Psst, the banking failures began August 2007 – everything since is suspended animation

A few thoughts that I have to post before going to bed. 

• Hours before congress voted down the bailout yesterday, the government announced the extension of additional discount-window loans that will keep liquidity up for some time into the future.  Now there was an intense tightening of money in the days leading up  to Bush’s request for $700 billion dollars to be doled out at will by his right hand, Hank, or is it Brownie, I forget which.  My point is this.   The drama of the past month has been well planned and timed literally down to the hour and day.  Little was left to chance.   Even the drying up of commercial paper occurred right on time.  The banks actually failed more than a year ago.  The Fed has been extending loans to banks and investment firms all this time.  We are in a protracted state of suspended animation.  In one of my blogs, I said that I could not support the bailout if it did not eliminate the need for banks to borrow from the Fed.   The Fed did not wait for the bailout vote to announce the release of its next “bridge” loan for Wall Street bankers.  Money was drying up, as intended, so they could scare up votes on the Hill for the bailout.  
• I agreed with much of what Rush said during his first hour today.  The bailout is a scam.   It does not meet the criteria I outlined in a previous post to the blog.  It was designed in fact to save the weak and the guilty – prolonging the inevitable retractions that must follow a seven year bubble. 
• During the first several minutes of Rush’s second hour today, though, I heard a prologue to what promised to be a long and bellicose two hour rant about how the Liberal Democrats are trying to payoff the homes of (all these black people who didn’t qualify for mortgages to begin with).  The original bailout was introduced by Mr. Mandate himself, The President.  It is supported by McCain.  It was to be executed by the Republican, Hank Paulson.  One third of House Republicans voted for it.  Yes, Democrats are in the kitchen spoiling the stew along with the many, many Republicans who called for this pig roast.   Indeed they are.   Bush continues daily as well to step up to the microphone demanding immediate passage of this $700 billion aid package for failed businesses.  How do we get our minds around the transition from these facts to a rant blaming the bailout on Democrats?
• Is it logical to blame Democrats for this bailout creature that is being demanded by the President?

Letter to My Senator Enclosed

Stop the Wall Street bailout.  The banks will immediately start to settle asset values and begin lending to each other no sooner than we force them to. 

The bailout will not help me or you, Sir.   Sure, we must all take our share of the losses, but this bailout insulates and protects only the guilty.

Absolutely no bailout.  America will not forgive another bailout.

Please read and forward –

(Written during lunch on my Blackberry.   Pres has set a deadline.  There is no time for editing…)

BAILOUT WILL NOT PROTECT HOME VALUES

If Pres Bush wants to buy up the loans that wall street knows will not
be covered by homeowners – so that wall street doesn’t have to take the
loss — and the total he wants to spend on the bailout far exceeds the
sum of sub-prime defaults — the extra must be covering wall streets
losses due to general decline in home values — meaning homes will be
worth less with and without the bailout — doesn’t this expose a scheme
to make tax payers pay for the artificial run-up in home values through
taxes — this because they know the artificial values will not get
paid through normal mortgage channels? —  they are making me and you pay
for the artificial housing economy of the past decade through taxes
because its the only way they’ll get paid

This bailout will not protect American home values –
Our homes will decline with and without the bailout –

Stop the bailout — there is nothing positive in it for us

WE ARE NOT WATCHING NATURAL MARKET FORCES THIS YEAR –

PAULSON – BERNANKE – & CO ARE ORCHESTRATING EVERY STEP –

THEY HAVE GIVEN US NO REASON TO TRUST THEM  –

THEY HAVE GIVEN US MANY REASON TO MISTRUST THEM –

WE CAN PAY FOR THIS MESS ENTIRELY THROUGH ANOTHER BAILOUT–

OR WE CAN SHARE THE COST WITH THE CLOWNS WHO CREATED THE LOSSES–

WE MUST SHARE THE COST WITH THE GUILTY –

STOP THE BAILOUT – COMPLETEY STOP IT –
This smells rotten – keep in mind too that govt has been in control
of the cards all year – govt told lehman to file –  govt told
aig to find a buyer – govt told bear sterns to find buyer – these
mergers, buyout and bankruptcies are not result of pure and natural market forces  – they are merging and nationalizing on federal orders of paulson & bernanke

This is not America — this is not capitalism –  this is chicken little raiding treasury — this is
absolutely unacceptable — stop this bailout – we the people will not be better off with the bailout 

Let the market fix this – if we close our wallet to george, hank and ben – the captains of the markets will settle on real asset cash values — they will resume business — they will make each other loans — please, America, stop this madness
Brothers — I am thinking out loud here — does the timing of  and
control by govt of private companies like this make sense?  Are we a
democracy?  If yes – don’t we have to call our senators and tell them
to stop the looting?