Why the Bailout Isn't Working ...

[floridasandy]

Originally Posted by jd678

Shouldn't loan money you can't afford to lose.

But you should if you are going to make millions off of it and stiff a third party with the loss.

and whose fault was it that they made millions off of it and stiffed the taxpayers. we are back to bipartisan blame again, republican president and democratic congress.

[gwynedd1]

Originally Posted by bls5555

People thought this, or did certain people in Govt. think this? Go back do some research on who thought it was a right. News Flash: It takes two to tango (as the saying goes). Placing blame on 1 group is ridiculous.

Hello bls5555,

You do not seem to grasp the fundamental concept of the public trust. If I am the chief psychiatrist at a facility for the criminally insane and I let them break into a grocery store for a mid night snack is it all their faults?
If I let a 12 year old drive my car and he takes a few people out on the sidewalk do I say he drove not me?
What are we paying these people for? I am not the door man so I may not be held responsible for the door. Those people who were signing a mortgage were not being paid to do so. Is a botched surgery both people's fault? Many ordinary people have no idea what they can afford or anything on how a mortgage works but they are not compensated professionals. When someone goes to a bank to exchange a promise to pay for newly printed money(banks do not loan money people) do I print up new money on the promise of a monkey?

[gwynedd1]

Originally Posted by floridasandy

and whose fault was it that they made millions off of it and stiffed the taxpayers. we are back to bipartisan blame again, republican president and democratic congress.

Hello floridasandy,

Absolutely. We are now and have been for some time under a Bolshevik regime. We select from candidates both of whom receive campaign contributions from those who continually scam not only the American tax payers but the rest of the world. American banks only recently trashed Argentina.

Argentinians know the game now. Lend money to the wealthy class in control of the country who will enrich themselves on it. Loans are no questions asked. Obviously its hard to repay a loan that has much of the principle stolen. After the default the World bank demands a structural adjustment and devalued the currency and then open the garage sale on the national assets.

Here we see the desperate carnage:
Despair in Once-Proud Argentina (washingtonpost.com)

. In search of someone to blame, Argentines have attacked the homes of local politicians and foreign banks.

Wine Lovers Buy Mini-Vineyards in Argentina - WSJ.com

The foothills south of Mendoza in Argentina have long been known as the agricultural heart that produces the country's increasingly popular signature wine, malbec. For the past three years it has also been where Americans, Canadians and Europeans looking to fulfill winemaker fantasies have taken advantage of Argentina's relatively low land prices and bought mini-vineyards.

Here is an article completely oblivious to the reality. Native Argentinians have had there land stolen from them by an international wealthy class. It should also be obvious they live in several places around the world and have no national loyalties.

They lose their national assets every time.

Initially, Rodolfo Gonzalez was one of the lucky ones. An engineer for the state power company, he survived the early rounds of layoffs in the early 1990s when the company was sold to a Spanish utility giant. His luck changed when the company forced him out in a round of early retirements in 2000.

Here again the stealing began "to save the banks". There was no problem until the banks came . Its always the same.

Most banks here are subsidiaries of major U.S. and European financial giants that arrived with promises of providing stability and safety to the local banking system. But many Argentines who did not get their money out in time -- more than 7 million, mostly middle-class depositors, did not -- faced a bitter reality: Their life savings in those institutions, despite names such as Citibank and BankBoston, were practically wiped out.
Virtually all had kept their savings in U.S. dollar-denominated accounts. But when the government devalued the peso, it gave troubled banks the right to convert those dollar deposits into pesos. So the Gonzalez family's $42,000 nest egg, now converted into pesos, is worth less than $11,600

[coolbananas]

Excellent post! You're obviously well informed and capable of rational thought. Can't say the same for some of the few one-liner responses you got.

Not sure if it was mentioned already, but the fact that the banks were forced - by law - to make risky loans should also be brought to light for the less informed. Banks and investors aren't stupid. They wouldn't make loans to people that can't pay them unless they were forced. Which they were! Thanks to the Community Reinvestment Act!! Google it.

The free market works because people get exactly what they put in. It's when you turn to socialism (i.e. CRA) that the system can't sustain itself anymore. You can't have just a few working and all of us taking. I'm sick and tired of listening to people blaming this on the free market. People, it was the free market that provides you the opportunity to improve your life and your family's, not socialism. I moved away from a socialist country to find opportunity, and now the US is going the same way. Crap!!