Posted on 09/18/2008 8:19:12 PM PDT by Danae
WASHINGTON — Treasury Secretary Henry Paulson says the government is crafting a plan to rescue banks from bad debts that are at the heart of Wall Street's worst financial crisis in decades.
Paulson said late Thursday the plan will need congressional approval. He and Federal Reserve Chairman Ben Bernanke briefed lawmakers on the options they are considering.
(Excerpt) Read more at foxnews.com ...
A plan? Nuh-uh.
They are crafting a reaction. Problems this complex can’t be solved in 48 hours by people who are used to months of planning time.
I think it is greatly to McCain’s advantage actually. Given he was trying to get people to listen.... ‘Fannie mae and Freddy Mac have got a BIG problem... we have to deal with this,’. Obama was getting money from them for political favors and support in hiding what was going on. He knew what was going on. Only other person getting that sort of cash was the head of the BANKING COMMITTEE! Chris Dodd! Yea the whole DNC Leadership is on its ear cause it didn’t KNOW what the heck the Black Caucus was up to!!! Nancy and Harry were largely left out of some things, at least I sure didn’t see them at that Swearing in Ceremony given by a CEO of Fannie Mae in 2005.....
I think we just saw Nancy Pelosi stabbed in the back.... I think she was outta the loop as far as the CBC goes....SNAP.
Woman: What makes saloonkeepers so snobbish?
Banker: Perhaps if you told him I ran the second largest banking house in Amsterdam.
Carl: Second largest? That wouldn’t impress Rick. The leading banker in Amsterdam is now the pastry chef in our kitchen.
Banker: We have something to look forward to.
Captain Renault: Realizing the importance of the case, my men are rounding up twice the usual number of suspects.
Captain Renault: Oh no, Emil, please. A bottle of your best champagne, and put it on my bill.
Emil: Very well, sir.
Victor Laszlo: Captain, please...
Captain Renault: Oh, please, monsieur. It is a little game we play. They put it on the bill, I tear up the bill. It is very convenient.
I’m shocked, shocked to see Casablanca qoutes on this subject!
has anyone noticed that Andrea Mitchell has been M.I.A. since they’ve started tagging her husband with some of the blame for the meltdown?
If they’re going to liquidate these properties at a loss anyway, why not just let the owners stay and reduce their debt service? This could help prevent a lot of properties (and neighborhoods) from going to hell. We’re going to pick up the tab anyway.
The money came from the Fed and Treasury when it created it out of the aether as fiat money, and lent it to banks. Banks lent it to others, until someone lent it to homeowners, many of whom now can't pay it back.
The fiat debts are now retracing the steps of the loans, back ultimately to the Treasury and Fed. When they reach the banks who have access to the discount window, and those banks are threatened, the Fed should do the following. First, liquidate the bank. Strip the good assets off, and find someone to buy. Second, forgive the fiat debts that can't be repaid to itself, and note that the money supply has now deflated. This simply sends the fiat debt back into the aether from whence it came. Finally, grant access to the discount window to a completely different bank which did not have access before, and is in good health.
The companies which need to go out of business will go, there is no moral hazard there. All these affected default swaps will be canceled, because the defaults and debt were forgiven. They will not be triggered.
The ultimate effect to the economy at large will be that the money supply will deflate back to what it was in 2003 or so. We survived 2003 just fine. There will be a lot of hardship for the banks, and a lot of them will fail. They HAVE to fail like dominoes to get back to the discount window, but that's ok.
Taxpayer money will not be used.
You've put your finger EXACTLY on it.
Our political masters decreed that large numbers of people who could not afford the amounts borrowed be given large mortgages for nice new houses. Not giving them these mortgages would be "racist." This is basically just another iteration of the decades-long War on Poverty, shoveling trillions of dollars of our national resources into ideas that do not work, because the liberals are trying to solve a cultural problem by shoveling money into it.
So long as housing prices rise steadily, the systemic problem is not apparent.
However, a stagnation in the housing market reveals the existence of this massive economic black hole.
The financial risk of this massive black hole is spread throughout our financial institutions and internationally. Some financial institutions which were more exposed to this risk (Bear Stearns, Lehman, AIG) than others failed or were bailed out, while other weakened financial institutions have tried to merge their way out of it.
Our liberal political masters who created the mess point their "outraged" fingers of blame at the very financial institutions their great idea have killed or weakened. Those greedy Wall Streeters! They did this, not us! It's those fancy "derivatives"!
And of course, to save the financial system they nearly ruined, the liberals will help themselves to hundreds of billions of dollars out of taxpayers' wallets, and they will put political pressure on the mortgage servicers not to foreclose on the irresponsible people who signed up for outsized mortgages, but to forgive part of the debt.
This will simply be a more circuitous and concealed way of the same old liberal game of transferring many billions of dollars from the productive people in our society to the careless and dysfunctional sector of our society eating away at us like a giant cancer.
I just read that Nancy is going to extend Congress’s stay and begin investigations immediately. Rangle has recently been spanked yes? Yea.... I think Nancy sees an unavoidable confrontation coming at the very very least. Best not to fight this tide I think.
At the end of it, the Dem’s are sunk, totally sunk, and they know it now. There are going to be a LOT more up for grabs congressional seats now and they ALL know it. Places they once thought Safe. They are calling Oregon a Swing state, within 4 points... This... in Oregon is a HUGE difference. I would not be surprised to see statues to Obama in Portland.... (shudder) McCain has gained 6 points here, Obama was up by 10% at one point...
I hear ya! You are right one, and those communities continue to allow themselves be manipulated by these “people”, the DNC leadership. Its Astounding.
That is easier said than done. That is a whole can of worms thats going to have to be dealt with in all this.
That's what I am afraid of. I have less then perfect credit, but I'm buying a house. I didn't go through a sub-prime mortgage from one of these crooked banks. I went to a private seller and wrote a contract with them 30-year fixed, medium interest. I feel like I did it the right way, and the capitalist way.
Now all these guys that shouldn't have gotten a bank loan are probably gonna end up ahead of me because the .gov rats are eventually going to bail out individual home owners and leave me and mine footing the bill, while I also pay for my legitimate contract loan.
Torches and pitchforks. Torches and pitchforks.
I have a plan. Kick all the Democrats that demanded lenders make bad loans out of the Congress. That’s one sure way you will correct the problem.
That’s nothing short of Brilliant!
Man, from your fingertips to God’s ears.. lol.. and a few in the McCain camp too!
Regarded in the profession as the best screenplay ever written.
I agree. It makes me sick really.
O’RLY?
“has anyone noticed that Andrea Mitchell has been M.I.A.”
Count your blessings.
He needs to hammer that message home...
already the media is ignoring Obama’s Freddie and fannir links....which are hugh
I think you are right! God Help us. Imagine what the liberals will have in store for us if they get the Whitehouse as well. It’s just a horrid thought. However, I do believe they just shot themselves up. There is not gonna be much wiggle out of this one. The House of Representatives has control of the Purse Strings of the Treasury. Congress is up in this to their necks, primarily Democrats.
http://www.youtube.com/watch?v=usvG-s_Ssb0
John Gibson of Fox News has a bit at the end of this video. Its the Swearing in of the Congressional Black Caucus. Given by the then CEO of who..... Fannie Mae.
The Msm won’t be ABLE to ignore this long.
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