplished"???
Curious George @ 86:
...Then, on Wednesday of this week, the unthinkable happened. Carlyle Capital went bankrupt. Who? That’s Carlyle as in Carlyle Group. James Baker, Senior Counsel. Notable partners, former and past: George Bush, the Bin Laden family and more dictators, potentates, pirates and presidents than you can count.
The Fed had to act. Bernanke opened the vault and dumped $200 billion on the poor little suffering bankers. They got the public treasure – and got to keep the Grinning’s house. There was no ‘quid’ of a foreclosure moratorium for the ‘pro quo’ of public bailout. Not one family was saved – but not one banker was left behind.
http://www.gregpalast.com/elli…..d/#more-19
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Acting Patriotic @ 53:
IIRC, JPMorgan, the live person, was on the scene and tried buying lotsa stock to keep the markets going in 1929. I doubt this "avatar" corporation will have any better luck.
Glad the Repug's were able to pass the bankruptcy reform package now?
An Other Greek @ 75:
Next On Fox Business - The Saving of The Carlyle Group - Why Does the Liberal Left Hate the Bushes
LONDON (AFP) - Wolseley, the world's biggest distributor of plumbing and heating products, said Monday that first-half net profits collapsed by almost 70 percent due to its exposure to the US subprime housing sector.
Now the domino effect begins.
Next on Oxygen - 1001 Uses for Valueless Equity Certificates
L.A. Confidential
RE: Comment 96 - Would love to have a link to that. Possible?
LONDON (AFP) - Wolseley, the world’s biggest distributor of plumbing and heating products, said Monday that first-half net profits collapsed by almost 70 percent due to its exposure to the US subprime housing sector.
ConcernedHusseinCanuck @ 87:
...and Germany and the rest of Europe during the early 30's. The US is headed up the creek again, only this time: No paddle.
My heartfelt sympathies to everyone who never voted for Bush, saw this shit coming and tried to warn people.
Next on Scarborough - The Verdict is IN - Bush IS an Idiot
DumDumDumDum @ 98:
http://tinyurl.com/24w9kc
CheneyIsADick @ 94:
oops
oops
oops
try this:
http://www.gregpalast.com/elliot-spitzer-gets-nailed/#more-1979
...sorry!
freejack @ 52:
If you don't want to see them again....
Liberal AND Proud @ 100:
"That's interesting. I hadn't heard that." Feb. 28, when told that some analysts are predicting gasoline could go up to $4 a gallon.
Rep. Barney Frank and Senator Chris Dodd want to guarantee mortgages through the FHA. We should support them.
It's no coincidence that the majority of sub-prime "usary" loans were targeted to African-Americans. While we're using tax-payer monies to bail out the banks that made those loans, Bush doesn't want to spend a dime to help all the homeowners now sleeping in their cars. And he certainly doesn't want to regulate the banks.
U.S. equity markets seem to have stabilized, but don't be fooled.
The foreign markets are in the crapper. Big selloff at end of today in the U.S. is what I expect.
If that doesn't occur...then it's only going to make tomorrow a bigger bloodbath.
Leslie @ 105:
Now, what kind of American is ‘sub-prime.’ Guess. No peeking. Here’s a hint: 73% of HIGH INCOME Black and Hispanic borrowers were given sub-prime loans versus 17% of similar-income Whites. Dark-skinned borrowers aren’t stupid – they had no choice. They were ‘steered’ as it’s called in the mortgage sharking business.
‘Steering,’ sub-prime loans with usurious kickers, fake inducements to over-borrow, called ‘fraudulent conveyance’ or ‘predatory lending’ under US law, were almost completely forbidden in the olden days (Clinton Administration and earlier) by federal regulators and state laws as nothing more than fancy loan-sharking.
But when the Bush regime took over, Countrywide and its banking brethren were told to party hearty – it was OK now to steer’m, fake’m, charge’m and take’m.
But there was this annoying party-pooper. The Attorney General of New York, Eliot Spitzer, who sued these guys to a fare-thee-well. Or tried to.
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i love jim cramer first of all he can and does give good advice for the small investor, pick some broad based index fun, buy it and hold that's basic market strategy. But . . . . it's so boring. Same advice day in day out. buy a little stock every year.
