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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: GST who wrote (19172)	3/26/2009 9:35:21 PM
From: niceguy767	11 Recommendations Read Replies (2) \| Respond to of 71479

Yes indeed! Main Street is the primary baghoder in this mammoth bailout, just as they have been the ultimate bagholder for the past 10 years as bank executives have sucked their institutions dry via huge salaries and gargantuan bonuses over the decade on the basis of phantom profits enabled by booking overstated assets and understated liabilities. Think about it for a moment! AIG and GS executives have stripped their companies over the past decade, via humongous salaries and gargantuan bonuses leaving only toxic assets in their time of need...and now these pikers devoid of any worthwhile assets want Main street to pony up so that their personal income streams can continue uninterrupted! Disgraceful and contemptible in the highest degree methinks! Despicable even...and yet government deems the bailout of these pikers as worthy! The picture couldn't be any clearer! Main Street is getting hosed bigtime!

To: GST who wrote (19172)	3/26/2009 10:04:12 PM
From: Slumdog	Respond to of 71479

Message 25526235

To: GST who wrote (19172)	3/26/2009 10:08:26 PM
From: axial	Read Replies (1) \| Respond to of 71479

"the voters are not the ones benefitting from propping up 'the system' as you put it." Where did I say that? I never said they were "benefiting"; never said they were "propping up" anything. There's no point in discussion without honesty. Jim.

To: GST who wrote (19172)	3/26/2009 10:41:51 PM
From: Slumdog	Read Replies (1) \| Respond to of 71479

Bankruptcy is Economic Stimulus Rep. Ron Paul Texas Straight Talk Mar 27, 2009 The distraction on Capitol Hill this week has to do with the jackpot bonuses that executives at AIG recently received. The argument is over a relative drop in the bucket. The total amount of bonuses given out was $165 million. The government has put $170 billion into AIG so far. Many now are demanding we get this money back. We ought to be spending our time and effort doing something more worthwhile, like figuring out how the Federal Reserve is handling the trillions of dollars they are creating and pumping into the economy, and how that is affecting the purchasing power of dollars in your pocket. The big mistake was appropriating the TARP funds in the first place. A Johnny-come-lately bill of attainder won't stop the spending epidemic. This whole situation is a perfect demonstration of why "doing nothing" and letting failing companies fail would have been much better than sinking valuable money and resources into them. When a company makes a profit, it is a signal that it is taking resources and increasing their value while controlling costs. When a company operates at a loss, it is a signal that it is decreasing the value of its resources or letting out-of-control costs outstrip any value it has created. A company operating at a loss is therefore an engine of wealth destruction. Bankruptcies are a net positive for the economy because more productive competitors are rewarded by opportunities to buy up remaining assets at bargain prices to strengthen their operations. In an economy that allows this kind of growth and change, any jobs lost by bankruptcy are soon replaced by new ones as the most efficiently managed businesses gain access to more assets and expand. Bankruptcy was the stimulus that we needed in the case of AIG. More bankruptcies would clean out malinvested resources and enable economic growth again. AIG, by losing money and maneuvering their operations to the brink of bankruptcy, was telling us that they were inefficient. So what did we do? We forced the taxpayer to assume the losses, and now we are supposed to be shocked that it is not working out. Had AIG gone bankrupt, it would have been impossible to hand out these bonuses. The taxpayer would have been fleeced for $170 billion less last year. Had they gone bankrupt, the world would not have come to an end, it would just continue on with one less engine of wealth destruction. We should have learned from Japan. The 1990's is referred to as Japan's "lost decade" because of the zombie banks kept on life support by the Japanese government. Any productivity was redirected through these engines of wealth destruction, resulting in long term stagnation. We should and can avoid this outcome if we come to our senses. A recession should be a time of strengthening and regrouping for an economy. But as long as the government insists on maintaining the status quo by propping up failed institutions, we will continue to dig a bigger hole for ourselves. 321gold.com