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Old 08-18-2009, 02:55 PM
 
Location: Sierra Vista, AZ
17,066 posts, read 22,298,137 times
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because the Private Sector has taken control of the Government

http://www.wickedsunshine.com/WagePeace/Consumerism/Images/AmericanFlag-Adbusters-BigCorporateFlag.gif (broken link)

Flag of the NeoCONfederacy
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Old 08-18-2009, 03:45 PM
 
12,869 posts, read 13,776,509 times
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what we are seeing now is collusion between the government and big banks, with the taxpayer put at risk!

Big banks have been exploiting this fear as they wring favorable deals out of Washington. Bank of America obtained its second bailout package (in January) after warning the government that it might not be able to go through with the acquisition of Merrill Lynch, a prospect that Treasury did not want to consider.

The challenges the United States faces are familiar territory to the people at the IMF. If you hid the name of the country and just showed them the numbers, there is no doubt what old IMF hands would say: nationalize troubled banks and break them up as necessary.

In some ways, of course, the government has already taken control of the banking system. It has essentially guaranteed the liabilities of the biggest banks, and it is their only plausible source of capital today. Meanwhile, the Federal Reserve has taken on a major role in providing credit to the economy—the function that the private banking sector is supposed to be performing, but isn’t. Yet there are limits to what the Fed can do on its own; consumers and businesses are still dependent on banks that lack the balance sheets and the incentives to make the loans the economy needs, and the government has no real control over who runs the banks, or over what they do.

At the root of the banks’ problems are the large losses they have undoubtedly taken on their securities and loan portfolios. But they don’t want to recognize the full extent of their losses, because that would likely expose them as insolvent. So they talk down the problem, and ask for handouts that aren’t enough to make them healthy (again, they can’t reveal the size of the handouts that would be necessary for that), but are enough to keep them upright a little longer. This behavior is corrosive: unhealthy banks either don’t lend (hoarding money to shore up reserves) or they make desperate gambles on high-risk loans and investments that could pay off big, but probably won’t pay off at all. In either case, the economy suffers further. (simon johnson, MIT)
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Old 08-18-2009, 04:21 PM
 
12,869 posts, read 13,776,509 times
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Quote:
Originally Posted by floridasandy View Post
i suggest americans do the things suggested on this site with the contact numbers provided, which i have done. if there is enough volume from constituents, the representatives may realize that they need to act, or risk losing the next election~!
Campaign For Liberty

americans in both parties want the federal reserve audited to find out what happened to their money!
another point to add:

the banks that took the bailout lent LESS money:
http://www.reuters.com/article/ousiv...5504QV20090601
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Old 08-24-2009, 11:16 AM
 
1 posts, read 1,371 times
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I find it extremely alarming or the recent shut-down of Taylor Bean and Whitaker and Colonial Bancgroup by the Feds. These are two among the largest residential mortgage companies in America and the American Press is completely ignorant of the closing down of these banks by the feds. Taylor Bean was one of the few mortgage companies that chose not to receive funding from the bailout. Does Anyone find this news as scary as I do?
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Old 08-24-2009, 12:34 PM
 
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it is interesting that several things happened with colonial bancgroup. first, that maxine waters intervened to get them bailout funds and the relationship that she (as well as her husband) had with the bank was not disclosed. second, that the FDIC now likely plans to put the bank in receivership. taylor bean was in negotiations to keep colonial afloat and when the agreement fell apart taylor was shut down and barred from making FHA loans, and now they have filed for bankruptcy.

Last edited by floridasandy; 08-24-2009 at 12:47 PM..
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Old 08-25-2009, 05:36 AM
 
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i see that obama is reappointing bernanke. this confirms my suspicion that the government is trying to push the private sector with currency manipulation. bernanke has done significant damage to both our dollar and our economy long term.

by increasing the number of dollars in circulation, the government can also reduce the value of a dollar in terms of goods and services, which is equivalent to raising the prices in dollars of those goods and services.

Last edited by floridasandy; 08-25-2009 at 05:47 AM..
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Old 08-25-2009, 09:39 AM
 
Location: Londonderry, NH
41,478 posts, read 54,656,113 times
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The government is taking over parts of the private sector because the private sector wanted the government to do so. The capitalists are dumping their losing bets on the government to avoid being responsible for the losses. This way the government prevents the entire privately owned financial sector from disappearing. It might have been better to let them fail then to have saved them. Markets work better when the losers really lose.
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Old 08-25-2009, 10:00 AM
 
Location: Wherabouts Unknown!
7,809 posts, read 17,671,004 times
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Yeah, the so-called Capitalists are closet Socialists...but only to cover the losses that resulted from their stupid gambles. Their motto is: Privatize the profits and socialize the losses.
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Old 08-25-2009, 10:02 AM
 
12,869 posts, read 13,776,509 times
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Quote:
Originally Posted by GregW View Post
The government is taking over parts of the private sector because the private sector wanted the government to do so. The capitalists are dumping their losing bets on the government to avoid being responsible for the losses. This way the government prevents the entire privately owned financial sector from disappearing. It might have been better to let them fail then to have saved them. Markets work better when the losers really lose.
whose fault is it that the government bailed them out? the government, of course! the entire private sector would not have disappeared. if anything, it would have been stronger because they would not be hiding their toxic assets like they are now. the government did not get rid of these toxic assets at all! that is why i state that the government is in collusion with big business now. look at the government health care / big pharma deal.
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Old 08-25-2009, 10:06 AM
 
Location: Wherabouts Unknown!
7,809 posts, read 17,671,004 times
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The government is an employee of big business!
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