Governmental Bailout for Corporate America
Labor day has come and gone. The new day’s dawn brings further evidence of the reasons why Corporate America should not be allowed to lobby your government. With Mexican truck scheduled to start rolling on US highways without any type of control or regulation the FED is talking about saving the Financial Institutions from paying the price of their greedy ways. Obviously the wolf in sheep’s clothing is that we must save American Home Ownership. The truth is that you will work an extra hour a day, every day, to subsidize the US financial institutions.
The first move is the made at the Federal Banking Window. Since the private equity deals have priced their paper under their risk level, the banks intend to finance these deals and then sell the paper to the Federal Reserve, obviously after they take their fees. The private equity groups will then break the companies up, fire as many employees as possible, remove pension funds and then take the companies public again.
The second move by your government is to lower the FED Funds rate. It is thought that this will stimulate the movement of money. While it will most likely encourage further financial deals that would not have a place in the real world the true problem is that Reaganomics has assaulted the core fabric of the Middle Class. By artificially inflating the financial sector the FED will, in fact, create further inflationary pressures. This is accompanied by increasing unemployment forecasted by most economists putting further pressure on wages. Inflationary pressures by excess liquidity, falling wages, increasing unemployment and rising taxes to pay for the Financial Institution’s bailout are the recipe for stagflation that can then become a depression. Sadly economic cycles balance themselves over time. It has taken us 30 years to arrive at this point. It is reasonable to assume that it will result in a 30 year depression to eliminate the excesses.
The optimists ask “how can you get up in the morning with this view on life?” Somehow they believe that hiding your head in the sand will make the problem go away. I believe that if WE THE PEOPLE take back our government and eliminate the collusion between corrupt politicians and greedy CEOs with their $100 million salaries, we can mitigate the difficulties. Yes the price will be paid. There is no way to get around it. Sooner or later we must suffer the consequences of our decisions. The sooner we acknowledge the problems and take serious action to renew this great country, the lower the price. This is our country, comprised of WE THE PEOPLE. It is not the corporation’s personal bank. This country does not belong to illegal immigrants. This country is not a province of Mexico. It is our heritage, we must fight for it if we want to keep it.
Tags: Government Politics Recession Corporate America Finance Illegal Immigration Economy Reaganomics
The first move is the made at the Federal Banking Window. Since the private equity deals have priced their paper under their risk level, the banks intend to finance these deals and then sell the paper to the Federal Reserve, obviously after they take their fees. The private equity groups will then break the companies up, fire as many employees as possible, remove pension funds and then take the companies public again.
The second move by your government is to lower the FED Funds rate. It is thought that this will stimulate the movement of money. While it will most likely encourage further financial deals that would not have a place in the real world the true problem is that Reaganomics has assaulted the core fabric of the Middle Class. By artificially inflating the financial sector the FED will, in fact, create further inflationary pressures. This is accompanied by increasing unemployment forecasted by most economists putting further pressure on wages. Inflationary pressures by excess liquidity, falling wages, increasing unemployment and rising taxes to pay for the Financial Institution’s bailout are the recipe for stagflation that can then become a depression. Sadly economic cycles balance themselves over time. It has taken us 30 years to arrive at this point. It is reasonable to assume that it will result in a 30 year depression to eliminate the excesses.
The optimists ask “how can you get up in the morning with this view on life?” Somehow they believe that hiding your head in the sand will make the problem go away. I believe that if WE THE PEOPLE take back our government and eliminate the collusion between corrupt politicians and greedy CEOs with their $100 million salaries, we can mitigate the difficulties. Yes the price will be paid. There is no way to get around it. Sooner or later we must suffer the consequences of our decisions. The sooner we acknowledge the problems and take serious action to renew this great country, the lower the price. This is our country, comprised of WE THE PEOPLE. It is not the corporation’s personal bank. This country does not belong to illegal immigrants. This country is not a province of Mexico. It is our heritage, we must fight for it if we want to keep it.
Tags: Government Politics Recession Corporate America Finance Illegal Immigration Economy Reaganomics
Labels: Class Warfare, Corruption, Financial Institutions, Lying Politicians, Reaganomics, US Poverty
posted by Small Business USA at 10:09 AM
2 Comments:
Unfortunately the concepts of money supply and stagflation are beyond the grasp of ordinary people, the people who can and should vote.
Lexcen Astute observation however people do know that their salaries are under downward pressure and goods cost more.
I hope that they will translate this to "there is a problem" and start looking for answers.
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