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Paulson: Foreign banks can use U.S. rescue plan
reuturs ^ | 9/21/08 | By Mark Felsenthal

Posted on 09/21/2008 8:32:53 AM PDT by Flavius

Treasury Secretary Henry Paulson said Sunday that foreign banks will be able to unload bad financial assets under a $700 billion U.S. proposal aimed at restoring order during a devastating financial crisis.

"Yes, and they should. Because ... if a financial institution has business operations in the United States, hires people in the United States, if they are clogged with illiquid assets, they have the same impact on the American people as any other institution," Paulson said on ABC television's "This Week with George Stephanopolous."

(Excerpt) Read more at news.yahoo.com ...


TOPICS: Business/Economy; News/Current Events
KEYWORDS: banks; dollar; financialcrisis; globalism; paulson; trade; treasury
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To: goldstategop
Henry Paulson is politically tone deaf. Its one thing to rescue U.S financial markets but does the Mother Of All Bailouts mean we have to rescue the planet as well? What on earth is he thinking?

What the Globalist Smirking Chimp tells him too think.. I have a bigger question. How many of the long time family friends etc of same is gonna profit from this deal?

101 posted on 09/21/2008 11:47:27 AM PDT by cva66snipe ($.01 The current difference between the DEM's and GOP as well as their combined worth to this nation)
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To: Attention Surplus Disorder

You were being serious in your post?


102 posted on 09/21/2008 11:47:58 AM PDT by Alia
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To: koraz

Thanks- and here’s the link from yesterday on FR:

http://www.freerepublic.com/focus/f-news/2086601/posts

I’m not well-versed in economics or Wall St business- so I’m quickly trying to gain some understanding.

It’s clear we’re in a crisis. The bailout may be the correct thing to do- but I’m worried by the way I see our leaders REACT.

Let’s go back to Bear-Stearns and forward to Friday. At each juncture we were told if we do this one- it will save us from major economic collapse. Clearly- they are either mis-reading the big picture or outright lying.

The language in the legislation is alarming to me, and it’s hard for me to get past THAT to begin to inform myself about whether or not the bailout is worthwhile.


103 posted on 09/21/2008 11:53:50 AM PDT by SE Mom (Proud mom of an Iraq war combat vet-McCain/Palin 08)
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To: koraz

Thanks- and here’s the link from yesterday on FR:

http://www.freerepublic.com/focus/f-news/2086601/posts

I’m not well-versed in economics or Wall St business- so I’m quickly trying to gain some understanding.

It’s clear we’re in a crisis. The bailout may be the correct thing to do- but I’m worried by the way I see our leaders REACT.

Let’s go back to Bear-Stearns and forward to Friday. At each juncture we were told if we do this one- it will save us from major economic collapse. Clearly- they are either mis-reading the big picture or outright lying.

The language in the legislation is alarming to me, and it’s hard for me to get past THAT to begin to inform myself about whether or not the bailout is worthwhile.


104 posted on 09/21/2008 11:55:21 AM PDT by SE Mom (Proud mom of an Iraq war combat vet-McCain/Palin 08)
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To: Flavius

Dump it!


105 posted on 09/21/2008 11:56:30 AM PDT by Jim Robinson
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To: koraz

I have taken a quick look at the legislation. It is broad and a bit scary but I do see three limitations to Paulson’s power.

1. The $700 Billion limit.
2. The reporting to Congress after three months and semiannually thereafter.
3. The two year limits of the bill.

We can argue as to whether these limitations are appropriate or whether more are needed. Hopefully that is what our representatives are doing!


106 posted on 09/21/2008 11:57:16 AM PDT by koraz
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To: koraz

Yes- but:

b) Necessary Actions.—The Secretary is authorized to take such actions as the Secretary deems necessary to carry out the authorities in this Act, including, without limitation:

2) entering into contracts, including contracts for services authorized by section 3109 of title 5, United States Code, without regard to any other provision of law regarding public contracts;

Sec. 8. Review.

Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency.


107 posted on 09/21/2008 12:01:52 PM PDT by SE Mom (Proud mom of an Iraq war combat vet-McCain/Palin 08)
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To: koraz

Sec. 2. Purchases of Mortgage-Related Assets.
(b)(2) entering into contracts, including contracts for services authorized by section 3109 of title 5, United States Code, without regard to any other provision of law regarding public contracts;

Sec. 8. Review.
Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency.

http://www.nytimes.com/2008/09/21/business/21draftcnd.html?_r=2&oref=slogin&ref=business&pagewanted=print


108 posted on 09/21/2008 12:02:48 PM PDT by Mojave
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To: Flavius
Yes, of course!

It has to be that way. The bad paper we sold is everywhere and the other financial sectors are all joined at the hip.

