Posted on 10/02/2008 11:18:00 AM PDT by thatdewd
As most of us know, we're not bailing out Wallstreet. We're bailing out the foreign Central Banks. Why everyone in high levels of Gov't is being untruthful about "the crisis" is beyond me. And the sad thing is that many in Gov't (junior Representatives) don't even know what's going on. But, you're about to. Here's my idea of what's REALLY going on with that "bailout":
Foreign investors, particularly Government Central Banks, love to buy American debt (private and public), because in the past it's always been a good investment.
The "Bad Paper" we keep hearing about was initially generated through US Gov't Agencies - Fannie Mae and Freddie Mac.
[this is where our recent banking crisis enters, but I'm skipping it since it's a side-issue. Just know that some of our banks "leveraged" the "Bad Paper" and pretended it was a true asset when they knew darn well it was crap. That's their problem, and they're either defunct or were swallowed up for pennies. Good.]
Most of that "Bad Paper" finally ended up in the hands (either directly or indirectly) of foreign Central Banks (even foreign private investors bought them with loans from their Central Banks).
The US Gov't operates on funds generated by selling it's debt forward, usually in the form of long-term T-Bills. These debt instruments are bought by foreign Central Banks, and if they didn't buy them, we'd be broke. The Gov't has to sell it's debt to stay afloat. Thank you, foreign Banks.
The foreign Central Banks are not happy with the idea that they are facing potentially trillions of dollars in losses because of all that "Bad Paper" that initially originated with our Gov't Agencies. (yes, trillions, that goes back to the "leveraging" thing).
They've told the Treasury to make it right or they'll call in early the legitimate Gov't debt notes they hold, which will bankrupt the Gov't, completely. And, they'll be darned if they'll buy any more T-Bills to finance our Gov't in the future, which will bankrupt the Gov't, completely, if it we weren't completely bankrupted from the first threat. They've got two guns to the head of our Treasury and there's nothing we can do...which is why we have to buy the "Bad Paper" back. If we don't, the Gov't itself will be "foreclosed" on. No joke. I won't explain that, just know that we'd be better off if Russia, China, Iran, and anybody else decided to nuke us on the same day.
Loans to Wall Street won't work, it's all about that "Bad Paper" held by foreign Banks, "Bad Paper" that originated with our Gov't Agencies...which is why another Gov't Agency, The Treasury, has to buy them even though they aren't worth doodley. It sucks, but there's no alternative.
Now that you know what's really going on, please watch this short video of what happened in 2004 when concerned Republicans tried to raise alarm over how Fannie Mae and Freddie Mac were operating:
http://www.youtube.com/watch?v=_MGT_cSi7Rs
Please send Barney Frank a thank you note. Preferably one made out of hog crap.
God Bless our Republic.
Enough damned vanities. Didn’t the mods already make this clear?
Actually I think this is an interesting perspective. He might be onto something here.
Is this really true that FR won’t accept original content from users?
Effin you ain’t a mod, shove it.
When someone nominates you to become a mod, then you can push your weight around.
Take a chill. Interesting thoughts posted here.
It was more informative for people on this forum than 90 % of the CRAP that is posted 15 times.
A sobering perspective not being talked about. I understand why. Leave the thread alone.
http://www.freerepublic.com/focus/f-news/2094322/posts
Watch the video at the link, it explains exactly what is going on, the leftist strategy never changes.
Defeat Obama Now, Fight McCain Later.
They want us demoralized, don’t let them win.
I have a feeling this is what Bush knows. Maybe this is what Paulson shared with him and he cannot share with the American people because gov’t (Barney Frank and friends) just bankrupted our gov’t.
I still would like to hear this from Bush himself because it seems like the Dems have made this their October surprise.
GLASS-STEAGALL ACT:
COMMERCIAL VS. INVESTMENT BANKING
Updated June 29, 1987
http://digital.library.unt.edu/govdocs/crs/permalink/meta-crs-9065:1
What is MELAS?
MELAS is a rare form of dementia. MELAS is an abbreviation that stands for Mitochondrial Encephalopathy, Lactic Acidosis, and Stroke-like episodes.
BWAAAHHH
Truth really is stranger than fiction!
Depression-Era Rules Undone
Clinton Signs Legislation Overhauling Banking Laws
WASHINGTON, Nov. 12 (Reuters) - President Clinton signed into law today a sweeping overhaul of Depression-era banking laws. The measure lifts barriers in the industry and allows banks, securities firms and insurance companies to merge and sell each others products.
This legislation is truly historic, President Clinton told a packed audience of lawmakers and top financial regulators. We have done right by the American people.
The bill repeals parts of the 1933 Glass-Steagall Act and the 1956 Bank Holding Company Act to level the domestic playing field for United States financial companies and allow them to compete better in the evolving global financial marketplace.
Analysts and industry leaders say the measure will probably fuel a wave of mergers as companies compete to build financial supermarkets offering all the services customers need under one roof.
Financial stocks were winners on Wall Street today, with J.P. Morgan & Company, Citigroup, American Express and Merrill Lynch all posting big gains. That helped the Dow Jones industrial average end up 174.02 points, at 10,769.32.
The Senate approved the final bill by 90 to 8 on Nov. 4 and the House followed suit by a vote of 362 to 57. Congress had previously made almost a dozen unsuccessful attempts over the last 25 years to revise the statutes, which had increasingly come to be viewed as anachronisms.
The world changes, and Congress and the laws have to change with it, said Senator Phil Gramm of Texas, chairman of the Banking Committee and one of the bills prime sponsors.
Supporters of the legislation say it will also benefit consumers, providing them with greater choice and convenience and spurring competition that will lead to lower prices.
With this bill, Treasury Secretary Lawrence H. Summers said, the American financial system takes a major step forward toward the 21st Century one that will benefit American consumers, business and the national economy. Opponents said it would have the opposite effect, creating behemoths that will raise fees, violate customers privacy by sharing and selling their personal data, and put the stability of the financial system at risk.
ping for pain
Yet another “here’s what’s really going on!” theory.
As one after another of our largest American financial institutions bite the dust — Bear Stearns, Lehman Brothers, AIG, Merrill Lynch, Washington Mutual, Wachovia — and many people anxiously await the next shoe to drop — we are now breathlessly informed that what’s “really going on” is not an attempt to shore up and restore confidence in our remaining financial institutions, but rather it’s all a stealthy move to transfer our wealth to foreign central bankers who probably secretly shared a ski lodge in Davos with Hank Paulson.
And, thus the take over of America by foreign entities began and continues today! I guess if you could repeal the Clinton it would be a good thing, but the horse is already out and it’s too late to close the gate.
The more I think about your “idea” the more I think you’re onto something here.
Because of our country’s reputation as a safe place to invest we have a lot of foreign money, not just in the stock market but in the junk mortgage paper as well. If foreign money loses confidence in us and pulls out, we will be facing a BIG recession.
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