 |
 |
Are the Big Banks Faking a “Liquidity Crisis”?
George Washington’s Blog
Saturday, Sept 27, 2008
I previously pointed out that when the Japanese government threw cash at their big banks in the 90’s, the banks just horded the money instead of using it to restore “liquidity”.
Well, a professor of economics and an expert in liquidity now hints that the entire liquidity “crisis” might be a hoax.
Bloomberg quotes the good professor:
“I suspect that part of what we’re seeing in the freezing up of lending markets is strategic behavior on the part of big financial players who stand to benefit from the bailout,” said David K. Levine, an economist at Washington University in St. Louis, who studies liquidity constraints and game theory.
Are the big banks faking a liquidity crisis because they know that if they act like the financial system is drying up, they’ll get a big bailout?
Like a kid who pretends he’s sick so he can play hookie from school, are the big players pretending they are financially “sick” so that they can play hookie from the free market?
Prison
Planet.tv Members Can Watch
Fall Of The Republic
Right Now Online -
Don't Miss Out! Get
Your Subscription Today!
CANCER CONSPIRACY? Are
"they" suppressing the cure? Will YOU
be the next victim? Learn
the Secret Truth! - READ FULL STORY
-
- Social bookmarks
- Email this article
-
- Print this page
38 Responses to “Are the Big Banks Faking a “Liquidity Crisis”?”
 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | |||||||
| By N2H | |||||||||||||||||||||||||||||||||||||||||
September 27th, 2008 at 5:14 am
The only thing that is fake is the system of monetarism where one worships paper.
The truth is that the system itself is a fake, and it has been fake for 30 years. The banks have been literally bankrupt for 30 years, but they were held up by an illusion. The whole thing was a laughable ILLUSION.
A literal interpretation of the question, “Are the banks faking a liquidity crisis” is actually, “yes.”
They ARE faking a liquidity crisis. Because if you still believe that this is a so-called “liquidity” crisis, then you are still living in the fictional world of fake money and fake value.
http://www.larouchepub.com/eiw.....29_732.pdf
September 27th, 2008 at 5:37 am
Some good points. Before borrowing additional 100s of billions of dollars we should remember Japan’s example. Our Lord Jesus Christ said, “Do for others just what you want them to do for you.” (Luke 6:31) I would bet our descendants would prefer not to live in a feudal state and would prefer that we of this generation not do anything as we watch these events unfold. We had better wise up quick and start demanding that our politicians quit destroying the U.S. Write, call, e-mail, keep the pressure on!
September 27th, 2008 at 5:48 am
they’re faking something and it isn’t losses. how do you lose fiat nothingness?
http://ca.youtube.com/watch?v=X4rD6muiCd4
September 27th, 2008 at 5:51 am
Great point. The joke is on the 85% of the sheeple of the USSRA.
September 27th, 2008 at 7:22 am
It’s your $700 billion dollars.
Wouldn’t you like to be in the loop?
FREE AMERICA
REVOLUTIONARY (DIRECT) DEMOCRACY
September 27th, 2008 at 7:30 am
If they are faking it, there will be dead bodies when I start hunting them done.
September 27th, 2008 at 8:05 am
FUCK THESE BASTARDS GIVE THEM THE BAILOUT AND THEN TAKE OVER THE COMPANIES AND SACK ALL THE MANAGEMENT(CEOs) . NO BONUSES . I BET THE LIQUIDY CRISES WOULD SOON EASE UP
September 27th, 2008 at 8:36 am
It is their responsibility to their shareholders to maximize profits. They see a stream of income coming, they are acting to maximize their benefit. It should be no surprise.
I am not so much concerned about the bailout but about the aftermath. Will the reaction against Wall Street and the government be sufficiently severe as to prevent this problem reoccurring?
A lot of people deserve to lose their jobs and fortunes over this.
September 27th, 2008 at 8:42 am
america is modern day babylon and will feel the wrath
You the people, allow live birth abortions.
birth and death certificates are issued. This is MURDER
http://www.youtube.com/watch?v=BYRpIf2F9NA
the end of america is near, thy will be done
September 27th, 2008 at 10:01 am
They want a fascist planet with the superwealthy ruling it all
Since we’re too independent, America must be led to fall
When our credit’s been exhausted to subdue the Middle East,
They’ll install our debtor nation in the body of The Beast
Traitor…Dare call it treason
http://www.youtube.com/watch?v=uw5dP5gy2Vs
September 27th, 2008 at 10:44 am
You might want to take a look at ALL the Commercial Paper that has been issued over the
past 5 to 7 years.
