Thursday, October 02, 2008

take it on the chin

I am a firm believer that Ignorance and freedom is incompatible. Likewise I accept that my folk, including the members of the House and Senate are just as ignorant as well. Last night in a unique move the Senate grandstanded and passed their version of a financial market stabilization act – this time, 450 pages of feces. Fuck bailing out banks, although I do feel that Paulson messed up when he did not attempt to save Lehman, the truth is that market fundamentalism – the idea that the market can do no wrong, will exist no more jones.

I don’t want to scare nobody nor second guess (to steal a phrase from Sarah Palin - can’t name a single Supreme Court case she disagrees with other than Roe v. Wade LMBAO) nobody on this, but I would like to provide a terse commentary on saying that something is better than nothing, when no one has really thought about this from a pragmatic perspective and just seems to me giving Paulson what ever he needs with out review and thorough examination, is some of the dumbest shit I done ever heard. I figure 200 billion invested in schools, bridges, and even securing our ports will go a lot father than dumping loot in the hands of folks who have a history of looting that has placed us in the mess in the first place. By doing the aforementioned, albeit common sense, I think it would proffer job creation at the grass root level for we know politicians will never be or desire to do any real labor like us common folk. Not to mention it would not take 700 billion if one spent the money on helping folks who own homes like me to keep them, and the steady stream of mortgage payments going to said banks.

Too much credit got us into this problem but now we trying to make folks get more credit. It is nothing more than the banks controlling the government. I mean the standard is obvious is that its cool for folk to make millions while those that don’t, it is cool for them to suffer.

Maybe I am wrong, but I say let them mutha fucas fail, let them take it on the chin. I mean, if I mess up, for bad business judgment, are they gone help me? Where my bail out papers? I don’t even know where the 700 billion dollars went in the first place, I aint get none of that loot did you? When I do my books I do the regular old school accounting, you know traditional accounting methods that match cost and revenues. But Paulson, and HIS bill want me to bail out, excuse me rescue folks that employ the Enron” economically satisfying” approach of accounting for valuing assets and liabilities. Robert G. Haldeman, Jr. wrote: “Fair value derives from “a hypothetical transaction at the measurement date … A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The principal market is the market in which the reporting entity would sell the asset or transfer the liability with the greatest volume and level of activity for the asset or liability.

I wouldn’t be surprised if Paulson folks from the house he used to run Goldman Sachs laced his pockets to get this shit passed. All I am saying is that I want some to. Bail me out jones, I mean this shit, I aint even no crook.

And yawl talk about Obama, tonight was his first vote since June (i think) in the Senate, and McCain’s, first vote since April. They say this is needed, and all we can do at the moment, but it may or may not be a quick fix and what we need is a well thought out and permanent solution. I just think that this talk of something is better than nothing is feculent, and makes me think they are saying if I had the choice to think something well out versus panicking, I would do the latter. That’s all these two pieces of legislation show me, that these folks would rather panic than think on solving the problem. Shoot, I think DeFazio’s plan is better thought-out than Paulson’s and really like is suggestion regarding banning short selling of stocks - selling'' stock at a lower price before actually taking ownership.

But this is just me, and as I said it ticks me off when the average citizen complains or approves of something, like these bills when they don’t take the time to read them. Ignorance and freedom is incompatible folks; and I will never side with panic over thinking something out thoroughly, why should you? I say let them folk on Wall street take it on the chin, cause it don't impact Main street as they say - newspeak is all it is. vote

44 comments:

MsKayotic said...

I agree. Ignorance and freedom are incompatible. You have to have some intelligent in order to Free. Your. Mind.

This bailout plan is such a stupid plan. Our debt has doubled and where is all this money we don't have gonna come from other than the little folk taxes. I don't think enough people pay taxes to even come up with this much money.

I think the federal government should be responsible for protecting our borders and delivering the mail. Leave the rest to state government.

Idiots we call an administration. *SMDH*

Anonymous said...

I completely agree witcha.....






oh and I followed you, Im feeling this page!

♔Jaimie said...

I have to agree, the two are incompatible. And unfortunately we have wayy too many ignorant people in leadership positions. I never thouht i'd see it get this bad.

Anonymous said...

Of course we agree.

http://buelahman.wordpress.com/2008/09/30/bail-out-for-the-country-or-for-the-thieves/

Beautifully.Conjured.Up said...

For once, I concur.

Anonymous said...

