Is anybody against the $85 billion government bailout plan for AIG?
Well let me put it to you another way. If the government really wants to get the economy back to rockin' and rolling they could invest it into every American who is 18 and older which is approximately 200,000,000 people. Now divide $85 billion dollars by 200 "milli" people and we will all receive a check for $425,000. Yep!!!
Now we know that it would be taxed at an assumed rate of 30% which means you'll pay $127,500 in taxes to go back to Uncle Sam which totals 25.5 billion back into the budget. We on the other hand, have a remainder of $297,500 in our pockets.
Now they want to do another rescue worth 700 billion for Wall St. Please do you know how much we can be earning instead of playing with the US Congress?
And remember, this plan only really costs $59.5 billion because $25.5 billion is returned instantly in taxes to Uncle Sam. Good idea? Is anyone opposed?
stats were borrowed from a random chain email
Tuesday, September 30, 2008
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124 comments:
(sound of crickets chirping....)
Right, that means you've stumbled across a topic where intelligence is preferred. As for now you should visit a site that requires gold teeth and an 8th grade diploma to participate.
those crickets would be the same sound heard when you have sex...
we can smell you imitation Chanel, a mile away...
As far as the stimulus is concerend that would be a WONDERFUL idea, I mean what did they think that $300-$600 was gonna do, to stimulate the economy, that aint even rent payments and if people are behind in their debts, you helping them pay ONE bill will not suffice!! Maybe we should get this to Obama!!
8th grade diploma is a stretch brad..
The first comment of the day? WOW thanks for the support Bobby Valentino!! LOL
I agree with the pay out to all Americans. This way we can pull out of the foreclosure crisis because everyone will be able to pay off their debts or at least regaim leverage.
Anon can stop eating ball sandwichs to pay her sect 8 rent now. Queue the crickets on that and that imposter frangrance.
Like I mentioned before, your comments are optional not an obligation. You and the crickets are still loyal supporters. Thanks!!!
Maybe we should use W's(George)Bush's earnings from the past 8yrs to bail out the economy since he single handily ran that mofo to the ground he should be the one to fix it hell!
agreed DWB!!!
or maybe his future earnings can be sanctioned since he will be doing the same amount o work for the presidency after his term as he was before!!
Did you guys here that the Republicans are trying to get foreclosed home lists to make sure no one is voiting form those addresses?
How would that work for renters whose homes are on that list? They shouldn't be penalized because their landlord was negligent.
What!!!!!!!!????????!!!!!!!!!! You know the republicans always keep a jack up their sleeve first it was the female vp and now this. There is no low they will stoop to steal this election we can't let this happen!
Well truth be told we all know that the economy is really not in a crisis (rich are still getting richer right?) It is however widening that gap where the middle class will be no longer. I say let the people have the funds as well but not as a long term fix, just as an emergency fund. This would prevent a surge in crime and poverty.
425 k. Man imma take pay my bills and take off work for 10 yrs. Shit I only make 30 thousand now. I r=will be str8.
Yeah DWB I don't think they will be able to pull that off this late in the election, there are too many stipulations to that.
For instance my landlord is a prime exmaple, the City has now seized my house that I was renting and had the election been TODAY, because I a m moving ina week would that suggest that I couldn't ote?
I never heard all this fuss before why now? I tell you "DEM PEOPLE" is scared as hell right about now!!
Yeah Fly, they will never let that happen. It will be too much leverage for the low man on the totem pole. Although they will pimp the shit out of their new car and wardrobe. It'll be short lived but glorious.
I on the other hand would be debt free, hit up a few countries and start my business.
@DEmo4 life that money won't last as long as you think it would. The more money you have the more you spend.
I'll enjoy watching it go to waste and at the end of the day I'll say you cant miss shit you aint never had. Ha Ha!
can I ask you a question Bobby Valentino, why don't you have an opinion about the TOPIC!!!