You’re probably going to find that a LOT of S&P 500 Companies that have issued debt to
finance their tax free dividends to their shareholders. Companies that had little to no
Corporate earnings to pay these dividends. Remember, Ackers of IBM in 1992 ?
He almost went to jail when it was found that he sold 5-year Bonds to the Banks to
finance the payment of a $4.84/share dividend.
Get the picture ? Obviously, it’s a MUCH BIGGER problem today
Payment is now coming due on a lot of these bonds and notes. The answer, have
the taxpayer pick up the tab
September 27th, 2008 at 10:46 am
You might want to take a look at ALL the Commercial Paper that has been issued over the
past 5 to 7 years.
You’re probably going to find that a LOT of S&P 500 Companies that have issued debt to
finance their tax free dividends to their shareholders. Companies that had little to no
Corporate earnings to pay these dividends. Remember, Akers of IBM in 1992 ?
He almost went to jail when it was found that he sold 5-year Bonds to the Banks to
finance the payment of a $4.84/share dividend.
Get the picture ? Obviously, it’s a MUCH BIGGER problem today
Payment is now coming due on a lot of these bonds and notes. The answer, have
the taxpayer pick up the tab
September 27th, 2008 at 10:54 am
how could or can ANYONE possibly believe that a LIE can persist, and much less A SYSTEM OF LIES which this world has become ?!
the difference between LIE and TRUTH is what we all need to see again and learn anew: the truth is WHAT IS – the LIE is WHAT ISNT and if WHAT ISNT tries to live upon WHAT IS, it will end DISASTROUSLY.
so, honest and able and courageous people all over the world should learn to defend ISNESS against NOTHINGNESS again – we all have seen where the damned nazi nihilists under hitler tried to bring the world ………….
arisingstars@gmail.com
September 27th, 2008 at 11:05 am
I have noticed that the $1 bills were last printed in 2006, but all the higher denominations are up to date. What is that all about ???????
September 27th, 2008 at 11:10 am
Some say 10 years ago……some say 1913. The truth is worse. Why does gold even have value? Think about it. Who was it that turned gold into a currency? We’ve been duped since money was created. The first coin was created for……get this…….PROSTITUTION! Do animals need money? How about bees and ants?
The bartering system was the best it ever was.
Sometimes it is best to ask a young kid for the solutions to our problems. They aren’t corrupt with the complexity of our monitary system. Did money make sense to you as a kid? I remember thinking “Whoever makes the money could stash some away for himself.” I was eight years old…….fucking brilliant.
September 27th, 2008 at 11:36 am
Its time to play Cowboys and Corporate Executives. These motherfuckers all need to be brutally murdered for what they have done. Wall Street, Wamu, Lehman etc.. I say we hunt them like animals and kill them and their families!
September 27th, 2008 at 11:36 am
Its time to play Cowboys and Corporate Executives. These motherfuckers all need to be brutally murdered for what they have done. Wall Street, Wamu, Lehman etc.. I say we hunt them like animals and kill them and their families!
September 27th, 2008 at 11:59 am
Its time to play Cowboys and Corporate Executives. These motherfuckers all need to be brutally murdered for what they have done
Indeed the price of treason is death. The most patriotic thing we can do, to remember those who gave their lives, and livelihood for this country, is to properly deal with those who have betrayed the good ol US of A.
The only “poll” we need this election is a Gallows Pole for both parties.
September 27th, 2008 at 12:42 pm
Y’all need to read this. This article spells it out perfectly.
http://www.rense.com/general83/break.htm
Pass this on to everyone you know.
September 27th, 2008 at 12:52 pm
Unless you live in a cave Im sure you have noticed the economic bad news daily hapenning in the world, especially in the United States. This blog is dedicated to the free and open exchange of information relating to purchasing and investing in gold and other precious metals as a viable option for avoiding the dollars collapse
Check out my blog site for information relating to this topic at http://goldvseconomiccrisis.blogspot.com/
Any comments welcome. Thanks
September 27th, 2008 at 2:45 pm
Since when does the US give in to the demands of terrorists? The bailout is just economical terror and blackmail.
