Borrowers/Investors Fight Back!—SubPrime Bailout Blowout

The big boys were all about stepping up to the plate to hand back some of their hard-earned (make that unearned) profits with a bailout fund. First it was $75 billion, then it was $100 billion, today it is $80 billion and going down because in the final analysis it is once again about smoke and mirrors. They wanted to create the appearance of reassurance rather than the actuality. Front page of Wall Street Journal today gives a sketch of one of the feeding frenzies and that ensuing crashes that are happening all over the place. It isn’t pretty and it will get a lot worse. In the end, the people who made all the money are  going to be looking for the tax papers to bail them out of a liability that is really all theirs. Donald Trump said it right on Larry King two nights ago. People should start kicking ass — the borrowers who stand the lsoe their homes and everything in it, the banks that cannot survive the massive write-downs that will restate huge earnings into huge losses, and the investors and fund managers who have watched their wealth spiral up and then spiral down (all on paper, nothing real) as the world turns upside down and sideways.Borrowers: Stop playing the game. Renegotiate your loans.Banks: Be creative. Let the talks begin with your borrowers and be ready to fight with the people who got you into this mess. Your borrowers and their good faith are the only hope for many banks to survive this mess. Take your head out of the sand.  Investors: Stop playing the game: Demand compensation for being mislead. No surprise here. Concentrations are in Black and Hispanic communities where it was all the more likely they wouldn’t know, understand or absorb the details they were signing away their lives on. The FUND that was being negotiated between the Treasury department of a lame duck unpopular president and a greedy bunch of predatory bastards who after 10 years of doing this crap think they can get away with anything — it just might fall apart. Some players are back-pedaling. The vacuum in leadership is going to magnify the effects of black October, 2007. There are only two people in the right position to force a massive change in business methods and a bailout in proportion to the requirements of this disaster — GW and Bernanke. Neither one has the muscle or credibility to do it. The only other two people who could do it are Bill Clinton and Alan Greenspan — and neither of them has been or will be invited to try. This is going to be very messy. 

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