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Deal Reached on Financial Markets Bailout
Breitbart via AP ^ | 9/28/08 | CHARLES BABINGTON and ALAN FRAM

Posted on 09/28/2008 12:30:41 AM PDT by xtinct

Due to AP restriction click link


TOPICS: Breaking News; Business/Economy; Government; News/Current Events
KEYWORDS: 110th; acorn; bailout; corruption; financialmarkets; paulson; tammanyhall; taxpayerrape; teapotdome; wallstreet
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1 posted on 09/28/2008 12:30:41 AM PDT by xtinct
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To: xtinct

I’m looking for information regarding the Acorn financing boondoggle, but see no reference to it...

I’m praying they got it dumped from this bill.


2 posted on 09/28/2008 12:34:24 AM PDT by dandelion
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To: dandelion

ditto on ACORN


3 posted on 09/28/2008 12:37:20 AM PDT by xtinct (Suicide Hotline... !! "Obama here" --> Please Hold...)
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To: rabscuttle385

ping


4 posted on 09/28/2008 12:37:56 AM PDT by djsherin
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To: xtinct

Acorn will not be dropped I bet. This is ROTTEN to the core. Why should anyone pay the mortgage on time? If you skip a few payments they will reduce the principle. Perfect liberal mortgage banking. Anyone who votes for this should be run out of office.


5 posted on 09/28/2008 12:39:34 AM PDT by screaminsunshine
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To: xtinct
"It was not immediately clear how many House Republicans might vote for the measure. With the election five weeks away, Democrats have said they would not push a plan that appeared sharply partisan in nature."


There ya' go.

And, I didn't see anything referring to ACORN.

We shall soon see...

6 posted on 09/28/2008 12:40:37 AM PDT by dixiechick2000 (Sarah'cuda Rocks)
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To: xtinct

I’m calling on some monetarists on Free Republic:

What happens in all of this to the velocity of money? I recall my undergraduate macroeconomics classes having this equation: MV = PQ, where M is the money supply, V is the velocity of money, P is the price level, and Q is real GDP.

My impression from all of the money multiplier stuff is that if lending went down, so would the velocity of money.

I’m not witnessing any massive change in M. So if V changes, does that mean we get deflation? Recession? Or is velocity somehow a constant through all of this?


7 posted on 09/28/2008 12:41:20 AM PDT by drellberg
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To: dandelion

acorn was probably added so that republicans would be so willing to accept all kinds of other junk just to get ACORN dropped


8 posted on 09/28/2008 12:41:58 AM PDT by ari-freedom (We never hide from history. We make history!)
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To: xtinct
Believe me when I say their is a lot of hidden corruption in this bill and you and me and our children will pay and pay and pay and pay and pay and pay and their children will pay and pay and pay.........
9 posted on 09/28/2008 12:43:01 AM PDT by OKIEDOC (The Difference Between Palin and Obama is Common Sense, She's GOT IT, He DOESN'T)
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To: screaminsunshine
Back in the late 80s, a young couple with two children lost their home because the husband got sick and was unable to work.

I think that the bailout money should only be used to shore up the mortgages for people who couldn't pay their mortgage due to job loss or major illness.

All the other maggots should fry especially the flippers.

Additionally, I think Barney Frank and Chris Dodd should retire effective immediately. They are obviously unfit to serve the taxpayers.

10 posted on 09/28/2008 12:44:51 AM PDT by xtinct (Suicide Hotline... !! "Obama here" --> Please Hold...)
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To: drellberg

When you get your answer, please put it in terms those of us that skippped those classes will understand.


11 posted on 09/28/2008 12:46:40 AM PDT by gogov
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To: xtinct

This is trouble. Now the Fed will have $700 billion worth of “bad debts” and is supposed to try to sell them back into the market over a period of years? I smell a boondoggle to come - more than one.

What incentive does the Fed have to try to make the best deal? To package a couple of dogs in with a bundle of winners? Some people will make out like bandits. A huge transfer of wealth for a few, courtesy of the Federal Reserve...

No coincidence that Goldman Sachs and Morgan Stanley just became bank holding companies. The SEC is useless to a street without brokerages... the Fed on the other hand will be their new best friend.


12 posted on 09/28/2008 12:48:28 AM PDT by monkeyshine
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To: drellberg

The velocity of money is still 38mph. That is unchanged by the current bailout.


13 posted on 09/28/2008 12:48:30 AM PDT by Junior_G
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To: drellberg

You need to add S to your equation. For SCREWED. I am breaking out my Rebel Flag. Might as well go down fighting.


14 posted on 09/28/2008 12:50:59 AM PDT by screaminsunshine
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To: xtinct

I heard that ACORN had been stripped out of the bill earlier today.


