Paulson: Foreign banks can use U.S. rescue plan

reuturs ^ | 9/21/08 | By Mark Felsenthal

[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."

[goldstategop]

Henry Paulson is politically tone deaf. Its one thing to rescue U.S financial markets but does the Mother Of All Bailouts mean we have to rescue the planet as well? What on earth is he thinking?

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus

[biff]

The US taxpayers better get ready for more of this, and he will not even use any KY.

[goldstategop]

Yeah while the entire world reams us for a bailout, too!

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus

[LibFreeUSA]

MADNESS! Sheer madeness.

They are playing ‘roulette’ with the tax payer’s money. Anytime the stock market takes a dive, they look to see who they need to bail out.

[goldstategop]

And Paulson and his successor would have the largest check writing fund in American history - with no oversight and no accountability.

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus

[Psycho_Bunny]

To me, it doesn’t sound like being “politically tone deaf”...it just sounds like %@$% @#$@% #@%!^#@$.

[goldstategop]

Its just a trillion dollars! Now quit whining and sit down and shut up!

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus

[Flavius]

it seems other central banks are pumping little spending money for the banks in their little places

that means they must have had the cash in our markets betting on joe working at McDonalds making his payment on McMansion

iv seen 70Trillion at risk and 140Trillion, now with all the panic Nancey’s screaming to sell their gloom and doom books,bloogs,wigs whatever

anyone have a clue what is really going on was this not similar to Savings and Loans bail out ...

[K-oneTexas]

“politically tone deaf”...it just sounds like %@$% @#$@% #@%!^#@$."

That means its B*ll Sh*T! Right.

[goldstategop]

That would brought about I think by the same practices that led to the current crisis. The more things change, the more they remain the same.

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus

[kjo]

Man oh man.....this is Alice in Wonderland.

I’m seein’ this, but keep thinkin’ it’s a dream.

This is the end of US capitalism as we know it. If a Democrat administration were doing this there’d be blood in the streets.

Wow.....

[CommieCutter]

WTF is going on here?

[CurlyDave]

Any details on what this bailout is going to look like?

I can easily envision the US getting stuck with every foreclosed house in the entire country.

Then we will have two competing forces. The RATs will want to give subsidized rents to "poor people", which will result in exporting crime to the suburbs, and huge swaths of "suburban blight".

Fiscally responsible people will want to sell off the foreclosed properties and recoup as much as possible. I see an entire new bureaucracy of federal house maintainers, house sellers, house rental agents, etc. Of course, this will result in cheap houses becoming available to anyone halfway qualified, which will further knock the stuffing out of the construction industry.

[Dawn531]

I posted this earlier because it was something I had heard but wasn’t sure about, abut sosmeone confirmed it. When we bailed out AIG, 80 percent of their debt was foreign. So we’re already headed down that path with the AIG bailout.

[Centurion2000]

And Paulson and his successor would have the largest check writing fund in American history - with no oversight and no accountability.

Why the hell are we even paying taxes for this bullsh*t????

[WorkerbeeCitizen]

I believe I saw the number 165 trillion thrown in there - but hey, whats a few trillion among banks

[AmericaUnited]

I can easily envision the US getting stuck with every foreclosed house in the entire country.

Good God! The number of emotional, knee-jerk screeching monkeys in this thread are embarrassing! The Treasury is not going to pay 100 cents on the dollar for these loans. They will pay according to the quality. THE ISSUE AT HAND, BEING SOLVED, IS GETTING CAPITAL FLOWING AGAIN IN THE CAPITAL MARKETS. The institutions will be selling these bad loans to the FED/Treasury at a discounted price. I agree with Rupert Murdock that this might not wind up costing the US taxpayer anything in the long run.

[koraz]

I know everyone is talking with emotion right now but you really need to think about it. 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?? They lost $70 on an investment that they had ever reason to expect to be secure due to the rating and insurance!!! Sure you can argue that they should have been smarter with their due diligence but you need to recognize that they have already taken a serious financial hit on these investments.

Also, people can’t seem to realize that the government can make a profit on this. Do you really think that houses sold for $100,000 are now worth less than $30,000? Keep the panic up and it will be. Allow the market to settle down and the government can turn it around and recover more than 30 cents on the dollar. That was exactly what happen with the RTC. THE GOVERNMENT MADE MONEY ON THE DEAL.

I realize that I may be barking up the wrong tree and that most of you refuse to listen. I will say it anyway in the case someone wants to be rationale about this.

[BAW]

and his successor Ponder this idea and see how frightening it might be. WHAT IF Sen Obama gets elected . . who do you imagine will fill Secretary Paulson's shoes and become able to write all those checks? Another reason to get out the vote for McCain-Palin.