Those opinions are the ones we welcome, if you don't like the topic why not just click off the page, you said cue the crickets now they are here cricketing, our team of exterminators have arrived and now they are dead, now we are cueing the violins so that you may rest well...
Just like stores say "No Shoes, No Shirt, No Service"
Talking Chit says "No Reponse, No Respect, No rememberance"
LOL @ demo4life!
so Firefly what would you do with your cut? Airforce?
As for me, I would start my own business and make sure I have an adequate, not fancy, office for it. Pay of fmy bills, and cnotribute to some type of charity.
Not only does that spin teh Karmic wheels in your favor but it may actually help someone. If neither happens at least its a tax write off...
Well Bush has a lot to do with mess, but he cannot shoulder all the blame. The republican party can. They are very anti-regulation for the free markets, which now they have reversed their stance on. If the government gave each citizen cash from the bailout, it would do nothing to strengthen the banks which is the back bone of our economy. We all helped create this situation with that 5 letter word. Credit. If they do not give money to the banks, then business would not be able to borrow short term loans to pay the middle man's salary in some cases. This mess has it's origin in (and nobody wants to admit it) is the middle man. The forclosures started because realtors were deceptive, and in ways we helped them be deceptive by "knowing a guy who will appraise a house for higher than it's worth, or falsifying documents to be eligible for loans we couldn't afford." This started because the american people as well as the american government are just simply living beyond our means with Credit.
Oooh that's what I'm talking about A1, starting a business and traveling the world! Those are definitely 2 things I would love to do. I also would like to start some sort of school for adults who maybe have gotten off on the wrong track in life maybe previously incarcerated, or abused drugs or just didn't have a chance because they either didn't have parents or no one to support them in life. I see too many of us walking around lost, unloved and uncouth!
The actual cause of the mortgage crisis is not really the people who live in the homes it's the x-drug dealer thugs who now hustle real estate meaning: They have a home appraised for 2x's it worth obtain a loan purchase the home pull out all the equity and let the home go into foreclosure leaving the bank with a huge debt and worthless property! It's funny wall street is crashing eerrrrrrday but Bentley coupes are flooding the hood!
All bullshit aside I will be or putting down a healthy down payment on the SLR Mercedes Mclaren....LOL!!! Im still a nigga.
@down with bush
I think i mentioned the deceptive tactics used, but we have a hand in it. I have a friend that lost his condo because he asked his boss to put 10,000 in his account to show the lender he had money in the bank, that was his fault. This problem is also not limited to the hood, and i doubt drug dealers are downtown selling real estate.
but guess what, there are just as many rentors Warren as there are owners if not more so, we had nothing to do with the mess realtors and the middle man created yet, we still share the same burn from it....
I have two credit cards and one of them is secured! I don't fall into that category of helping the elephant get fatter. Credit used by the middle man has little if nothing to do with rising costs of gas.
Say for instance you are a drug supplier and you sell drugs to a community. You are the main supplier, so basically you have formed a monopoly. Then the community revolts and threatens to blow up your factory. So in turn you tell the community "I don't need this you do" and blow it up yourself, collect insurance and then regroup, recop and resell at a higher price as punishment. That is in a sense what happened with Sadaam Hussein and his oil tankers/refineries.
Had Bush not tried to carry on his father's dreams then maybe this wouldn't have happend. My mastercard had little to do with that, nor did it have anything to do with the message recorded from Bin Laden stating that "I have nothing against the American People as a whole my main objective is to ruin their economy."
With that said, was American Express to blame then?
No honey the Jews have been doing this for a years. The thing is the hood got in and got too greedy. If fifty people do it, it's cool but when 50 million try it can tank. Hence what Warren Buffet is talkign about.
Well airforce 1 if the government gave all that money to the consumer, you would have to get it fast, and pay for it in cash, because no banks are really lending money as of now. And that is also dependent on Mercedes having enough capital to pay its workers to make the cars.
@ Warren not they are in the hood! all the foreclosed boarded up buildings in your neighborhood that are a real eye sore that's lil ray ray doings!