I know that I keep going on and on about this massive transfer of wealth but seriously, the top 1% that earn more than the bottom 50% and that same group owns more wealth than the bottom 90% - these are the individuals/families that have benefited from economic policies of this administration and the dereg laws that have this economy hemorrhaging. So to me it only makes sense for those that have benefited so immensely to fund this bailout. They got the loot do it. So let Buffet and the others of his ilk (Paulson, Fuld, O'Neill, Fishman, Cayne, Mozilo, etc.) do like wise. Ill gotten as much of it was.

Tera said...

I agree with you wholeheartedly Torrance!!! When I saw how the vote went on that bill in my state, I wasn't at all surprised!

In other news have you seen what has been splattered all over the news today? "How will Biden be able to debate Palin without getting women mad?" I say there's an easy answer to that...he must tactfully attack their POLICIES and not her...very simple! And I think he's sharp enough to know that...I'm looking forward to watching it!

OG, The Original Glamazon said...

Man you know I am torn. I am torn with letting the market self correct and some form of captain save a ho’ing. My first thought is F&(&#()*k then hoes!! So what you gonna lose a house in the Hampton’s or be forced to stay in your lower east side head quarters instead of move to Manhattan.

The problem is we have been such a credit country the carnage that it would take to get there scares me. I mean I have been pretty insulated from feeling the crunch may are. I save a great chunk, invest in annuity, and even still have investments on the market. I am even considering directing some of my disposable income into the stock market instead of the hottest new shoes or bags for the fall.

The fall would likely not affect me, but I know it would affect lots of small businesses who really do need credit (but you already KNOW THIS MAN) to grow expand and create new jobs. The fact remains is this bailout is going to happen and I hope this FIASCO is the thing that finally wakes up this country to our unconscious living and consuming. That’s all I’m saying. I keep wondering could it get any worse this is the WHOLE problem with Reganomics and the trickle down economy, the only REAL money maker I see making thangs trickle is Buffet who is investing heavily in GE and Goldman Sachs. I think more of that would happen but OF COURSE it would have to be spun as the opportunity to MAKE MORE. GREED it’s a helluva a drug, almost as bad a fame.

-OG

Q said...

You are right! Where the f*ck is this money coming from anyways? I sure as hell wish someone would bail me out of all of my credit card debt after i knowingly charged hundreds of pairs of shoes. Bush just wants some type of "happy ending" his f*cked up term. I'm about 8 blocks away from the white house right now, I outta go over there and...

A.u.n.t. Jackie said...

personally i'd like to see the money spent on healthcare. Lack of healthcare and long term illness still leads the pack when it comes to people losing their homes, which is to say that if our financial foundation lacks care taking for it's worker bee, the one who is living up to his eye balls in debt to begin with, how can this country expect to succeed?

no_slappz said...

torrance, you wrote:

"Maybe I am wrong, but I say let them mutha fucas fail, let them take it on the chin."

When you wrote this, of course you were writing about the people who borrowed money to buy houses and then refused to repay it? Yes?

Kofi said...

I can't help feeling we're about to get scammed again.

rainywalker said...

They have already thrown us in the fire pit and we can't get out now. Your money from the 700 billion's is in the mail. I heard Congress say it last night when they were patting each other on the back.

Cassia L Rainne said...

Yes...yes too much credit and bad lending. Adjustable mortgages were the devil's instrument.
I didn't get a dollar of that 700Billion...not a single penny.
I agree that some of that money should go to healthcare and to help home owners keep their homes. There are three homes up for auction in my development...that is sick.
Idiots in the administration I agree with kayos.

All-Mi-T [Thought Crime] Rawdawgbuffalo said...

Kayos
this says no more states right too

Kin'shar
thanks sister

Jaimie @ Just Kiss 'N Makeup s
still waiting on u to come by the shop

BuelahMan
now thats what im talking bout gr8 post bruh

Beautifully.Conjured.Up
u never read me so your math is off lol

Nicki Nicki Tembo
they say this is supposed to stop the bleeding go figure

Tera
women more mad a mccain for not picking a smart woman when many exist

OG, The Original Glamazon
u be bringing it girl. im investing too hint Barrick mines looks good and as always gold corp

Q
i agree credit is credit

Aunt Jackie
great point, even 150 billion will go a long way to covering most of the folks here

no_slappz
no i am not, how could i be, im refering to them thats getting the 700 billion come now RIF

Kofi
and no vasoline

rainywalker
so in other words mr. mossberg pimp -lol, it aint coming, just expect price of stamps to increase AGAIN

Miss Soul
all im asking where is the love

Anonymous said...

i'm with ya, and i'm against ya.

these wall st. fuckwits don't deserve a dime from the public trough. they've fucked up enough to last several lifetimes. some of what they did rises to the level of criminal malfeasance.

