$700 Billion American Taxpayer Dollars to go to Foreigners!

FedUp USA ^ | 10/1/2008 | Karl Denninger

[politicket]

Excerpt...

SEC. 112. COORDINATION WITH FOREIGN AUTHORITIES AND CENTRAL BANKS.

The Secretary shall coordinate, as appropriate, with foreign financial authorities and central banks to work toward the establishment of similar programs by such authorities and central banks. To the extent that such foreign financial authorities or banks hold troubled assets as a result of extending financing to financial institutions that have failed or defaulted on such financing, such troubled assets qualify for purchase under section 101.

[Murder Incorporated]

“Who do you think has been financing our National Debt???? Them foreigners!”

You say that like it’s a good thing. You say that as if they were doing us a favor. I’d be more inclined to support bailing them out if they promised to quit enabling our irresponsible government spending.

[suzy02]

Thank you for that post. Chuck Grassley is one of my hero's and one of the few who “get it.”

Too bad we can't run him for President. At least the office would have some dignity.

Suzy

[ding_dong_daddy_from_dumas]

>>The global markets have been damaged by our securities<<

And what prevents foreign companies from moving bad debts to their US-based subsidiaries to cash in on this deal?

If I invest money in a foreign fund and it goes belly up, will the foreign governments help me?

[WilliamReading]

The foreigners aren’t enabling irresponsible government spending. That is caused by President Bush and the Congress.

Please refer to your Constitution.

[politicket]

My question is: why would Bush look terrified and expect Americans to take on the bad debts from around the world??

Because the Credit Default Swap issue is creating huge amounts of debt for major (and minor) companies all around the world. No other country has the economic resources to try and fight this successfully.

That's why they need to create a conduit to the US economy - hoping to stay off global systemic meltdown.

[politicket]

Loans on property in say Iceland or Lithuania are not part of the deal

I understand what you're saying, but that's not what the language of the bill specifies.

[dixiechick2000]

Thank you for your post.
You make a lot of sense.

I’m very angry about this.
I hope and pray there will be some accountability for this mess.

[politicket]

Isn’t it true that ALL of this toxic debt can be laid squarely at the door of Fannie Mae and Freddie Mac — even the overseas stuff?

No.

The officials at Freddie Mac and Fannie Mae need to go to jail - but this current economic problem was caused by using a fairly new financial instrument that hadn't been properly vetted in all of the areas that it could be misused.

It's hitting us hard.

[hedgetrimmer]

I’ve said it a million times, globalism has almost solely been funded by US taxpayer dollars, and couldn’t even happen if the globalists weren’t siphoning the money it takes to force globalism into being, out of the US domestic economy.

Globalism is a fraud on Americans and would NEVER happen on it’s own because its such a TERRIBLE system/idea.

[BlessingsofLiberty]

The way this laundering scheme is going to be set up, you aren’t going to know where any of this “bad debt” is coming from or where it originated. That is the whole problem from start to finish....NO TRANSPARENCY.

And..yes...as I have mentioned many times on this board, we are in huge debt and foreign concerns own our debt to the tune of trillions of dollars. It is a lose..lose situation and it is time to take control. I don’t like being held hostage by communists, dictators and euro-socialists.

This Bill, as it stands in the Senate, does nothing to help our financial problems. It just keeps the ponzi scheme going.

[politicket]

This is nonsense. This money will be used to buy bad loans at a fraction of their real value that are crippling the financial industry, and restructuring them until they are paid back.

You are quite mistaken. Please take the time (and I would suggest soon) to learn about the Credit Default Swap problem. You will be glad that you did.

[Cold Heat]

The fact that only those with subsidiary banks in the U.S. are included, limits this issue to only a few of the majors, like UBS and a few others. If you have not noticed, these internationals have taken huge writedowns on investments, and these investment go both ways. We have banks that have branches in their respective countries. They trade back and forth to give each other leverage and liquidity. if we cut them out of the bill, this cooperation will be forced to cease.

These recurring populist notions are interfering greatly with our ability to compete internationally, and the necessary foreign investment.

The ports debacle, for example, has resulted in the rich financial centers like Dubai to simply sit on the sidelines and grin a bit as we flounder. It's payback for what they see as our hubris and stupidity.

So.......every decision like this has a cost. And we will pay it.

[tcrlaf]

US ‘Casino’ Mentality Blamed For Planet’s Meltdown

so...
Democrat Corruption and vote-buying is a “US ‘Casino’ Mentality”?

These Euro banks LINED UP to buy the riskiest paper, then leveraged themselves to levels against it that would NEVER be allowed in America, and that is OUR FAULT???

[dixiechick2000]

Thank you for your post, and link!

[politicket]

The global markets have been damaged by our securities, and it makes perfect dense to me, to treat it as a global problem as we are so intertwined at the roots.

In all due respect, this isn't ABOUT the underlying securities. It's about the hammer of triggered CDS's that is crippling the global economies of Asia, Europe, and North America.

It's not about 'making good' on sour debt that was sold overseas.

[HereInTheHeartland]

I want them to pass a simple bill quickly.

It's a disgrace that they are shoveling all of this crap into a bill.
CNBC mentioned there is a provision for imported wooden arrows in the proposed bill, something with tariffs I think.
We need a narrowly targeted, free market oriented bill, quickly.
Why can't our Congress get simple things done efficiently?

[sam_paine]

You do realise the [sic] ‘xenophobia’ and ‘xenophobe’ are two different words, right?

And, you do realise that ‘idiocy’ and ‘idiot’ are two different words, right?

[Liberty1970]

A few days ago there was a report on FR that Chinese banks were being told by their government not to lend any more $$ to US banks. Does anyone have an update on this or how it plays out in the current troubles? Is it a minor blip or a sign of Impending Doom?

[metmom]

Hey, newb, where ever you are from, since you didn’t post any state flag on your homepage, it’s not about xenophobia at all.

It’s about my hardearned money getting confiscated to pay taxes to hand out to anybody. Especially when it goes to bail out those who would love to see nothing more that the US fail.

All those other countries can take care of their own financial problems and tax their own citizenry to bail themselves out, your included.

Maybe you could explain why it’s the US that’s always helping others out and not one other country willing to give the US a hand when times are tough.

[politicket]

I want them to pass a simple bill quickly.

No bill that they pass will stop this current problem.

However, Congress CAN actually do something today that would be worthwhile.

They can immediately craft a bill that bans the buying of insurance on securities where the buyer has no vested financial stake in the security.

Bush needs to sign this tonight.

It will do absolutely nothing for our current problem, but it will give our children and grandchildren a fighting chance.