LOL! Think long term A1, long term (I can't talk that Bugatti Veyron is on my "wish" list) Use that Mercedes as a "business" car for your new start up that way you can claim those deeeductibles...;0
Well BP08, the rise of gas prices was initiated with "consumers increasing our use of oil daily. Also Brazil, China, and India, have double the people than we do, but those people are moving from rural areas, and are getting cars, and cell phones, which all require more energy. Iraq IS NOT our major source of oil, Saudi Arabia and Venusuela has more oil. But to the american express payment. I bought a car, my engine was bigger, oil went up, more for gas, charged the gas, maybe short one month, bill payed late, late charges, over the limit fees, added, can't make full payments,and pay everything else, amex doesn't get money, see how that works. It's very admirable that you are able to keep your spending within your means, but you are 1 and there are 299 million more americans who may not be as careful as you. I know how we as african americans like to think everything is a conspiracy, but somtimes it is what it is.
Negative DWB
Lil Ray Ray can't even sway himself to vote, much less ruin the economy, again when rich people start losing homes then the economy is in crisis. If Hollywood can pay Wil Smith $2.5 million every other year, then we should be able to keep our finances as well...
Yeah I just heard that the city of Chicago will be giving a lot of people pink slips real soon!
Well down with Bush,
I don't deny that some hoods have dabbled in Real Estate, but the hood aint the only section in the city that has empty houses, they just don't make them such an eyesore in other neighborhoods.
But trust Ray Ray contribution is a min'ute to the over all housing debacle, if you note your crime statistics, the hoods main focus always has been Drug sales.
I personally think most of us live well beyond our means thus credit card debt. Some of us choose to live life good now, rather than save for that rainy day or make sure our children's children have a good financial start in life. In retrospect because of this the stimulus money may not be a good idea for those who don't know how (or just won't) use their money wisely - they will end up in the same predicament.
Right Firefly,
and the governement borrowed the money to give every american a stimulus package.
wouldn't Sadaam Hussein be in direct correlation with Saudi Arabia?
Besides India produces their own oil. As a good portion of our business have been outsourced there, Have you called Sprint Customer Service lately, T-Mobile, of course they can move from rural areas. As a matter of fact, I run a department of our company that has outsourced there!! I can send you pics, India is not as rural as you may think. With OUR MONEY they better be able to move into industrial districts!!
The American Government borrowed millions from China, its not conspiracy, its fact, I know how us a black people like to think things are a consipiracy, but I also know how we as a people like to settle for what media (white man) tells us as well....
I really don't havr time to think about my childrens future. Have you seen how some kids turn out....LOL! I wish I would sacrifice my Mercedes Mclaren to save for ShaCadilacmo (my child) only to have her grow up to be a) on drugs or b) a highschool dropout with no chance at life or c) taking care of some nickel slick pimp who is financing his life off her. Life is short and I'm on;y going to visit Earth once. Orloff Mercedes, here I come...LMAO!
Where exactly is this buffet you speak of Warren. Is it at Old Country?
(sound of crickets chirping....)
anon u r a loser!(anon1)
That's why you have co- beneficiary's and authority to only release the funds when you deem they are mature and responsible enough to have it in their possession. I wish my parents and grandparents had been thinking like that maybe I wouldn't have to use my funds I worked my whole life to obtain and maintain to take care of them! Now the smart thing to do for some of you who can do it is make sure to have life insurance policies on any family members who wouldn't otherwise be able to afford it!
I hear ya af1 I would hate to save all that money for kee-lo-lo (my daughter) and she grew up to be a loser I'm gonna be pretty pissed off my self lol!
That's fine to just as soon as I get the keys the rest of the funds will be allocated accordingly. I'm tired of working to make sure that I've secured myself for everyone else's fuck ups. If you aint got no insurace, whatever teh county morgue has lined up for you then so be it. We'll just have a cake and punch memorial. Hell Uncle Willie Joe knew he was going to die one day. If he didn't prepare, why should I.
