Bush Announces Expanded Bank Bailout Details

FOX News ^ | Oct 14 2008 | Fox News

[SERKIT]

WASHINGTON — President Bush said Tuesday his administration will spend $250 billion this year to purchase stock in banks and take a number of other bold steps in an effort to combat a global credit crisis that is threatening to push the U.S. into a deep recession.

[SERKIT]

I did not hear the address first-hand, but was there ANY mention that the banks will STILL be under the gun to issue loans to non-qualified lenders? Are we just injecting more heroin into the addict?

[scooby321]

yep

[Orange1998]

Why is WellsFargo at the front of the line. It demonstrates the giveaway.

[Calpernia]

In my state, non profits are being used (I’m assuming it is ACORN; but that has not been specifically stated) to buy homes and then sell them to the state. Then, the state technically owns all the homes.

So, our state will benefit from owning as many homes as possible since our state is socialist based.

Therefore, I would assume the mortgage lending would still be laxed. The irresponsible borrowers will be accumulating more property for the state.

[kc8ukw]

You mean why are they buying stock in banks that are doing fine? I don’t get that either.

[unixfox]

Hi! I’m from the government and I’m here to help!

[palmer]

I did not hear the address first-hand, but was there ANY mention that the banks will STILL be under the gun to issue loans to non-qualified lenders?

Doesn't matter. The equity injections will boost the market temporarily, but the real problem of insolvent banks, especially in Europe, will continue. The loans to deadbeats are at a lower level which doesn't really impact the higher level.

[silverleaf]

Coercion by lending institutions to adhere to “social justice” precepts will never be mentioned aloud

However, the REV-Rund Jesse Jackson, never one to bypass a gourmet feast of taxpayer dollars, did show up yesterday for “discussions” with Treasury Secty Hank Paulsen

No mention of whether a Rainbow Push Brinks truck was backed up to the federal reserve

[Orange1998]

Its like seeing Warren Buffett looking for a handout.

[Leisler]

So the problem was Frannie/Freddie. They were Government Sponsored Entities (GSE’s).

And the solution is to make Banks and Financial centers, have government sponsors.

Yep.

In a hole? Keep digging.

James Buchanan, Nobel economist, and signer of the economist paper opposing the bailout, got his Nobel for what is called ‘Public Choice Theory’. It said that government works like a predatory private enterprise in that it always wants to expand its wealth and power at the expense of the private sector.

Thanks Jorge Bush and all you Democrat foot sucking RINO’s!

FREE ENTERPRISE, KILLED BY BUSH THE YOUNGER.

[palmer]

You mean why are they buying stock in banks that are doing fine? I don't get that either.

If they shouldn't support good banks, they should certainly not support insolvent black holes. Putting govt equity into any bank to sustain a credit bubble is a bad idea, but bad banks need to be liquidated gracefully, no supported.

[Leisler]

I give a year or so, and governments start doing what they do. Taxing imports, printing debt notes, raising taxes.

Will the Euro last, or will Brussels and the Yuppie princelings tidy up the last remnants of European nation states?

How's China going to take a business slowdown? Time to really grind the Chinese workers into dust to keep the money coming? And will that money be plowed back into US Treasuries, thus making Goldman Sacs, the US Government, and Americans partners in fascists China?

[palmer]

You are right. I am just trying to figure out what combination of 1970's and 1930's we will have or if it will be something new. I think Europe will break apart, but Asia in general will do ok which would help China.

But borrowing more money from China to buy stock in insolvent banks is not a well thought out policy.

[ctyankee00]

This all makes perfect sense once you realize that the bushes and clintons are both globalists. Next up will be Obama to continue and accelerate the moves towards socialism. Reagan may have been our last ‘unowned’ President.

[DumpsterDiver]

I did not hear the address first-hand, ...

Here is a transcript of his speech from http://www.whitehouse.gov/news/releases/2008/10/20081014.html

President Bush Discusses Economy
Rose Garden
8:02 A.M. EDT

THE PRESIDENT: Good morning. I just completed a meeting with my working group on financial markets. We discussed the unprecedented and aggressive steps the federal government is taking to address the financial crisis. Over the past few weeks, my administration has worked with both parties in Congress to pass a financial rescue plan. Federal agencies have moved decisively to shore up struggling institutions and stabilize our markets. And the United States has worked with partners around the world to coordinate our actions to get our economies back on track.