15 posted on 09/28/2008 12:51:04 AM PDT by Mogollon ($5/gal Gas....Kick the Jacka$$es Out!)
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To: xtinct
retire

You are too kind.

But, alas, Congress has made their acceptance of bribes legal.

Sucks to be a rube.

16 posted on 09/28/2008 12:51:59 AM PDT by FlyVet
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To: drellberg

I think the worry is that the flight to quality was becoming or in danger of becoming a big increase in money demand, ie decrease in velocity. This increase in liquidity in the market is likely an attempt too keep velocity from falling so much. [Maintaining confidence in financial markets gives people an incentive not to hoard money.

My worries pre-bill in terms of the quantity identity of exchange would be a slowdown in V with a constant M would lead at least in the short run to a reduction in Q, ie real GDP. Maybe there would be some deflation, ie P down, with this.

My post bill worries if this bill is enacted and signed would be the government has an addition incentive to inflate so possibly M rises more than V falls and this leads to a continuing rise in P, ie inflation.


17 posted on 09/28/2008 12:52:17 AM PDT by JLS (Do you really want change being two guys from the majority of Congress with a 9% approval rating?)
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To: drellberg

I’m no expert but I don’t think you can answer the question without more details. Are they going to just fund the banks all at once, or slowly buy debts. The V will depend on how many times Treasury gives money to banks, and how many times banks loan that money back out, and get it redeposited. Remember the same money circulates so the fed gives bank A money, which loans it to homeowner B to buy the house from homeowner C who puts the money into bank D which loans it to homeowner E etc etc... the velocity will depend on how much and how often it circulates over time.

My fears are that the money will 1) be hoarded or 2) be lent to special clients only. I doubt we will see the easy credit we saw in the recent past. So I’m gonna venture a guess that the V will increase slightly from current levels but still remain way below the average over the past 7 years.


18 posted on 09/28/2008 12:56:17 AM PDT by monkeyshine
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To: drellberg
Acceleration is the rate of change in velocity. Whether we get acceleration depends on whether there's any gas left in the tank. My guess is yes. This is America, after all.
19 posted on 09/28/2008 12:58:55 AM PDT by Warlord
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To: xtinct

I have seen no reports yet that ACORN would be excluded. I don’t want to even see a hint that they’ll get $.05 from this bill even through other channels. To be honest I’d like to not see this bailout happen in this manner. Newt had the best plan and EVERYONE in Washington ignored him.


20 posted on 09/28/2008 1:02:54 AM PDT by Lazarus Starr
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oh hooray! the government will waive its magic wand and all bad things will become good. no worries everything is taken care of! children go to sleep now mommy is taking good care of you - you pussies.


21 posted on 09/28/2008 1:04:01 AM PDT by Swordfished
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To: drellberg

I don’t put too much stock in monetarism

‘The use of quantity of money as a target has not been a success.’ He (Milton Friedman) added: ‘I’m not sure I would as of today push it as hard as I once did.’ (Financial Times, 7 June 2003).


22 posted on 09/28/2008 1:08:56 AM PDT by ari-freedom (We never hide from history. We make history!)
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To: xtinct
The article says that the chief Senate Republican in the talks, Judd Gregg, R-N.H., agreed that there was general agreement.

But the article also said it was not yet clear how the House Republicans would react.

This could be progress, or this could be a repeat of the false claims of agreement we had Thursday, when McCain announced his return to Washington.

My guess is that we get agreement, it's ugly but less so than Paulson's original 3 page outrage, and the Treasury Bill printing press overheats, but is repaired and kept running, this coming week.

Without this bill, payrolls of a few major companies that depend on commercial paper would not be met this coming Friday, and companies such as GE would have been in the ICU the following week. GM and Ford already got their rescue in the other spending bill. The stock market has been holding up (well, only falling 20 or 30 percent.) But the short term credit markets have collapsed these last two weeks, more dramatically than in anyone's memory.

The New World Order is proceeding apace -- it's currency is U.S.Treasuries. Lots of mortgage backed securities and derivatives and financial stocks currently held by major foreign nations will be swapped for Treasuries.

I predict that there will be a stock market rally Monday, which will quickly turn into either a choppy sideways market, or a violent down draft (another October crash.) Oil prices will hold reasonably close to current levels (the Saudis are voting with their petrol for McCain), recessionary signs will increase but not terribly, and McCain will win. The market will rally into sometime in January, but it will be just a bear market rally, leading into an honest recession (not a 1930's Depression -- just a recession.) Inflation will rise in the next two years as in the 1970's, but not hyperinflation. Unemployment will rise some more, as some companies don't make it through these white water rapids.