(Well, ok it wouldn’t be the first time…
September 27th, 2008 at 2:49 pm
To pretend that this has just happened and could not be forseen would be naivety in the extreme as Alex Jones was telling us what would happen last year.
So incompetence, screw up or something more sinister, call it what you may the fact is the real guilty parties will get away with it at the expense of the taxpayer.
America teeters on the brink but in case you didn’t know in the last week Congress approved The Defence (or should we say attack) budget for 2009 which was signed off at $612.5.
Understand Bill Clinton left a budget surplus but Bush has thrown it all away…and the catlyst for all these problems…9/11.
An infamous day for victims and their families, the free world, the Islamic world but mainly the good people of the United States.
The Patriot Act and all that has followed be it about morality freedom or fiscal competence has been a shameful period in US history.
I really do hope you get out of this mess but until you face up to the real criminals you are going nowhere.
You need professional, driven journalists, not the lap dogs of the corporate media and if you get that the real criminals amongst the political elte will be exposed.
September 27th, 2008 at 2:52 pm
Figure this…. I want mr. “X’s” house…. $300,000…. I borrow $300,000 (+points) from Bank of Wonderland and hand Mr. “X” the cash… I sign a mortgage and begin to pay B of W… Then Mr. “X” takes the $300,000 and deposits it in B of W… What happened?
B of W now has me on the hook for $300,000 + interest, they have the house worth $300,000 AND Mr. “X’s” $300,000 on deposit that they can loan out at 10 to 1…… ? And there is a lack of liquidity???? Where the hell did the money go??? Me thinks something is afoot here….. I don’t think I believe these guys much, if you do re-read the above a bit slower….
September 27th, 2008 at 3:16 pm
Just about every day i think about this “crisis” and ponder the motivation behind it. I wish I was a master chess player so I could see eight or ten moves ahead on this, contemplate every scenario, as the masters of the world surely do, and come up with the/thier most advantageous outcome. Lets say history repeats itself and the great stock market crash was clearly manipulated and that a couple/few very wealthy people were able to buy sufficient volume to push the prices up then pull it on a sudden to make it crash. What a coup, to cause so many companies to fail then buy them up again for pennies on the dollar. Then, the net result being a great depression but even that is in their favor as the government is blackmailed into make-work programs and to pay for them, they must borrow from the people who caused the whole mess. And the Roosevelt’s being part of the banking aristocracy make a deal, all the gold in the country in exchange for cash that will keep people fed and working. Essentially we were bankrupted by the mob then perpetually indebted. We could have paid this debt off many time over but that was never and is never the objective. A state of perpetual one-third slavery in taxation was/is the goal. Would they run that scenario again. Sure; go with what you know works. Give cash away for free until people spend it like they have a coke habit then raise the interest rate until no one can meet these foolish open-ended contracts. A total crash, that’s just Part-A of the plan. How can the U.S. pay 700 trillion? Is there even that much cash in print? Hand them all of our gold again? You recall, it was illegal to not hand over your gold? We don’t have is sitting in a vault somewhere so we’ll have to borrow form the future. Borrow from whom, the people we gave the hand-out to? A debt we can’t ever pay off. Will we be 50 percent indebted? 50 percent enslaved? What if they just arbitrarily say, the dollar is dead and we have to turn in every greenback, which will be burned, in exchange for new printed, multi-colored, Amero’s (10:1 exchange rate)? Take it, it’s the new law! We wouldn’t do a damn thing. KY not included. In other words, they’d just come into our homes and take 90 percent, leaving us with 10 percent of everything we worked for. Unbelievable? Unfathomable, but believable – if you’re a historian. Why? Why, why, why! Because the world labor force and the world consumer base cannot be homogenized unless the first-world nations are brought low – because there ain’t no raising a billion Chinese and Indians to our current level. But again, why? Take a trip to Mexico or Costa Rica or any third-world country. The world will become a big resort of luxury and decadence for a certain one percent in the party and the remaining 99 percent will serve no other reason but to serve.
September 27th, 2008 at 3:30 pm
Some collaborating evidence for the deliberate failure.
http://market-ticker.denninger.....Mouth.html
Credit default swaps are the next game they will be playing.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
You don’t have to be a retard to be a politician
but I’m told it helps ease the embarrassment.