You know you guys could have a hand in how your kids turn out.. I'm not sure but them being your kids could possibly make you their PARENTS right?!
Yeah but despite your best efforts they can still go south and I'll be standing there like "Where did I go wrong with you kee-lo-lo it must be your daddy side" Cuz we love to blame all the bad genes on the daddy side lol!
Okay, that's true but what about that one child and we all know him, who had everyting, came from a loving home, hell we even wished we could trade our parents for theirs. But for some reason this kid became the ultimate adult fuck up. It happens.
sure you fucking wannabees, blame it on the hood. Like they were ever able to make a difference with anything...
Ginx @ Af1
okay but to worry about something that CAN happen as opposed to making sure it doesn't is insanity...
Sure things can go south, how bout you keep yo legs closed since you feel that all kids are hellbound anyways. Good thing our parents didn't feel that way as some of us might not be here..
Sure AF! that one child is a fuck up, but why does that child have to be YOUR child, let it be someone else because again YOU as the parent would have the MOST say so over what your child turns out to be...
Well BP08
I also know how much you like to be right, so for your pleasure there is a tool called Google where you can check your ratios of rural india and industilized India.
The united states also produces it's own oil, Alaska, gulf coast. but theres a little thing called supply and demand. The entire world buys oil from the middle est. and to answer your question, no Sadaam Hussein has nothing to do with Saudi Arabia, he was over Iraq, two different countries.
Who is that with the bad case of Tourettes. Honey, please take your meds fucking jiggaboo!!!
Well bp08 I am keep my legs closed for the sake of finding someone that can counter my bad genes lol! So the kid can at least have fighting chance!
let us not forgot the magic of the gene pool, judging by some of you guys comments it might be best if you didn't procreate and repopulate the world. Even the hidden ignorances of man are still passed through the genetic code.
Cliffnotes version, even if you are triflin but pretend not to be that triflin gene will still be passed to lil Shabomboo, and while you are showering her with gucci and prada, you have just demonstrated the mantra of "all dollars and no sense..."
BP this is conversation on a blog. If I get the 425k then yes I can bet your bottom dollar I will go and get a fucking Aston Martin. Believe that. As long as my kid has a 529k plan and my business takes off, shorty will be all right. I am not about to invest 425in no child.
That's all BP08 they can do to MAKE SURE that kids won't come out as f-ups as they say is to not have any.
Warren, since you're back would you liek to adress the buffet question...LMAO!
If anyone would like to check my facts, or double check what the white media tells them, there is another tool called the freedom of information act. Each agency must relay all information. Does the government have secretly funded things, yes, do thy tell us everything, hell no, but since we are all so skeptical my advice would be to take time out and find out instead of assuming.
yeah, says the perfect invisible person. Free yourself and then try it again. You just make sure you don't replicate. It's enough all talks no shows in the world.
Warren are you really a man because I may need to borrow some of your genes lol!
I like to be a puppet master much more than I like to be right, so to string you along and bring your true identity to light was the main focus. Being smart and saavy trumps my need to be right, I think you would have me confused with self, those who aren't usually right much, or heard much usually have to take credit for each single victory. So you win Senator...
I think you may beed to check your own resources the US tankers arent producing as much as they used to be just liek every other natural resource that has been used up, what would be the need to buy outside oil if the Alaskan, (Texan as well) and gulf coast were enough. Thanks for the google tutorial now lets work on your common sense tools..
You smart bitches kill me, the smiple things slip right under the radar..
Now that my work here is done, we can move to the other business...
Speaking of Gucci and Prada, why does the lil kid at my son's school be donned in Prada shoes with the latest and the greatest fashions? Now we all know that lil Trey don't know nothing about what Gucci and Prada is and it's obvious that momma want her child to be fly - ain't nothing wrong with wanting your kid to have nice things but what's also obvious is that he's going to a public school...I'm just saying!
