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Politics : Liberalism: Do You Agree We've Had Enough of It? -- Ignore unavailable to you. Want to Upgrade?

To: TideGlider who wrote (60233)	2/27/2009 4:29:40 PM
From: kathtoo	Respond to of 224713

I believe he thought they were dangerous, and he appears to be right. Nobody understands where the bailout money for the banks has gone. I contend that it went into the derivative black hole. We are seeing a MASSIVE unwinding of some very bad positions and no one trusts the other party. Why? Because they know what a bunch of crap they designed in these phony instruments. They all know how crooked and phony it is. Now they've got to increase their capital to stay alive. Even if they wanted to lend, (which they don't), people are loaded with debt and don't want to borrow. The people that want to borrow, many of them have already borrowed way too much. This will be a long time where people reign in spending, reduce debt, and borrow less, all good things. Problem is, so many people are doing it at once, it is causing a collapse. Usually people do it to different degrees at different times. (Industry specific, or regional, or circumstance specific). But right now, EVERYONE, is pulling back on spending and trying to up their saving. Corporations are also doing this, laying off people by the millions, and so it goes. I believe Obama is trying to stem the tide. But I have my doubts about the ability for any of this to work. I think they are going to spend until the currency collapses and then go for money reset. In the meantime, they are buying time with these bailouts and laying down a social safety net of sorts. Just my opinion.