but...the credit markets are at a standstill, and it isn't just the credit card lenders who aren't giving dough. small businesses, hospitals, and higher education are getting slammed. and public debt at the state and local level is at a standstill. and when that happens, we're all fucked.

so i have to go with warren buffett on this one and say something's gotta be done.

that said, the plan does suck overall. they should have made all of these jerks pay back their bonuses and face criminal prosecution, then have the govt. take equity stakes in the banks, which would replenish their capital and allow them to lend again. but no. that would be socialism. can't have that.

i guess you can pay for their mistakes, though. that might be the best you can do with congress.

footnote: they (banks) are trying to get fas157 ditched -- the fair value accounting standard, saying mark-to-market is messing them up. like their worthless mbs are gonna be worth trillions one day...

Jay Midnyte said...

We gotta take it on the chin too for letting our population become so ignorant which generates ignorant leaders.

I agree with nicki nicki tembo its just a transfer of wealth like usual.

Lena said...

Amen.

Melody.Darlene said...

lmao @ sarah palin and that interview!! she couldnt think of ONE supreme court case she disagreed with (other than the one they presented her with) b/c she probably cant think of one supreme court case PERIOD!! she is so disillusioned and it pains me to hear her speak. lol

Anonymous said...

You mentioned the possibility that maybe Paulson is getting a little sumfin-sumfin from his old crew at Goldman Sachs. I actually just said that a few days ago to my Dad. The fact that Paulson used to head up Goldman Sachs makes his ideas suspect to me. Why didn't he step in earlier when Stevie Wonder could have told him months ago that economy was jacked up.

Now its a crisis.... I don't know kinda like other posters I am offy on the bailout yet the reality is its affecting the little Man in Main St who in this case is me. Too many companies rely on credit to deal day to day and without something happening soon, I fear we are all gonna crash and burn.

Of course the other issue is what happens after the bailout?

The Urban Scientist said...

What's up man?
would you be interested in participating in DonorsChoose?
http://www.donorschoose.org/homepage/main.html?zone=0
I'm trying to drum up som support for this.

Charece said...

God Help America!

Keli said...

At this point something has to be done…improving the country’s infrastructure will not secure jobs…and those expenses are allocated on a local level…it’s the way of capitalism…this vicious cycle that we live…periods of great excess are followed by what? Periods of recession…and we can’t just blame wall-street…main street needs to be held accountable as well…for living above their means…for padding documents so they can apply for more home than they could afford…yet, the companies should not have been so “liberal” in their lending practices…but at this point…woulda, shoulda, couldas are too late! Have to take action, and unfortunately, the gov’t needs to step in and “bail out” these organizations…but I do also feel that this should lead to reform as well…reform in lending practices, reform in rules and laws governing financial institutions in general.

Rich Fitzgerald said...

I was going to do a post on this, about how I ended up talking myself into actually backing taking action.

msladyDeborah said...

*sigh*

If things went skid row for the money changers, I really would not feel sorry for them at all!

You know that when you talk about funding education, you are preaching to my congregation! YES!

A sistah like myself could use some corporate welfare right along now...I threw away all of my food after three days of no electric. What's a few million to help bail me the hell out?

I wish I knew what to do in terms of the economic situation. I'd make them pay me for the 411 like I was a nation they wanted to court. I want an offer than I cannot refuse!

Seriously, isn't it amazing how three pieces of paper grew into 106 pieces of paper and then into 450 pieces of paper?

I'd be happy as hell if FEMA rolled into the O-State with some cash-I don't want them to give me no shelter.But as it stands, I am SOL!

Babz Rawls Ivy said...

I love that line...Freedom is incompatible with ignorance.

If we are unhappy with the folks we have elected than good folks ought to run. It is easy to talk shit frm the arm chair, it's a whole different story when you are in the game.

I am not suggesting that we do not question our leadership, I am saying however, that we all have a responsibility to hold our elected officials accountable...but we must also hold ourselves accountable. We must also ensure that we hold America to her high ideals and do what me must to safe guard those ideals.

If the folks we elected are not adhereing to our wihses that is our fault. We cannot just leave our destinies in the hand of folks we have little faith in. And we cannot chastise them when we do not provide oversight, or when we oursleves do not seek out public office.

We must become the change we want to see.

Christopher said...

The nation’s economic gloom and doom gave way to a Congressional pork fest last night as the senate stuffed the $700 billion dollar bailout deal with an orgy of special interest “sweetners” designed to lure fence-sitting lawmakers into voting for the mess.

