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Politics : Politics for Pros- moderated
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To: LindyBill who wrote (269628)9/21/2008 11:17:35 AM
From: ManyMoose  Read Replies (1) of 793592
 
I wish somebody would put this bailout in terms that the average person could understand.

Something like (and please correct any mistakes in logic or factual errors resulting from my ignorance):

1. Interest rates go down in order to stimulate economy.
2. Fat cats realize they can make more money by marketing loans to people they know will ultimately be unable to pay.
3. Fat cats sell their junk to other fat cats before that happens, and make a ton of money for their company.
4. Fat cats on both sides get a huge bonus and a golden parachute.
5. Oil goes up beyond what businesses can operate profitably.
6. Businesses go bankrupt, lay off employees with loans they can't pay for and were stretched on from the beginning.
7. Laid off employees start defaulting on their loans that they should not have gotten in the first place. The value of their houses drops below what they owe on them.
8. Fat cats that bought the loans from other fat cats start calling in notes and get a lot of assets that they can't easily unload for cash.
9. Second bunch of Fat Cats start yowling and going into bankruptcy themselves.
10. Fat Cats yowling attracts attention of government.
11. Government bails out Fat Cats because they are the framework for the financial system in this country even though they are essentially crooks.
12. Tax payers take over all these assets that can't easily be unloaded.
13. What then????????????????

Who takes the hit for this debacle besides the tax payers?????

What do the taxpayers do with all these illiquid assets?????

Why do the fat cats not take the heat for all this??????

Why don't they have to give back their golden parachutes and their bonuses????????

Why does our educational system not prepare people to do their own thinkin? Thinking of the type I did when I could have got a 5.75% ARM on my small second mortgage instead of the 7% Fixed Rate that I paid while the unwary were refinancing to buy their RVs and lattes at the lower rate????
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