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Paulson: Foreign banks can use U.S. rescue plan
reuturs ^ | 9/21/08 | By Mark Felsenthal

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 ...


TOPICS: Business/Economy; News/Current Events
KEYWORDS: banks; dollar; financialcrisis; globalism; paulson; trade; treasury
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To: koraz
A foreign investor bought insured AAA assets at say $100. They will now be selling them back to the US government for $30. How is that a bailout??

The taxpayer (thats us) lost $30.00 on that transaction.

21 posted on 09/21/2008 9:02:18 AM PDT by WorkerbeeCitizen (An inadequately policed Conservative)
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To: Flavius

REVOLT...


22 posted on 09/21/2008 9:05:14 AM PDT by itches (the Dicks (politicians/governments) keep changing, but the Asses are always Ours!)
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To: WorkerbeeCitizen

You’re supposed to be happy they aren’t stealing more of your money. LOL


23 posted on 09/21/2008 9:06:06 AM PDT by cripplecreek (Voting Conservative isn't for the faint of heart.)
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To: koraz
insured AAA assets

Insured by whom?

24 posted on 09/21/2008 9:07:16 AM PDT by jd777
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To: WorkerbeeCitizen

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!!


25 posted on 09/21/2008 9:07:45 AM PDT by koraz
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To: jd777

Most of these bonds were insured by AMBAC and MBIA.


26 posted on 09/21/2008 9:08:28 AM PDT by koraz
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To: WorkerbeeCitizen
Yes, but that $30 taxpayer loss is for the Greater Good™. Plus, we all know that the government can make money on the deal, while private enterprise is wholly incapable of generating a profit under the same circumstances. What we do is take a bag full of garbage, recycle everything but the toxic waste at a profit, and shift the toxic waste to the taxpayer. Voila! As long as we only count the losses in some hidden way (for example, sweeping them under an inflationary rug), we can trumpet an overall government profit!

The theory of Free Lunch, cooked up using the magical powers of the fedgov.

27 posted on 09/21/2008 9:09:40 AM PDT by M203M4 (True Universal Suffrage: Pets of dead illegal-immigrant felons voting Democrat (twice))
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To: Flavius

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.


28 posted on 09/21/2008 9:10:35 AM PDT by Attention Surplus Disorder (Congrasites = Congressional parasites.)
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To: koraz
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.
29 posted on 09/21/2008 9:11:38 AM PDT by cripplecreek (Voting Conservative isn't for the faint of heart.)
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To: Flavius
Democrats are pushing for this bail-out to also include homeowners who borrowed above their financial ability to pay...in the name of equality, why just bail-out wall street financiers?

I say, in the name of equality, bail-out no one.

30 posted on 09/21/2008 9:12:37 AM PDT by Rudder
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To: koraz

Then why not seek recourse from them???


31 posted on 09/21/2008 9:17:22 AM PDT by jd777
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To: cripplecreek

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.

******************

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!


32 posted on 09/21/2008 9:17:36 AM PDT by koraz
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To: koraz

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.


33 posted on 09/21/2008 9:19:05 AM PDT by WorkerbeeCitizen (An inadequately policed Conservative)
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To: M203M4

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!


34 posted on 09/21/2008 9:21:21 AM PDT by tumblindice (I'm sticking by my guns and voting for conservatives.)
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To: WorkerbeeCitizen

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.

******************

While I generally agree with you about the government’s incompetence, there is a precedent here. The government made money with the RTC.


35 posted on 09/21/2008 9:21:54 AM PDT by koraz
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To: WorkerbeeCitizen

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.


36 posted on 09/21/2008 9:22:52 AM PDT by count-your-change (You don't have be brilliant, not being stupid is enough.)
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To: goldstategop
Politics is reality-deaf, and needs to fix that itself. Reality isn't going to change to match your fantasy ideological expectations. Reality is reality, and will dictate what actually happens. And if you don't like it, tough freaking toenails.
37 posted on 09/21/2008 9:22:56 AM PDT by JasonC
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To: AmericaUnited

Unbridled panic & hyperbole rule the day!

Pass the Valium please.


38 posted on 09/21/2008 9:23:07 AM PDT by EEDUDE
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To: jd777

Then why not seek recourse from them???
***************

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!!


39 posted on 09/21/2008 9:23:54 AM PDT by koraz
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To: koraz
A foreign investor bought insured AAA assets at say $100. They will now be selling them back to the US government for $30.

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.

40 posted on 09/21/2008 9:24:23 AM PDT by Notary Sojac (America's never won a "war" unless the enemy was named using a proper noun.)
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