In the words of Ke Ke "Nucca...NNNNUuuuCCA"
I know what this is AF1, I believe I was a small part of its inception..
Im just saying, just because something can happen doesn't mean it will. Why not just try for the best..
Hell I'd be going to get what I wanted too!! Its hard to speak to people about family values, with the growing number of suffering family units (hell mine included) in todays society...
lol @ firefly!
So I have a question, and please all you corporate down your nose bussso fab, but you gotta be reduced to buss windows at night types please don't get at me..
At one point wasn't the US trying to run Sadaam out of Saudia Arabia? Ill be the first to admit that I know nothing about that junk!! LOL
But I do know that I'm too fly to have to buss a nigga window out because he rejected me...
Sorry I'm just saying...HEY AF1, H2O and Firefly...
Now here's the killer part...Lil Trey gonna grow up feeling like he got to keep up with his lil puffy fly status cause now he known as the "fly" kid with all the designer gear. His esteem starts to grow on his sleeves - literally and grows up with a bunch of credit card debt- fly as hell though but in debt and thus the cycle continues (hopefully this is not the case).
@ Firefly yeah sometimes black people as a whole are soooo used to not having anything that the second they get a little piece of something they run out and put the world on the same track as what warren spoke of...
You can always tell "new money" those are the people who have to work their financial situations into every conversation they have. But when you come from money its normal for you, and you have no need to confess how much you are worth, class knows class, just like real recognizes real...
I have never heard truer words H20!
Miranda glad you could pull yourself from the welfare office to particiapte in todays conversation...
I have alot of new money friends so I have learned alot no kids....
What I am gonna try to teach my kid is that material things fade beauty will fade but the true love for your self should never fade!
BP08
My identity was is not a secret.
I think i said we don't produce enough oil, that's why we rely on other areas, court reporter please.
But before you go getting offended about us "smart bitches", everyone has their area of expertise, this however is not one of yours. But to show you your ineptness about the use of using google here are the figures.
Supply Related
U.S. Crude Oil Production 5,064,000 barrels/day
U.S. Crude Oil Imports 10,031,000 barrels/day
U.S. Petroleum Product Imports 3,437,000 barrels/day
U.S. Net Petroleum Imports 12,036,000 barrels/day
Dependence on Net Petroleum Imports 58.2%
Top U.S. Crude Oil Supplier Canada - 1,888,000 barrels/day
Top U.S. Total Petroleum Supplier Canada - 2,455,000 barrels/day
U.S. Crude Oil Imports from OPEC 5,980,000 barrels/day
U.S. Petroleum Product Imports from OPEC 592,000 barrels/day
State Ranking of Crude Oil Production Texas - 1,087,000 barrels/day
Top U.S. Producing Companies (2006) BP - 586,000 barrels/day
Top U.S. Oil Fields by Production (2006) Prudhoe Bay, AK
Top Oil Producing Countries & Exporters #1 - Saudi Arabia (10,665 bbls/day in 2006)
Top Oil Consuming Countries & Importers #1 - United States (20,680 bbls/day)
Now most people would be grateful for the information and counted as one of your past topics of what i learned today, but you "arrogant" no it all bitches, seen to not to give anyone else their just deserts, so when i want to know about outsourcing in India, i'll happily come and ask you with a humble heart, but i'm cool on world economics. Don't get mad and frustrated at the smart bitches, GET INFORMED.
I'm not sure Miranda either - we can dig deep to find out as much info about what we want to find out as much as possible but unless you work closely with Bush, the Administration, CIA etc. we as commoners will never know the "real" deal for sure.
yes bp08 and I wanted to tell you that they called your number right before mine and I started to go into the bathroom stall and get you, but that smell of brillo pad and burnt metal ran me up outta there....
that would have been the smell of that special astringent the janitors had to use to scrap that stain off of the toilet after you left....
not mad or frustrated just picked another puppet string to pull...
youre so easy....
