Comments on: Why the U.S. Government Should be Cut Off Like a Subprime Borrower

By: 5to12

5to12 — Tue, 17 Mar 2009 22:58:06 +0000

Just as homebuyers did earlier in this decade, the U.S. government will borrow as much money as the world is foolish enough to lend… it is placing a horrific debt burden on its people, committing them to either a lifetime of crippling interest payments or run-away inflation.

So, a form of predatory borrowing that's been well known in the global south.

By: KG

KG — Sun, 08 Mar 2009 02:58:53 +0000

Since many stocks are sprialing downward out of control, depreciating basically, I would like to reccomend simply liquidating (401's too), & putting that $ on principal only of a personal residence or other property & getting a smaller monthly payment, after modifying if you are doing that. The savings in interest will be compounded to you, it will help the banks as well, you may even save enough to be able to spend more & stimulate the economy & if & the peace of mind having a smaller payment or paying off the property in this volitile market will be priceless.

Then after you have caught your breath & taken a vacation from all the stock chaos, you can study to see where it is good to reinvest with our "new" market eventually.

That of course means you still need to study stocks & have this good company to help.

By: Nick Coccia

Nick Coccia — Tue, 03 Mar 2009 02:51:26 +0000

I've been reading these "MM" reports for the last two weeks, trying to execute a consience decision as to whether the information contained within, is actually worth singning on. That internal debate remains within me.

However, some responses deserve special attention such as the interjection by Nick Polimeni. I see another "Guest Columnist" in the making!!!! Great reponse!!!

By: Bruce

Bruce — Sun, 01 Mar 2009 15:46:55 +0000

Consumers look at banks as pillars in the community, just as they view doctors; If that pillar says a solution is sanctioned they tend to go with it without thinking or taking Responsibility – similarly they vote for one of two parties without thinking that they are both the same. The banks were making a dream come true. I agree that the sooner the foreign central banks cut us off and the sooner the dollar crashes and the sooner the banks fail the better we will be. But unfortunately the powers that be will maintain the "recovery is just around the corner if we spend more money" ponzie game as long as possible. Folk need to again take Responsibility, and help the process by selling all forms of investments ASAP.

By: Nick Polimeni

Nick Polimeni — Sat, 28 Feb 2009 04:52:21 +0000

Are opposing points of view permitted here?

By: Nick Polimeni

Nick Polimeni — Sat, 28 Feb 2009 03:58:03 +0000

There is a series of assumptions at the foundation of the position taken in the article By Peter Schiff, which are taken as incontrovertible biblical truth, and therefore never questioned.

Starting with the title of the article: When the entire world of financial communities look to government for bailouts, seemingly acknowledging it as the source of money, the article takes it for granted that the government has to get the money from some other, higher power, not named; surely he doesn't mean the financial community!

For a wealthy country such as the US, there are enough resources and productivity to make it possible for all to have secure housing over which they have mastery. Yet, the financial system makes it impossible but for a small percentage of the population to own homes. And when the wealth is created by the population's productive capacity, one has to wonder why government or the financial community has failed to distribute a reasonable share of that wealth to the population, 80% of which is owned or controlled instead by the top 2-5%.

The article assumes hoards of irresponsible buyers abound in our midst.

The "irresponsible" buyer, who is trying to take the ring that he knows is his earned right, and the only way left to get it, is by attempting the same shenanigans used by the financial community, so he takes a calculated risk. But as all pyramid schemes only benefit the top 25% at the expense of the bottom 75%, its no wonder that the system collapsed. The money hasn't totally disappeared; much of it is in the pockets of that top layer who benefited from the euphoria of the upswing.

Taking such risks on buying a home is a subconscious act of social revolt. While the result may have appeared unexpected, losing one home under the set of circumstances of our recent times, has become the ironic unexpected retribution to expose bare the inequities of the system.

In the past generations the labor of a man could support a family and their children, and almost everyone could buy a home. Why hasn't it been possible in our time for a family with 2 or more working adults to buy a home? We certainly didn't get lazier; we added our family resources, and with added hours of work, sometimes holding more than one job, and still can't make ends meet.

Stop blaming the people, and talk of the government as if it were an entity separate from the people. We the people are the government, and will continue to press into service those who have the people's interest at heart, and hopefully they've not sold their souls to mammon.

By: Joe Robertson

Joe Robertson — Thu, 26 Feb 2009 18:34:16 +0000

of course if the government's plan works then Schiff's recommendations as well as his business interests won't benefit from the crash that his investments require. the point of the government plan is to make the crisis less severe and to allow a more gradual shift, than to instantly put us in a deep depression that would have untold fallout.

By: Fred Baptist

Fred Baptist — Thu, 26 Feb 2009 01:11:42 +0000

"Unfortunately" the largest lender China has no choice in the issue as it has to defend its dollar peg or face the prospect of a dramatic increase in the Renminbi which would kill its export market and so they will still continue buying U.S. paper for some time to come; at least until the Renminbi becomes a freely-floating currency which I don't foresee in the near future. Perhaps even during our lifetimes!

By: Mario Tanker

Mario Tanker — Wed, 25 Feb 2009 19:55:16 +0000

It wont matter, the govt will simply print more money.

By: li jackson

li jackson — Wed, 25 Feb 2009 18:58:05 +0000

Fact of the matter is, opportunists prevail.

The 'benefit racket' is already too intertwined for these foreign creditors to revert to an honorable game — if they let the US go down, they will be dragged along one way or another (such as their own sets of domestic problems billowing out of control).

…Way too painful for the genetically myopic 'politician species' to even dare dream of. (They're already too busy angling for the most favorable loan terms, anyway!)