Socialism for the Rich

mimo2005 · 03-12-2008, 04:38 PM

The Federal Reserve announced on Wednesday a rescue package that it would put around $200 billion into banks and investment houses and allow them to put up risky home-loan packages as collateral.
Jim Rogers, CEO of Rogers Holdings, told CNBC Europe:"The Fed's move to accept risky collateral is not part of the central bank's business"

If you bail out every investment bank that gets in trouble, that's not capitalism, that's socialism for the rich

http://www.cnbc.com/id/23588079/site/14081545

RedScott · 03-14-2008, 10:31 AM

Ron Paul.

RedScott · 03-14-2008, 10:35 AM

http://news.yahoo.com/s/ap/20080314/...e/bear_stearns

Quote:

NEW YORK - Bear Stearns Cos., one of Wall Street's venerable investment banks, received a bailout Friday by the federal government and JPMorgan Chase & Co. in a surprise, last-ditch effort to save the 86-year old institution.

The Federal Reserve responded swiftly to pleas from Bear Stearns that its coffers had "significantly deteriorated" within a 24-hour period. Central bankers backed an arrangement to bolster the company, and stood ready to provide extra resources to combat a credit crisis that now threatens one of America's biggest financial institutions.

Bear Stearns, the nation's fifth-largest investment bank, made its fortune dealing in opaque mortgage-backed securities — a strategy that might be its undoing amid the worst housing slump in a quarter century. The bank has racked up $2.75 billion in write-downs since last year, and faced a possible collapse without some kind of lifeline.

Bear Stearns lost half of its value within 30 minutes of the market open, before clawing back a bit to be down 41 percent, or $23.51, at $33.49 by midday. The news rattled investors, pushing the Dow Jones industrial average down about 150 points.

JPMorgan Chase, the nation's third-largest bank, agreed to pump more money into Bear Stearns to keep it in business, but did not divulge how much it was spending. Top executives from both companies were in talks, and were even considering the outright sale of Bear Stearns to JPMorgan, according to a person familiar with the talks who was not authorized to speak on the record.

Bear Stearns said in a statement that it is working with JPMorgan Chase to find permanent strategic alternatives to alleviate their cash problems.

JPMorgan Chase — which has been hurt far less by the mortgage morass than other investment banks — is providing secured funding to Bear Stearns for 28 days, backstopped by the Federal Reserve Bank of New York. Bear Stearns and the Fed approached JPMorgan Chase about the financing and a potential deal, according to the person familiar with the talks.

Rumors have persisted throughout the week that Bear Stearns was facing major cash flow problems, but the investment bank's chief executive initially denied those rumors.

"Bear Stearns has been the subject of a multitude of market rumors regarding our liquidity," the bank's president and chief executive, Alan Schwartz, said in a statement Friday. "Amidst this market chatter, our liquidity position in the last 24 hours had significantly deteriorated."

In a memo sent to employees, Schwartz said the temporary financing would allow the company to "get back to business as usual."

The company has struggled since the middle of last year because of the fallout in the mortgage and credit markets. Last summer, two hedge funds worth billions of dollars managed by Bear Stearns collapsed because of bad bets on securities backed by subprime mortgages — loans given to customers with poor credit history.

JPMorgan Chase said the financing would not expose its company to any material risk, though its shares dropped 1.4 percent, or 53 cents to $37.58.

Abolish the Fed.

mimo2005 · 03-14-2008, 12:54 PM

Today , the market crashed again . I hope we reached the bottom , because this can't continue like this.

**Drew1369** · 03-14-2008, 09:55 PM

Quote:

Originally Posted by RedScott

http://news.yahoo.com/s/ap/20080314/...e/bear_stearns

Abolish the Fed.

Thats the only way... that... and go back to the gold standard

**sobeit** · 03-15-2008, 01:39 AM

what gold?

mimo2005 · 03-17-2008, 12:12 AM

Asian market crashed ,

European Market is crashing right now .

Expect a market roller coaster this week .

bry623 · 03-17-2008, 11:45 AM

Currently it is even. If you have stocks and don't expect ups and downs, then you're naive.

**Wozer** · 03-17-2008, 03:38 PM

Quote:

Originally Posted by bry623

Currently it is even. If you have stocks and don't expect ups and downs, then you're naive.

man...talk about sweeping it under the rug....

what's going to happen when the fed has dropped their rates to 0% and can go no lower to try and prop up the economy????

mimo2005 · 03-17-2008, 06:07 PM

Quote:

Originally Posted by bry623

Currently it is even. If you have stocks and don't expect ups and downs, then you're naive.

The Yahoo message board for Bear Stearns went absolutely beyond language after the news of the $2.00 buy-out.

Plenty of the pleading:

-I'm ruined, what am I going to do

-Please help, is this real...?

-I just lost everything.

-My entire 401K is in Bear stock...!

-A COUNTRY FULL OF BORN AGAIN DUMBA$$E$

-I'M HOLDING 3000 SHARES @55.00
SOME ONE HELP!

http://messages.finance.yahoo.com/mb/BSC

And some truly scary:

"I swear before God that I will hunt down Jim Cramer !!!

