Deal Reached on Financial Markets Bailout

Breitbart via AP ^ | 9/28/08 | CHARLES BABINGTON and ALAN FRAM

[xtinct]

Due to AP restriction click link

[dixiechick2000]

"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.)"

Well...lol.

The only reason that the House Republicans (that should be the name of a political group...they are obviously that fierce)...have any weight at all is that they command so much attention.

Why is that? It's because they are identified with regular people.

[dixiechick2000]

I hope like hell that you are wrong.

:o(

[SlapHappyPappy]

If they buy them at a large enough discount, reselling won’t be a problem. But that what remains to be seen in my mind.

That said, I actually know firms buying loans like this and making a pretty penny. They were ahead of this mess. It can be done, and very profitable.

[Freedom_Is_Not_Free]

Just for grins, my recollection is that the USA experience 1 year of deflation since the 1930s and that was in 1986. The oil market collapsed and Texas went into a depression. It was a mild deflation and you know the boom that followed.

Like I said, just for grins. I think 1986 was the only year since the 1930s that the US economy actually experienced deflation and it turned out to be a good thing, well if you weren’t a Texan. This current deflation, well..

[GregoryFul]

Yep, call it a campaign contribution, and you are in like Flint.

[ThePythonicCow]

You have a different definition of deflation.

Such is not unusual -- the word "deflation" has several meanings. See for example Mish's explanation of "deflation", at Inflation: What the heck is it?. He begins:

---

Inflation has at least 8 distinctly different definitions that I can readily find, and probably a whole lot more that I have not yet found.

Commonly Used Definitions

1. Decline in purchasing power of the currency held
   
2. Rising prices in general (essentially the same as #1 although some might disagree)
   
3. Rising consumer prices (CPI)
4. Rising producer prices (PPI)
   
5. Rising prices due to expansion of money supply
   
6. Rising prices due to expansion of money supply and credit
7. Expansion of money supply
8. Expansion of money supply and credit

Four of those definitions refer to money supply. That brings up another issue. When one refers to "money supply" are they talking about M1, M2, MZM, Money AMS (Austrian Money Supply), or simply the amount of money they have in their bank account or wallet at the time of the conversation? Definitions 5 and 6 refer to "rising prices" yet fail to distinguish between consumer prices, producer prices, or simply prices in general. It seems we could easily add a lot more definitions.

Furthermore, some people make no distinction between money and credit but others do as noted by choices 5 thru 8. Still others insist than in the fiat world we are in, the web is so tangled between money and credit that this mess is not even worth bothering to figure out. Those folks simply hold gold and wait for "The Crash".

---

[ThePythonicCow]

I think 1986 was the only year since the 1930s that the US economy actually experienced deflation

Could be -- I was working 90 hours a week in a Silicon Valley startup at the time, and might not have noticed the general economic condition.

[ari-freedom]

I’m a supply sider so that’s where I’m coming from. The fed should give the money that the market wants, not too much and not too little, otherwise you have a problem.

[XR7]

And we are supposed to trust these shysters?

All smiles - Nancy Pelosi, Secretary of the Treasury Henry Paulson, right,
Senate Majority Leader Harry Reid, second left, and Sen. Judd Gregg, left,
announce a tentative deal on legislation regarding the financial crisis on
Sunday on Capitol Hill in Washington.

[ThePythonicCow]

supply sider ... The fed

Asset valuation bubbles (dot-com's, mortgages, ...) and the financial paper written on them provide far more of our monetary liquidity than the Fed.

[XR7]

http://www.youtube.com/watch?v=LPSDnGMzIdo

[ronnie raygun]

Although ACORN may be visually taken out of the bill , rest assured it is in there in another form with a ton of other sh## these criminals in congress are trying to shuv down our throats. How does it feel American taxpayer to be known as an a## hole by the very representatives you voted into office to protect your rights! IM SICK!

[cmj328]

So if the Treasury can renegotiate the mortgages down to what the Alt-A borrowers can now pay...does this mean taxpayers will get less ROI than simply foreclosing and liquidating the equity?

Doesn’t that prop up housing prices artificially...again? Making housing unaffordable for millions of honest Americans...again? Sounds like the whole rotten CRA itself is getting a bailout here, not just the private companies who got screwed by it.

[tiredoflaundry]

The House Reps say “let's see what is on paper”. Good. because I do not trust Nancy, Harry and their ilk.

[Daryl L.Hunter]

Where is my chasity belt?

[Right_in_Virginia]

Will there be any kind of a floor debate so we can hear the details?

[bert]

.....and companies such as GE would have been in the ICU.....

Was GE selected as a typical representative of the class or does GE have a specific problem?

GE is on my S%%%% list for propagandizing via their board organ NBC

[tiredoflaundry]

I don’t think so.

[PatriotGirl827]

placemark

[MrPiper]

Draft now posted on FOX website. This little tidbit worries me if I'm reading it correctly. The government can lower the principle of your loan?

The government can use its power as the owner of mortgages and mortgage backed securities to facilitate loan modifications (such as, reduced principal or interest rate, lengthened time to pay back the mortgage) to help reduce the 2 million projected foreclosures in the next year