Learning from the 2008 crash, and the panic mode of the regulators in extending bailouts, the regulators have begun the bailouts before the current crash is official. By allowing people who cannot afford cars the opportunity to do so Detroit is being bailed out yet again.
If the economy was in recovery they would not be doing this.
Now as Tyler Durden notes:
And think of the "stock buyback" programs that are making the market rise astronomically. The banks lend credit (nothing) to corporations who buy their stock back with the credit, juicing the stock price as your pension piles into to bid up the price of what shares have not been bought back. Insiders clean up both in the corp and the banks. Who cares what happens tomorrow, fees and bonuses are booked today.
When the next crash comes, your pension money is gone, and the bank that lent literally no thing, no property, nothing, to the corporation, is "owed" the millions it can no longer pay back, the credit borrowed to buy back the stock. So as an investor of your hard earned cash into that corporation you get nothing, as a lender of absolutely nothing the bank now owns the corporation to which it lent literally nothing. This is capitalism, something young men are sent off to die for.
Are you depending on paycheck, portfolio, pension or property to get you through in the coming years? Then you are toast.
On the other hand, there is no end to the opportunity to get a business going. Hedge your bets. Get a business going.
Feel free to forward this by email to three of your friends.
If the economy was in recovery they would not be doing this.
Now as Tyler Durden notes:
We’ll close with this, because nothing spells trouble like the idea that if you have the cash, you should take out a loan with a rapidly amoritizing asset as collateral in order to invest in stocks or, in other words, it’s a good idea to pledge a devaluing asset to buy an overvalued asset..Well, that was exactly the right move for the previous 45 years, and it is a disastrous move from here on out for the next 45 years? Durden says so.
And think of the "stock buyback" programs that are making the market rise astronomically. The banks lend credit (nothing) to corporations who buy their stock back with the credit, juicing the stock price as your pension piles into to bid up the price of what shares have not been bought back. Insiders clean up both in the corp and the banks. Who cares what happens tomorrow, fees and bonuses are booked today.
When the next crash comes, your pension money is gone, and the bank that lent literally no thing, no property, nothing, to the corporation, is "owed" the millions it can no longer pay back, the credit borrowed to buy back the stock. So as an investor of your hard earned cash into that corporation you get nothing, as a lender of absolutely nothing the bank now owns the corporation to which it lent literally nothing. This is capitalism, something young men are sent off to die for.
Are you depending on paycheck, portfolio, pension or property to get you through in the coming years? Then you are toast.
On the other hand, there is no end to the opportunity to get a business going. Hedge your bets. Get a business going.
Feel free to forward this by email to three of your friends.
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