A New Day With Little Change!

A little update on my previous article. Boy, do I hate being right about this kind of stuff, check it out . Well it seems there is a little more to this bailout bill than meets the eye, as to be suspected. Secretary Paulson stated today something that sheds much more light on this Bailout. He said that if Congress decided to define "Troubled Assets" as any assets in the US market to have problems, then the President would immediately veto it! Without this definition Sec. Paulson could in fact spend the bailout money on foreign banks. Now this may just be a stab in the dark, but my little theory I stated in the previous article on how the foreign banks may in fact decide at some point that they no longer have enough credit available to give to the US, so your own your own. These troubled times don't just stop at the US boarder it seems. It may in fact be said that foreign banks are in just as much trouble, and unable to sustain the loans that prop up the US dollar. So yes, if this bill passes without the definition that the money can only be spent in the US, then they would be able to sent all 700 billion bucks to Chinese, Japaneses, and European banks,if they so wish. Banks which the US has no control over. Which I'm sure you'll be happy to pay to help em' out.

Interesting article on the amazingly fast decline in the housing market going on right now in the South West. I just figured this was a pretty good follow up article.

Ladies and Gentleman may the Circus Begin

As you may well know a tentative agreement has been struck in Washington. Wow, I must say, when some rich & greedy old man wants some money, Washington seems to takes no time what so ever to respond. Okay…breath, I’m sorry my blood pressure goes up when I’m being blandly ripped off. Alright, well, lets delve deeper into the subject while we are on it shall we? But if you have been in a cave for the last few years I’ll bring you up to speed. In the last couple of months the economy has taken a turn for the worse, and when I say worse I mean China and Europe may at any moment show up on are front door step and say “hey you know all that money of ours you’ve been wasting the last ten years, yeah, ah we need it back because you've been a little late on your payments, and we are foreclosing on America, so you need to go somewhere else”. Okay so maybe not that far but it is in the realm of possibility.

So all these major financial institutions over the last, well probably 20 years or so, have been loaning large sums of money to, well one could say, not so responsible individuals who have gotten well over there heads in debt, and unable to repay the loans. This reckless loan system finally reached its peak in the 2005-2006 time frame providing literally billions and billions of dollars to these overreaching individuals. This in turn caused home sellers to raise housing prices in order to make more money on their returns because they knew that it was very easy for people to get the money. In fact if you look at the picture on the left you will notice an increase so steep that even Stevie Wonder would see it and say hot damn! Now as you can see this increase is not anything close to the normal 3% trend which is marked. There are some other factors in this such as massive inflation that have also affected the prices. But we will get into the technicalities some other time.

Okay so worse comes to worse people stop paying their mortgages because their over there heads in debt; banks start crying because there losing more and more money everyday due to this. But don't worry the Federal Reserve has come to the rescue. Great! I would probably be just as happy if they sent in a half retarded baboon to the rescue to fix this problem. Okay so yeah it’s suppose to be their job that’s what they do: money, banks, and all that other fancy pants stuff. The only problem is, as they might have failed to mention in your high school economics class, is that they are a private bank, not a branch of government (although they call themselves as an independent member of the government? Call me stupid but I always thought you either are or you’re not?). Not only that but that it is owned collectively by a bunch of smaller banks such as Chase J.P Morgan, Wachovia, and oh the Bank of England (yes, I know what your thinking but where do you think the federal reserve system was started, Canada!). So we can probable assume who their going to take care of before they take care of the American tax payers.

So lets take a moment to sum up what we just learned:

1. Banks are greedy by nature.
2. This is bad for mostly non-greedy people who just want a house, a car, and the ability to watch Monday night football on that sweet new plasma TV.
3. The Government seems to be influenced perhaps by some of these greedy individuals.

Okay so maybe I failed to completely state number three earlier but I kinda figured you had reached that conclusion on your own, a long time ago most likely, like most normal people. If you have not and this is a big shocker for you. I’m sorry I could have been more subtle as not to bruise any ignorance on your part, I really am. All sarcasm aside, the system is well set up for the bankers to get what they wish.

So the bailout bill of $700 billion, I don’t know about you, but that is a lot of money to pull out of no where. I’m pretty sure the Government does not have that much, but maybe it’s just me. Let’s do a little math shall we, according to the IRS about 130 million people paid their taxes in 05. We will use 135 million just to be nice, lets see how much each one of those individuals will be liable for. Drum roll please…. $5300 dollars not to bad I suppose. I guess I can give that much of my hard earned money up for such a good cause, helping greedy bankers. It does feel good to give.

P.S. If your reading this and grumbling that there is more to this crisis than a bunch bimbos who couldn’t pay there mortgages your right and we will dig in deeper later.