Horrors of late capitalism

[Arturo2nd]

Originally Posted by xyzde69

According to Mr. Valukas, the SEC and the Federal governement knew the risks in real time. They get all the documents, but have done.... nothing.
One day an attorney of the SEC wrote a mail: "Look at this, that could bring a problem."

It is important to realize that ever since the Reagan administration the SEC enforcement staff has been increasingly reduced. It is virtually toothless anymore. That does not stop the very same Republican Congressman who have hamstrung the agency from publicly berating them when things go wrong.

Originally Posted by xyzde69

As shown in the documentary, if US borrowers had known that their informations would have been manipulated by brokers of mortgages agencies, to be thrown outside of their houses to the street as homeless a few years later, surely they never would have signed their contracts.

Au contraire, the borrowers bought into the fiction that properties would continue to appreciate by double digits and that they could then refinance the homes or sell out and have a windfall profit to invest in a new home. The borrowers, mortgage brokers, and real estate agents were all rather stupid and corrupt. Many of the bankers began to believe the fantasy narratives that they were spinning.

Periodic bubbles have been a regular feature of capitalism for centuries. The gullible always believe that this time things really will go up forever. When this market crashes, it may be real ugly. I have a sneaking suspicion that some funny business is going on trying to prevent a Democratic takeover of Congress next year.

Originally Posted by xyzde69

USA government is in very bad hands and few American people seem to understand that, because they were manipulated at school since their childhood.

Very few people understand how the federal government actually works. Few of us can grasp the enormous complexity of our economy, which is completely enmeshed in a global network. A few wealthy people have figured out how to game the system, aided by the easily swayed and poorly educated people glued to their television sets.

I hope that I am wrong, but see the rapid environmental decay combining with the impending corrections of the financial systems to devolve into a global catastrophe. The elites believe that they can weather the storm, but I believe that they are buying into their own BS.

[deepsepia]

Originally Posted by xyzde69

What disturb you with this excellent analogy ?
I observed one thing... you defend manipulated balance sheets, when even Vice Presidents of Lehman Brothers prefered to quit this bank, because they thought it clearly was illegal.

Financial accounting is technical. The question of abuses in characterization of the accounting status of securities transactions requires a very deep understanding of corporate accounting. Silly analogies to AIDS simply reveal that you don't know much about finance. Financial accounting is highly technical . . . we don't get anywhere in technical subjects with analogies to completely different domains . . . you won't explain thermodynamics by reference to the measles.

Again, I don't see any evidence that you know how to read a balance sheet-- do you? Have you ever taken an accounting class?

Lehman's balance sheet fairly presented the obvious: that it was a massively over leveraged company, one which could not sustain even a minimal hit to equity. That was plain, and yet dumb lenders through money at the company.

If you someone comes to you and says: I have $3 of equity, would you like to lend me $97 and I'll buy this asset worth $100 . . . well, you're the fool there.

The distinction between whether they had $3 or $4 of equity is immaterial to the failure; the failure comes from the vast overleveraging of assets which are of highly variable value.

Executives of Lehman, for the most part, thought all was well. They held massive amounts of Lehman stock, staring with Richard Fuld who had 11.4 million shares of various types of stock and 2.5 million stock options all of which was worth just shy of a billion dollars at Lehman's high price-- and ended up being worth nothing.

So you have the CEO of the company, looking at his own shop and betting a billion dollars that its money good.

You can call it "stupid" if you like.

[Roubignol]

Originally Posted by deepsepia

Again, I don't see any evidence that you know how to read a balance sheet-- do you? Have you ever taken an accounting class?

Yep. Every students in Switzerland have accounting class.
At least during two years.

When we are 15 years old, we are able to read this.



I'm not kidding, but I don't think that there is a Swiss teenager who is unable to calculate a compound interests.

You must watch this documentary.
BMC mortages employees explained that brokers came with fake and dishonest documents.
One among several examples was an employee working at a counter in KFC earning a wage of ... 7000$ a month.
When employees of BMC mortages who were responsable to control the accuracy of the documents, denounced massive amount of cases... they get people who threat them and their families.

Vice Presidents of Lehman Brothers denounced manipulated balance-sheets where 50 billion of debts were hidden in British subsidiary or Fulds' stock options not declared to the SEC.
That's all in the documentary. I suppose, if they have lied, Fuld will send them to the court.

