Money-Market Rates Jump as Bank Rescues Stoke Lending Concern

Gavin Finch and Lukanyo Mnyanda
Bloomberg
Monday, Sept 29, 2008

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5 Responses to “Money-Market Rates Jump as Bank Rescues Stoke Lending Concern”

1. Blackbird Says:
   September 30th, 2008 at 1:38 am

   Your first look at the New Dark Age Bill of 2008
   Increase Decrease

   September 28, 2008 (LPAC)–The draft of the “Emergency Economic Stabilization Act of 2008,” as drafted under the auspices of Nancy Pelosi, Barney Frank and the Democratic “leadership” in the House, was released today. Here are some of the more egregious low-lights:

   * Provides $250 billion immediately, another $100 billion at the written request of the President, and another $350 billion when the President submits a written request and report. The latter $350 billion is subject to Congressional veto. Total authorized: $700 billion.
   * Gives the Secretary of the Treasury immediate authority to act, in order to “restore liquidity and stability to the financial system” in a manner that “protects home values, college funds, retirement accounts, and life savings”; “preserves home ownership and promotes jobs and economic growth”; “maximizes overall return to the taxpayers”; and “provides public accountability for the exercise of such authority.”
   * Defines the term “financial institution” as: “any institution, including, but not limited to, any bank, savings association, credit union, security broker or dealer, or insurance company, organized and regulated under the laws of the United States or any State, territory, or possesion of the United States, the District of Columbia, Commonwealth of Puerto Rico, Commonwealth of Northern Mariana Islands, Guam, American Samoa, or the United States Virgin Islands, and having significant operations in the United States, but excluding any central bank of, or institution owned by, a foreign government.” That definition gives Paulson the leeway to declare almost anything a financial institution, and does include the domestic arms of British and other foreign banks (e.g., the U.S. banks owned by HSBC and the Royal Bank of Scotland).
   * Defines “troubled assets” as residential or commercial mortgages, and mortgage-related “securities, obligations or other instruments” issued/originated before March 14, 2008; or “any other financial instrument” deemed necessary.
   * Establishes a “Troubled Asset Relief Plan” (TARP) “to purchase and to make and fund commitments to purchase, troubled assets from any financial institution, on such terms and conditions are determined by the Secretary.” Treasury will create an “Office of Financial Stability” within the its Office of Domestic Finance. Treasury will consult with the Federal Reserve Board, the NY Fed, the FDIC, the OCC, the OTS and the Sec. of HUD. (If you don’t recognize the acronyms, don’t worry, as they’re irrelevant.) “The Secretary is authorized to take such actions as the Secretary deems necessary to carry out the authorities in this Act,” including but not limited to, hiring employees, entering into contracts, “designating financial institutions as agents of the Federal Government”, establishing vehicles and “issuing such regulations and other guidance as may be necessary or appropriate”.
   * Establishes a Financial Stability Oversight Board to manage the program. The FSOB (with the emphasis on the SOB) will be comprised of the Fed chairman, the Treasury Secretary, the director of the Federal Home Finance Agency (the new agency which regulated Fannie and Freddie), the chairman of the SEC, and the Secretary of HUD. (Basically, the core of the Plunge Protection Team and some rubber stamps.)
   * The Comptroller General of the U.S. (the head of the GAO) will have oversight of the activities and performance of the TARP, and will undertake a study “to determine the extent to which leverage and sudden deleveraging of financial institutions was a factor behind the current crisis.”
   * The Treasury Secretary shall be subject to Chapter 7 of Title 5 of the US Code, and his actions can be set aside if found to be “arbitrary, capricious, an abuse of discretion, or not in accordance with the law.” However, “no injunction or other form of equitable relief shall ne issued against the Secretary… other than to remedy a violation of the Constitution.” Any request for a temporary restraining order against the Secretary shall be considered and granted or denied by the court within three days, and requests for permanent injunctions will be handled on an expedited basis and consolidated as possible. Any person that divests assets under the program may not bring actions or claims except as stated above, and any injunction issued under some aspects of the program will be automatically stayed.
   * Purchase of mortgages under the program “remain subject to all claims and defenses that would otherwise apply.”
   * The bill raises the Federal debt ceiling to $11.315 trillion.
   * The Treasury will, under this act, reimburse the Exchange Stabilization Fund for any funds used for the money-market mutual fund guaranty program.
   * The SEC will conduct a study on “mark-to-market accounting standards” as provided under FASB 157, and its impact on the financial crisis.
   * Five years after enactment of the act, the OMB and CBO will report to Congress on the net amount of assets in the TARP, and should there be a shortfall, the President shall submit a bill to Congress a legislative proposal that “recoups from entities benefitting from the program an amount equal to the shortfall” to make sure TARP does not add to the budget deficit or the national debt.

   These are the main provisions in the 106-page draft, but on doubt other horrors lurk in the fine print. Remove all the window dressing and the bill is a straight bailout of the banking system, as we have previously defined it.

2. Blackbird Says:
   September 30th, 2008 at 1:39 am

   Dear Mr. LaRouche:

   My husband has a wonderful idea. What would it take to start a new Federal Treasury? Get people from all over the country to donate their gold and silver and reprint the gold and silver certificates?

   I do not know what the legalities would be. That way when this fake money goes under we would be ready to start anew. No North American Union, no Amero.

   It is time for the Federal Reserve to fall and the thugs to go to jail. I also believe the same fate needs to be dealt out for Paulson and the rest of his ilk.

   I have been telling my congress men and women to listen to you and call you. I feel like I have walked into the twilight zone with Chuckie the crazy doll at the helm.

   Thank you so much for being there. We would love to help anyway we can. Just let us know.

3. Lorenzo Thomas Says:
   September 30th, 2008 at 7:10 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

4. rich Says:
   September 30th, 2008 at 7:57 am

   hoard cash !!!!!!!!!!!!!! that’s like hoarding toilet paper !!!!!!!!!!!

   http://www.youtube.com/watch?v=BSxYIBSuBtk

5. MADDmagmadness Says:
   September 30th, 2008 at 10:44 am

   All you need to know:

   http://illuminatimatrix.wordpr.....symbolism/

   THIS is the next 911 in progress.

   Don’t say nobody told you.

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