Wall Street and Capitol Hill are in a frenzy. They are waiting for the much anticipated coming… the huge, gigantic $700 billion US dollar, superman bail-out of what seemed to be the obvious failure of corporate capitalism.
If you?re a Reyna reader, I?m sure you already know what this esoteric term ?mortgage-backed securities? means. Now, what about ?credit-default swaps?? Well, in a whole wide sick world of Wall Street?s bloody greediness, read on and I will tell you.
$700 billion bail-out affects every American and the world and everyone knows that from Broad Street Philadelphia to Sweden to Pasig, this crisis resonates to all people who have no clue or know little about what these people in Wall Street do.
So let me give you some backgrounder. Read the following entries I made:
- Understanding Subprime and the US Housing Market
- How home equity and home equity loan works
- Subprime Summary: Liquidity, bridge loan and bail-out, anoto?!
Once upon the housing boom time and during the deregulation years, there were too much greed, too much recklessness and way over the top risk-taking amongst investment companies, mortgage companies and banks who hold other people?s monies without any prudence at all, without any delikadeza, without any sense of responsibility.
Financial deregulation opened the gates of corporate greediness with essentially no limit on greed. You see a lot of investment companies, banks and mortgage companies taking on bigger and bigger risks at the same time raking in bigger and bigger commissions from other people’s investments.
The only mission and vision flying amongst all these fly-by-night mortgage vampires was to suck the equity money out of the taxpayers homes and destroy every available credibility left in the financial industry.
Credibility. Biggest sole reason why people invest. No credibility? Stock plunges. That’s how stock exchanges work. Why factories run. Why there is employment. Why there is trade.
So, the Bush administration and Congressional leaders calls for the government to spend up to $700 billion to buy distressed mortgages. Yes. A blank check, to spend however they want without any judicial review.
Why $700 billion dollars? Geeezzz! I would think that, our mortgage financial industry must be so sick to a trillion dollars or even more! America is full of crooks! Which means, the crooks must have uberly multiplied during Katrina?s fury like gremlins.
Us, the have-nots, unemployed like me, has just been committed to share in the $700 billion to rescue the shit greediness of the rich, the famous and the mighty. Because if we don?t rescue these bloody rich people, according to policy makers, there will be a financial meltdown.
So there?s your damn shit ?credit-default swaps?, your bloody bailout, ladies and gentlemen. Essentially, we (the people of the United States) are bailing out Wall Street from greed, recklessness and wanton disregard of asset investing without any regard for prudence and continued risk-taking while amassing commissions from other people?s money.
In return, what do we (the people of the United States) get? Here?s what Cat had to say in my earlier post:
Congratulate yourself, as a taxpayer, you are now the owner of BAD DEBTS, worthless securities, foreclosed houses and dying corporations.
So, what do I see on the horizon?
I see dead corporations and banks, unemployed people and I see my taxes rising, yes, I predict Obama will do it. I see a very regulated industry. I hope to see criminal prosecution of all these crooks. And since we the people of the United States are now owners of dead rats, bad debts, worthless securities, foreclosed houses and dying corporations, we have now just officially become, shit investors. We will soon be receiving REST IN PEACE INVESTMENT CERTIFICATES.
Aren’t you just jealous? Sinong me gusto nang certificates na to? Anyone? Anyone?
To all my Manila Financial readers, our Financial Whiz Salve Duplito, covered the Wall Street financial drama from the Philippine perspective side. Please visit her blog: Money Smarts.
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{ 12 comments… read them below or add one }
Bwaka-ng-inang shit na greedy CEOs sa Wall Street, ‘no? Pati mga uring pangkaraniwan tuloy na tulad ko eh nadadamay! Tapos na ang maliligayang araw ng kapitalismong laissez-faire! Buti dito at may pagka-sosyalista ang lipunan kaya naman hindi uubra ang ganyang masyadong maalwang patakaran na inuuna ang kapakanan ng mga haring may pag-aari! Panahon na para muling ibalik sa mga uring manggagawa ang pwersa ng ekonomiya!
mogLi’s last blog post..Six Degrees of Separation
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May kasabihan po, saan mang gubat ay may ahas. Kahit sa mga malalaking korporasyon mayroon din diyang mga buwaya at sawa. Nakakalungkot nga lamang at maraming tao silang nabibiktima. Pasasaan ba at makakasuhan at makukulong din kung sino man ang may kagagawan sa pagbulusok ng mga giant financial corporations na iyan. Hanggang ngayon ay buhay pa ang mga galamay ni Judas, hehehe.
