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NeedToUseYou -> RE: Latest on Merrill Lynch and Lehman Brothers (9/15/2008 4:05:57 PM)
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quote:
ORIGINAL: KatyLied
What should people do who have their money at Merrill Lynch (now Bank of America)? Should they sit tight or move their investments to another place?
Bank of America is the "safest" place for your money really, as their ties to the fed virtually insure them a last to fail status. They have acquired Countrywide, and Merrill, so the government will do whatever they can to keep them healthy. Bank of America also sits on the New York Federal Reserve, which is the all powerful body that produces this messes, by artificially overextending credit to create the booms, and then clean up the carcasses during the bust. They are insiders making the policy, setting the rules, and they know before anyone else, when those rules will be reversed. It's not very hard to see why they get federal backing for countrywide, and they aren't to worried about going broke either, as the federal reserve will pump them full of inflationary dollars if required to keep them afloat.
This is what happens when you get socialist concepts mixed in with capitalism. I agree with some around in that we must select what type of country we want to be. Do we want to be socialists, or capitalist. The nearest approximation of each in this economy have both been horrible failures. Federal Reserve(socialist), Fannie, Freddie(quasi,socialist/capitalist), LEH(capitalist, though largely influenced by the socialist Federal Reserve).
Anyway, its a clusterfuck the capitalist aspects of our economy try to leech of the socialist aspects, and the socialist aspects try to hand pick the capitalist winners and losers by select who will or will not be supported with taxpayer money. It's a show nothing more.
My vote is the Federal Reserve needs to go, it is absolutely the worst part of this countries economy, literally, I could run it better. Why? Because they aren't running for the common mans interest they are a tool to preserve the big Money Trust, that's it.
Personally, I'm happy every time one of these collapse. If you notice they'd all die given a natural course of events, seeing they are merely being saved by Federal Reserve cash(Your cash), or the implied guarantee to your cash, that implies they don't have a functional business model and well should die. It's socialism that is trying to rescue corrupt businesses from failure thus why I can't understand why some think this is a call to socialism.
Anyway, I'm happy LEH died, old money, needs to die off from time to time, its natural. I'm just saddened that the biggest crooks will be allowed to live.
Yeah, I understand that would throw us into a temporary depression, so what. That needs to occur from time to time as well, like a forest fire burning off all the dead wood adds fertilizer for the next growth cycle, and gives new opportunity as the old vested power structure is destroyed.
Anyway, this is going to be used as an excuse to either go more socialist, or shrug off our socialist experimentation. The next 4 years will be interesting in that regard. Personally I'll be happy with a more clearly defined system either way, as this crap is just stupid.
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