T Nation

Can Someone Tell Me?

…what are the [future] consequences of your government bailing out those banks, and thus gaining a majority interest in them?

More National Socialism
The Federal Reserve is printing up $80 billion for AIG in return for 80% ownership. In other words, the people pay, as usual, to save the power elite’s bacon. Lew Rockwell

…but in what way will this increase the government’s influence on the people? How will it affect you?

Primarily, since they have set the precedent for Privatized profits + Socialized Risk, the people get stuck footing the bill when these banks fail. Either our taxes go up to cover someone else’s loss, or the Fed prints more money, which makes every dollar that I earn worth a little bit less.

Eventually people will get tired of the fat cats making money at our expense, so these institutions will end up being taken over by the government entirely. And since the government is already so deep in debt that we can’t even see a way out, sounds to me like the whole country is going to end up going bankrupt.

[quote]jlesk68 wrote:
More National Socialism
The Federal Reserve is printing up $80 billion for AIG in return for 80% ownership. In other words, the people pay, as usual, to save the power elite’s bacon. Lew Rockwell[/quote]

“U.S. to Take Over AIG in $85 Billion Bailout;
Central Banks Inject Cash as Credit Dries Up
Emergency Loan Effectively Gives Government Control of Insurer;
Historic Move Would Cap 10 Days That Reshaped U.S. Finance”

http://online.wsj.com/article/SB122165238916347677.html

Marx said this would happen and now it is.

[quote]ephrem wrote:
…but in what way will this increase the government’s influence on the people? How will it affect you?[/quote]

Because they now have much more control over banks. Want a loan? Beg. Piss off a bureaucrat? Your loan gets called. Monopolies are never good for anyone except those who own the monopoly.

It means AIG will limp along and run like shit. It will run as well a FEMA. They won’t see a dime of my money, ever. Except through taxes of course.

There are people here half my age who I’m sure have much more technical economic knowledge than I do, but I see this as a further abrogation of personal responsibility.

Without the risk of failure the behavior of these (and now there will be plenty of others) outfits will be profoundly influenced in the negative.

Who cares, do what we have to for the big players to make a ton of money and if it collapses somebody else will take care of it. We are treading in dangerous waters with all these government bailouts. I say let em die with the chips falling where they may. As painful as that would be the long term overall effect would be better than the message we are sending with this crap.

It’s like people (Candy, I’m talking to to you) who keep bailing their kid out of jail and then wonder why they’re always in trouble. Yes, I know in this case there are a lot of people involved, but maybe they would take a market interest in seeing that these people are held privately accountable if we didn’t give them any other choice.

It sickens me. The greedest bastards ever (bankers) line their pockets with enormous salaries. Give themselves huge bonuses and huge profits for their investers. Now you all get to bail them out. Which means the tax payer is now going to pay them their huge salaries and bonuses.

Financial fraud is the most distructive crime and has the least punishment. The lifes of hundreds of thousands of people have been put in ruins. With at times no one being punished. If punished, it’s a joke.

I’m healthy and staying that way because I will not invest my money with those fucking crooks. So I’m going to have to work all my life. Thankfully I live in B.C. so a grow-op in my later years will be sweet.

[quote]pat wrote:
It means AIG will limp along and run like shit. It will run as well a FEMA. They won’t see a dime of my money, ever. Except through taxes of course.[/quote]

It is not like it was well run before. How many millions did they waste on commercials during baseball games? How many millions did executives steal?

[quote]Tiribulus wrote:
There are people here half my age who I’m sure have much more technical economic knowledge than I do, but I see this as a further abrogation of personal responsibility.

Without the risk of failure the behavior of these (and now there will be plenty of others) outfits will be profoundly influenced in the negative.

Who cares, do what we have to for the big players to make a ton of money and if it collapses somebody else will take care of it. We are treading in dangerous waters with all these government bailouts.

I say let em die with the chips falling where they may. As painful as that would be the long term overall effect would be better than the message we are sending with this crap.

It’s like people (Candy, I’m talking to to you) who keep bailing their kid out of jail and then wonder why they’re always in trouble. Yes, I know in this case there are a lot of people involved, but maybe they would take a market interest in seeing that these people are held privately accountable if we didn’t give them any other choice. [/quote]

You are exactly right. That’s the beauty of capitalism. You take risks…sometimes you fail and sometimes you reap the rewards. When you take the fail part out of the equation, there’s no risk.

The execs no longer care because they know the government will bail them out. Let’s just hope this trend doesn’t continue as several people on Wall St. are telling us to watch out for a dominoe effect.

…and all because of liberals(Clinton era) wanting to give poor people mortgages. You shouldn’t be able to buy a house when you don’t have the money.

Recession, Depression or Bankruptcy

More importantly…

what can be done by we the people?

Vote? For whom? Isn’t this a bipartisan fuck up?

Do enough people know what the fuck this all means to them to do something about it?

Is the media doing its job of informing the populace what these “bailouts” are ACTUALLY doing?

Do what?

Go down there and give em a piece of your mind?

We the people DO NOT govern this country any more and haven’t for a long time.

[quote]ephrem wrote:
…what are the [future] consequences of your government bailing out those banks, and thus gaining a majority interest in them?[/quote]

The consequence of the bailout will be price inflation due to expansion of the money supply. The money used for the bailouts comes out of thin air.

The consequence of the government having a majority stake in those corporations is that they will continue to operate as giant sinkholes for tax dollars instead of being allowed to die their natural deaths. Adding to the burden placed on the productive sectors of the economy.

[quote]Nominal Prospect wrote:
ephrem wrote:
…what are the [future] consequences of your government bailing out those banks, and thus gaining a majority interest in them?

The consequence of the bailout will be price inflation due to expansion of the money supply. The money used for the bailouts comes out of thin air.

The consequence of the government having a majority stake in those corporations is that they will continue to operate as giant sinkholes for tax dollars instead of being allowed to die their natural deaths. Adding to the burden placed on the productive sectors of the economy.[/quote]

I agree here.

A giant forced reboot of the economy may have been just the thing needed in the long run.

We don’t have the money for this. Just wait til we get the healthcare takeover on top. One day we will simply direct deposit our money in Joe Biden’s Central Patriot’s Bank and stand in line for government food to take back to our HUD houses in our government provided transportation once they take the auto industry over as well.

I see a real cascade coming here. Farming? Tech? By the time they’re done every US citizen will probably be a federal employee.