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 ...
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?
You were being serious in your post?
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.
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.
Dump it!
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!
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.
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.
It has to be that way. The bad paper we sold is everywhere and the other financial sectors are all joined at the hip.
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.
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.
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..
Please read what I wrote as you’re simply restating it in different words.
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.
I’m serious as a heart attack.
Oh for God’s sake.
It just keeps getting stupider. It is like Michael Keaton’s clones in ‘Multiplicity’.
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.
Since we can’t lawfully rebel against the government, the government better be more responsible, or we will replace the people in it.
Thanks for posting that- it makes sense given the ever changeable element in the equation- human nature.
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.
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