Free Republic

The quote of the week - hands down: “I’ve abandoned free-market principles to save the free market system” -President George W. Bush, December 16, 2008 -Wow. Just wow.

He's going to do it.I would have wagered a kidney.With his time in the White House dwindling away, and the Messiah waiting in the wings to fire up his own trillion dollar stimulus package, President George W. Bush has decided to dip into his bag of inexplicable tricks and live up to the "lame" half of lame duck. He is tapping the $700 billion bailout bag - the three-quarters of a trillion dollar taxpayer bailout bag-o-loot originally intended to save the banking industry - and try to make things all better for the failing American automobile industry.I'd like to say...

Ineptitude pays. This grueling government bailout saga is eerily reminiscent of that smell in almost everyone’s grandma’s house, or the image of Barack Obama’s face gracing every magazine cover in all of God's creation.It doesn’t go away.It’s always there.And now, economic catastrophe looms on the horizon, they say. Millions of layoffs could be the consequence of inaction. The very stability of the nation hangs in the balance.Naturally, this latest potential cataclysm is not to be confused with the previous calamity from September – or any other that has threatened to cripple the United States in recent times.This is not to...

And so it continues … The $700 billion government bailout fiasco is officially a parody of itself. David Zucker couldn’t have written it any better. It is a colossal joke – not only watching the federal government swipe taxpayer dollars to “save” the country from financial ruin in what I (and many others) knew would be a veritable showcase of disorder and incompetence, but also observing the procession of “gimmee” merchants swarming in like seagulls to get their free block of cheese.Hands are outstretched, and stories of impending doom are rehearsed and ready to be dealt to the Henry Paulson...

I should have gone into banking, but unfortunately I'm not related to anyone who's related to someone who's sleeping with a Rothschild. Still, I could have been a Wall Street trader; it's like being a professional gambler but without the risk. Zero-risk trading not only creates a moral hazard but ultimately ends in theft of the taxpayer's money. Proponents of the bailout bill (including Obama and McCain) claim that if we didn't give the bankers 700 billion dollars, we might not be able to get loans, but wasn't giving out loans to unqualified recipients part of the problem to begin...

The Federal Deposit Insurance Corp. has the authority to do a net worth certificate program without legislation. The FDIC also has the authority, in conjunction with the Treasury and Fed, to declare that an emergency exists in our financial markets and announce that the FDIC will fully protect all depositors and other general creditors of failed banks until the emergency subsides. The bailout legislation giving the FDIC unlimited borrowing authority from the Treasury is a meaningless ornament on the tree, as the FDIC is already backed by the full faith and credit of the U.S. government. snip The SEC's mark-to-market...

LIVE VOTE What should Congress do next now that the House has rejected the $700 billion Wall Street bailout? [ ] Renegotiate the package so it can be passed quickly. [ ] Come up with a new plan. [X] Nothing. Let the markets sort it out.

NEW YORK: There is a simple reason why US Treasury Secretary Henry Paulson’s $700bn bail-out package has been so hard to sell to politicians and the American people: it won’t really work. Despite the historically massive expenditure and all the little clauses to make sure Wall Street fat cats get their comeuppance, the plan is unlikely to do anything to save the world’s biggest economy from a long and crippling downturn. It will doubtless save some banks from collapse, but is that worth the government putting itself on the hook for nearly a trillion dollars more than $3,000 for every...

It seems the "Myth vs Fact" sheet sent to Ed Morrissey over at HotAir.com by "A source close to House Republicans" contains a big myth itself. It reads: "Myth: Blank check for $700 billion with little accountability. Fact: In general, the Treasury Secretary is limited to purchasing up to $250 billion outstanding at any one time. If the Treasury needs to use another $100 billion, the President must certify this action and report to Congress. Further spending requires Congressional action." As can be seen from the bill itself this is simply not true: "12 (c) FAST TRACK CONSIDERATION.— 13 (1)...

Are we buying a $700 billion 'maybe'? Just by seeking aid through the government's bailout, financial companies could be putting themselves at risk. And we wouldn't know for months whether the plan was working. By Jim Jubak What if they gave a $700 billion bailout and nobody came? It's a real possibility. And it would doom the plan to rescue Wall Street with $700 billion in taxpayer money. All the hearings and late-night meetings have focused on how to improve the plan proposed by Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke. The modifications being considered would indeed...

UK banks hold £95bn of sour assets that could qualify for US bailout plan Miles Costello Britain’s five leading high street banks have as much as £95.3 billion ($175 billion) of distressed assets on their books that may qualify for the American bailout scheme. If the British banks tap the rescue fund being set up by the US Treasury and the Federal Reserve to the maximum, they could secure one quarter of the $700 billion being made available. Under the terms of an outline agreement that appeared to have been reached by US policymakers last night, Britain’s lenders will be...

LEGISLATIVE PROPOSAL FOR TREASURY AUTHORITY TO PURCHASE MORTGAGE-RELATED ASSETS Section 1. Short Title. This Act may be cited as ____________________. Sec. 2. Purchases of Mortgage-Related Assets. (a) Authority to Purchase.--The Secretary is authorized to purchase, and to make and fund commitments to purchase, on such terms and conditions as determined by the Secretary, mortgage-related assets from any financial institution having its headquarters in the United States. (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: (1) appointing such employees as may be required...

The top Democrat in the U.S. Senate said Friday that any program devised to combat the recent crisis in the financial markets must also take into account the needs of average Americans. The comments came in response to a press conference held by Treasury Secretary Henry Paulson earlier in the day, where he confirmed that he would work with Congress to create a entity aimed at removing bad mortgage-based assets from financial institutions. "We must not forget Main Street as we work to address the crisis on Wall Street," Senate Majority Leader Harry Reid, D.-Nev., said in a statement.

Bush asks Congress for $700 billion for bailout WASHINGTON - The Bush administration is asking Congress to let the government buy $700 billion in bad mortgages as part of the largest financial bailout since the Great Depression.