Ok, so my take of this toxic asset bailout is this. The government will match the private investor's money that they will invest into toxic assets. If the investor makes money then they get to keep it. If the investor loses their money, then the government will eat the whole 100% and reimburse the investor. I'm not sure if the investor has to lose all their money or part but either way, its a win, win situation for the investor.
So where do I get in on these toxic asset. You can not lose, well maybe just your money for a period of time. The government will make you whole at the end.
Now as a taxpayer this is horrible. We live in a free market society, which means free moving of products/assets. In a free market society, we take on the risk of our products/assets increase and decrease in value. Simple economics will point us in that way.
Now, where is our free market society when the government takes my tax money and gives it to business that are careless with their floundering products/assets. These businesses did not manage their companies in a way to reduce the risk of losing money on their investments . They were on the verge of going out of business due to their carelessness and the government bailed them out.
Wait, WE THE TAXPAYERS, bailed them out. Our tax money!!! Isn't that money suppose to be for our national defense, infrastructure, government programs and so on? I didn't know that we are suppose to bail businesses out because of their stupidity.
Also, the toxic assets a.k.a. bad mortgages. I thought the government had regulations geared towards the prevention of all of this? Isn't the government suppose to overlook the malpractices of mortgages companies? Where is the SEC?
I feel for the people that were mis-guided through the mortgage process and were put in over their head or didn't realize it was sub-prime. I will give them the benefit of the doubt, because I have heard some of the malpractices of mortgages companies.
We are ruining our economy, currency and constitution. The reason why I say constitution, is because the government was formed from the constitution. We need to look at the end actual effect of all of this. This money, that we do not have and the government is borrowing, is our children's money. We are allowing our government officials borrow against our kids future.
We are allowing the government destroy our currency. Our dollar is going to start looking weak. We will have to pay more for other currencies. We need to look at all angles of what is happening. We can not take somebody else's word for it.
I would love to hear from everybody else's stance on this. You can do so by commenting on this post or email me at eggo31@hotmail.com.
2 comments:
I don't get it. Where do flea markets fit in to this whole thing? And I try to stay away from anything toxic. I'm going to do a little more research and then I will post a wonderful post to inform my readers and my political bro-in-law about all of the ins and outs of this taxation system. Look for it.
The SEC is crap. I saw a comment in the Tallahassee newspaper that said "if the SEC watched over banks the way the NCAA watched over sports then we wouldn't be in a mess." Tru dat.
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