Monday, 20 October 2008

Love this open letter from an ADDICT to their family

An Open Letter To My Family

I am a drug abuser.

I need help.

Don't solve my problem for me.

This only makes me lose respect for you and for myself.

Don't lecture, moralise, scold, blame, or argue whether I'm stoned or sober.

It may make you feel better, but it makes the situation worse.

Don't accept my promises.

The nature of my illness prevents my keeping them, even though I mean them at the time. Promises are only my way of postponing pain.

And don't keep switching agreements; if an agreement is made, stick to it.

Don't lose your temper with me.

It will destroy you and any possibility of helping me.

Don't let your anxiety for me make you do what I should do for myself.

Don't believe everything I tell you.

Often I don't even know the truth - let alone tell it.Don't cover up or try to spare me the consequences of my using.

It may reduce the crisis, but it will make my illness worse.

Above all, don't run away from reality as I do.

Drug dependence, my illness, gets worse as my using continues.

Start now to learn, to understand, to plan for recovery.

Find Families Anonymous, a group which exists to help families in just your situation.

I need help - from a doctor, a psychologist, a counsellor, from some people in a self-help programme who've recovered from a drug problem themselves, and from a Power greater than myself.

Wednesday, 15 October 2008

Surprise surprise injecting more debt into a debt addled system didn't work. Time for plan B

The ineptitude at the top is why people think there is an illuminati.

profits are privatised, losses are socialised. That's the 21-century Free Market

Yeah lets stop talking about

"Bail em out" and start talking about

"Bail Amount"

Never, in the field of finance, was so much owed by so many to so few!!

G Broon is like the Captain of the Titanic - only - he didn't go down with his ship like he should have done..........Instead, he's been splashing about with one of the lifeboats - trying to be a hero - -- EVEN THOUGH HE DROVE THE SHIP ONTO THE ICEBERG - AND SUNK IT............

Governments the world over always try to solve their economic problems by printing money. The UK government has confirmed that this is their intention. After this bailout you will find another even larger bailout, then another one, and another one. The government will keep creating money (debt) until the entire system collapses as trade stops due to the devaluation of money.

Ultimately it will be worthless.

The problem that we face is our inability to recognise the self destructive nature of the current economic system we employ. Therefore it doesn't matter what anyone does, we really are re-arranging the deck chairs on the Titanic. Of course the world will still exist, even a world without banks, however, we can expect to see a lot of instability

Wednesday, 8 October 2008

So why wont it work?

Well i will tell you,

having watched hour after hour on the news and on doomberg eh sorry bloomberg, and having witnessed countless people from all sides of the argument from idiots like will hutton to more sensible people like Vince cable and ken Clarke. (sensible to be take with a pinch of salt). not a single one ever seems to mention that the problem is too much debt.

This entire crisis is because the banks have lent money to people who can not pay it back; or will ever be able to pay it back, being mortgages on over priced properties.

Therefore if you are a bank and lent money and it is not coming back you are bust. This is not rocket science.

I am getting increasingly frustrated that no one ever seems to get that this is the problem.

Mr Brown only this morning said that this rescue package would get to the heart of the problem. how can it.

I suggest you Start doing your own research and you will soon start to find out why none of them want to address the real issue which is to much debt/printing money out of thin air etc.

Zeitgeist addendum part 2 is a good place to start.

Also money masters on Google video or money as debt. You can also Google who owns the federal reserve which is actually a private bank owned by private individuals. Do your research and come to your own conclusions why the Gentlemen we call politicians don't want to talk about the real problem.

It seems a bit of a no no to point out that the problem is too much debt - personal debt, government debt, bank debt. All the analysis I've seen seems to think as soon as the banks start lending again then bingo, problem solved.

Nobody seems to have understood yet that the debt is the problem, creating more of it is not the answer. It's as if they can't imagine a world where people and businesses can operate at all without getting into loads of debt. I wonder why that is?

The govt cannot highlight the debt problem because they are in so much debt and Ponzi Brown might have a bit of trouble giving any sort of convincing answer about the debt without spouting his usual drivel about unrivalled growth, strong fundamentals and his latest "do what ever it takes" etc....You will notice that no where in any of the banking bailouts has anyone sort to shore up banking balance sheets by getting people to pay back the money borrowed.

Considering the problem is debt this is very strange.This is why the bailouts will fail. More debt will not solve the problem and the markets know this.

