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It's something new every day. First, the road construction warning signs have an additional sign saying "Keeping America Working", that tells you where the money is coming from. They've laid a blanket 4 miles long east of town over an only 5 year old widening and paving job. Now they're doing the same west of town over new blacktop.
A local fencing company is replacing 8 miles of perfectly good barb wire and T-post fence along my stretch of the little two lane highway. Here's the good part. A friend who cowboys for a huge local ranch, 100-200 square miles at least, was sent over to ask the fence contractor about his ranch buying all the used T-posts. Get this, the fence company is required to bend a tight curve in the top of each post so it's unusable and has to be sold as scrap. And this kind of Washington brainpower is going to get the economy back on it's feet? I'm sure making the (name deleted) ranch corporate owners buy 1000+ new posts versus perfectly good used will instill their's and other's confidence in our wonderful economic future.
It's something new every day. First, the road construction warning signs have an additional sign saying "Keeping America Working", that tells you where the money is coming from. They've laid a blanket 4 miles long east of town over an only 5 year old widening and paving job. Now they're doing the same west of town over new blacktop.
A local fencing company is replacing 8 miles of perfectly good barb wire and T-post fence along my stretch of the little two lane highway. Here's the good part. A friend who cowboys for a huge local ranch, 100-200 square miles at least, was sent over to ask the fence contractor about his ranch buying all the used T-posts. Get this, the fence company is required to bend a tight curve in the top of each post so it's unusable and has to be sold as scrap. And this kind of Washington brainpower is going to get the economy back on it's feet? I'm sure making the (name deleted) ranch corporate owners buy 1000+ new posts versus perfectly good used will instill their's and other's confidence in our wonderful economic future.
What about Wall Street selling debt to foreigners so that they earn all the interest dollars instead of Americans?
That is whole is umpteen thousands times larger than a few billion of our tax dollars being spent on road and fence maintanence.
A small aircraft manufacturer in Northern Idaho (Quest Aircraft) hired 26 workers on a govt grant, about 6 weeks ago, then laid off 25 workers, some with 3 years in with the company. Supposedly, they chose names at random to be laid off, but I'll bet that the stimulus package supporters will show us where it helped put 25 people to work over there.
I'll bet this is going on all over the country.
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It's not like Americans/American companies were restricted from purchasing the debt.
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Strawman.
Accredited investors were for the most part, intelligent enough not to touch the stuff and most 401k plans did not allow the purchasing of such securities leaving only foreign markets.
People rant about Fed printing money, but say nothing to the fact that securitization through the sale of debt to foreigners whom deal in other currencies is akin to printing dollars.
Accredited investors were for the most part, intelligent enough not to touch the stuff and most 401k plans did not allow the purchasing of such securities leaving only foreign markets.
First you say that... "they earn all the interest dollars instead of Americans?"....now you're saying that American investors don't want to buy the debt?
You're more than a little inconsistent here.
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People rant about Fed printing money, but say nothing to the fact that securitization through the sale of debt to foreigners whom deal in other currencies is akin to printing dollars.
It's not that complicated, nor is it some 'conspiracy.'
Treasury notes are issued by the United States, to fund our government.
Anyone can buy them.
The fact that foreign entities have deemed us a better credit risk (to the tune of about 80% of the notes of 3-10 years maturity are now foreign owned), than our own business'/people..........is something that has struck me as a little strange.
The fact of the matter is, they have more faith in our future than we do.
First you say that... "they earn all the interest dollars instead of Americans?"....now you're saying that American investors don't want to buy the debt?
You're more than a little inconsistent here.
It's not that complicated, nor is it some 'conspiracy.'
Treasury notes are issued by the United States, to fund our government.
Anyone can buy them.
The fact that foreign entities have deemed us a better credit risk (to the tune of about 80% of the notes of 3-10 years maturity are now foreign owned), than our own business'/people..........is something that has struck me as a little strange.
The fact of the matter is, they have more faith in our future than we do.
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I wasn't talking about treasury notes, I am talking about your local bank and securitization through Wall Street firms.
Do you suppose that Americans would earn more money on their deposits if the banks had to loan out money which they held in deposits rather than that which flowed into the Bank through the securitization process?
If you are not an accredited investor, then you cannot earn money on "sophisticated" debt instruments like MBS's.
That was my point, Montanafan. If it's so blatant in this low populated area, how many gazillions are being wasted in the more populous states?
(Let's see how long it takes our favorite Thread Locker to force a mod to close this one down)
I wasn't talking about treasury notes, I am talking about your local bank and securitization through Wall Street firms.
Do you suppose that Americans would earn more money on their deposits if the banks had to loan out money which they held in deposits rather than that which flowed into the Bank through the securitization process?
If you are not an accredited investor, then you cannot earn money on "sophisticated" debt instruments like MBS's.
Most banks are simply the 'middle-man' on Mortgage Backed Securities. The reason the average person can't buy, isn't because they aren't "accredited"...........it's because they are sold in bundles that takes a large amount of capital to purchase.