Stuffed into the 451 page bill now includes more than $1.7 billion worth of eyebrow-raisers. Here are a few of them:

• Manufacturers of kids’ wooden arrows get $6 million

• Puerto Rican and Virgin Islands rum producers get $192 million

• An undisclosed amount for Wool research

• Auto racing tracks (think: NASCAR Nation) get $128 million

• Corporations operating in American Samoa will receive $33 million

• Small-to- medium budget film and television productions get $10 million

• Relief for litigants in the Exxon Valdez oil spil

If you ever needed more evidence that our government is broken, this is it.

Curious said...

From the 1st time I saw Dennis Kucinich I always believed he was my type of crazy, but too crazy to vote for. He also is a believer in the Defazio plan and here is why.

I have to believe that after 8 years of shooting from the hip on every real or perceived crisis that the President finds, we still have not learned that it's sometimes better to stop and look at what we are aiming at.

Ignorance and Freedom? Yes with this bailout we'll show one but not get the other.

Babz Rawls Ivy said...

Christopher,
I ain't mad at what's in the budget. Folks have to take care of their constituents. They have to do right by the folks they represent. It may seem like shit. but if that what it takes to ensure someone's vote then that's what has to be done.

Yes, perhaps you feel the focus should be what's best for the country overall...I agree, But I do know that America is made up of states that have different needs. Needs that may seem petty and small depending on where you are in the country. I am not trying to make excuses. Just trying to shed some ligh on how decisons are made...based on who support what based on their States' needs.

Ok I am sounding too much like a dreaded politician...LOL! aaargh!

Dope Fiend said...

Ignorance and freedom is incompatible

That my friend, is quote of the week! Its so painfully true, that even those who think they're educated enough to make an educated decision...are not educated enough, to make an educated enough decision.

Mes Deux Cents said...

Hi Torrance,

First Bush and Cheney convinced the American people, most of them anyway, to go to war in Iraq. Now as Bush's Presidency runs out they are about to scam the American people out of 700 billion dollars.

And everybody says Bush is an idiot. Well if Bush is an idiot, what does that make us?

Alyssa Jacob said...

Dig that. $700 billion is ridiculous. Whatever happened to pulling one's self up by the bootstraps--that is what we are always told. Wallstreet needs to get its life together with its virtual money. Though society is complicit in this as well, the means and motive were readily available.

Sista GP said...

I'm not an accountant
I'm not an economist

I've read some of the House's plan
I've got an analytical mind

I still do not understand how the gov't freeing mortgage-backed securities from the banking institutions will help our economy.

Free credit? free credit for whom?
those who may be able to purchase homes? It is hard to do when fuel costs increasing, food costs increasing, and taxes increasing, but incomes stagnant.

apparently it doesn't matter what I think.

Miriam said...

Poor taxpayers. It seems we REALLY don't have a voice. (short of riots and rebellious behaviors)

MP said...

this whole process is exhausting. I am so tired of listening to all of the people run their mouths and aint saying anything!

no_slappz said...

torrance, you wrote:

"no i am not, how could i be, im refering to them thats getting the 700 billion come now RIF"

But the people who took the mortgages and refused to repay them are the ones who are getting the $700 billion. The money is paying off their mortgages.

KELSO'S NUTS said...

No_slappz:

I know we have a difference of opinion on the management of the economy of the Republic Of Venezuela.

I don't want to discuss politics or theory with you. I want to enlist your help in something. I don't know what your job in finance is exactly but you live in NYC and work for an investment bank, I assume, so you might be the man to see on this.

There is a shortage of Bolivars and Bolivar paper. The real yield on government debt and senior corporate debt is sick. It's ~28%. Nobody is parting with the stuff. Venezuelans up here just bring USD to party with. The Bolivars and Bolivar instruments stay in their bank and brokerage accounts.

There's no way that any US banks are dealing in them in any size and the Panama and Venezuela blacklist makes it extremely difficult for on-shore institutions to deal in this stuff.

If your employer has any off-shore buy-side customers who'd be interesting in doing a synthetic cash-settlement USD-Bolivar total return swap, let me know. Simply put, I'm looking to lend Bolivars and finance it by borrowing USD and want to do it over a mutually-agreeable period with cash settlement in any commonly traded currency.

If they have on-shore affliate management companies who run them, they have to have opted for a Sarbanes-Oxley waiver, staying at a maximum of 99 LPs, ERISA waived, and limited to "qualified investors."

Again, I don't want to argue the merits of this or discuss the politics. I just want to lend Bolivars. If you can help me, I'd appreciate it.

Thanks.

Anonymous said...

I heard that the value of the dollar is no longer based on gold but on credit. I've yet to hear anyone really discuss this but it makes sense. I'm wondering what you think about this because it explains so much about why Americans are in debt up to their eyebrows and no one cares. It explains why this bail-out is so important because if our dollar is based on credit and there is none available the value of the dollar sinks.