So cramer gives us what we want HOT PICKS HOT STOCKS MY HOTTEST PICKS. he makes his show feel like insider trading, and it's very entertaining and what is more, he shares all his knowledge, he's not one of those brokers who gives you a bunch of tips except for the very best one he keeps for himself. Cramer bets on the same stocks that he tells you to bet on.
so he's fun he's knowledgeable and he provides a good show. he admits himself that he's often wrong.
from one of his interviews:
Well, I mean, look, middle class people, they have two options. They can get all the information I do and spend an inordinate amount of their time in their day trying to pick stocks. And I think that's, for a person of leisure, that's perfectly good. I think you'll do as well as most professionals. Most professionals don't beat the market. Let's not over-rate my industry. But if you have time, you can be in good mutual funds that have good records.
WOW: Treasury Secretary Paulson, when asked how foreclosure victims should view the Bear Stearns bailout, shifted the question to the poor stockholders.
Continues to state that the administration believes in a strong dollar.
Craphead...
I didn't read all of the comments above, so I hope I am not repeating something someone else already wrote.
One of the downsides of interest rate cuts is that many seniors, like my mom, depend on monthly interest payments from their money market accounts to provide them with the bulk of their income. Last autumn, my mom was getting 5%, and now she is down to 3.4%, so her income is declining while costs are rising. Luckily for her, she is set to sell her Florida condo next month, but not all seniors will be so lucky.
CheneyIsADick @ 99:
Thanks....those warnings fell on deaf ears, or were answered with cries of "TRAITOR" "COWARD" or "TERRORIST". Knowing one is right in a truly terrible situation such as this, is not comforting in the least...it's more depressing than anything else...
Can't wait to see if you hold Clinton to the same standard about the economy when she's in office. Bush had nothing to do with Sub=prime mess,
Hussein Hussein @ 109:
More bullshit. Stockholders reap big rewards for taking RISKS...they also suffer the consequences when companies FAIL. They are OWNERS...not debtors.
The stockholders power is in their voting rights. If the Bear Stearns management, a management that THEY voted for, ran the company into the ground...then...OH WELLLLL...sucks to be the shareholders.
This shit is going to come back and bite these capitalist douchebags in the government HARD, and I am going to enjoy every freakin' minute of it.
Now is the time...mortgage relief for sub prime borrowers...windfall profits taxes on energy companies.
chris @ 112:
LOLOLOLOLOL!! No NO..make him stop! Please make him stop!! LOLOLOLOL!. This Administration had nothing to do with it! LOLOLOLOL!!
Actually there was a story on wikipeida from an Economist who stated that %70 of people lied on there applications. This how "predatory lending" thing is bullshit, most of the people wanted home and lied to get them, stop blame "the rich" for the ignorance of "the poor"
eric taylor @ 108:
But most of the time, Cramer is hyping up individual stocks and sells them short right before the self-inflated bubble bursts.
He's nothing more than a used car salesman with a nice gimmick......YELLING AT PEOPLE!
chris @ 115:
---
apples and oranges
you would need to do a survey and prove how much people "lie" on all applications vs. these subprime and then compare,
which you did NOT do,
besides,
there has been AMPLE testimony of the predatory and disingenuous tactics...
the question is, WHY do YOU volunteer to be an apologist for "the rich" vs. "the poor"?
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
chris @ 115:
Wikipedia...the equivalent of GOP talking points on the web. You post whatever you want on Wikipedia...basically rewrite history.
Keep flinging shit, chris. Eventually something may stick to the wall. Even a stopped watch is right twice a day.
chris @ 115:
You are so right. By pointing out the corporate free-for-all under with no oversight from a republican-controlled government, we are ignoring a great opportunity to widen the class divide and further subjugate the poor (actually, poor people rent; the middle class buys homes with mortgages).
I feel really bad for the lenders, who have no projective tools nor ability to investigate the applications submitted by their
victimscustomers.Hussein Hussein @ 119:
Save your breath folks...Chris is one of "them", things such as facts and logic mean nothing to him...
No worries...the Fed has committed to only guaranteeing $20 - $30 billion on the Bear Stearns deal.
chris @ 115:
You can't even write grammatically correct English and we should listen to your drivel?
How about the lenders who did anything and everything to make loans (you know, PROFITS) at any cost? Oversight? Regulation? Nah, that's not part of Bushonomics.
