TeakDoor.com - The Thailand Forum - View Single Post - Good people of the USA- you are being Screwed.

sabang · 15-03-2008, 11:45 AM

You are good people. And you are being right, royally screwed by your government. It is not a government of the people, by the people, for the people. Not now. It is a government of the Rich, by the Rich, for the Rich. They stuff it up, you bail them out. To add insult to injury, you even pay more tax than them in the first place.

My first example (of several) is the current Federal reserve bailout, to help the distressed US financial system after the sub-Prime morgage collapse. The Federal Reserve has pumped hundreds of billions of dollars in liquidity into the system, bailed out several financial institutions to save them from collapsing, it has reduced interest rates to well below anything resembling market rates or the inflation rate. It is now lending money to financial institutions, at dirt cheap rates, and accepting sub prime debt as collateral. This has never happened before- do you think that sub Prime debt will all be paid back? Ha- the stuff can hardly be given away, no one wants it- except the Fed, which will lend you cheap money against this worthless collateral. If you are a bank that is- don't even bother trying if you are a citzen.

Your currency, in which you place so much faith, has tumbled enormously as a result of these actions, plus the reckless profligacy of your government. On an international scale, your net wealth has plumetted startlingly.

But anyway, you would naturally think that, with interest rates being at these record lows, the interest rates that the beleagured American working man is paying on his mortgage (quite probably a negative equity mortgage now too) would go down as well. This is standard lending practice, right?

Wrong, think again. MORTGAGE INTERST RATES HAVE GONE UP SINCE THE SUB PRIME COLLAPSE. Yes, you are paying more interest, for cheaper money. The bailout is for the banks and assorted Lenders only- you, Sucker, pay more.

How much more? Well, "The interest rate on a 30-year fixed-rate mortgage has climbed to 6.37% from 5.5% since January 24, according to the Mortgage Bankers Association, as financial institutions try to cover $US195 billion in mortgage-related losses and shore up capital for more."

Nice, hey. They stuff up, you pay more, and your tax dollars are also being used to bail them out.

Lets get this straight- the Fed is gambling with your money, your currency, your wealth, to try and bail out some Rich failures. It is printing money hand over fist, and basically giving it to a select few- which does not include yourself, Sucker.

Some excerpts from a Sydney Morning Herald article I read this morning, Linky below:-

Fed efforts failing

Ben S. Bernanke can't revive the US housing market and the banks aren't helping him.

The US Federal Reserve has cut interest rates five times, pumped $US200 billion ($213 billion) into the financial system this week, and on Friday its New York branch provided funds to help rescue Bear Stearns Cos.

''The mortgage rate isn't down as much as it should be because the banks are in desperate straits and they need to maintain a larger spread than they normally would,'' said Alan Nevin, chief economist with the California Building Industry Association in Sacramento. ''The banks need to generate income and the easiest way to do that is to broaden the spread. If they pay 3.5% and charge 6%, that's a lot of money.''

Over the past 10 years, the average spread between 10-year US Treasuries and 30-year fixed-rate mortgages has been 1.75%. Last week, the spread was 2.83%. That means a homeowner's mortgage costs today are more expensive than they have been in the past.

... The Fed this week agreed to make $US200 billion available to securities firms by lending Treasuries in exchange for mortgage- backed securities because many private investors have quit buying mortgage-backed bonds. Record home foreclosures sent premiums on Fannie Mae and Freddie Mac-backed securities to the highest in 22 years this month.

Full article- Fed efforts failing | smh.com.au

I suggest you read it. I also suggest that, at ground level, you start working on ways to take your country back. The classic Democratic, Free Enterprise model is that the Capitalist takes the risk, not yourself. Thats how they get rich. Since when, if they stuffed it up, was it the working mans job to bail them out? Absurd.

15-03-2008, 11:45 AM	#1 (permalink)
sabang Watching the Wheels Last Online: Today 01:37 PM Join Date: Feb 2006 Location: east of Pattaya Posts: 9,056	Good people of the USA- you are being Screwed. You are good people. And you are being right, royally screwed by your government. It is not a government of the people, by the people, for the people. Not now. It is a government of the Rich, by the Rich, for the Rich. They stuff it up, you bail them out. To add insult to injury, you even pay more tax than them in the first place. My first example (of several) is the current Federal reserve bailout, to help the distressed US financial system after the sub-Prime morgage collapse. The Federal Reserve has pumped hundreds of billions of dollars in liquidity into the system, bailed out several financial institutions to save them from collapsing, it has reduced interest rates to well below anything resembling market rates or the inflation rate. It is now lending money to financial institutions, at dirt cheap rates, and accepting sub prime debt as collateral. This has never happened before- do you think that sub Prime debt will all be paid back? Ha- the stuff can hardly be given away, no one wants it- except the Fed, which will lend you cheap money against this worthless collateral. If you are a bank that is- don't even bother trying if you are a citzen. Your currency, in which you place so much faith, has tumbled enormously as a result of these actions, plus the reckless profligacy of your government. On an international scale, your net wealth has plumetted startlingly. But anyway, you would naturally think that, with interest rates being at these record lows, the interest rates that the beleagured American working man is paying on his mortgage (quite probably a negative equity mortgage now too) would go down as well. This is standard lending practice, right? Wrong, think again. MORTGAGE INTERST RATES HAVE GONE UP SINCE THE SUB PRIME COLLAPSE. Yes, you are paying more interest, for cheaper money. The bailout is for the banks and assorted Lenders only- you, Sucker, pay more. How much more? Well, "The interest rate on a 30-year fixed-rate mortgage has climbed to 6.37% from 5.5% since January 24, according to the Mortgage Bankers Association, as financial institutions try to cover $US195 billion in mortgage-related losses and shore up capital for more." Nice, hey. They stuff up, you pay more, and your tax dollars are also being used to bail them out. Lets get this straight- the Fed is gambling with your money, your currency, your wealth, to try and bail out some Rich failures. It is printing money hand over fist, and basically giving it to a select few- which does not include yourself, Sucker. Some excerpts from a Sydney Morning Herald article I read this morning, Linky below:- Fed efforts failing Ben S. Bernanke can't revive the US housing market and the banks aren't helping him. The US Federal Reserve has cut interest rates five times, pumped $US200 billion ($213 billion) into the financial system this week, and on Friday its New York branch provided funds to help rescue Bear Stearns Cos. ''The mortgage rate isn't down as much as it should be because the banks are in desperate straits and they need to maintain a larger spread than they normally would,'' said Alan Nevin, chief economist with the California Building Industry Association in Sacramento. ''The banks need to generate income and the easiest way to do that is to broaden the spread. If they pay 3.5% and charge 6%, that's a lot of money.'' Over the past 10 years, the average spread between 10-year US Treasuries and 30-year fixed-rate mortgages has been 1.75%. Last week, the spread was 2.83%. That means a homeowner's mortgage costs today are more expensive than they have been in the past. ... The Fed this week agreed to make $US200 billion available to securities firms by lending Treasuries in exchange for mortgage- backed securities because many private investors have quit buying mortgage-backed bonds. Record home foreclosures sent premiums on Fannie Mae and Freddie Mac-backed securities to the highest in 22 years this month. Full article- Fed efforts failing \| smh.com.au I suggest you read it. I also suggest that, at ground level, you start working on ways to take your country back. The classic Democratic, Free Enterprise model is that the Capitalist takes the risk, not yourself. Thats how they get rich. Since when, if they stuffed it up, was it the working mans job to bail them out? Absurd. __________________ To err is human. To blame someone else is politics.