Here is what Cramer said the other day:

Quote:

Q: Should I be worred about BSC, in terms of liquidity, and get my money out of there?

JJC: No, no, no! BSC is fine! Do not take your money out... If there's one takeaway on a plus-400 day... BSC is not in trouble. I mean, if anything, they're more likely to be taken over. Don't move your money from BSC! That's just being silly! Don't be silly!

**Chode** · 03-17-2008, 09:08 PM

I think this is a hard issue to be objective about. On the one hand, with the economy almost certainly on a downward spiral, I'm not sure that the Fed didn't do this out of what I might euphemistically call "a sense of urgency" to help stabilize the financial system. Or, if you're not into euphemisms, "panic" might be the operative word here.

In any event, I really don't find this to be a good decision on at least a couple of points. First, the Fed guaranteed JP Morgan that they would not lose money on the buyout, and that ultimately means our tax dollars at work. Secondly, it isn't clear that the buyout benefited Bear Stearns stockholders. This story suggests that they might have been better off if the company were liquidated. In this context, I really have to wonder that so many so-called analysts were surprised at Bear Stearns liquidity problems. Let's set the Wayback Machine for June 12, 2007.

Finally, I'm not sure that the Fed's action did much to ease fears about the financial market. I mean, if you have stock in an investment bank, don't you really feel as though you may the the last (hopefully) uninfected person in the middle of a cholera epidemic?

But, I don't mean to sound too glum. So for a moment of comedy relief check out Bear Stearns homepage.

mimo2005 · 03-18-2008, 02:51 PM

Quote:

Originally Posted by bry623

Currently it is even. If you have stocks and don't expect ups and downs, then you're naive.

No, no , no .....Actually the country is being sold for cheap to rich sovereign wealth funds ,they are keaping us afloat , they are buying our banks , they are buying everything.
Yes , the economy will be saved , thanks to china , the arabs , and Europe who are investing hard right now to save wallstreet and the banks.

Funny thing ,my friend , you were warned a while ago !
Video :
8/28/2006 : Early warning on US economic bust

Quote:

Sovereign wealth funds entered the public spotlight after investing more than $30 billion since last fall in financial services firms such as Citigroup Inc., Merrill Lynch & Co. Inc. and Morgan Stanley.

Norway, Russia and several Middle Eastern countries use sovereign funds to reinvest their burgeoning oil revenues, while Asian countries such as China and Singapore use them to reinvest trade surpluses.

While banks welcomed the cash, some U.S. politicians and government regulators are worried the sovereign funds will invest for political, rather than economic, reasons, such as to relocate U.S. production to their home countries.

Now ,they will tell you what to do......hehehehe I hope you understand economy , because Bush and your friend MCcsin said they were just simple people , they have no clues.

**Wozer** · 03-18-2008, 06:25 PM

doesn't simple = retarded??? roflmao

bry623 · 03-19-2008, 06:49 AM

Diversify people, take the risks and reap the rewards, but don't cry and blame the president when you take a hit.

**EnglishPaul** · 03-19-2008, 04:09 PM

So is there an analogy going on here? Bear Stearns got itself into a bad situation, hoped that things wouldn't get worse, but they did. Then got bought out for a stupidly low price by a competitor.
America got itself into a bad situation, hoped that things wouldn't get worse...
...China, Russia and Arab lands are busy buying out.

This isn't socialism for the rich, it is grabbing buckets on the titanic because you are running low on lifeboats.

One day America will wake up, and discover it has new landlords.

mimo2005 · 03-19-2008, 04:22 PM

Quote:

Originally Posted by EnglishPaul

Bear Stearns got itself into a bad situation, hoped that things wouldn't get worse, but they did. Then got bought out .

JP morgan bought it for a couple hundred millions ,and the feds will give 30 billions to jp morgan to offset Bears debt.
So at the end ,it is the american tax payer who will pay the bill ,for this acquisition.

Conclusion :
Privatize the gains, socialize the losses.
The New Improved American Capitalism.

Quote:

JPMorgan Chase & Co (JPM.N) said on Sunday it would buy troubled rival Bear Stearns (BSC.N) for about $2 a share in an all-stock deal, and that the Federal Reserve would fund up to $30 billion of Bear Stearns' less liquid assets.

**EnglishPaul** · 03-19-2008, 04:33 PM

I must have missed the fed's involvement on the UK news reports. At least with our Northern Rock bank collapse, we have nationalised both gains and losses.

03-12-2008, 04:38 PM	#1 (permalink)
mimo2005 Manager, The Relaxation Room/Analyst, Security Team Join Date: Oct 2004 Posts: 10,389 OS: xp	Socialism for the Rich The Federal Reserve announced on Wednesday a rescue package that it would put around $200 billion into banks and investment houses and allow them to put up risky home-loan packages as collateral. Jim Rogers, CEO of Rogers Holdings, told CNBC Europe:"The Fed's move to accept risky collateral is not part of the central bank's business" If you bail out every investment bank that gets in trouble, that's not capitalism, that's socialism for the rich http://www.cnbc.com/id/23588079/site/14081545 __________________ TSF has outgrown its server, again. Please help "Gutta cavat lapidem, non vi sed saepe cadendo"

03-14-2008, 10:31 AM	#2 (permalink)
RedScott Registered User Join Date: May 2007 Posts: 269 OS: Windows XP	Re: Socialism for the Rich Ron Paul.