I'll admit there's a lot I don't know, and a lot I don't follow. Sometimes it just makes my head hurt sifting through the crap and I tune out. I'm at a toss-up about what I feel about this bail-out. I think it's just wrong. If I wasn't between jobs and finding it has been difficult to get my foot back in somewhere I'd be looking differently at saying let it all fall. I think it's what we need, to fall and start over. But I'll admit, do I really want to do that? No. I'd rather take this solution and HOPE we get someone in office serious about trying to make a change.

Anonymous said...

Big Politics upset me. I am not a fan of Bush however I don't blame him for this. This is a problem, in my opinion that goes way beyond our current President. I can try to go back to 1980 but we'll start with the Clinton Administration when the subprime market opened right up. If i'm to point a finger at folks it would go in this order Clinton, Alan Greenspan, SEC, and the American people. Someone please correct me if i'm wrong...

Clinton comes along with a great idea to make America what it should be. The land of opporutnity, the place where EVERYONE can acheive the American dream - home ownership. Criteria...have documented taxable income. In National homeownership banks, backed by the revised CRA, will create products to ensure those who were cash poor could purchase a home. Perfect product ARMS,80/20s, interest only. It was addressed in 2004 an increase in subprime loans equalled an increase in delinquencies, foreclosures, and abusive lending practices. It was still ok...because 1980 Monetary Control Act made it ok. Lets not forget Clinton's signature to further deregulate the financial services industry.

The boom of the subprime market, lets say 1994, also boomed the secondary market for mortgage based securities. Interest rates rose, people began to default (around 2000) which disrupted the secondary market. Banks bought or were forced to buy banks.

Some point we experienced a real estate boom, increased prices however interest rates became low. Secondary market shrunk. It's just interesting to me to think if this was not the issue how many companies world wide were affected by this issue esp. when the rate of foreclosures were still relatively low when this started to fully unravel in 2007.

All this time Greenspan and the SEC just sat back and watched it happen. They neglected to stay independent and put their foot down.

The american people's crime is ignorance and being seduced by the "american dream."

Enron was criminal and this has been summed up to a need to change an Accounting practice, market to market. If that's the case, why is that going to cost us 700 billion dollars?

I don't know about you but im pissed! We've been set back yet again...I demand a reset.

maxxdog said...

One thing that bothers me is the guys advising Obama on the economy. They are the ones who scammed the system and cooked the books at Fannie and did more than their share to create this mess. They got caught and aren't in jail? They must have the goods on more than a couple dudes.
So Obama hires them?
Why does he have those thieves advising him? Something don't seem right about that.

All-Mi-T [Thought Crime] Rawdawgbuffalo said...

bookfraud
no matter what they do credit is basically not like it used to be and i se where u coming from

Jay Midnyte
yep, we are a nation of poorly infromed and read dumb fucks

Lena
make me sound like i need a collection plate

Melody.Darlene
she is just a cheer leader

blackgirlinmaine
the same thing if bail out dont work, socialism and martial law

The Urban Scientist
im down

Charece
and america help its self - the people

Keli
i just dont see this plan as a part of capitalism or working, and it aint well thought out and it willl cost more than a trillion

Rich
u still should never ever enough minds of this subject

msladydeborah
we gone be just like argintina but worse

Lovebabz
i am suggesting that and homas Jefferson asserted such first re: freedom

Christopher
porkfest and n o bar B Q

Curious
your last line is classic CURIOUS and Defazio's plan has been thought out well

Lovebabz
babz this is anti-state rights in general cant have both

Dope Fiend
thank u hon

Mes Deux Cents
how have u been stranger?

Alyssa Jacob
like enablers to a drug addict

sista gp
chk this - they dont even know how much they worth

Miriam
yep poor me

MP
so true


no_slappz
wrong. If that was the case then the banks would not still foreclose on the property. thyey get bailed out plus the loot from the foreclosed property. U talking about less than 8% of home owners. They getting bailed out even for thoes who pay their mortgages

KELSO'S NUTS
well stated

Tigress
yep can u say hyper inflation?

Anonymous
and what gets me is that they knew they didnt know the value of whjat they were mselling but fronted as if they did

maxxdog
yep his folk and mccains too- phil gramm

Anonymous said...

think it would proffer job creation at the grass root level for we know politicians will never be or desire to do any real labor like us common folk. Not to mention it would not take 700 billion if one spent the money on helping folks who own homes like me to keep them, and the steady stream of mortgage payments going to said banks.

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