"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus
The US taxpayers better get ready for more of this, and he will not even use any KY.
Man oh man.....this is Alice in Wonderland.
I’m seein’ this, but keep thinkin’ it’s a dream.
This is the end of US capitalism as we know it. If a Democrat administration were doing this there’d be blood in the streets.
Wow.....
WTF is going on here?
I can easily envision the US getting stuck with every foreclosed house in the entire country.
Then we will have two competing forces. The RATs will want to give subsidized rents to "poor people", which will result in exporting crime to the suburbs, and huge swaths of "suburban blight".
Fiscally responsible people will want to sell off the foreclosed properties and recoup as much as possible. I see an entire new bureaucracy of federal house maintainers, house sellers, house rental agents, etc. Of course, this will result in cheap houses becoming available to anyone halfway qualified, which will further knock the stuffing out of the construction industry.
I posted this earlier because it was something I had heard but wasn’t sure about, abut sosmeone confirmed it. When we bailed out AIG, 80 percent of their debt was foreign. So we’re already headed down that path with the AIG bailout.
I know everyone is talking with emotion right now but you really need to think about it. A foreign investor bought insured AAA assets at say $100. They will now be selling them back to the US government for $30. How is that a bailout?? They lost $70 on an investment that they had ever reason to expect to be secure due to the rating and insurance!!! Sure you can argue that they should have been smarter with their due diligence but you need to recognize that they have already taken a serious financial hit on these investments.
Also, people can’t seem to realize that the government can make a profit on this. Do you really think that houses sold for $100,000 are now worth less than $30,000? Keep the panic up and it will be. Allow the market to settle down and the government can turn it around and recover more than 30 cents on the dollar. That was exactly what happen with the RTC. THE GOVERNMENT MADE MONEY ON THE DEAL.
I realize that I may be barking up the wrong tree and that most of you refuse to listen. I will say it anyway in the case someone wants to be rationale about this.
REVOLT...
The Tsy proposal specifically exempts anything Paulson does from 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.”
This is essentially a coup d’etat by the Fed and Treasury.
Now I got some back episodes of ‘Merican Idol to check out on the Tivo.
I say, in the name of equality, bail-out no one.
This act is a de facto nationalization of all financial, insurance, and related industries. What's left to pretend about this?
Didn’t the original draft say it was only open to US companies?
So start the hijinks.
This is going to be an auction entity of bad mortgage packages much like the RTC did with S/Ls which cost us almost nothing.
Banks will still lose...and lose a lot...espcially derivatives.
But this slows down the cliffdive and allows some order and time to restructure.
make no mistake, financials are still going to lose some serious capital
we are not just giving away a trillion dollars, we are providing a clearinghouse and allowing these failed banks to place their bad debt there to be bid upon eventually
granted though, this is fairly new charted waters so who knows precisely but this is not taxpayers are paying off the debt of these companies through grant remedies.
if these foreign banks are located here and have these US bundled exposures it would be sorta hard to block them from the same re-liquidity option granted to domestic banks.
this is how I heard Rupert Murdoch and Senator John Kyl explain it Friday...and neither of them are big entitlements proponents as a rule
FTA: **This will protect the American taxpayer**. Well down is up and up is down. Instead of letting market forces work to purge failures, trillions of tax dollars are being appropriated by Herr Paulson and Herr Bernanke to resuscitate every stinking financial corpse including FNMA/FRMC. Which is going to make debtors out of the next three generations of American taxpayers. And to add more foreign mouths at the entitlement trough is going to—what?— protect the taxpayer? Paulson and Bernanke are out of control. And there is every likelihood de facto authorization of astronomic additions to the national debt by fiat is unconstitutional. Where the h-ll is Congress and where the h-ll is McCain/Palin? Where are our checks and balances? Did we the people have a say in authorizing these arrogant self-serving raids on the treasury to buttress and nationalize corroding institutions? Last week Rush told McCain/Palin they needed to jump on the FNMA/FRMC failure and attack it for what it was: a direct result of Democrat misfeasance, malfeasance and nonfeasance. But did McCain listen? No. Instead, McCain/Palin boarded the Democrat Let’s Attack Wall Street train. What did Wall Street have to do with the rotten market fruit borne of feel-good policies emanating from years of Democrat-controlled congresses forcing mortgage lenders at gunpoint to virtually throw overboard outdated underwriting standards (Charles Rangel, Chris Dodd anyone?). Under the subsequent Community Reinvestment Act mortgages were literally given away to every Tom, Rasheef, and Rosita who couldn’t qualify for one under preexisting underwriting criteria. Don’t look for any cause/effect analysis coming out of Washington. Or out of McCain/Palin. See, reason and causality are mean-spirited traits. By the way, the McCain/Palin sticker is coming off the pickup.
SO it’s not really “foreign assets”, nor is it “american assets held by foreign banks”.
It’s american assets held by american operations that are owned by foreign banks.
Just bailing out Al Qaida so they can build more bombs.
Absolutely not.
No.
No.
Those countries have tax bases of their own, let them sort it out.
No way.
Not close to being acceptable.
Under this new “regime”, defaulted debt is actually worth the same as cash. Because cash currency is the promise to pay via the Federal Reserve, but defaulted debt has been promised to be made whole by the Treasury. They are thus equivalent. Even more remarkable, bad debt is unquestionably worth more than performing debt, because defaulted debt is now backstopped by the Federal Government, and performing debt is only backed by the borrower! So defaulted debt is worth exactly the same as a T-bill or government bond.
Put that in your pipe & smoke it.
I would just like to know the difference between the following two scenarios:
Hank Paulson locks himself and Congress into a room and tells them that if he isn’t given the unlimited power to act as he sees fit, without recourse, without legal or Constitutional scrutiny, the world will blow up.
An Al Queda terrorist locks himself and 30 people into a room and shows them the red button on the remote control he holds in his hands and demands they fork over their life savings or he pushes the button.
Hank Paulson and his ilk were instrumental in the creation of this crisis and benefitted handsomely therefrom.
Dump it!