03-14-2008, 12:54 PM	#4 (permalink)
mimo2005 Manager, The Relaxation Room/Analyst, Security Team Join Date: Oct 2004 Posts: 10,389 OS: xp	Re: Socialism for the Rich Today , the market crashed again . I hope we reached the bottom , because this can't continue like this. __________________ TSF has outgrown its server, again. Please help "Gutta cavat lapidem, non vi sed saepe cadendo"

03-15-2008, 01:39 AM	#6 (permalink)
sobeit Mentor Join Date: Nov 2007 Location: NEAR Posts: 3,761 OS: windows/linux	Re: Socialism for the Rich what gold? __________________ Do not feed the trolls.

03-17-2008, 12:12 AM	#7 (permalink)
mimo2005 Manager, The Relaxation Room/Analyst, Security Team Join Date: Oct 2004 Posts: 10,389 OS: xp	Re: Socialism for the Rich Asian market crashed , European Market is crashing right now . Expect a market roller coaster this week . __________________ TSF has outgrown its server, again. Please help "Gutta cavat lapidem, non vi sed saepe cadendo"

03-17-2008, 11:45 AM	#8 (permalink)
bry623 Manager, The Conversation Pit/Analyst, Security Team Join Date: Apr 2002 Location: NW Territory circa 1787 Posts: 10,377 OS: winxp pro sp2	Re: Socialism for the Rich Currently it is even. If you have stocks and don't expect ups and downs, then you're naive. __________________ Scarlet and Gray in L.A. 9/13/08

03-17-2008, 09:08 PM	#11 (permalink)
Chode TSF Enthusiast Join Date: Sep 2006 Posts: 670 OS: Windows XP Pro	Re: Socialism for the Rich I think this is a hard issue to be objective about. On the one hand, with the economy almost certainly on a downward spiral, I'm not sure that the Fed didn't do this out of what I might euphemistically call "a sense of urgency" to help stabilize the financial system. Or, if you're not into euphemisms, "panic" might be the operative word here. In any event, I really don't find this to be a good decision on at least a couple of points. First, the Fed guaranteed JP Morgan that they would not lose money on the buyout, and that ultimately means our tax dollars at work. Secondly, it isn't clear that the buyout benefited Bear Stearns stockholders. This story suggests that they might have been better off if the company were liquidated. In this context, I really have to wonder that so many so-called analysts were surprised at Bear Stearns liquidity problems. Let's set the Wayback Machine for June 12, 2007. Finally, I'm not sure that the Fed's action did much to ease fears about the financial market. I mean, if you have stock in an investment bank, don't you really feel as though you may the the last (hopefully) uninfected person in the middle of a cholera epidemic? But, I don't mean to sound too glum. So for a moment of comedy relief check out Bear Stearns homepage. __________________ Sweet!

03-18-2008, 06:25 PM	#13 (permalink)
Wozer TSF Enthusiast Join Date: Oct 2004 Posts: 973 OS: 2kpro/XP pro/MCE	Re: Socialism for the Rich doesn't simple = retarded??? roflmao __________________ Beware of the big 3 insurance companies in Texas! Read your policies carefully (maybe you'll need a lawyer) and enjoy the 6% increase in your rates you are about to receive from Allstate, Farmers & State Farm for most likely reduced coverage

03-19-2008, 06:49 AM	#14 (permalink)
bry623 Manager, The Conversation Pit/Analyst, Security Team Join Date: Apr 2002 Location: NW Territory circa 1787 Posts: 10,377 OS: winxp pro sp2	Re: Socialism for the Rich Diversify people, take the risks and reap the rewards, but don't cry and blame the president when you take a hit. __________________ Scarlet and Gray in L.A. 9/13/08

03-19-2008, 04:09 PM	#15 (permalink)
EnglishPaul Still no avatar Join Date: Sep 2007 Location: Sheffield Posts: 880 OS: XP SP2	Re: Socialism for the Rich So is there an analogy going on here? Bear Stearns got itself into a bad situation, hoped that things wouldn't get worse, but they did. Then got bought out for a stupidly low price by a competitor. America got itself into a bad situation, hoped that things wouldn't get worse... ...China, Russia and Arab lands are busy buying out. This isn't socialism for the rich, it is grabbing buckets on the titanic because you are running low on lifeboats. One day America will wake up, and discover it has new landlords.

03-19-2008, 04:33 PM	#17 (permalink)
EnglishPaul Still no avatar Join Date: Sep 2007 Location: Sheffield Posts: 880 OS: XP SP2	Re: Socialism for the Rich I must have missed the fed's involvement on the UK news reports. At least with our Northern Rock bank collapse, we have nationalised both gains and losses.