Cheap shot with lots of ellipses
The cheap shot first:
The enemy of America … is a radical network of terrorists … Their leaders are self-appointed … These terrorists … disrupt and end a way of life. With every atrocity, they hope that America grows fearful.
We’re not deceived by their pretenses [sic] to piety. We have seen their kind before … And they will follow that path all the way to where it ends in history’s unmarked grave of discarded lies.
Transcript of President Bush’s address to a joint session of Congress on Thursday night, September 20, 2001
All they have is the capacity and the willingness to … create chaos for the cameras. They’re trying to shake our will … This is an enemy without conscience, and they cannot be appeased.
President Bush’s Speech on the War on Terrorism delivered at the U.S. Naval Academy in Annapolis, 2005
So, if terrorists are people nobody elected who are trying to take away the hopes, freedoms and livelihoods of millions of Americans, and end a way of life …
And the current financial crisis is headed by people nobody elected who are adversely affecting the hopes, freedoms and livelihoods of millions of Americans, and brutally ending a way of life …
That was too easy. Now, for the more serious stuff.
So far, the most favoured bailout plan has the “golden handshake” for banking executives reduced. Now really, what does that do? When you’re talking about a bailout of a MINIMUM of US700 billion (nobody knows exactly how much the Fed will require, although knowledgeable estimates put it more at US1.2 trillion), will US36 million here or there really matter? And, as I mentioned in my previous blog, I’m positive there’ll be loopholes which will enable those executives to take that money away in other instruments (shares, for example, or some other kind of options; deferred quasi-pension payments; post-employment “consultation” fees; etc.), so it’ll stop exactly diddley-squat.
The other thing that nobody seems to be talking about is that, while MBS (mortgage-backed securities) are being traded at pennies on the dollar (one dollar face value, but sold at, say, seven cents, which appears to be market value for quite a few of them), the Fed will be paying full face value for the toxic MBSs. How does that make sense?
Thirdly, well, let Sen. Kent Conrad (Dem, North Dakota) say something first:
“It’s not just going to be Wall Street. The chairman of the Federal Reserve has told us if the credit lockup continues, three million to four million Americans will lose their jobs in the next six months.”
And nobody asks, HOW? You see, even if the toxic MBSs are bought up, the bad mortgages, and their consequences, still remain. The Fed hasn’t really done anything for “Main Street” at all because homeowners and business owners are still going to be stuck with their debt. The only winners from this are the people who have managed to offload bad debt at original face value. That is, the finance industry. And they also happen to be the ones (still) holding the title deeds. So, they make full-whack off the Fed by offloading stuff that should never have been bundled and sold in the first place and, as icing on the cake, they also demand either (a) mortgage payments from property owners for their loans or, if the person can’t pay, they (b) sell off the property, pocket the proceeds and then essentially claim the losses as offsets on their next tax return. Win, win, win, win.
Meanwhile, the average American loses three ways: their home, their taxes to pay thieves, and the economic downturn yet to come. It’s a case of all those “free market” fowl coming home to roost.
UPDATE: Seems I was wrong about that US1.2 trillion figure:
“The $700 billion is really nothing,” Mark Faber, managing director of Marc Faber Ltd. (Hong Kong) said in a television interview. “The Treasury is just giving out this figure when the end figure may be $5 trillion.”
Paulson really did pull the 700 billion figure out of his ass.