109 posted on 09/21/2008 12:03:22 PM PDT by Cold Heat (Well....................................That's .....that.........)
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To: SE Mom

Let’s go back to Bear-Stearns and forward to Friday. At each juncture we were told if we do this one- it will save us from major economic collapse. Clearly- they are either mis-reading the big picture or outright lying.

*******************

I suggest another explanation - contagion. The effectiveness of each step depends on the ability to stop the panic. That is why this needed to be “The Mother of all bailouts.”

Even though this article was from the NYTs, I did find it a useful analysis of what happened up to the bailout on Friday.

http://freakonomics.blogs.nytimes.com/2008/09/18/diamond-and-kashyap-on-the-recent-financial-upheavals/


110 posted on 09/21/2008 12:05:06 PM PDT by koraz
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To: WorkerbeeCitizen

You’re the taxpayer, you’re always going to pay no matter who does buying and selling. Just hope there’s enough honey left for you to keep on working.
And just remember: You don’t own the hive or the honey.


111 posted on 09/21/2008 12:05:46 PM PDT by count-your-change (You don't have be brilliant, not being stupid is enough.)
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To: SE Mom
Here's the deal with that Mom....

If the street does not have true confidence that this proposal will go through without court delays and challenges, it is a total waste of money as it will be sucked up and gone in a instant with no effect on the problem.

God help us....and I'm not a church goer, but I do believe there is someone out there who is very concerned..

112 posted on 09/21/2008 12:09:39 PM PDT by Cold Heat (Well....................................That's .....that.........)
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To: koraz

Please read what I wrote as you’re simply restating it in different words.


113 posted on 09/21/2008 12:10:22 PM PDT by count-your-change (You don't have be brilliant, not being stupid is enough.)
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To: koraz

1. The $700 Billion limit.
2. The reporting to Congress after three months and semiannually thereafter.
3. The two year limits of the bill.

The $700 billion is $700 billion AT ANY ONE TIME. The entire portfolio of bad loans of any of FNM/FRE/C/LEH/AIG and the liabilities created by the CDSs written on same could be cycled through HP’s credit line $400-$500-$600 billion at a time.

Since there is explicitly no limitation upon what HP can do, nor is there any ability nor recourse upon any action he might take, which would presumably include lying to Congress as to the progress being made (or not) disposing of these toxic assets, such limits are no limits at all. Forget not that before any and all of this reached critical mass, the sub-prime issue was “contained” according to Mr. Paulson. Then we got the Fed-financed BSC takeunder. Shortly thereafter, FNM/FRE were “well capitalized” despite having paid fines for shifting their earnings and having not filed adequate financials for some three years. KaBoom on Fannie. Then, LEH was NOT to be bailed out. But the Tsy STILL furnished some numbers of billions in order for LEH’s TTT (Toxic Trove of Trash) to be unwound. Then, AIG would not get bailed out. Then, AIG DID get a bridge loan (which I don’t consider a bailout...I consider it highly draconian) and now this.

You’ll excuse me, but Mr. Paulson has a well-documented history of lying.


114 posted on 09/21/2008 12:10:39 PM PDT by Attention Surplus Disorder (Congrasites = Congressional parasites.)
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To: Alia

I’m serious as a heart attack.

http://www.swissinfo.ch/eng/front/Finance_Minister_Merz_in_coma_after_collapse.html?siteSect=105&sid=9754983&cKey=1222012417000&ty=st


115 posted on 09/21/2008 12:13:28 PM PDT by Attention Surplus Disorder (Congrasites = Congressional parasites.)
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To: Flavius

Oh for God’s sake.

It just keeps getting stupider. It is like Michael Keaton’s clones in ‘Multiplicity’.


116 posted on 09/21/2008 12:13:50 PM PDT by modest proposal
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To: WorkerbeeCitizen

It is look like a 2-3 TRILLION DOLLAR+ estimate on this thing.

Are these people for real?

Thank you Clinton/Bush/Everyone else involved.


117 posted on 09/21/2008 12:15:49 PM PDT by silentknight
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To: Flavius

Since we can’t lawfully rebel against the government, the government better be more responsible, or we will replace the people in it.


118 posted on 09/21/2008 12:18:54 PM PDT by popdonnelly (I'll tell you a little secret: we're smarter and more competent than the Left.)
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To: koraz

Thanks for posting that- it makes sense given the ever changeable element in the equation- human nature.


119 posted on 09/21/2008 12:19:37 PM PDT by SE Mom (Proud mom of an Iraq war combat vet-McCain/Palin 08)
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To: koraz

I’ve read several of your posts, and you obviously know what you’re writing about.

Thank you for being a voice of reason on these boards.


120 posted on 09/21/2008 12:20:59 PM PDT by Jedidah
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