23 posted on 09/28/2008 1:09:45 AM PDT by ThePythonicCow (By their false faith in Man as God, the left would destroy us. They call this faith change.)
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To: drellberg
No real deflation. That only happened in the 1930's, when we were on the gold standard and couldn't print money.

What's happening is that the world's mass of financial paper, the majority of which (100's of trillions) was derivatives based on mortgage backed securities) is deflating -- bubble bursting time. The void is being partially filled by Treasuries, as we set up to go through a recession, and form the base for the next bubble.

24 posted on 09/28/2008 1:15:04 AM PDT by ThePythonicCow (By their false faith in Man as God, the left would destroy us. They call this faith change.)
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To: xtinct
The govt. is still going to buy up all those distressed mortgages for those who couldn't cut it at being a homeowner or investor.

This after the govt. strongarmed lenders to lend to risky homeowners in the first place. So it's going to cost nearly a trillion dollars at least and the U.S. government gains control over the mortgage industry, with kickbacks to certain Senators and God knows who else.

What a deal! I'm gaining more confidence in system with each passing second. /s

25 posted on 09/28/2008 1:16:35 AM PDT by TheThinker (It is the natural tendency of government to gravitate towards tyranny.)
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To: xtinct

double ditto on ACORN.


26 posted on 09/28/2008 1:16:51 AM PDT by ThePythonicCow (By their false faith in Man as God, the left would destroy us. They call this faith change.)
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To: TheThinker
I detect a confidence bubble. And we all know how bubbles end ;).
27 posted on 09/28/2008 1:17:50 AM PDT by ThePythonicCow (By their false faith in Man as God, the left would destroy us. They call this faith change.)
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To: ari-freedom
Actually, once the Fed target rate got down to 2 percent, I suspect the Fed switched from targeting a rate, to targeting the quantity of MZM (Money of Zero Maturity).

When the economy is humming along in an apparently more healthy state, it makes sense to target the Fed funds rate.

In times of severe distress, it makes more sense to target the quantity of money.

28 posted on 09/28/2008 1:20:53 AM PDT by ThePythonicCow (By their false faith in Man as God, the left would destroy us. They call this faith change.)
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To: xtinct
Another detail is over at Mortgage help for bankrupt homeowners dropped (AP via Yahoo)
29 posted on 09/28/2008 1:24:51 AM PDT by ThePythonicCow (By their false faith in Man as God, the left would destroy us. They call this faith change.)
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To: xtinct

Peloski’s happy. Reid’s happy. Frank’s happy. Dodd’s happy. Bush’s happy.

They’re not sure how many House Republicans will support the bill.

What does that tell ya?


30 posted on 09/28/2008 1:25:35 AM PDT by HarleyD
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To: xtinct
See also the FR thread ACORN Issue Fueling Bailout Opposition (Boehner draws line in the sand on ACORN) for ACORN discussions.
31 posted on 09/28/2008 1:26:43 AM PDT by ThePythonicCow (By their false faith in Man as God, the left would destroy us. They call this faith change.)
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To: ThePythonicCow

we had a real deflation during the mid 90’s. A lot of companies went broke because they could not repay debts with dollars more valuable than those they had borrowed only a few years earlier. Money moved away from commodity based companies and 3rd world countries to high tech/service companies as their exposure to commodities was minimal. That’s why we had the dotcom bubble.


32 posted on 09/28/2008 1:28:44 AM PDT by ari-freedom (We never hide from history. We make history!)
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To: dandelion
I’m looking for information regarding the Acorn financing boondoggle, but see no reference to it...

I’m praying they got it dumped from this bill.

That was my first thought upon seeing this. They'd better have scuttled that and the La Raza cr@p.

Both are anti-American institutions have no business being in any taxpayer-funded bill, let alone this bill.

33 posted on 09/28/2008 1:33:02 AM PDT by Allegra ( Call me if you need me. Unless it's above my pay grade.)
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To: screaminsunshine
Looks like it was dropped.

From a Reuters article.

Democrats jettisoned proposals that would have put money into a trust fund for affordable housing

Also from what I'm reading sounds like the Republicans got pretty much what they wanted.

34 posted on 09/28/2008 1:34:27 AM PDT by Dog (We have entered into the realm of 9/10 all over again...Lord help us.)
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To: dandelion
Dealing [Kathryn Jean Lopez]

Some details to work out, but I'm told there is a deal in the works, minus ACORN.

09/28 01:04 AM

NRO: The Corner

35 posted on 09/28/2008 1:34:42 AM PDT by WhistlingPastTheGraveyard
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To: Dog

Window Dressing.


36 posted on 09/28/2008 1:36:24 AM PDT by screaminsunshine
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To: dandelion

ACORN is a red herring.
I want the whole nightmare filibustered.