I'm sorry Deep, but now it's my turn to ask you a very easy question.
If you want to buy a company or invest in... and when you read its balance-sheet... you don't know that the boss viciously hide massive debts on the report you read. What would you say ?
Be honest Deep... be honest.

[Arturo2nd]

Big changes coming for Europeans. That and running short of water when the glaciers finish melting.

https://www.theguardian.com/environm...0-expert-warns

BTW, tofu doesn't taste like chicken.

[bowlinggreen]

Originally Posted by Brian249x

Big changes coming for Europeans. That and running short of water when the glaciers finish melting.

https://www.theguardian.com/environm...0-expert-warns

BTW, tofu doesn't taste like chicken.

That will at least make xyz happy. I hope he likes algae burgers.

Europe is just jam-packed with people for the land mass and resources that they have, I think sooner or later there will be another huge war over there due to lack of basic necessities and cultural dysfunction. I hope we stay out of it too. I'm glad I don't live over there.

Our English friends can just dynamite the Chunnel and declare Fortress Britain when the time comes.

[Wendigo]

Originally Posted by bowlinggreen

Our English friends can just dynamite the Chunnel and declare Fortress Britain when the time comes.

No need to waste ammunition, we will just block the tunnel with thousands of boxes of British goods marked up in lbs and ounces and priced in sterling and the EU forces will not be allowed to move them

[Estreeter]

Hey Deeps

Originally Posted by xyzde69

I'm sorry Deep, but now it's my turn to ask you a very easy question.
If you want to buy a company or invest in... and when you read its balance-sheet... you don't know that the boss viciously hide massive debts on the report you read. What would you say ?
Be honest Deep... be honest.

Don't answer him, but if you do answer, don't answer directly and just be vague and avoid the question like he does in the Communist thread

[Roubignol]

Originally Posted by bowlinggreen

That will at least make xyz happy. I hope he likes algae burgers.

They taste ex...cel...lent. <3

I predict that in 4 generations, American children will eat more McAlgea than Big Mac.
They will be 100 pounds lighter and watch at the pictures of your generation mocking: "Damned, how was it possible to be so faaaat. They even couldn't reach their asshole to clean it well."

Originally Posted by bowlinggreen

Europe is just jam-packed with people for the land mass and resources that they have, I think sooner or later there will be another huge war over there due to lack of basic necessities and cultural dysfunction. I hope we stay out of it too. I'm glad I don't live over there.

Our English friends can just dynamite the Chunnel and declare Fortress Britain when the time comes.

Don't be so glad, the US and UK invasion has already begun. All the walls in the world will not save your children.

When Wendigo will be in his grave, he will listen: "Alllaaahhhh..... Achmakroum!" "Alllaaaahhhh...."
and you will listen Latino workers moving your grave.

Originally Posted by Estreeter

Hey Deeps

Don't answer him, but if you do answer, don't answer directly and just be vague and avoid the question like he does in the Communist thread

What didn't you understand.

Originally Posted by xyzde69

No more money. Money = slavery and world destruction.

[Estreeter]

Originally Posted by xyzde69

What didn't you understand.

What, This

Originally Posted by xyzde69

No more money. Money = slavery and world destruction.

I understand that's your belief perfectly, no mistaking that

I don't understand how someone who believes that and wants that to be the case spends time arguing over money and it's distribution

[Roubignol]

Originally Posted by Estreeter

What, This



I understand that's your belief perfectly, no mistaking that

I don't understand how someone who believes that and wants that to be the case spends time arguing over money and it's distribution

It's like thinking that body is a jail to the mind. I'd prefer to live without body... but can't. Do you understand ?
That's the same with money. I'd prefer to live without money in my homeland... but can't.

Do you agree that today money runs the world on not ? That's extremely difficult to live in a homeland without money.
I can't go to my job and ask my business partners: "Don't pay me. Only give me salad and potatoes."
Do you know why ?
Because it's illegal.
Here we get state agents who control and fine enterprises working like that.
In Switzerland our state taxes fortune.
That means that if I have a small piece of land with a small wood house onit, the state taxes me. If I don't pay, they kick me out of my house or send me to the jail several days a year.
A friend of my father was punished like that, because he was a peaceful anarchist.
What do you want ? That I live under a bridge or commit suicide ?
I already thought several time about the second case, but I'm still not desesperate enough to kill myself. I still have some hope and fun.