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Forums - General - Market Meldown

Coca-Cola on 16 September 2008
akuma587 said:
Coca-Cola said:
"We were wrong. As a former FDIC chairman, Bill Isaac, points out here, the FDIC Insurance Fund is an accounting fiction. It takes in premiums from banks, then turns those premiums over to the Treasury, which adds the money to the government's general coffers for "spending . . . on missiles, school lunches, water projects, and the like."

The insurance premiums aren't really premiums at all, therefore. They're a tax by another name."

Betcha you didn't know that.

That's right folks - there is no FDIC insurance fund.

Just like there is no Social Security insurance fund, or Medicare insurance fund.

They are all accounting FICTIONS that our Congress has created and allowed because we keep demanding that they spend more than they have.

To keep us, and foreign bond investors (who must pony up $2 billion per day to keep this charade alive) from freaking out and saying "no mas!" they rob and steal every nickel from every nook and cranny they can so their "budget deficit" looks much smaller than it actually is.

Clinton never ran a budget surplus if you simply add back in the FICA receipts he stole to "balance his budget." Bush of course never even claimed to run a surplus. Every administration since the 1970s has played this game to one degree or another, and we, Idiot Nation, sit back and let it happen.


Quote from my guy from The Market Ticker Denninger.

Tell me, which presidents were in office on this chart when you see the largest rises in the national debt?  Reagan, Bush, and Bush.

 

no doubt Bush.  I never said I like the guy.  I didn't vote for him - that's the truth.

I also mentioned in another thread that our debt is not just 9 trillion - if you add the personal debts, it is 99 trillion.

I got that figure from my guy.

we do need to make some drastic changes and it's gonna hurt.

1.  we need to spend less than what we make. 

2.  House prices must come down.  (it'll hurt me as well).  but on average the house price should not be more than 3x average income.

3.  The market is over-valued so it'll go down little further.

 

btw, if you look at the chart, our national debt began to rise by large sum starting late 1980's.

that's when Greenspan started making mistakes - 1987 to be exact.



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Aiemond on 16 September 2008

I'd say it was when Regan came in is when the debt started to skyrocket. But don't forget we were fighting the Cold War at that time and the defense spending (even if it was empty) made the Russians nervous and helped them spend themselves to death (along with other things, but this was important too). But, after that, the budget needed to be more balanced.

And with the FDIC, the govt will back it up if a crises occurs and it the money is needed. There will not be another great depression like line up at the bank and not get your money. If they have to divert funds from other places they will.



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megaman79 on 16 September 2008

My money is gone. I had 20 grand in Jbwere, that firm is 55% owned by Goldman. Im not risking it so its all gone as of this morning



“When we make some new announcement and if there is no positive initial reaction from the market, I try to think of it as a good sign because that can be interpreted as people reacting to something groundbreaking. ...if the employees were always minding themselves to do whatever the market is requiring at any moment, and if they were always focusing on something we can sell right now for the short term, it would be very limiting. We are trying to think outside the box.” - Satoru Iwata - This is why corporate multinationals will never truly understand, or risk doing, what Nintendo does.

Coca-Cola on 16 September 2008
Aiemond said:
I'd say it was when Regan came in is when the debt started to skyrocket. But don't forget we were fighting the Cold War at that time and the defense spending (even if it was empty) made the Russians nervous and helped them spend themselves to death (along with other things, but this was important too). But, after that, the budget needed to be more balanced.

And with the FDIC, the govt will back it up if a crises occurs and it the money is needed. There will not be another great depression like line up at the bank and not get your money. If they have to divert funds from other places they will.

Where is the money coming from?

That'll be interesting.

 



Coca-Cola on 16 September 2008
megaman79 said:
My money is gone. I had 20 grand in Jbwere, that firm is 55% owned by Goldman. Im not risking it so its all gone as of this morning

 

you mean you pulled your money out?

or gone as in lost?



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megaman79 on 16 September 2008
Coca-Cola said:
megaman79 said:
My money is gone. I had 20 grand in Jbwere, that firm is 55% owned by Goldman. Im not risking it so its all gone as of this morning

 

you mean you pulled your money out?

or gone as in lost?

 

I rang them, They said "there is no guaruntee on your investments, you loan us the money to invest for you. If Goldman dies your investment is returned AFTER we recuperate OUR costs". I thought about this and said "No way dude, give me my money" I got it all out and back in a normal standard bank account.



“When we make some new announcement and if there is no positive initial reaction from the market, I try to think of it as a good sign because that can be interpreted as people reacting to something groundbreaking. ...if the employees were always minding themselves to do whatever the market is requiring at any moment, and if they were always focusing on something we can sell right now for the short term, it would be very limiting. We are trying to think outside the box.” - Satoru Iwata - This is why corporate multinationals will never truly understand, or risk doing, what Nintendo does.

Coca-Cola on 16 September 2008
megaman79 said:
Coca-Cola said:
megaman79 said:
My money is gone. I had 20 grand in Jbwere, that firm is 55% owned by Goldman. Im not risking it so its all gone as of this morning

 

you mean you pulled your money out?

or gone as in lost?

 

I rang them, They said "there is no guaruntee on your investments, you loan us the money to invest for you. If Goldman dies your investment is returned AFTER we recuperate OUR costs". I thought about this and said "No way dude, give me my money" I got it all out and back in a normal standard bank account.

cool!

I did the same with AIG.  The difference I guess is that they didn't question me at all and gave my money back in three days.

 



NJ5 on 16 September 2008

AIG's situation is going from bad to worse:

http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article4764802.ece

They're trying to get money fast... What will the Fed have to do this time to keep the economy afloat? A lot of virtual money may be set on fire today.

 



My Mario Kart Wii friend code: 2707-1866-0957

megaman79 on 16 September 2008

This is the idiocy of the situation. It is all virtual money or borrowed money, deficits on deficits.



“When we make some new announcement and if there is no positive initial reaction from the market, I try to think of it as a good sign because that can be interpreted as people reacting to something groundbreaking. ...if the employees were always minding themselves to do whatever the market is requiring at any moment, and if they were always focusing on something we can sell right now for the short term, it would be very limiting. We are trying to think outside the box.” - Satoru Iwata - This is why corporate multinationals will never truly understand, or risk doing, what Nintendo does.

Coca-Cola on 16 September 2008
NJ5 said:

AIG's situation is going from bad to worse:

http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article4764802.ece

They're trying to get money fast... What will the Fed have to do this time to keep the economy afloat? A lot of virtual money may be set on fire today.

 

 

Shits gonna hit the fan if and when AIG falls. They are trying to get $70 billion credit line to show people that they are not in a huge trouble.  What they don't want people to know is that they have a one trillion dolloar balance sheet.

I better hurry and get the checks cashed.