I think Miranda was instructed not to address me until she could name the last four presidents. yesterdays convo was the past, i left you in it. How can you say you can let go of your men and move on, and you can't move on from a convo yesterday from me, whom you've never met. Don't answer. I don't care.
@ Firefly yes we will know the truth, Warren Buffet seems to know everything except for how to remove emotion from a logical conversation...
Bp08 didn't seem mad to me, are you mad about something Warren? You know on Fridays you could hash that out with Professor Grey, he's really good!!
warren? Wait, We have never spoke have we, my argument yesterday was with someone by the name of Uncomfortable Kim, was that you? so now today you are a man who knows world affairs and yesterday you were a ghetto bitch slashing tires?
No wonder you're so upset. I get it now, you're mad because you pacifier wasn't name brand?
Oh BP08,
God Bless you, you never fail to live up to your old ways.
and so it begins, Miranda Please that was yesterdays argument, and just because you have on the same outfit doesn't mean its the same day...
back up off Mr Buffet he is very informative and if you would just listen to some real news as opposed to what happened on 106 & Park you might learn something!!
Go on Warren continue.. JEEESUS!
you either warren, hence last weekend
Can't we all just get along!
Bp08 u are a man!(gasp)
....aka Miss new money if I get that $425k will still be at the Mercedes dealer. Y'all can talk dat chit while I'm at the currency exchange cashingmy check...LOL!
Hey Miss. Hobbs
Brillo Pad. Y'all gonna get me fired up in here. LMMFAO!!!!
I'm wish ya af1 if I get 425K I'm buy the biggest dumbest diamond earring I can fit on my ears lol!
That is so funny because you do be wanting to go and get somebody form the bathroom to tell them it's they turn but then you be like shit maybe I'll just get done sooner if they don;t come out.
Special astringent used by the janitor. Y'all killing me.
Sorry that should have been I'm witcha Af1 if I get 425k I'm a buy the biggest dumbest diamond earrings i can fit in my ears!
I with you too diamond studds. My neck, wrist are going to be frost bit minus 10degrees// about as blue as the sea//the way I maneuver the V. LOL!!!
Ok jay hova!!!!!!!!!!!! lol!!!!! It would be fun to be hood rich it stead of being my usual responsible self lol!
Right...If I get 425k I am going to jagg at least 150 of it on straight bullshit once I leave the currency exchange...LOL!
if you can get past the fact that you are the first person to walk upright in your family ANON then Im sure nothing surprises you...
NO it's not like that I just thought that all this time you surly were a woman I apologize for my ignorance!
Yeah I'm gonna have to blow some of it on chit I really want and not need and plan for the future hog wash! All my money can't be spent responsible I gots to live a lil!
Nice try WB but no good!
Are you referring to that mouth rash that you spoke of yesterday Anon #0?
Why yes I am. I tried some WB cream and it made the blisters swell more. Thanks for your concern. Does anyone else know a down home remedy.
you know with every negative commenter we lose we seem to gain another one...
faggot games? Come on man.. why?
Name Calling, the weapon of the commoner..
It would seem we take 2steps forward and then 1 giant step back!
Honestly guys sometimes I don't post anything because I have noticed how people get insulted for their beliefs no matter how silly they may seem. My nephew is one of the creators of this blog, HEY NEPHEW, and I visit from time to time just to see what is going on in the world of the bloggers.
I must say that I have been appalled on more than one occassion at how quickly people deem someone as an idiot. If I'm not mistaken this is a blog site, jammed with ideals and opinions not CNN.
That's just my opinion and I'm sure If I have been run off others have as well. Now please don't insult me, because anyone who knows me knows that I don't have anything to prove to anyone.
I like the comment about "New Money" H2O you couldn't be more true....
Preach chile!
Hey Auntie light skins!! I cannot believe you honored that name!! LMAO!!!!
That pic of baby light skin in those shoes was very pretty!! Tell her I said to watch it!!!!