37 posted on 09/28/2008 1:36:41 AM PDT by Lancey Howard
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To: WhistlingPastTheGraveyard

I just found that...was going to post it.


38 posted on 09/28/2008 1:37:15 AM PDT by Dog (We have entered into the realm of 9/10 all over again...Lord help us.)
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To: screaminsunshine

Can’t please everyone.


39 posted on 09/28/2008 1:38:01 AM PDT by Dog (We have entered into the realm of 9/10 all over again...Lord help us.)
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To: ari-freedom
Money moved around, companies went broke, and other companies got rich. Some third world countries had serious problems.

Prices of commodities and subsequently of goods that could be manufactured overseas were sharply lower throughout the 1990's, yes. But that's not deflation. There was plenty of money, just not in commodities and Wal-Mart dry goods.

Deflation is a general reduction in money supply, not the sloshing of it from one place to another. Or as I like to say it, overstating a bit, deflation is "no money, no how, no where." You have to go back to the 1930's, before we went off the gold standard, to find that.

40 posted on 09/28/2008 1:38:17 AM PDT by ThePythonicCow (By their false faith in Man as God, the left would destroy us. They call this faith change.)
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To: Dog

Nope but you can SCREW everybody which is what is going on.


41 posted on 09/28/2008 1:40:22 AM PDT by screaminsunshine
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To: xtinct
"House Speaker Nancy Pelosi announced the $700 billion accord just after midnight but said it still has to be put on paper.

"We've still got more to do to finalize it, but I think we're there," said Treasury Secretary Henry Paulson, who also participated in the negotiations in the Capitol.

"We worked out everything," said Sen. Judd Gregg, R-N.H., the chief Senate Republican in the talks."


Wasn't there a deal last week?

Screwballs...every one of them.

42 posted on 09/28/2008 1:41:52 AM PDT by dixiechick2000 (Sarah'cuda Rocks)
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To: screaminsunshine
I don't know enough to claim I'm an expert...but I know politicans....they were going to pass this thing come hell or high water....they're to risk adverse not to.
43 posted on 09/28/2008 1:43:05 AM PDT by Dog (We have entered into the realm of 9/10 all over again...Lord help us.)
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To: dixiechick2000

Dixie they are political cowards.


44 posted on 09/28/2008 1:44:24 AM PDT by Dog (We have entered into the realm of 9/10 all over again...Lord help us.)
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To: screaminsunshine
A good paper, which agrees with you, in 24 pages, can be found at:
Weiss Research: Proposed $700 Billion Bailout Is Too Little, Too Late to End the Debt Crisis; Too Much, Too Soon for the U.S. Bond Market.
Notice the lists of trouble banks, in the appendices at the end of the report.
45 posted on 09/28/2008 1:44:43 AM PDT by ThePythonicCow (By their false faith in Man as God, the left would destroy us. They call this faith change.)
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To: Dog

Yep and 80% are against it. What should that tell you about our representative government?


46 posted on 09/28/2008 1:44:45 AM PDT by screaminsunshine
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To: dandelion

The Washington Post reports ACORN’s out:
http://www.washingtonpost.com/wp-dyn/content/article/2008/09/28/AR2008092800064_2.html
“Democrats also made a number of concessions, abandoning demands that bankruptcy judges be empowered to modify home mortgages on primary residences for people in foreclosure. They also agreed not to dedicate a portion of any profits from the bailout program to an affordable housing fund that Republicans claimed would primarily assist social service organizations that support the Democratic Party, the official said. “


47 posted on 09/28/2008 1:45:25 AM PDT by hocndoc (http://www.LifeEthics.org (I've got a mustard seed and I'm not afraid to use it.))
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To: Dog

They are more than cowards.

They are traitors.

I’m dc2k, and I approve this message. ;o)

http://www.freerepublic.com/focus/f-bloggers/2092230/posts


48 posted on 09/28/2008 1:46:59 AM PDT by dixiechick2000 (Sarah'cuda Rocks)
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To: dixiechick2000
Yup - I got to be the one who posted it first on FR back then. It was in response to McCain saying he was putting his campaign and the debate on hold, to come back to Washington. The Democrat response was roughly "we don't need no stinkin' McCain - he should stay the h*** out of town." (and expressed only slightly more politely.)
49 posted on 09/28/2008 1:47:19 AM PDT by ThePythonicCow (By their false faith in Man as God, the left would destroy us. They call this faith change.)
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To: screaminsunshine

They are spineless weasels.


50 posted on 09/28/2008 1:47:37 AM PDT by Dog (We have entered into the realm of 9/10 all over again...Lord help us.)
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