Joe SixPack @ 10:
This is all too complicated. That's why I turn to NY Post to take my attention away from the Republican war and the Republican economy. Like this glaring front page gem "Bedfelllow" "McGreevey's boy toy". The NY Post probably had this story a while but waiting for just the right moment to make it "front page news" so this morning as the Republican economy is causing the markets to collapse is as good I time as any to put it one the front page!
nypost.com
The public really didn't need that money anyway...I mean...if we spent it on healthcare for children or education or even helping lower income people keep their homes..well...then they would think that the government was going to help them all the time...or maybe even come to expect it.
We can't have that!! People must be able to stand on their own two feet! They must be self sufficient...otherwise...they will unravel the moral fabric. We must use public money to bolster free enterprise...to assist companies through difficult economic times...otherwise...our economy could be come unstable...if that happens...then we become prey to predatory economies like China...which can undermine our financial markets...which can hurt the dollar...and government's ability to borrow money...then we can't fund defense...and then....and then.......THE TERRORISTS WIN!!!
MUWAHAHAHAHAHAHA!
Great deal, indeed! Bear Stearns main HQ in NYC is said to be worth around $1 billion alone.
Andrew @ 15:
the Fed's surprise Sunday move to cut its discount rate to 3.25 percent and expand lending to more big financial firms -- the first such action since the Great Depression -- might NOT be enough to curb the global meltdown in credit markets.
Several of the Fed Reserve 'participants' are the SAME pple who financed the Soviet Bolshevik revolution of 1917.
So, someone tell me something. Is China financing Ben's Bailout of BS (Bear Stearns)?
This.Country.Is.So.Fucked.It's.Scary.
All this goes right along with what the reps of the credit card cos said the other day. If we pass regulatory legislation to control the predatory practices of the credit card cos, it will limit available credit, and sabotage efforts to stimulate the economy. As if encouraging bad credit risks to go ever deeper in debt to buy chinese-made products, will improve the American economy. FEH!
America to George W. Bush...
"It's the economy....STUPID!!!"
chris @ 112:
http://www.washingtonpost.com/wp-dyn/content/article/2008/02/13/AR200802...
Three words...deliberate controlled collapse.
I think everything that is happening, from Iraq, the economy, the general deterioration of our sensitive infrastructure to Bushes war against the Constitution is all designed to force a massive change in the very fabric of this country. The question is to what end? The gap between the poorest and the wealthiest is already to point never before seen in U.S. history, not even during the Great Depression. What is going to happen when even less people have control of the collective wealth of this country? What about China? I heard an interesting little fact the other night that China has well over a trillion U.S. dollars in their reserves. I wonder how may Euros that is? Currently our dollar only worth one-half a Euro. Talk about being able to buy and sell us at any time. I think it's pointing to a North American union. Good-bye dollar, hello Amero.
CappuccettoRosso @ 126:
as well as funded the Nazi's rise to power, their rearmaments, funded the American Eugenics movement, operated behind the scenes in the Business Plot, and many other nefarious double-dealing anti-American activities.
thats why I doubt we live in a democratic republic.
First the bad news:
$4 / gallon gas in calif, U.S. dollar falling and becoming near worthless as U.S. government keeps printing money, Bush thinks solution to recession is to print more money to hand out to citizens, U.S. taxpayers bails out financial institutions after executives rake in millions, never-ending Iraq war costing the U.S. hundreds of billions of dollars.
The good news - Bush is out of office in 10 months!
JerryO @ 131:
The New World Order.
evenplayingfield @ 133:
Aaah yes...BUT...MISSION ACCOMPLISHED!!
Leslie @ 105:
Sorry, but this is [mostly] white liberal guilt claptrap.
First off, the problem is way beyond a few "subprime" borrowers.
Second, the only reason anyone is "underwater" on their mortgage is that they 1.) took too much loan for their income, 2.) took too many re-fis, 3.) gambled on rising equity (no downpayment, teaser loans) and lost.
You want we should refund everybody's lottery ticket that didn't win as well?
I do not agree with any bank bailouts, however bailing out either party in this mess is wrong wrong wrong for those of us who DID NOT BUY A McMansion and continue to live within our means.
PS: anybody who committed fraud during the housing bubble should go to JAIL. This includes borrowers who lied about income and assets, brokers who switched documents at signing, appraisers who "fudged" comps, bond dealers who pushed crap paper at 'AAA' and on and on...
