REAL TALK

This is Exactly what I have been talking about. They have the little people feeling as though "we would be saving the fat cats", or "bailing out millionaires"..... No, we're saving ourselves.!!!!!!!!
The fat cats have engorged their bank accounts over the past 8 years of Bush. Some CEO's left with golden parachutes. Some rich people moved their money to safer investments (energy/oil/precious stones+metals) and left the financial institutions in tatters.
Your little money, job, and investments are in danger, but believe me, their loot is "SECURED", and they will gladly sit on the sidelines while the markets go up in flames. Once the market hits rock bottom, all of the retirement accounts go bankrupt, real estate assets continue to lose value, and all the little people get squeezed out of the game, they will come back in and buy up everything for pennies on the dollar. And when the markets rebound, their investments will jump a hundred fold, and you'll have to buy your way back into their game, starting all over from scratch.

This will affect us all, but mainly, the Middle & Poor classes. The truly Rich could care less, they never lose anyway.Don't buy into the hype, we need a responsible bill, that will hold the financial industry accountable, enforce regulation, have independent oversight, limit CEO payouts, and, will guarantee the tax payers a return on their investment, before they start eating the profits again.

All four of the past Presidents in office, have used Social Security to shore up the economy, or balance the budget. We're spending about a trillion dollars on Iraq. Why can't we use some taxpayer dollars to save ourselves??? It only makes $en$e.....


Cramer on BloggingStocks: This defeat hurts us all
Posted Sep 30th 2008 9:15AM by Jim CramerFiled under: Market matters, Citigroup Inc. (C), Bank of America (BAC), Federal Natl Mtge (FNM), Amer Intl Group (AIG), Wachovia Corp (WB), Cramer on BloggingStocks, Financial Crisis
TheStreet.com's Jim Cramer says the rejected bill was about rescuing credit markets, not rescuing Wall Street. So what if the plan would have benefited some fat cats? Everything's always going to benefit fat cats. That's how things work, unless you want a Leninist or Maoist society.

What people needed to care about were the 90 million families who own stocks and the millions of people who are about to get kicked out of their homes who had a hope to be able to refinance with someone from the government rather than a collection agency.

You want bailout? Fannie(NYSE: FNM) (Cramer's Take) and Freddie(NYSE: FRE) (Cramer's Take) were bailed out. AIG(NYSE: AIG) (Cramer's Take) was bailed out. Those directly helped some of the wealthiest people and nations in the world. The AIG bailout could cause the U.S. government hundreds of billions of dollars, because of credit default swaps. Those were bailouts.

This package was about stopping home price depreciation before it hit 40%, 50%, 60%. It was about the private sector being able to buy failed banks, not the public sector, which is what will now have to happen.****

**** I believe we will wind up using taxpayer money to bail out the markets because when they reconvene, if the Republicans are still playing hardball, the Democrats are going to ratify the bill, and put back all of the consumer protectionisms, in order to get the rest of the Democratic party on board, then put the pressure on the White House to pass it. It would be more political theatre, but if it works, it would benefit Middle class Americans tremendously. ********

I can see how people might think, wait a second, now we can just let the FDIC handle it. The depositors get their money, and the fat cats who work at the banks get lost. But the good banks needed a place to be able to put their bad loans so they can free up capital and lend again, and now we don't have a place for it. That, again, was what this bill was about. Without it, who is to say that Bank of America (NYSE: BAC) (Cramer's Take) makes it if housing keeps going down in price? What makes people think that Citigroup(NYSE: C) (Cramer's Take) doesn't go down, now that it has to pay not just for Wachovia's (NYSE: WB) (Cramer's Take) deposits but for its debt?

I am furious about all of this, because of all the boneheaded things I have seen Congress do, the giveaways for the farmers, the foreign aid to Iraq and so many other places, the hundreds of billions spent for weapons systems that the generals and admirals don't even want and the money spent on FNM and FRE and AIG, this was the one plan that might have been a real win for the American people. And now it is gone. Disgraceful. And trillions will now be lost in the credit markets, the stock market and in housing net worth.

Maybe the purists and puritansbelieve that this is right. But for everyone who has ever saved a dime and worked hard and invested in a home or a stock, this is a disaster of unimaginable proportions that it will take as long as the Great Depression did for us to get over.