As far as Americans making more interest on simple pass-book savings, most banks are in a jam as it is so..............that's not likely to happen.
If a person wants a better deal......join a Credit Union, that typically, doesn't mess with mortgages.
I have a question for you; What do you think should be done and who/why do you think that it would help?
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LMJD...I understand, but apparently gov't work same today as when I did some yrs. ago. At the time..Specs/contract for work listed everything involved & NO deviation. So..fence posts were figured in & to be sold for scrape..no deviation from orig. contract. JMO.
Yeah, wierd on whats being done to your hi ways there. Nv. got stim. funds being divided up thruout state. One result (locally) badly needed additional road lane being built. Was on future to do list, but no immediate funds avail. New lane now being done ahead of schedule.
MF..due to stim. funds..3 more police officers suppose to be hired here. Reason not hired before..funds not avail. Kinda good news/bad news. GN..can use them. BN..when stim. funds run out for this (3 yrs?) hopefully our local economy is better by then & we (taxpayers here) have the ability to pay for these 3 policeman? if not then I would imagine they'll loose their jobs.
btw..on second thought on fence work. I just assume there were conditions set for doing that work with stim. funds..maybe/maybe not? Not sure all states are accepting funds & maybe for good reasons. Another being IIRC..if projects started & cant be completed with s.funds them local t.payers could get stuck for diff.
Most banks are simply the 'middle-man' on Mortgage Backed Securities. The reason the average person can't buy, isn't because they aren't "accredited"...........it's because they are sold in bundles that takes a large amount of capital to purchase..
Ok, I have half a million dollars. Please direct me to where I can go to buy an MBS or a Security backed by Credit Card debt etc.
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Originally Posted by AK_Gandy
As far as Americans making more interest on simple pass-book savings, most banks are in a jam as it is so..............that's not likely to happen..
What about on the upswing? If I have to loan against deposits then supply and demand states that if I want to be able to loan more money that I have to raise the amount of interest I pay in order to attract deposits, correct? With securitization, that doesn't need to happen. When the debt is sold to foreigners by Wall Street, the money supply increases with no increase in the amount of interest that must be paid to depositors but the bank is still liable to pay the debt if the borrower defaults. If the bank has sold the mortgage on a speculative exchange then it is able to collect more than the principle up front and post that as profit before it even collects the first payment from the borrower. This "profit" then gets paid to CEO's and the dealers and of course shareholders lots of whom may also be foreigners.
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Originally Posted by AK_Gandy
If a person wants a better deal......join a Credit Union, that typically, doesn't mess with mortgages. .
Strawman.
Quote:
Originally Posted by AK_Gandy
I have a question for you; What do you think should be done and who/why do you think that it would help?
.
The same thing we did since 1933 up until 1999, do not allow investment banks and your neighborhood banks and insurance companies to interact in anyway whatsoever. This way the fraudsters and speculators on Wall Street cannot steal money from the American people in the form of debt obligations to foreigners that could never possibly be repaid.
I bet a lot of the securities that were sold were nothing more than fraud that had no income stream to back them whatsoever. Of course with the group of advisors that Obama has none of this will ever be investigated and Obama sure doesn't give the first care about doing the right thing.
"Purchase mortgage backed securities from your local broker. You must open a brokerage account first. The broker will then purchase the mortgage backed security. There is a cost for the purchase, but not the brokerage account. Minimums on mortgage backed securities are $25000 with CMO's as low as $5000."
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What about on the upswing? If I have to loan against deposits then supply and demand states that if I want to be able to loan more money that I have to raise the amount of interest I pay in order to attract deposits, correct? With securitization, that doesn't need to happen. When the debt is sold to foreigners by Wall Street, the money supply increases with no increase in the amount of interest that must be paid to depositors but the bank is still liable to pay the debt if the borrower defaults. If the bank has sold the mortgage on a speculative exchange then it is able to collect more than the principle up front and post that as profit before it even collects the first payment from the borrower. This "profit" then gets paid to CEO's and the dealers and of course shareholders lots of whom may also be foreigners.
Not sure what you've been reading or listening to but, your conspiracy theory has so many holes and incorrect assumptions, that I couldn't change your mind if I wrote the rest of the night.
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Strawman.
Nope.
Just a comment.
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The same thing we did since 1933 up until 1999, do not allow investment banks and your neighborhood banks and insurance companies to interact in anyway whatsoever. This way the fraudsters and speculators on Wall Street cannot steal money from the American people in the form of debt obligations to foreigners that could never possibly be repaid.
I agree with repealing the GLBA and reinstating Glass-Steagall.
But that has nothing to do with foreigners buying the resultant products.
You're incorrectly mixing the two.
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I bet a lot of the securities that were sold were nothing more than fraud that had no income stream to back them whatsoever. Of course with the group of advisors that Obama has none of this will ever be investigated and Obama sure doesn't give the first care about doing the right thing.
Ummmm..........the lack of regulation, non-existant enforcement and looking the other way...............didn't happen on Obama's watch.
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