Here is the update that I just sent out:
The pieces of this economic bailout puzzle have been swirling around my mind and they are now beginning to make complete sense, and it may sound bizarre-so hold onto your seats.
First, let’s review a few ‘odd’ things that have happened over the last four days or so:
The prime minister of Britain was in Washington D.C. over the weekend begging for hundreds of billions of dollars to bail out their banking infrastructure. Britain’s laws prohibit their government from creating a bailout plan on their end. Instead, they nationalize the failed bank. I personally thought that this was highly newsworthy, but didn’t see it talked about very much, if at all. It was very strange to me, so I just stored it away in my mind.
Next, we all know that the world’s central banks have been pumping hundreds of billions of dollars into the worlds markets in an effort to create some form of liquidity. It hasn’t worked. One other very interesting piece is that the US Fed has increased what are called ‘credit swap lines’ with other countries to about $630 billion dollars in the last few days. I thought that was very interesting as well, but wasn’t quite sure why. Understand that a ‘credit swap line’ is like a funnel where money can be transferred between nations.
Thirdly, President Bush signed a $300 billion dollar mortgage bailout bill on 7/30/2008. It takes effect today, October 1st. Nobody is talking about it.
Fourthly – When the House rejected the bill on Monday then it was strange how other nations were acting like we had done them a large disservice.
Fifthly – President Bush, Fed Chairman Bernanke, and Treasury Secretary Paulson have been very persistent – some would say terrified – to get this bailout pushed through at all costs. Yesterday, if possible.
All of that information was sitting there, but not coming together into a coherent meaning – until now.
Brad Sherman, a Democrat Representative from California provided the missing link.
Please follow this closely folks – it’s VERY important – but will seem strange:
The current bailout plan allows for bailing out any mortgage or mortgage-related investment product. A lot of people would say “Great – we need that to save the US economy”.
But, notice that I didn’t say that these mortgages had to have originated in the United States.
In fact, would you consider it odd if I told you that Treasury Secretary Henry Paulson has promised a presidential veto on the bailout bill if language were added to the bill in order to make it apply only to US properties? This means that President Bush must be behind that threat as well.
Folks, it is now my sincere belief that this bailout plan that is about to go through will be used to funnel toxic debt from foreign countries through the ‘credit swap lines’ and into the American economy.
The Credit Default Swap crisis has hit worldwide, and the US is the only economy in the entire world with enough capital to try and fight it.
I know that this sounds like a conspiracy theory on steroids – and I may very well be wrong – but all of the pieces now fit together like a well-formed jigsaw puzzle.
We need to do everything we can to stop this bill. The US Senate will be debating it tomorrow and casting their votes around 9 PM EST. I’m hearing that they will attach it to a popular piece of legislation and send it to the House.
The House will consider it on Thursday and vote that same day.
Call, get your friends to call, and call again.
Bingo....and duly noted.
I just sent your entire post to family members, friends and etc through email. I sent a copy to my Rep. and I will follow up with a call in the morning.
Thank you for your hard work.....
these mortgages had to have originated in the United States.
In fact, would you consider it odd if I told you that Treasury Secretary Henry Paulson has promised a presidential veto on the bailout bill if language were added to the bill in order to make it apply only to US properties? This means that President Bush must be behind that threat as well.
Folks, it is now my sincere belief that this bailout plan that is about to go through will be used to funnel toxic debt from foreign countries through the ‘credit swap lines’ and into the American economy.
.
point, there’s been no real good explanation, thanks President Bush. The longer it takes to find a solution, the closer it becomes a fiscally conservative one
That’s some rather interesting, and frightening stuff... [And, it’s definitely not the same kind of (false) fright caused by the doom and gloom talk of those who wanted this bill to go through on Monday. To hear a few of them talk on the House floor Monday you would believe that banks would literally just empty people’s checking accounts and we would find absolutely no money in those accounts by next week when we went to the ATMs.]
My question is: why would Bush look terrified and expect Americans to take on the bad debts from around the world??
That's good enough for me.
......I didn’t say that these mortgages had to have originated in the United States......
It is my understanding that the packages sold to foreign banks were in fact based on mortgages of US real properties or various derivatives based on those mortgages. Loans on property in say Iceland or Lithuania are not part of the deal
“Thirdly, President Bush signed a $300 billion dollar mortgage bailout bill on 7/30/2008. It takes effect today, October 1st. Nobody is talking about it.”
Correct me if I’m wrong, but by my unofficial count we’ve already dumped $2 trillion on this problem so far.
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?
Not that this means it’s OK to bailout foreign banks, my point is that the mismanagement of these GSE’s has put the ENTIRE WORLD on the brink of a meltdown!
When you call your Congress critters make sure you demand an investigation of the GSE’s — one that goes back to their founding!
BTT!
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.