September 27th, 2008 at 3:53 pm
The banks have been doing this for the past 15 years in the UK. Back in the mid 1990’s, the stock traders begged the government to cap final salary private pension schemes because they felt the pension fund managers were being too conservative in their risk taking. Then they asked that the surpluses should be redistributed to the shareholders – this got approved by the government. Then they reassured the government that there was plenty of money in the pot, and so the government had to have their share as part of “wealth redistribution”.
This has caused private pension schemes to closed down, and people invested their money in property instead of putting it in private pensions or any saving scheme (what’s the point of saving money if at the end of the day, the government takes half of it away in tax again?).
The UK’s last economic crash in the early 1990’s occurred because everyone panicked that they would be never get on to the property ladder if they didn’t buy at that time. This time the property market has been driven by cheap mortages rates (especially the Buy-To-Let market for students). The banks made the mistake of lending out more money in mortgages that they had in people’s deposits. The banks are supposed to match the amount of money that they have in deposits with the amount they have out in mortages and loans, so that the interest payments from the mortages cover the interest payments for savers. They normally borrow from each other in order to cover any differences. Now, if the savers decide to take all their money out, the bank cannot borrow but instead is forced to go into liquidation.
If the pension fund managers had still been in charge, this would not have happened.
The stock traders have raided pension schemes, mortgages, and now they have gone after taxpayers money in order to avoid bankruptcy. What next? Will they have people rounded up in cattle trucks and sold off as slaves to their foreign debtors?
September 27th, 2008 at 5:19 pm
Senator,
I am extremely concerned about what is going on in Washington. This ‘bailout’ seems to resemble a third-world fascist takeover with each passing day. Clearly, some members of the US Congress seem intent on contravening the will of the American public in an effort to consolidate absolute power in a handful of corrupt Wall St banks.
I do not use the word ‘corrupt’ lightly. Lehman failed on Monday September 15th. JP Morgan Chase immediately forwarded $138 billion to the bankrupt Lehman to ‘close out’ credit derivatives transactions. JP Morgan was then reimbursed by the Federal Reserve for this same $138 billion, in two back-to-back payments. This transaction appears to be fraudulent.
Senator, please explain. Hold a press conference if you must.
Why is Congress rushing to pass the ‘core’ of Paulson’s plan in the face of what appears to be rampant criminal activity by these investment banks? What good is ’saving’ the financial system if its basis is criminal? Is the ’sense of urgency’ because some members of Congress receive large donations from the banks which have engineered this collapse? Or have these members of Congress been blackmailed or bribed?
Senator, just why is it that certain key members of Congress refuse to listen to the American public, who are overwhelmingly opposed to Paulson’s so-called ‘bailout’?
Unfortunately, the ‘we know what’s best for America’ excuse will not fly. Many people saw this coming. Over 200 top American economists, including Nobel prize winning men, are opposed to this ‘bailout’, which would be better characterized as a fascist coup.
Senator, let us for a moment consider Secretary Paulson, the architect of this reprehensible plan and it’s notorious ‘Section 8′ clause, an astonishing power grab that would have fit right into Italy in 1938. The mere fact that this clause was sent to Congress should produce criminal hearings regarding Hank Paulson and the authorship of the original bill. But all I hear are wind chimes.
I would like to remind Congress that it is their duty to write the legislation and uphold the United States Constitution against all enemies, foreign and domestic.
Senator, have some moral courage.
Fillibuster this fascist coup.
Hundreds of millions of Americans will support you.
Sincerely,
An American Patriot
Your fax to Sen. Richard Shelby at fax number 2022243416 succeeded.
Your fax to Sen. Harry Reid at fax number 2022247327 succeeded.
Your fax to Sen. Jim DeMint at fax number 2022285143 succeeded.
Your fax to Sen. John Ensign at fax number 2022282193 succeeded.
Your fax to Sen. Chuck Grassley at fax number 2022246020 succeeded.
Your fax to Sen. Bernie Sanders at fax number 2022280776 succeeded.
Your fax to Sen. Bernie Sanders at fax number 8028606370 succeeded.
Your fax to Sen. Chris Dodd at fax number 8602586958 succeeded.
Your fax to Sen. Chris Dodd at fax number 2022241083 succeeded.
Your fax to Sen. Sherrod Brown at fax number 2022286321 succeeded.
Your fax to Sen. Sherrod Brown at fax number 2165222239 succeeded.
Your fax to Sen. Sherrod Brown at fax number 6144692171 succeeded.
Your fax to Sen. Sherrod Brown at fax number 4402424108 succeeded.
