How Paulson's Bailout will Screw Homeowners Even Worse Than Ever - and What You Should Do About It

Yesterday, I read an interesting blog post by the esteemed Robert Reich about the monumental, inflationary and thieving "bailout" they are foisting on the American taxpayer.

 

So if you are a member of Congress, you just might be in a position to demand from Wall Street certain conditions in return for the blank check.

My five nominees:

1. The government (i.e. taxpayers) gets an equity stake in every Wall Street financial company proportional to the amount of bad debt that company shoves onto the public. So when and if Wall Street shares rise, taxpayers are rewarded for accepting so much risk.

 

Look at the cigarette lawsuits. Now the government has a big financial stake in continuing to encourage smoking because the tobacco industry turns over so much dough to the government. The government is a silent partner of Big Tobacco. You want the government to be the silent partner of Big Wall Street?

If you give the government equity in these bogus outfits like Merrill, or AIG, or WaMu or Citi, the government will benefit from the continuing problem. I can't see an exit from socialized financing. The government will be locked into permenantly screweing the American public even worse than before.

Government running and controlling the boards of the banks and Wall Street companies, my gosh, what a disaster.

Next…

 

2. Wall Street executives and directors of Wall Street firms relinquish their current stock options and this year’s other forms of compensation, and agree to future compensation linked to a rolling five-year average of firm profitability. Why should taxpayers feather their already amply-feathered nests? [/quote]

 

Why indeed? Take out the companies to the back 40 and shoot them. End them. Why should any of these companies survive?

If the government has to buy their crap assets, then kill them afterwards (the companies not the execs).

These execs should not have any jobs at all on Wall Street except perhaps shining shoes. Let them start Internet Marketing businesses, or help people do loan modifications or 9 Day House Sales, or simply work as janitors or whatever they are competent at doing.

The middle class has been sinking in buying power in the US. The rich have been getting richer off their backs. Isn't it time to fire these Wall Street types if "we" are going to bail out their bonds?

 

3. All Wall Street executives immediately cease making campaign contributions to any candidate for public office in this election cycle or next, all Wall Street PACs be closed, and Wall Street lobbyists curtail their activities unless specifically asked for information by policymakers. Why should taxpayers finance Wall Street’s outsized political power – especially when that power is being exercised to get favorable terms from taxpayers?

 

 

Hey, that's a good idea, Mr. Reich!

 

4. Wall Street firms agree to comply with new regulations over disclosure, capital requirements, conflicts of interest, and market manipulation. The regulations will emerge in ninety days from a bi-partisan working group, to be convened immediately. After all, inadequate regulation and lack of oversight got us into this mess.

 

 

No that's a disaster. The regs will simply allow them to continue fleecing the public. Look at how the big drug companies rip off consumers. Does the FDA "protect" consumers? No, they simply help Big Pharma by locking out competing ideas and alternative health therapies.

It's time to NOT bail them out. Let them all go under. If necessary, buy their stupid bonds and mortgage securities and be done with it. Let their shareholders and executives sink to zero, where they belong. Sorry, if you own stock in these companies, shame on you. It's time these companies went out of business.

Let's get rid of the ability of the US to print money and give it to the banks. Abolish the abomination called the Federal Reserve. Allow anyone to issue money backed by gold, silver, Walmart gift certificates, whatever.

The government should not be allowed a monopoly on printing money. All they do with it is reward the Big Banksters anyway, to screw people out of their savings, make pensions worthless, penalize people who work for a living.

 

5. Wall Street agrees to give bankruptcy judges the authority to modify the terms of primary mortgages, so homeowners have a fighting chance to keep their homes. Why should distressed homeowners lose their homes when Wall Streeters receive taxpayer money that helps them keep their fancy ones?

 

Well, I don't agree with this either. Let free markets decide. If the lenders aren't backed by government money anymore, what will they do? I'll tell you. They'll lower your principal and let you sign a new note that reflects realistic market value.

The reason for the bankruptcy in the first place is that the lenders expect Washington to bail them out.

Since they know the Federal Reserve will print unlimited amounts of money and put it in the banks, the banks won't reason with homeowners. So they force homeowners into crazy things like bankruptcy.

Just stop bailing out the banks, and you'll see how quickly they want to make deals with homeowners.

So that's what I think about Robert Reich's ideas and of the bailout.

So what should you do now?

Sure, write your congressperson. Call him or her. Sure, all that.

But it won't do any good. This thing is being led by the Great Dictators of the United States of America, heading towards the brink just like they passed the Patriot Act to abridge our freedoms. In a few weeks this bailout will pass and then another and another.

Folks, this is exactly how the Great Depression started. It wasn't the crash in the stock market that caused it, but the bailout from Washington. First by Hoover, then by Roosevelt. If you think differently, why don't you study some real books about it instead of the socialist claptrap that we all "learned" in government run schools taught by government employees?

So anyhoo, what should you do?

Five Steps to Freedom

1. If you are not already self-employed, get into a part time business that can become full time for you. This is the most important step to independence you can take.
2. If you are self-employed in the real estate business, learn the 9 Day House Sale, learn how to do loan modifications for others, learn how to profit handsomely by solving people's problems. Their biggest problems are how much they owe, and many people are in houses they can never afford. Shouldn't have bought them in the first place. Help them adjust. Help them get out of debt. Help them get into something they can save money in and retire on.
3. If you are lacking the skills, get the courses and training you need to succeed.
4. If you have assets, make sure a healthy percentage of them are in safe places and I don't mean the stock market. I mean gold, silver, energy stocks. There are some interesting opportunities opening up in China and their stock market as it corrects and loses more of its value. Eventually it will hit a bottom and whenever you buy when everyone else has given up, in a market as exciting as China, your stock can make a fortune.
5. This Wall Street stuff means that there will be more inflation and more opportunity due to the falling market than ever before. Be a contrarian and be happy about it while everyone else is freaking out. So the fifth step to freedom is dare to be different. Dare to do the unusual thing. Don't be a sheep like everyone else.

Click here to get your 365 day trial of Mortgage Relief Formula

warmly, 

 

 

P.S. The opportunity here is to put the bad news to work for you. The news can motivate people around you to let you buy their house, or work out a loan mod for them. There has never been a better time to try out my material for a full 365 days. At the old price (at least as of the time of this writing…the price may have gone up when you read this.)

Click here to get your 365 day trial of Mortgage Relief Formula

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