Simply put, the solution to this problem will hurt.Years of repayment means years of pain, and we don't like pain. Meanwhile, there's a minuscule, unrealistic chance that if we put it off for 5 years, something will come along to solve the whole mess.There's an elephant in the room, and nobody wants to talk about it.

Both In the US and now here, the focus is totally on getting the lending going again- note that this is always phrased as getting credit flowing again- it would be just as accurate to say it's about getting debt flowing again- but this lacks a certain positive gloss and would perhaps lead to a train of thought that nobody wants to get on board of.

So what we have is a triple whammy - 1- The government is borrowing half a trillion pounds on your behalf at interest, to give to banks so they can lend it out back to you, at interest.

2- Banks are now charging you to put money in their bank (IRs lower than inflation) even though they're thieves who keep losing peoples money.

3- All this extra money is causing inflation, which is stealing your wealth from you.

Basically we're all been robbed blind. No doubt I've missed some other thieving aspect of this too. So what can we do? Call the police? Cry?

Today the Tax Payer offered the banks the chance to put all their outgoings into one manageable monthly payment. That's funny because i don't remember being part of that discussion as to if I agreed, oh that's right, I'm a peasant i do what I'm told and pay my tax like a good little slave,

sorry forgot sir getting above my station there sir, shall i bend over again sir ?

So Whats actually happening?

A few friends have asked me to try and explain all the "financial stuff" so here goes, I add that this is my understanding of whats happening and may well be complete nonsense, but hey its my nonsense and its got to be better than the spin we are getting from Gordon and Darling.

Right,,, The fractional reserve system of banking means a bank can take a deposit of £1 and lend it out (effectively) more than once.

So, if everyone walked into a bank on the same day and tried to withdraw their deposits, the bank would not be able to pay them back.

They have to keep a certain level of cash available to meet the demands of savers for cash. (Capital Adequacy)

The more banks lend, the more money they make. When they had no more money to lend, they created packages of debt - like Mortgage Backed Securities and Collateralized Debt Obligations.

(So, if they had lent 100 million out via 1000 mortgages (of 100k each) that were paying 5.5% interest - they would package these mortgages together and provide them as security for a loan from another bank.)

They then lent that money out again - and they all packaged up debt and sold it to each other (or used it as collateral).

Within these packages of debt, risky loans (high Loan to Values and high salary multiples) were included with lower risk loans.

In this way the banks got around the capital adequacy rules that say 'you must always keep x% in cash to allow for savers demanding their money back'.The result, eventually when the housing market started falling, was that banks suddenly stopped trusting each other.

Bank A would say to itself 'what is the real value of the security that Bank B is offering ... they're offering a MBS with a face value of 100 million that pays 5.5% but, are the properties backing that MBS actually worth a 100 million, are the loans inside it all 'good' loans or is it full of high risk loans (like Northern Rock used to make).

So, Bank A stopped lending to Bank B ... and Bank C, D, E etc - in fact all banks - because the whole system of packaging up and re-selling debt had become so complicated that no-one knew what the real position of any other bank was.

Were they sitting on lots of bad debts or not? Were the assets enough to back the loans they were offering as security or not.

So, the banks stopped lending to each other. As they had long ago used up all the lending they could make based on the money you and I deposit in them .. they basically stopped lending.

They certainly stopped risky lending. Now you needed a big deposit and a lower salary multiple to get a mortgage.

And, of course, this made it worse because this causes house prices to fall further - reducing the value of all the MBSs and CDOs flying around the system - making the banks even more reluctant to lend to each other.

So, the banking system begins to freeze. And their share prices fall through the floor. And, when this happens, the rating of their debt is reduced by the people who decide whether a company's credit worthyness is AA, A, etc and, as this happens, other banks become even more reluctant to lend to them.So, the spiral down continues.
Until, and unless, the government can put enough money into the system for the banks to start lending to each other again. So that is what the 500 billion bailout or is it 750 billion bailout from Alistair today...... will it work? NO!
Why wont it work?
Ill have to do another log to explain why not, but it has not worked in America and we are a few months/weeks behind them in this crisis!

Tuesday, 7 October 2008

Party like its 1929

All UK highstreet lenders are to be part-nationalised (government to buy preference shares) overnight. No details yet, but likely to around £50bn outlay.

So the taxpayer is going to give the banks billions of pounds so that they can lend it back to us at a high rate of interest because we don't earn enough to live on and to carry on buying houses we can't afford.

Oh dear!