Saturday, March 22, 2008

THE ULTIMATE BAILOUT COMING? The baby boomers on the verge of crushing future generations for decades.

Central banks float rescue ideas

Central banks on both sides of the Atlantic are actively engaged in discussions about the feasibility of mass purchases of mortgage-backed securities as a possible solution to the credit crisis. Such a move would involve the use of public funds to shore up the market in a key financial instrument and restore confidence by ending the current vicious circle of forced sales, falling prices and weakening balance sheets.

Posted by tyrellcorporation @ 07:27 PM (1465 views)
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20 thoughts on “THE ULTIMATE BAILOUT COMING? The baby boomers on the verge of crushing future generations for decades.

  • Yep that’s right, use public money to bail out those who’ve been irresponsible. It’s another example of heads I win tails you lose. All thosde at the centre of this mess have made their fortunes without a moments thought for the debacle they’ve left behind and their chums in Government will use our money to bail them out. It’s an utter, utter disgrace. Never thought I’d never vote at a General Election but I won’t be next time, although I’ll have a snigger as Gordon gets on his bike.

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  • bilko you have to vote in the next general election. If we all boycott the election Nu Libor will get in again. Vote green, vote monster raving, but for the love of all that is good and decent in the world. VOTE!!!!!!!!!!!!!

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  • japanese uncle says:

    After 911:

    Don’t argue! America was under attack in broad daylight. We must revenge. Somehow we seem to know Osama bin Laden is responsible who is now hiding under the protection of Taliban in Afghanistan. We must bomb Afghan to save the free world. It’s no time for words, but action. Shut up!!

    After the subprime crisis:

    Don’t argue! We are on the brink of systemic risk. Unless you are happy to watch the global economy to melt down, don’t get in the way, as we know what we are doing to save the world. It’s no time for words but action. Misuse of public funds to profit private financiers? Morale hazards? Shut the fXXX up and listen! It’s a systemic risk! It’s financial nuclear war! Are you happy to lose all you money? Otherwise don’t argue and shut up!

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  • This will not sort anything out and will only serve to provide time for those with large exposed ‘investments’ to bail out at the long term expense of everyone else. Short-termism at its worst that also smacks of governmental cronyism to give the big boys more time to secure their positions.

    The whole system needs to sort itself out first, markets need to run their course, once the adjustment has been made then it will be time governments to enforce proper ethical standards and strict income multiples to stop the financial rape of future house purchasers.

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  • @bilko – I thought very carefully before posing on this but I’m with bystander – if you dont personally vote you must accept the majority vote and cant complain about it after the event – the only way you will be able to snigger about Gordon & co being on their bikes is if you cast a vote to get them out.

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  • tyrellcorporation says:

    No matter what people think about Cameron (I personally think he’s a far better bet than Brown) the Conservative shadow cabinet is vastly more capable than the bunch of wet freaks populating the other side of the despatch box.

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  • japanese uncle says:

    Political debate wihout reflecting class confict is simply unrealistic. What is the ideological distinction between Tories and Labours (particularly Nulabour), or Democrats and Republicans for this matter? Re-elect Charles Kennedy as the leader of Libdem! Then at least voters will have some degree of choice. Choice between investment bank employees pretending to be a Tory and another investment bank employee pretending to be Labour is futile.

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  • “What is the ideological distinction between Tories and Labours (particularly Nulabour), or Democrats and Republicans for this matter?”

    I’m with JU on this.

    “The whole system needs to sort itself out first, markets need to run their course”

    Unfortunately enuii, this is precisely what is not being allowed to happen, and that’s the problem. These bailed-out crooks are being shielded from market forces and moral hazard by the taxpayer thanks to their cronies in government. Essentually, it’s fraud – and on a massive scale. We will all pay with inflation and a drop in living standards. Until we deal with the problem of big government, the periodic rape of the public will continue. Voting either Labour or Tory will make absolutely NO difference (as much as one might ‘regard’ Cameron, TC).

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  • mark wadsworth says:

    Chaps, keep it simple! All we have to do is to replace all existing property/capital taxes with land value tax, being an annual charge of 10% of the difference between a property’s value at the end of each year and its value on Day One (being a day somewhere near the bottom of the house price cycle). That’ll keep house prices low and stable, discourage speculation and hopefully, in the long run, reduce other more damaging taxes like VAT or National Insurance.

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  • happyrenterz says:

    Bailout or no bailout we still get a hpc. The bigger the bailout the bigger the regulation that will be imposed on banks in future. It’s the end of self-certified mortages, end of 125% mortgages, end of SIVs and CDOs.

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  • voiceofreason says:

    JU @ 3: I have one more:

    After climate change is proven:

    We must adobt nuclear, it is the only way. What you say? It is dangerous and expensive. SHUT UP. We are saving the planet. It’s War on Climate!
    See guardian leader today: Britain and France to take nuclear power to the world .
    Some more lobbyists got there way then 🙁

    On the subject of voting. I always say to vote for the one you hate the least !

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  • japanese uncle says:

    VoR

    Exactly. But the problem is much more serious when it comes to this issue. We can still survive physically without banking system at all, but one accident (they call it event) equivalent to Cherobyl, UK will no longer be inhabitable for the next few centuries, let alone radioactivity leaking daily from the plants believed to be causing thousands of cases of cancer. The tycoons with VI in uranium mines may well be behind the scene. But in the event of the next Chernobyl, there is no escaping the disaster, even for the mega-riches. How can’t those money-hungry fools see such a simple reality?