Colegialagirl’s last blog post..?Lead us not into temptation?(Basta driver/conductor sweet lover)
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i just got the news that the bailout was rejected by the house. but bush is going to push the bill again.
sabi ko nga doon sa isang blog… i am proud of our philippine educational system. Our main exports are people OFW–human resources –tapos sa ating school.masipag, may sariling kayod, matalino–nakakatulong sa ekonomiya ang adopted country.
ang export ng China ay tainted mik, tainted candies, tainted food and toxic toys.
Ang export ng US ay DEBTS. UTang. Utang na loob, pigilan ninyo ako. UTANG ng mga US residents na pinagbili nila as bond instruments sa mga bangko, mga retirement funds, insurance companies sa buong mundo kasama ang Pilipinas.
kaya kasama rin sila sa paghihirap ng US economy.
The Ca t’s last blog post..Marriage and illicit affair-Why men cheat.
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mamita, congrats sa project lafftrip. go to badoodles’ site to get details on how to get your prize.
antuken’s last blog post..is your number the winning number?
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My heart sank kasama nung titanic while watching cnbc news this afternoon, when the market opened this morning medyo okay pa tapos after lunch kinakabahan na ko when DOW was down by 600+ points, yun nga nung nag close 777pts eto ang highest cliff na nangyayari sa market so far, sumakit dibdib ko kelangan uminom ng aspirin para hindi sumabog ang aking ugat sa puso at sa utak na rin! papano na ang mga small time investors na gaya ko imbes na retirement ehh papano pa ako makapagretire ehh gahibla nalang ang natira ng aking maliit na pera? Sana at the end of these long tunnel makakita man lang tayo ng light at makulong ang dapat makulong!
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kadarating ko lang! leche! galing ako jersey! bumili nang bigas sa filipino store! naloka ako! yong TOLL!!! tumaas! di ko alam! hahaha! pagdating ko sa bahay! bagsak ang wall street! sabi ko, BUTI nga! leche timaan din pala ako! hahaha! kairita! damn if you do, damn if you don’t! hmpt! ewan ko ba sa economy naten! grrr!!!
reynz’s last blog post..I?m a Wall Street Shit Investor
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chona! thank you! pinuntahan! inintay kong mag-hubad si umleo ba yon? hahaha! inulit ko, ni-rewind ko, ayaw pa rin maghubad! ano ba?! hahaha!
reynz’s last blog post..I?m a Wall Street Shit Investor
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nakita ko nga, eto update:
The stock market immediately dipped hundreds of points after it became apparent that the bill would fail. The Dow closed down 777 points at the end of trading Monday, a record plunge.
Democrats and Republicans on Capitol Hill immediately blamed each other for the failure of a $700 billion bailout package in the House on Monday.
http://www.cnn.com/2008/POLITICS/09/29/bailout.fallout/index.html
kanya-kanyang kalechehan talaga oo!
reynz’s last blog post..I?m a Wall Street Shit Investor
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swak ang sinabi mo ateng, yong mga ahas dito, mga naka merkana lang kasi, kaya kala mo, matitinong tao, mandarukot pala hahaha
reynz’s last blog post..I?m a Wall Street Shit Investor
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well, kung natuloy yong bail=out ngayon, it would appear na panalo ang socialism, tama ba ako? hahaha! pilit na sinasalba nang socialism ang kapitalismo and i can’t believe what’s happening!
reynz’s last blog post..I?m a Wall Street Shit Investor
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baket ang layo naman ng binilhan mo ng bigas? siguro yung bigas dyan sa philly di naluluto pag nawasa ang tubig mo kelang evian hahhaa o kaya mahaba pila ng nfa dyan. di nga matagal ko na alam na tumaas yan simula september nag increase sila ng $1 alam mo naman si LOlo Corzine ko di pa nakuntento sa pagraise ng sales tax last year tapos ngayon toll naman ako kaya kelan tataas?
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alam mo kasi, ung natatanging pinoy store in my area, nag-sara. there’s a new one, kaso when i drove by this morning, linsyak, sarado hahaha wa me choice, pumunta sa bundok nang jersey na pagkalayo layo! leche! hahahaha
yang Corzine mo na yan, madali ko na ma-umbag yan sa mga kung ano anong taxes, insurance na nagtaasan dyan noh? kaya lalayasan ko na kayoooooo!!!! hahaha!!
reynz’s last blog post..The search is over! World Peace!
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