Thanks California! I Guess We Now Have An IOU Securities Market
Posted by Al @ 5:02 pmJul 9
These people are mad. No, not ” I’m pissed off mad”, but loony. On the other hand, I’m mad. Yes, the pissed of mad. Some SEC clowns are proposing the IOUs that California is issuing, be treated as securities and become regulated. I wonder why that would be? Hmmm, I wonder if the big banks are pushing for some federal government insurance for payment of the IOUs they have received. In an AP story today it’s reported
“JPMorgan Chase & Co., Bank of America Corp., Wells Fargo and Citigroup Inc. and some regional banks in the state saying they won’t accept the IOUs for payment after Friday, attention has turned to the possibility of a secondary market to buy up the notes”
Well, the banks don’t want to get stiffed for the IOUs they have already accepted. If there’s a mechanism put in place by the federal government (your tax dollars) to allow these IOU to become securitized and traded on the open market, then some recourse would be in place for some payment, maybe at a loss or a gain.
“The Securities and Exchange Commission is going to recommend that the IOUs, which carry an annual interest rate of 3.75 percent, be regulated by the Municipal Securities Rulemaking Board as a form of municipal debt..”
First, the federal government is the most inefficient and corrupt institution in America’s existence. Second, some of these banks are already in bed with our federal government having cozy deals served of up on a regular basis, at the taxpayers expense. Third, these banks and investors are looking for more bubbles to blow up ( or economies to blow up). This could be the next bubble, on top of the, soon to boom, carbon credit trading program. Once you get these two programs in full gear, then the “financial mad scientists” can figure out a way to slice, dice, bundle, and unload them and, then laugh all the way to the bank. Lastly, as stated on an earlier blog from The Liberty Journal, I don’t want to pay for California’s incompetence.
This is merely an “end around” play for a part of the federal government’s (taxpayer sponsored) “Bailout Bucks Bonanza”. This only legitimizes something that should not be allowed. Bailing out bi-polar-acting state governments, who can’t spend within their means, is a losing proposition. It’s just a continuation of the “fed loser program” and it will get much worse if we keep letting the federal government remain unrepresentative and corrupt.
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Comment by Scott on July 11, 2009 at 1:30 am
Yeah, but that is not the plan. The government will precipitate the collapse and then use it as an excuse to abandon capitalism and destroy the republic.
Saul Alinsky wrote the handbook “Rules for radicals” in the 70s and lays out the plan there.
Some disciples of Alinsky are: Wade Rathke (ACORN founder), Bill Ayers and of course, Barack Obama (who learned the lessons of Alinsky first hand while working as a so called community organizer). The left learned 40 years ago that the better approach is to work from inside the system to bring about “change”.
If you haven't researched Alinksy's “Rules for Radicals”, check it out. You'll see how many of the current tactics used by the left follows that play book, especially when it comes to the current administration.
Comment by Arch Dixon on July 10, 2009 at 2:00 pm
What does it matter how far revenues are, they are spending more money than the NATION can produce in one year so how the hell is that ever going to get paid off. Maybe this is what's needed, bankrupt the Federal Government and then we can reset th Constitution and get the bums out when there is no more money. oh, wait, there is no more money now, they are just printing more anyway. How do you go bankrupt when you print your own money whenever you need it!
Ron Paul is sitting back and saying “I told you so”…
Comment by Scott on July 10, 2009 at 8:06 am
Obama wants to make California the role model for the entire US.
I'm beginning to think bankrupting America IS the plan. It sure looks like they are heading down that path.
State tax revenues are off 26% on average for 2009. Think about the ramifications of that. Just wait until the federal tax revenue numbers come in for 2009. It's not gonna be pretty.
Like fools, instead of cutting spending, our government is tremendously increasing spending, so you had better hold on to your wallets.
Comment by Arch Dixon on July 9, 2009 at 9:37 pm
Man it's just starting. The Federal Government is in the process of giving away what's equal to all products produced by this Nation this year alone. They don't have that much money but we will have to pay the bill, over and over again. Why? Because someone wanted CHANGE.
But really it's not all the liberals fault. Well yeah it is. Because if the republicans had not sold their souls to the liberal policies of TARP and bailout this and bailout that we would not be in this mess.
Liberalism has bankrupted this nation. It's time to rid this nation of the political whores and replace them with a government OF and For the People.