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  • @ Mark Wadsworth,

    If a property is not sold, who will say what it is worth? When there is a bubble, will people just living in their family home without gambling/speculating suffer a huge tax bill and have to move a whole family to a cramped little 2 bed flat in some crime ridden area?

    IMHO the tax should be based on what the land is being used for. Homes should be taxed as the inverse of the number of occupied bedrooms and should be generally valued along with green spaces in inner cities and receive a small tax bill unrelated to the land’s (assessed) resale value for some alternative, socially unnecessary (even if economically wonderful) purpose (the prices of goods and services supplied thanks to the commercial use just reflect the lost social value in order to pay the tax – perfect, you see, lose social value and users pay to make up for it :). Land used for car parks and commercial premises in areas of dense commercial disposition should receive higher taxes along with polluting industries, etc. Farmland used for foodstuffs that grow well in our climate but are imported due to lack of supply should also receive a lower tax bill.

    This LUCT (Land Use Classification Tax) is even easier to manage than LVT since the classification is already mostly managed via council tax measures of who lives in a property vs land registry records of the number of rooms, and through http://www.nlud.org.uk/draft_one/land_use_class/land_use_class_index.htm. No corruptible valuers needed, no effect due to bubbles.

    Always tax by the inverse of social value. Never tax by something unrelated to social value. If a residential property is in demand, its high price should not be discouraged. Indeed the existence of more such properties could be encouraged by a reduction in the LUCT. This will tend to prevent the basis for a speculative bubble, which is the supply/demand thing.

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  • happyrenterz says:

    JU & VoR
    “The tycoons with VI in uranium mines may well be behind the scene. ”

    You are joking right? You are just using your “VI rhetoric” here I am afraid. What tycoons? I am invested in uranium mines, so am one of those “money hungry fools” you speak of. Yes I think nuclear is a good investment but also by buying a part of a uranium mine I want to support nuclear power because I believe global warming by CO2 is a threat to our future.

    Either you deny that there is global warming or you try face up to it. If you face it then your choices are 1. you try reduce your CO2 footprint dramaticly or 2. you look for alternative forms of energy than coal, gas or oil.

    I am assuming you are not global warming denialists so then closing off the nuclear debate now with this “VI tycoons rhetoric” means you must have other solutions to this problem. So please let us know what those are?

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  • It saddens me to see the Tory party described as a credible alternative to Labour. Party whips have managed to virtually eliminate socialism from the labour party but it still exists. Not voting is what they want. We should by our every thought and action manifest the reality that we desire. Just because the candidate we need isn’t visible doesn’t mean they’re not there. The Tories will tell as many lies as is required to regain power. The New Labour movement is the Tory party in waiting. The people pulling the strings care not what rosette is worn. The economy has become a living all consuming animal but each and everyone of us has created the monsters we’ve allowed to control it. A manifestation of our own greed and fear. Once we accept that our lifestyles are unsustainable then money will no longer be our master.

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  • handle_it : true words written, I agree

    However, we are all mortal and can only try to become better. Having option to change is priceless and Changing failing governments for a fresh start offers hopes for better.

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  • japanese uncle says:

    happyrenterz

    Orderly reproduction on a diminishing scale (aka recession) to reduce the global economic activities to a level sustainable on longer term basis, along with solar/wave/geothermal/wind/whatever energy must be exploited.

    Ditch private passenger cars for bus/trains/trams and other public transport & bicycles.

    Ditch capitalism as we know it now, for more orderly ideology in which anarchical running of the free economy (guided only by defective market in which ‘rogues’ can make money out of others’ misery or even deaths) is banned and welfare of the general public and energy conservation are of the greatest priority rather than the private profits.

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  • Last_days_of_disco says:

    I think there will be a mixture. Even the Labour guys have some morals. They do have some loyalty to Britain. In their own twisted way, they are trying to do their best for this country. However they believe a bunch of lies. Hopefully these doses of reality will help them to begin to do the right thing.

    More reality to come.

    And as the country becomes increasingly nationalistic it will become harder and harder for the old to steal from the young. I think voting for the Tories is a good idea. I think there are some excellent guys in their ranks. And once they are freed from trying to maintain the Labour dream/nightmare because everyone can see it a big lie and can’t work, then they can go back to being British instead of whatever we have become (I don’t even have a word for what we have become 🙁 ).

    The Europhiles in the Tories will find themselves increasingly sailing against the wind as the tide of nationalism rises. National pride is a good thing, people are willing to sacrifice personally for the common good. Its better than this self destructive selfishness that has gripped our society.

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  • Pooingmyself says:

    Regarding nuclear power. It makes little difference if we don’t have them in UK, France is so close their on our doorstep anyway.

    I rember hearing Cameron making the comment I am a politician not a business man, what a prat. We need leaders from the real world who have earned a living at some point and understand what goes into making an economy rather than figuring how to suck blood out of it. What about the Dragons Den Party.

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  • Cr4shw4tcher says:

    happyrenterz

    You seem a bit touchy about global warming. You clearly assume that CO2 is the direct cause – “Either you deny that there is global warming or you try face up to it.” (a bit like – you are with us or you are against us).
    What if CO2 isn’t the “cause” ? the world is currently in a warming phase, unlike quite recent decades. Why is now the time to panic ?
    It appears to me as though the agencies that actively ignored the housing panic have equal enthusiasm for talking up the CO2 / environmental panic.
    It’s been clear to those who are aware of these greater social agendas that Britain would return its focus to nuclear power. Until recently it was a case of refusing to rule it out.
    Yes, the fix is in folks, might as well invest accordingly !!

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