This weekend, I met with finance ministers from the G7 and the G20 -- organizations representing some of the world's largest and fastest-growing economies. We agreed on a coordinated plan for action to provide new liquidity, strengthen financial institutions, protect our citizens' savings, and ensure fairness and integrity in the markets. Yesterday, leaders in Europe moved forward with this plan. They announced significant steps to inject capital into their financial systems by purchasing equity in major banks. And they announced a new effort to jumpstart lending by providing temporary government guarantees for bank loans. These are wise and timely actions, and they have the full support of the United States.

Today, I am announcing new measures America is taking to implement the G7 action plan and strengthen banks across our country.

First, the federal government will use a portion of the $700 billion financial rescue plan to inject capital into banks by purchasing equity shares. This new capital will help healthy banks continue making loans to businesses and consumers. And this new capital will help struggling banks fill the hole created by losses during the financial crisis, so they can resume lending and help spur job creation and economic growth. This is an essential short-term measure to ensure the viability of America's banking system. And the program is carefully designed to encourage banks to buy these shares back from the government when the markets stabilize and they can raise capital from private investors.

Second, and effective immediately, the FDIC will temporarily guarantee most new debt issued by insured banks. This will address one of the central problems plaguing our financial system -- banks have been unable to borrow money, and that has restricted their ability to lend to consumers and businesses. When money flows more freely between banks, it will make it easier for Americans to borrow for cars, and homes, and for small businesses to expand.

Third, the FDIC will immediately and temporarily expand government insurance to cover all non-interest bearing transaction accounts. These accounts are used primarily by small businesses to cover day-to-day operations. By insuring every dollar in these accounts, we will give small business owners peace of mind and bring stability to the -- and bring greater stability to the banking system.

Fourth, the Federal Reserve will soon finalize work on a new program to serve as a buyer of last resort for commercial paper. This is a key source of short-term financing for American businesses and financial institutions. And by unfreezing the market for commercial paper, the Federal Reserve will help American businesses meet payroll, and purchase inventory, and invest to create jobs.

In a few moments, Secretary Paulson and other members of my Working Group on Financial Markets will explain these steps in greater detail. They will make clear that each of these new programs contains safeguards to protect the taxpayers. They will make clear that the government's role will be limited and temporary. And they will make clear that these measures are not intended to take over the free market, but to preserve it.

The measures I have announced today are the latest steps in this systematic approach to address the crisis. I know Americans are deeply concerned about the stress in our financial markets, and the impact it is having on their retirement accounts, and 401(k)s, and college savings, and other investments. I recognize that the action leaders are taking here in Washington and in European capitals can seem distant from those concerns. But these efforts are designed to directly benefit the American people by stabilizing our overall financial system and helping our economy recover.

It will take time for our efforts to have their full impact, but the American people can have confidence about our long-term economic future. We have a strategy that is broad, that is flexible, and that is aimed at the root cause of our problem. Nations around the world are working together to overcome this challenge. And with confidence and determination, we will return our economies to the path of growth and prosperity.

Thank you.

END 8:08 A.M. EDT

[SERKIT]

Thanks for posting the text. It is confirmed that NOTHING HAS BEEN DONE to stop unqualified lenders to continue to get money via ACORN-inspired loans. The rules (and law) should have been the first thing to have been addressed. It is the root of the entire issue. Barney Frank continues to have his Fannie covered.

[meandog]

"Today, I am announcing new measures America is taking to implement the G7 action plan and strengthen banks across our country."

This says it all, sigh...Georgie, we hardly knew ye!`

[onedoug]

Bush speaketh. Open your wallet.

[Tempest]

Thank God he can’t run for a third term.

[Swordfished]

Thank God he can’t run for a third term.

He is - his name is John McCain, and he's actually worse.

And the insane thing is, most people here are going to vote for him!