Facebook's Epic Fail

Hi there
actually it wasn't most govts -- although they tend to run deficits that wasn't the problem.

The Banks made Bad risks on "Sub Prime Slime".

Finally after a few years of Pass the Parcel the whole sordid mess started to unravel and the Banks realized that these "assets" they'd being selling and buying were worth ZERO (or even LESS than ZERO).

Actually the whole system of Buying and Selling on debts is a pretty immoral and shabby practice anyway -- you get in to trouble with say a Credit card debt (Banks sent Unsolicited stuff in those days through the post giving people access to BILLIONS of Dollars credit they shouldn't have had) and when people got into trouble as they inevitably did they then sold" the debt for pennies in the pound to really EVIL vicious collection agencies such as C-pqu--t for example whose directors aren't even UK based.

These agencies then use the County Court etc etc to try and get the WHOLE amount plus appalling charges added on for a debt they've paid 30 GBP for (your debt was say 3500 GBP -- and by the time CQ have added charges it's now around 8,000GBP. Meanwhile the Bank writes of the whole debt and gets a Tax refund would you believe.

The more I look at this side of the business the more I'm UTTERLY appalled -- and it's THIS type of stuff we are bailing the Banks out for -- I could understand it if they were attempting to renew Infrastructure or get the railways or roads working again or even investing in new energy sources or do something about Job creation..

We aren't out of the woods yet either -- ever seen some of these payday loan companies appearing on UK screens (BANNED in Germany --well done there) who advertise short term rates for HORRIFIC interest often around 3500% (yes no typo 3500%).

Makes the Mafia or even "your friendly neighbourhood Back Street Loan Shark" seem quite reasonable in comparison. These companies were ejected from the US -- and of course it's the most vulnerable people who get suckered in by this type of business.

Sorry for the rant here but I'm with a colleague who supports Blackpool FC -- we are waiting for tonights International Football matches (aka Drinking nice Belgian Beer in a great pub on a beautiful summers day here in Brussels) -- and the question of Blackpool's sponsor came up -- WONGA --one of those 3500% interest charging companies.

Cheers
jimbo

It's not so much of a rant Jimbo, but more a statement of fact.

Lehman Brothers, Freddie Mac, Fannie Mae, et al who gave out billions in loans to people who hadn't got a cat in hell's chance of repaying the interest, let alone the loan.

Why governments saw fit to bail these organisations out is beyond belief, because it's we, the taxpayers, who have been lumbered with these crucifying debts in a big way.

At the last count, the US Government is running a deficit of $13trillion all backed by bonds bought by the Chinese on a massive scale.

I tell you, it's scary stuff and I fear for the younger generation.

seavixen32 said:

It's not so much of a rant Jimbo, but more a statement of fact.

Lehman Brothers, Freddie Mac, Fannie Mae, et al who gave out billions in loans to people who hadn't got a cat in hell's chance of repaying the interest, let alone the loan.

Why governments saw fit to bail these organisations out is beyond belief, because it's we, the taxpayers, who have been lumbered with these crucifying debts in a big way.

At the last count, the US Government is running a deficit of $13trillion all backed by bonds bought by the Chinese on a massive scale.

I tell you, it's scary stuff and I fear for the younger generation.

Actually the US debt is much higher now; we don't seem to have a spending problem, but a revenue problem.

As for Facebook, I've never had a need for it, and wouldn't buy its stock.

jimbo45 said:

jalnyc said:

I know right? And now the Spanish banks want a bail out...it's gonna be a very hot summer.

I don't know about Hot -- but Expensive for sure.

I'm glad I'm not a German Voter !!! OK I like BMW's etc but their taxpayers can't realistically pay the whole lot !! so every country whether in the EU or not is going to be sucked in at some stage -- even the USA isn't 100% isolated or immune to this stuff either.

What galls me is that some of the bosses of these failed institutions walk away with Billons of dollars as "Bonuses" !!!! while if I'm 5 days late with a water bill of say only 55 EUR I get nasty "Threatograms" from some of these back street "Debt collection Agencies" threatening hanging, drawing and quartering if I don't pay up within MINUS - yes MINUS- three and a half days.

No justice at all in matters financial these days it seems.

Cheers
jimbo

Oh yeah, justice is a joke nowadays. Take the 2008 financial crisis. All those a-holes who tanked the economy got off scotch free for the most part. They stole people's money, homes and overall sense of security. You see shows about senior citizens who worked their entire lives, were responsible and prudent with their money and either about to retire or into their retirement, lose ALL of their money in an instant because it was all tied into subprime loans and other toxic assets. Then the poor folks are forced back into a terrible job at wal-mart or something. All the while, the guy who got them into this mess is all like "it ain't my fault" and goes off with a smile on his face and filled up pockets It's disgusting and heart breaking. It's disgusting.

Companies nowadays don't care about consumers. We are all just numbers and dollar signs.

seavixen32 said:

It's not so much of a rant Jimbo, but more a statement of fact.

Lehman Brothers, Freddie Mac, Fannie Mae, et al who gave out billions in loans to people who hadn't got a cat in hell's chance of repaying the interest, let alone the loan.

Why governments saw fit to bail these organisations out is beyond belief, because it's we, the taxpayers, who have been lumbered with these crucifying debts in a big way.

At the last count, the US Government is running a deficit of $13trillion all backed by bonds bought by the Chinese on a massive scale.

I tell you, it's scary stuff and I fear for the younger generation.

For the most part, I agree with the bailouts. Look, the plain and simple truth is, if the US hadn't bailed out bear sterns after the lehman collapse...the results would have been DISASTROUS. Morgan Stanley would have followerd. Then bank run. Then JPM chase, it would have been a horrific situation. The same applies to Fannie and Freddie. If those guys weren't bailed out they would have defualted on their loans, which would have caused banks to start panicking and could have possible ruined the financial system.

See, I don't agree with bailout but I understand why the US govt did them. It's the whole problem of too big to fail and what we should do is try to prevent institutions from becomming too big -- which we are doing a terrible job at. In fact, since 2008, the remaining institutions just make up more of the market making them even bigger to fail.

And I always here this, that china owns so much of US treasury bonds, but it just is not true. In fact, China barely owns any US bonds. Our biggest debtor is ourselves lol.
Source.

I do think my generation, and my kids, are in for a tough road.

Wordsworth said:

we don't seem to have a spending problem, but a revenue problem.

Yeah, it's always difficult to support removing the punchbowl from the party when everybody's got a bottle of Scotch in one hand and a 5 foot long reefer in the other.

The status quo is the default choice since the ruling class has unlimited access to the public treasury and can buy votes by spending.

The path taken matters little to the ruling class because of their personal position (salary, pension, health insurance, adulation).

What’s “right” or “just” has nothing to do with it. Rather, the calculation is “how do I maintain power”.