Your fax to Rep. Barney Frank at fax number 5089996468 succeeded.
Your fax to Rep. Barney Frank at fax number 5088228186 succeeded.
Your fax to Rep. John Boehner at fax number 5137795315 succeeded.
Your fax to Rep. John Boehner at fax number 9373391878 succeeded.
Your fax to Rep. Paul Ryan at fax number 6087524711 succeeded.
Your fax to Rep. Paul Ryan at fax number 2626542156 succeeded.
Your fax to Rep. Paul Ryan at fax number 2022253031 succeeded.
Your fax to Rep. Paul Ryan at fax number 2626375689 succeeded.
Your fax to Rep. John Boehner at fax number 2022250704 succeeded.
Your fax to Rep. Roy Blunt at fax number 2022255604 succeeded.
Your fax to Rep. Roy Blunt at fax number 4177812832 succeeded.
Your fax to Rep. Roy Blunt at fax number 4178894915 succeeded.
Your fax to Rep. Eric Cantor at fax number 8047475308 succeeded.
Your fax to Rep. Eric Cantor at fax number 5408258964 succeeded.
Your fax to Rep. Eric Cantor at fax number 2022250011 succeeded.
Your fax to Rep. Phil Gingrey at fax number 2022252944 succeeded.
Your fax to Rep. Phil Gingrey at fax number 7707959551 succeeded.
Your fax to Rep. Phil Gingrey at fax number 7062327864 succeeded.
Your fax to Rep. Robert Aderholt at fax number 2022255587 succeeded.
Your fax to Rep. Robert Aderholt at fax number 2567370885 succeeded.
Your fax to Rep. Robert Aderholt at fax number 2563505056 succeeded.
Your fax to Rep. Robert Aderholt at fax number 2565468778 succeeded.
Your fax to Rep. Robert Aderholt at fax number 2052219035 succeeded.
Your fax to Rep. Mike Rogers at fax number 2022255820 succeeded.
Your fax to Rep. Mike Rogers at fax number 5177028642 succeeded.
Your fax to Rep. Steve Pearce at fax number 5055223099 succeeded.
Your fax to Rep. Steve Pearce at fax number 5056259608 succeeded.
Your fax to Rep. Steve Pearce at fax number 5058384027 succeeded
Your fax to Rep. Tom Udall at fax number 2022261331 succeeded.
Your fax to Rep. Tom Udall at fax number 5059865047 succeeded.
Your fax to Rep. Steve Pearce at fax number 2022259599 succeeded.
Your fax to Rep. Tom Udall at fax number 5058630678 succeeded.
Your fax to Rep. Tom Udall at fax number 5059940550 succeeded.
Your fax to Rep. Tom Udall at fax number 5054544078 succeeded.
Your fax to Rep. Tom Udall at fax number 5057637642 succeeded.
Your fax to Rep. Tom Udall at fax number 5053241026 succeeded.
September 27th, 2008 at 7:35 pm
the situation looks really hopeless !!!!!!!!!!!!!!!!!!!!!
http://www.youtube.com/watch?v=Vma8wnb6UmI
September 27th, 2008 at 10:05 pm
Take what Bloomberg says with a grain of salt. INSTEAD, focus on what THE EXPERTS are saying… You know… The EXPERTS that have ACTUALLY been warning the American people about the events that are coming true now. Not some rag that has been painting a rosy picture of our Economy for the last 30 – 40 years… they were clueless then, they are clueless now. And yes, hording cash should be expected behavior from greedy banker’s in times like these. The last laugh will be on them though, because when this is all said and done, most of us wouldn’t even wipe our asses with their worthless Federal Reserve Notes.
_____________
680% Inflation?
Posted by Lew Rockwell at September 27, 2008 07:16 PM
From http://www.lewrockwell.com/blo.....23154.html
Writes Steve Fairfax:
The Federal Reserve has released statistics showing a dramatic change in bank reserves in the two-week period September 10 to September 24.
Banks are now holding reserves that are 268% of requirements. Typically, and as recently as August, reserves are 4 to 5% over requirements.
Banks normally make overnight loans of “excess” reserves to other banks short of reserves. Now they aren’t. In times like these, bankers are like all conservatives: They start to worry more about return OF principal than return ON principal. If they make an overnight loan to the next bank to fail, they might not be repaid in a timely manner, or ever.