BobbyFlay @ 136:
I agree with the jail part. However, we would have to build a number of new prisons because much of the mortgage industry is involved in this lying & greediness.
I do not want to see taxpayer money used to clean up this fraud. This is making the 1980's S & L fraud (which included Bush's brother) look like a picnic!
Classic strategy to flood a dead topic with right wing talking points.
The fact is that this was brought on by predatory lending. By banks and finannce companies that pushed cheap money and led innocent people to believe that assets would rise forever, that there would be no down turn in the economy EVER...and actually underwrote loans based on those STUPID assumptions...and now that the whole thing is imploding...the supposed financial geniuses are now looking for scapegoats to justify their greed and stupidity.
Here's a fucking newsflash...NO ONE HELD A GUN TO THE HEAD OF THE BANKER THAT WROTE THESE BAGS OF SHIT. They didn't do their due diligence. Never made a phone call.
Who remembers THIS ad..."Credit approved in 15 minutes!" or this classic..."No Credit Check Required"...or this little gem..."No Money Down!!"
Liberal AND Proud @ 138:
There's plenty on blame to go around - from foolish Fed interest rate policies, to bankers, to the lack of oversight, to yes- all those people who sign up for loans that they could not afford. Calling the end user innocent is a bit of a stretch.
Old Billy Hussein @ 1:
It amounts to the "Haves and Have Mores", George Bush and Friends sucking the marrow from the bones of the Middle and Lower Economic Classes. Ever see the documentary "Enron: Smartest Guys in the Room"? Well, watch it and see the sucking going on in its full gluttony. As you watch, keep in mind that Enron is from Houston and they were the largest corporate contributors to the Bush 2000 Presidential Campaign. Enron is gone but the Haves and Have Mores suck onward. They cannot get enough. They are money gluttons. Yeah, its class warfare. Sorry, I forgot. We are not supposed to call it that.
JerryO @ 131:
yep.
unfrozencaveman @ 139:
Your argument is just like Ronald Reagan's argument for ending Social Security. He would talk about the woman that put her dog on welfare and used that as justification for destroying the entire system.
Here's another newsflash...people can be dishonest. The fact is that most people tend to be honest and simply need assistance. You don't damn them while you damn the few. And before you apply that argument to the poor beleagued corporate bankers remember that it was them and their lobby and assked for reduced regulation and to let the free market determine winners and losers...well...ok...THEY LOST. No bail out for Bear Stearns or anyone else.
Welcome to lesse faire economics...Enjoy.
Thanks Nicole, I reposted it on my blog wth attribution
http://pbp.typepad.com/economy/2008/03/cramer-dont-tak.html
Ron Paul anyone?
Nah, we're masochists.
http://video.google.com/videoplay?docid=-6046520409389956642&hl=en
BTW, I am NOT a "right wing talking point" troll.
I grew up "liberal" (now more of a pragmatist), but propping up the glorified Ponzi scheme called housing will not help the so-called "subprime" debt-holders in the long run.
One way or another, the next wave of "greater fools" is going to have to enter the housing market.
There are only two ways this can happen:
1. lower prices (deflation)
2. higher incomes (inflation)
The Fed is trying to bring about both, but neither is without costs to some party.
I'd rather the costs affected those who caused this mess in the first place -- those who cashed out during the bubble and took on debt they SIGNED TO PAY OFF and those who collected huge fees and looked the other way when bullshit paper crossed their desks.
PS: your assumption that "poor black people" didn't know what they were doing and are blameless in the whole matter is borderline racist and condescending, and typical of white liberals who believe minorities are to be pitied and not treated as equals.
Liberal AND Proud @ 138:
You'll get no argument on this from me.
At least we can agree on SOMETHING. :-)
1929-Stock market crash
1939-WWII
1949-Chinese Revolution
1959-Cuban Revolution
1969-Inflation
1979-Iranian Revolution
1989-Berlin Wall
1999-Hmmn what potentially catastrophic event happened in 1999?
John W @ 148:
Windows ME?
miss_kitty Hussein @ 37:
That is exactly why I sold most of my assets and am buying commodities like coffee, cocoa and wheat. People need these things to live day to day, just ask Jim Rodgers, someone who knows what he's talking about...
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