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 ...
The taxpayer (thats us) lost $30.00 on that transaction.
REVOLT...
You’re supposed to be happy they aren’t stealing more of your money. LOL
Insured by whom?
No. The taxpayer pays $30 for a mortgage which has real estate as collateral. The loss is $30 if and only if the value of the property is $0!!
The lack of financial understanding in this country is really, really sad!!
Most of these bonds were insured by AMBAC and MBIA.
The theory of Free Lunch, cooked up using the magical powers of the fedgov.
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.
Then why not seek recourse from them???
The lack of financial understanding in this country is really, really sad!!
I don’t even have a mortgage. Tell me how I’m not getting screwed.
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Keep up the panic and you will be getting screwed!! Allow the market to calm down and the government can sell these assets for a gain.
If there was a market meltdown you would be screwed worse. Remember the Great Depression? You would lose you job, inflation would sky rocket, civil unrest you make you fear for your safety!
Some of the assumptions you make might make sense were it not for fact that government is not in the business of making money.
I realize you are optimistic at the prospect of the government making a profit on this - I do not share your optimism is this regard and do not believe for one second the government will break even.
As for the government having real property as collateral goes - that is outside their purview.
Comrades: Is glorious `Comprehensive 5 Year
Ekonomik Reform Plan’! Da—from workers having ability to pay, to those domestic & foreign comrades needing rubles.
Hail to Commissar Paulson and brave nomenklatura!
Some of the assumptions you make might make sense were it not for fact that government is not in the business of making money.
I realize you are optimistic at the prospect of the government making a profit on this - I do not share your optimism is this regard and do not believe for one second the government will break even.
As for the government having real property as collateral goes - that is outside their purview.
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While I generally agree with you about the government’s incompetence, there is a precedent here. The government made money with the RTC.
Your math logic is faulty. If I sell a stock to you for $100 I first have the $100. If I buy it back for $30, which is probably its true value now, I have a $30 stock plus $70 of your money. Not too bad.
Unbridled panic & hyperbole rule the day!
Pass the Valium please.
Then why not seek recourse from them???
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AMBAC and MBIA has alreay gone bust! The fact that you don’t know that shows that you are not following this situation closely. IMO you really should educate yourself before you express an opnion!!
With all due respect, how the hell do you know this?
The so-called crisis supposedly stems from the fact that no one can determine the value of these assets.
If they were objectively worth $30, the bank would write them down to $30 (like every other business in America has to do with its bad debts) and life would go on.
Instead the banks get to unload them on the taxpayer at some indeterminate amount, probably less than face value but I bet a lot more than what they will finally be worth when the housing prices finish dropping to normal levels.
And please don't get me started on "AAA" asset ratings pulled out of somebody's AAAss.
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