This could be the “lockup” that Congressmen have referred to when reporting on the sobering closed-door briefings from the Billionaire Bailout Boys.
There are many other things worth noting. As mentioned earlier, the monetary base had a VERY large increase. It went up by over 7.6% in two weeks!
The Mogambo Guru will be needing CPR!. That’s a very large creation of money, well into hyperinflation territory. Compounding 7.6% in two weeks for 26 periods gives a 680% increase per year.
I’d like to hope that the Fed will reduce the monetary base, but of course that is difficult, and this is an election year, and there are so many good reasons why creating ever greater amounts of money seems like a good idea at the time…
September 27th, 2008 at 10:42 pm
While You Were Sleeping…………………….Sunday!!!!!!!!!
Predictions vs. reality in Iraq
27/09/2008 11:50:00 PM
On cost, according to estimates from the Congressional Research Service, we have already burned through around $550 billion in Iraq, at a rate of about $2 billion per week.
Where did a lot of our wealth go?
Who Lied to Congress in order to get approval to Invade Iraq?
Are We Going To Fall For it Again?
Speak Out People! Even if you can’t physically fight back, Use the internet and phones.
There are enough poor, armed citizens to back you up.
Speak Out! Email your Representatives on Sunday!
Here, copy and paste this to an email and send it to every Congressman and Representative :
Do Not Pass Bailout please.
Paulson’s calculations were not assisted by any economists at all, and they cannot be trusted. It is a purely arbitrary, “back of the envelope” type figuring. According to Bloomberg: Swiss investor Marc Faber, known for a long track record of good calls, believes the damage may come to $5 trillion.
From “The Australian” News :
September 28, 2008
US politicians worked frantically today to agree a $US700 billion ($A839.53 billion) Wall Street bailout before markets reopen after the weekend, voicing optimism a deal was within reach.
House of Representatives Speaker Nancy Pelosi said she hoped an agreement in principle between lawmakers and the White House could even be reached today.
Predictions vs. reality in Iraq
27/09/2008 11:50:00 PM
On cost, according to estimates from the Congressional Research Service, we have already burned through around $550 billion in Iraq, at a rate of about $2 billion per week.
Where did a lot of our wealth go?
Who Lied to Congress in order to get approval to Invade Iraq?
Are We Going To Fall For it Again?
My God, the American People can see what you are doing this time, do not make the biggest mistake since electing GW Bush President.
Feel free to use this. dlb
September 27th, 2008 at 10:52 pm
“Congress, White House reach financial bailout deal
By CHARLES BABINGTON and ALAN FRAM, Associated Press Writers 14 minutes ago
WASHINGTON – Congressional leaders and the Bush administration reached a tentative deal early Sunday on a landmark bailout of imperiled financial markets whose collapse could plunge the nation into a deep recession
HomeU.S.BusinessWorldEntertainmentSportsTechPoliticsElectionsScienceHealthMost Popular
Secondary Navigation
Business Video U.S. Economy Stock Markets Earnings Opinion Personal Finance Press Releases Search: All News Yahoo! News Only News Photos Video/Audio Advanced
——————————————————————————–
BREAKING NEWS:Congress leaders, Bush administration reach tentative bailout deal. (AP) » Read story
Congress, White House reach financial bailout deal
By CHARLES BABINGTON and ALAN FRAM, Associated Press Writers 14 minutes ago
WASHINGTON – Congressional leaders and the Bush administration reached a tentative deal early Sunday on a landmark bailout of imperiled financial markets whose collapse could plunge the nation into a deep recession.
House Speaker Nancy Pelosi announced the $700 billion accord just after midnight Saturday but said it still has to be put on paper.
“We’ve still got more to do to finalize it, but I think we’re there,” said Treasury Secretary Henry Paulson, who also participated in the negotiations in the Capitol.
“We worked out everything,” said Sen. Judd Gregg, R-N.H., the chief Senate Republican in the talks. He said the House should be able to vote on it Sunday, and the Senate could take it up Monday.
The plan calls for the Treasury Department to buy deeply distressed mortgage-backed securities and other bad debts held by banks and other investors. The money should help troubled lenders make new loans and keep credit lines open. The government would later try to sell the discounted loan packages at the best possible price.
At the insistence of House Republicans, some money would be devoted to a program that would encourage holders of distressed mortgage-backed securities to keep them and buy government insurance to cover defaults.
The legislation would place limits on severance packages for executives of companies that benefit from the rescue plan, but details were sketchy.
