Irrational Exuberance 2008 - the Fractional Reserve Banking System's Bailout
a tiny bit of my full letter (below) is in Mon Sept 29 08 Torstar:
Where did the $700 billion bailout figure come from? Most players and pundits agree that it's not a cure-all and many say it's a band-aid or a short-term pain-killer.
None of the "bad paper" is going away, it's just changing ownership.
Giving this sum (no matter under what rules and limits) to the same folks who failed to supervise the creation and propagation of this mess to such huge proportions seems just dumb. It's good money being thrown after bad.
Robert Ede, Thornhill
Irrational Exuberance over Wall Street Bailout
Dear Sir/Madam,
I oppose the Bail-out.
Where did the $700Bn amount come from 1) an amount equal to the Canadian national/ provincial debt? 2) $2000 per US resident?
Is $700,000,000,000 enough? too much? or not enough? who can say for sure?
What kind of paper is being bought and at what price-to-maturity, on what yield criteria and according to who? (Hopefully the rating services who totally screwed up their due diligence on this paper initially will NOT be asked for opinions.)
Even with all the newly-announced 'terms and conditions' that have been negotiated into the original deal, there is no consensus agreement (ie 66.7% or 75%) and .... if it passes with 51% -- why have we totally ignored the possibility that the 49% (only 2% less) are right (but are just less easily bullied or cowed).
Most players & pundits agree that it's not a cure-all and many agree that it's a band-aid or more accurately a short-term pain-killer - none of the 'bad paper' is going away - it's just changing ownership.
Further this $700Bn will not solve any of the problems within the money-issuing, stock-issuing, stock-trading, bond-issuing, bond-borrowing, bond-derivative issuing, credit granting, mortgage funding businesses that is to say the Fractional-Reserve Banking Industry.
Giving this sum (no matter under what rules and limits) to the same folks who failed to supervise the creation and propagation of this mess to such huge proportions seems just dumb.
If the advocates of this bailout will not commit themselves to declare in writing their belief "with 75% certainty" that this $700Bn will solve the banking industries problems for more than 6months, then I do not trust their opinion.
To me all this perfectly good money (albeit being borrowed under the bonds-bearing -interest system) is being thrown after bad ... until after the November 2008 elections.
Where did the $700 billion bailout figure come from? Most players and pundits agree that it's not a cure-all and many say it's a band-aid or a short-term pain-killer.
None of the "bad paper" is going away, it's just changing ownership.
Giving this sum (no matter under what rules and limits) to the same folks who failed to supervise the creation and propagation of this mess to such huge proportions seems just dumb. It's good money being thrown after bad.
Robert Ede, Thornhill
Irrational Exuberance over Wall Street Bailout
Dear Sir/Madam,
I oppose the Bail-out.
Where did the $700Bn amount come from 1) an amount equal to the Canadian national/ provincial debt? 2) $2000 per US resident?
Is $700,000,000,000 enough? too much? or not enough? who can say for sure?
What kind of paper is being bought and at what price-to-maturity, on what yield criteria and according to who? (Hopefully the rating services who totally screwed up their due diligence on this paper initially will NOT be asked for opinions.)
Even with all the newly-announced 'terms and conditions' that have been negotiated into the original deal, there is no consensus agreement (ie 66.7% or 75%) and .... if it passes with 51% -- why have we totally ignored the possibility that the 49% (only 2% less) are right (but are just less easily bullied or cowed).
Most players & pundits agree that it's not a cure-all and many agree that it's a band-aid or more accurately a short-term pain-killer - none of the 'bad paper' is going away - it's just changing ownership.
Further this $700Bn will not solve any of the problems within the money-issuing, stock-issuing, stock-trading, bond-issuing, bond-borrowing, bond-derivative issuing, credit granting, mortgage funding businesses that is to say the Fractional-Reserve Banking Industry.
Giving this sum (no matter under what rules and limits) to the same folks who failed to supervise the creation and propagation of this mess to such huge proportions seems just dumb.
If the advocates of this bailout will not commit themselves to declare in writing their belief "with 75% certainty" that this $700Bn will solve the banking industries problems for more than 6months, then I do not trust their opinion.
To me all this perfectly good money (albeit being borrowed under the bonds-bearing -interest system) is being thrown after bad ... until after the November 2008 elections.
posted by Walk a Kb or Two in my cassins | 7:56 am
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