I'll take some of that.
Posted on 09/21/2008 7:31:49 AM PDT by Brian S. Fitzgerald
In a change from the original proposal sent to Capitol Hill, foreign-based banks with big U.S. operations could qualify for the Treasury Department’s mortgage bailout, according to the fine print of an administration statement Saturday night.
(Excerpt) Read more at news.yahoo.com ...
One other point on the AIG deal is that the government is getting 80% of the equity of the company in exchange for the credit line. I was tallking to a number of money managers at a conference last week and the consensus was "I wish I could get a piece of that deal". The problem was nobody had the scale to pull it off. The government is going to make a substantial profit from this deal and kudos to Paulson for approaching it like a banker and not a politician and leveraging his position as the sole bidder to extract a pound of flesh.
7. Anyone in a bailed out bank who does not want his civil service salary can leave to be permanently barred from the securities industry.
Guess what
40% of the Feds balance sheet is now toxic waste it took in, it swapped for US Government securities when it bailed out AIG, Bear Stearns and so on
That balance sheet is the backing for the US Dollar
Good list, but my gut feeling is that if this gets delayed by attempts to add provisions, it becomes an Executive Order.
Consequences, consequences. (by the way, had my honeymoon at Gettysburg, love history, and George Washington)
Nice. Someone always needs to close the barn door. Are there any animals left in this one?
How about this government's other barns? Anyone thinking about how many of those doors are open too?
I want this guy's head on a spike. This isn't about "voluntary" participation. If an instution is going to be bailed out it should only be because it will otherwise be bankrupt, and so they should have no choice.
The reward for the employees is that they get to keep their jobs. The officers need to start jumping off the helicopter pad.
The only problem with your logic, as I see it, is that in this case government is the banker, extracting its "pound of flesh."
Pretty good racket. Own the printing presses. Make all the rules. Screw everybody over. Extract flesh.
I know this is slightly off topic, but I read on another thread that there were billions of dollars in money market redemptions last week that could not be fulfilled.
My question is, if someone has there savings in a money market fund, thinking that is the only safe place, what do they do after they withdraw it? Stuff it in their mattress?
What should the average person do in this situation? Thank you for your posts. They have been insightful.
“I don’t think people realize how close to the abyss we came on Wednesday and Thursday morning. Morgan Stanley and Goldman Sachs were about to fail.”
The answer can’t be to give American taxpayer money to the worst money managers in the world.
Fortunately on thing the President cannot do is appropriate money by executive order. That is impeachment time and rightly so. I would support the impeachment vote on Tuesday and the Senate trial of Bush on Wednesday if he tried that.
In an election year with an unpopular Congress, I’m guessing this goes over like a lead balloon. The ECB can bail out European banks. We don’t need to.
Gordon Gekko: The richest one percent of this country owns half our country’s wealth, five trillion dollars. One third of that comes from hard work, two thirds comes from inheritance, interest on interest accumulating to widows and idiot sons and what I do, stock and real estate speculation. It’s bullshit. You got ninety percent of the American public out there with little or no net worth. I create nothing. I own. We make the rules, pal. The news, war, peace, famine, upheaval, the price per paper clip. We pick that rabbit out of the hat while everybody sits out there wondering how the hell we did it. Now you’re not naive enough to think we’re living in a democracy, are you buddy?”
Wall Street 1987
What shall we do to stop this? They are now calling for ‘global rules’ for the ‘global system’. That is a thinly veiled call for global government.
You just hit the nail on the head. Without trying to take this out on you personally, the problem is the "leveraged" economy. It is overleveraged, and unwinding it will cause a lot of pain and heartache and require monetization of enormous piles of debt.
In that process, I don't want the same folks who profitted from creating all this leverage in the first place to further come out on top of the pile when we inject the money to deleverage.
Some folks actually lead fiscally as well as financially conservative lives. They should not be punished for their prudence all the way around.
And if it mean punishing, confiscating the wealth of, or putting high taxes on those who profitted enormously from creating this mess, well that is what it will take.
“The government is going to make a substantial profit from this deal and kudos to Paulson”
Maybe Government should owe all the businesses in America. Just think of the profit Paulson could make...FOR THE GOVERNMENT... Wow!
When the US government takes an 80% equity stake in GS, and puts its executives [and key traders] on a financial slimming diet, and when he coughs up 80% of his own gains from gaming this system, then I will shift my stance on Paulson from crook to merely innocent until proven guilty.
USD? No thanks... it's worthless... I'll have some gold bullion please...
I'll take some of that.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.