Also, the government would receive stock warrants in return for the bailout relief, giving taxpayers a chance to share in financial companies’ future profits.
To help struggling homeowners, the plan requires the government to try renegotiating the bad mortgages it acquires with the aim of lowering borrowers’ monthly payments so they can keep their homes.”
-12:49 AM… good timing, Wall Street whores. I sent a letter to my Congressman saying I intended to do everything humanly possible to resist paying them a cent. I intend to keep my word.
September 27th, 2008 at 11:14 pm
We are all on an express elevator to hell ! They are robbing us all, and there is nothing we can do about it. Most people are sheep, they believe the main stream media which is controlled by team Hitler, state sanctioned propaganda. I have attempted to inform those around me what’s going on, THEY think I am crazy! I am told we are the paranoid fools! Believing the crap on the internet! There’s NO HOPE! I also believe British people are almost the Ginny pigs for this new World order, social engineering, try it on us first type thing. Who is Americas best friend !!!!!!!!!!! The UK, but you attempt to complete the Green card lottery on line, if your British. It says NOT eligible. What that all about. It’s not prison planet ( it’s prison camp UK).
September 28th, 2008 at 12:03 am
I hate to say it, but it looks like we are going to have to show those assholes that “We Will Not Be Silent”, and we should fill the streets, Protest, and a hell of a lot more.
Time to kick some ass!
September 28th, 2008 at 12:05 am
If I was anyone in the Federal Government, I wouldn’t show my face Monday!
September 28th, 2008 at 1:54 am
Daylight robbery of the American taxpayers. Elect a bad government and the people pay for it. Democracy for the rich and influential. A bad example to the third world. How unfortunate.
September 28th, 2008 at 5:52 am
I can not understand this. Doesn’t anyone in our law enforcement or oversight for law
and justice prosecute these criminals for passing a bill to take our tax money
with out a damn public hearing to debate the right way to do this. You can not pour money
into a hole unless you fix the hole at the bottom..ie failed house loans and very badly crooked run banking investment firms. The loosening of regulations in the area where
these investment banks and mortgage companies has caused this mess..time for tight
regulation and for wall street to bite the bullet.
Here is a small point to think about when the next time you see law enforcement advertising on street gangs.
Many law anforcement sherriff commanders with their 4-5 star military police state uniforms like Mr. Bradshaw in Palm Beach advertise..
” oh we will get the gangs off the streest that do not belong there. We will work with
every law enforcement agency local, state and federal level to keep the streets from gangs.
blah blah blah
and yet the real gangs they should go after are the ones who passed this bill to use our
tax money. I think they should be the target as gangs whoever was responsible in
drafting this 100 page bailout bill..Folks this bill was in the works for a long time.
It doesn’t take one weekend to write it up!
The gangs we should go after are In D.C. and the corporate elite.
The gangs in the streets are the end result of letting drugs come in
and the middle class slipping down with the poor especially in poor
communities where blacks, latinos and whites live as economic induced
slaves.
Paul
Palm Beach
September 28th, 2008 at 6:31 am
Not to advocate Communism but our friend K Marx was right when he said capitalism does NOT WORK! Just think about ! It capitalises on something be it the environment or the poor saps who have to work for the industrial moguls’ It’s a fundament law of capitalist business that any business cannot stay static, it either has to contract or expand. So how much is enough? The need more and more and more and more, it has to stop or end somewhere! As Marx would agree, somewhere down the line, just one or 2 monster Co end up owning everything, which is just about where we are now! Are people so stupid they can’t see it! But there again, most people believe what they are told by 1984 style TV controlled media. WAKE UP and smell the coffee!
September 29th, 2008 at 8:50 am
It’s the latest and greatest scam. We and our grandchildren are to be made chattle by these robber barons, and we pay for the privilege! How do you loan money that doesn’t exist and then ask the taxpayers to take the bad debts? What a paradox, a complete joke, but it works everytime. We keep falling for it! We are being asked to pay back money that never existed. How nice is THAT! I want a piece of that action! Wow. Build it up, tear it down, get a bailout, consolidate power, buy assets for pennies on the dollar, repeat as necessary. Gotta love it. If crisis=opportunity, then we sure missed the big one. We need a complete financial overhaul of the system, but alas, as Ron Paul says, we are solving the problem with the very methods that got us into it. Putting out fire with gasoline, baby!