Posted on 09/28/2008 12:30:41 AM PDT by xtinct
Due to AP restriction click link
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.
ditto on ACORN
ping
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.
There ya' go.
And, I didn't see anything referring to ACORN.
We shall soon see...
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?
acorn was probably added so that republicans would be so willing to accept all kinds of other junk just to get ACORN dropped
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.
When you get your answer, please put it in terms those of us that skippped those classes will understand.
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.
The velocity of money is still 38mph. That is unchanged by the current bailout.
You need to add S to your equation. For SCREWED. I am breaking out my Rebel Flag. Might as well go down fighting.
I heard that ACORN had been stripped out of the bill earlier today.
You are too kind.
But, alas, Congress has made their acceptance of bribes legal.
Sucks to be a rube.
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.
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.
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.
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.
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).
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.
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.
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
double ditto on ACORN.
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.
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?
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.
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.
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.
Some details to work out, but I'm told there is a deal in the works, minus ACORN.
09/28 01:04 AM
Window Dressing.
ACORN is a red herring.
I want the whole nightmare filibustered.
I just found that...was going to post it.
Can’t please everyone.
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.
Nope but you can SCREW everybody which is what is going on.
"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.
Dixie they are political cowards.
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.
Yep and 80% are against it. What should that tell you about our representative government?
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. “
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
They are spineless weasels.
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