Posted on 09/22/2008 12:47:29 PM PDT by NormsRevenge
WASHINGTON – A key Democrat negotiating a $700 billion financial bailout says the Bush administration has agreed to include mortgage aid and strong congressional oversight in the plan.
Rep. Barney Frank, the Financial Services Committee chairman, says a great deal of progress has been made ...
(Excerpt) Read more at news.yahoo.com ...
Please understand, the $700 Billion is a "rolling" amount. What do I mean by this?
This bill will give Paulson complete dictatorial power to "buy" whatever financial debt he wants to. This debt will be split into $50 Billion dollar "tranches" (i.e. pots of money). These tranches will then be sold to the bond market as AAA rated securities backed by the U.S. government (a.k.a. taxpayer). Once a tranche is sold then Paulson can buy MORE debt and still be within the $700 Billion dollar limit.
In short, what I'm trying to say is Paulson can run the 4 to 5 TRILLION of toxic waste in Fannie Mae and Freddie Mac through the $700 Billion bailout plan!
The idiots in the media don't even know enough to explain this to the public!
Bush is a Sellout, POS dirtbag.
Barney Frank is one of the reasons this is happening.
The Socialists, BUSH included have just nationalized 3 businesses.
The United States of Socialist America, (USSA)
Add to that the fact that gas is now in very short supply down here in the south and you can't help but get this surreal feeling that you've suddenly been transported to Argentina or Zimbabwe.
Who among us would have believed in the Spring that by the Fall, all the major Wall St investment banks would be either bought out, bankrupt or restructured or some combination of the above? The whole thing is unreal.....but real.
Not good — not good.
Politicket: I didn’t see any of this in my copy of “Finance for Dummies”.
What happens next, and when? Weimar Republic inflation? A national sales tax? Carter era interest rates? Our children hating us in ten years? Cats and dogs living together in sin.....? You sound like you know what you’re talking about and all I know for sure is that when “Butch” Frank approves, there’s a problem.
“Bush just needs to go away.”
Sadly both of his potential replacements are liberals too. McCain is a moderate liberal and Obama is a flaming liberal. We don’t have a conservative party anymore and have not for a long time.
What is Bush caving on that he should not?
If a foreign investor makes an investment that makes money, they’ll pay cap gains on the increase in value under current law.
Businesses tend to invest in themselves in order to keep growing, which would create jobs.
when Barney Frank says:
“strong congressional oversight”,
what is really meant is:
“strong congressional political tinkering, to go on forever after, with who benefits and who loses, to the detriment of the taxpayers, to the enrichment of members of Congress and the interests their tinkering will benefit”
It's kind of a tricky one to figure out, now that the federal government has shown their absolute willingness to nationalize private companies en masse.
I do know that their bailout plan will not work - they're telling the American public that they will fix a problem that is not even the main problem. Everyone is focused on the mortgage industry, and it is just the fuse that set off the dynamite. The dynamite is the derivatives market. It's an extremely complex, completely unregulated market that is somewhat difficult to expain on a message forum in its entirety. The easiest way to describe it is: "Las Vegas on massive amounts of steroids - to the point of $750 trillion dollars worth of bets with "notional" dollars (i.e. pretend money)".
The derivates market is beginning to unwind. It is an international market and it will bring down the economies of the entire world with it. That is why you see Bush, Bernanke, and Paulson so terrified. That is also why you see them pushing for immediate passage of a bill that gives the Treasury Secretary (Paulson) complete dictatorial powers in the financial sector with no limit on dollars and no fear of reprisal from our legal system. It's insane.
‘will bring down the economies of the entire world ‘
We are hearing this a lot, any counter opinions?
There are always counter-opinions, and I really like to hear them because my opinion is not exactly a rosy picture.
On a side note, I went to my bank today and withdrew some cash so that I could have more cash on hand if something were to happen to the banks. I didn't even take out that much ($2,500); however, when the teller was counting it for me his hands were shaking badly. I honestly don't know why that was.
I haven’t heard any counter opinions, I see this action being driven by fear so I’m just pausing for a minute and asking questions.
And when stocks dump, gold goes the other direction so gold will skyrocket.
People need to realize that we entered "Great Depression II™" for a short while last Thursday.
The 3-month Treasury Bills were actually yielding a NEGATIVE amount (meaning people were willing to pay the government - just to have their money somewhere "safe"!)
It was weird when I went to the bank today - I wanted to withdraw some cash so that I could maintain a larger "cash-on-hand". It wasn't that much money ($2,500), but the teller's hands were shaking badly as he was counting it out for me. I'm not quite sure why, but it made me uneasy.
Money market funds suffer huge outflows
Money market funds in the US suffered an estimated $197bn of net outflows last week as confidence in their safe-haven status weakened after one fund “broke the buck” and others closed.
Lots more of these out there.
If they see their 401K or the money they borrowed from their equity line of credit going south, watch the stampede.
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