Hi Auntie light skin... Your daughter socked it to 'em in her prom dress.
Although we do welcome all comments especially those of people with differences because it makes for a good debate, we have taken a more proactive approach to immediately deleting those who come to the room with nonsense.
For example, within 5 minutes of me posting today's topic someone joined with a very negative comment. This further shows that black people are quick to knock a person when they are trying.
Unfortunately, no blog is exempt from comments from buffoons, we try to keep it people friendly.
To those with negativity flowing through you veins we would rather not have you sign in. Im interested in the quality of our topic opposed to the number of comments.
Have a great day.
Are you guys gonna do grinding my gears this week at all? Cuz I had some hellified gears I wanted to grind! LOL
I hope so Dad, I got alot in my diapers as well!!
well said AF1, very well said
I dont know if we should grind gears again because we want people to view us as a welcoming site not as a bunch of angry people which makes them not want to participate. Authors..what do you think?
AH c'mon you gotta do grinding my gears lol!
Im interested in knowimg how many people feel the same way as Auntie Ligth Skin?
Are you reading along but indifferent about commenting. We'd like to know whose out there.
Remember, we can't resolve a problem unless we know a problem exists.
Thanks in advance for your cooperation!!!
well I am not sure that would be feasible considering some of us are friends and if you don't have the balls to say something about your friend to his face then you aren't really a friend.
I made the mistake of doing that in the last GMG session but I learned from my mistakes and won't be doing that again.
Besides that, we seem to grind gears at the end of each topic, we get like 6 good topic related commments and then its WWIII.
But the Blog awards will be presented on Friday. So All you ANON's will have to share the award presented, since we don't know how to acknowledge you....
oh except for one of the anonymous' we KNOW who you are..
you may as well have kept your name....
I mean wouldn't say that h20 but it does really help you get stuff off your chest! (I mean non friend related topics)like frustrations you feel with work or just in life in general! I think it's great!
Lets Go White Sox!!!!!
AF1 I went to bible study last Wednesday and they let Walter Owens(Music Director) Wife her preach and she started off with I'm from Indiana and all I could think was "Hoosier"! LOL!
Girl I saw Terry light skinned good hair having but up there talkign about her struggles as a black woman in America.
Let me loan her my brown skin and kinky hair she gonna think we's back in slavery.
This is a letter to Congress from a Finance Professor:
Dear Senator,
The U.S. banks have accumulated $55 trillion in derivatives. The global banking system has about $217 trillion of such ticking financial bombs waiting to explode. New credit in U.S. during last year alone was about $2.5 trillion. Obviously the U.S. assets could not have risen in value by more than $2.5 trillion after September 2001. It cost the U.S. taxpayers $300 billion to bail out failing banks in late 1980's. How much will it cost this time? A trillion plus?
Regulators have argued for continuing bank regulation because deposits need to be guaranteed by the government to preclude a rare catastrophe of banking panics and simultaneous withdrawals of deposits. They remind taxpayers about banking panics causing huge systemic losses to the economy. But, can't the government create enough "safe banks" that invest only in government securities to let panic-prone depositors save their live savings and leave the rest of the banks as unregulated universal investment banks?
Safe banking will not only obviate government guarantee of bank deposits, but also eliminate the elaborate and costly bank regulation. It will also eliminate the banking moral hazard that may potentially cost taxpayers a trillion dollars when the current financial jugglery unravels. [Please see the following paper "Safe Banking" forthcoming in a journal.]
Is the current bank regulatory regime continuing due to vested interests of government regulators? We have to wait for the next catastrophe in bank failures to get an answer.
With best regards,
Professor Sankar Acharya
Departments of Finance, M/C 168
University of Illinois at Chicago
Lmmfao! the message was really good but I just kept hearing HOOSIER echoing in my mind while she was talking!
Thank you L Boogie for that prediction.
As your professor predicted we are experiencing the bank failures and the answers are being served to all Tax Payers.
The money changers I got to go!
That should be have got to go!
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