Paulson Mortgage Bailout!

Any comment on the proposed mortgage bailout? Potential influence on currency trading, etc....?

Personally, I think this is one of the most blatant forms of market control. Rewarding and therefore encuraging irresponsible financial decisions is never an option!

Hillary Clinton has even proposed a plan that would lock in mortgage rates for the next 5-7 years for a certain group of home owners. (Probably including taxes breaks). She will never have my vote!

Please comment!

rudenstein

--------------------------------------------------------
RON PAUL 2008 - Freedom, Responsibility, Justice

I'm surprised to see no response to this post so far.

The plan is supposed to be presented today by Paulson... keep an eye on it

... there's no response. Maybe people dont want dignify the lie with a response. Bush is freezing the rates. Check it out. Anyway monetizing the bad debt is the only option these guys have now, 17 years of little or no regulation of the financial markets is bound to have some consequences. Oh I forgot, Its basic human nature to be blinded by greed. And no, I dont vote for either party they're all crooks.

Have any other candidate in mind?

This subprime fiasco has only just started.The days of handing out loans to everyone with a pulse (and no way of paying it back) are over. There is no quick-fix to solve it.I think the Fed are fudging numbers and have been since the sub-prime fiasco started.I also think that US citizens will be appalled and shocked should the Fed reveal the actual M3 money supply figures. Isn't it convenient that they don't show the M3 figures anymore! They should allow the looming recession to take place and to 'clean out' the mess Greenspan created.I personally believe that Ron Paul is the only man for the US presidency, but this is only a pipe-dream as the current crop of neo-cons and central bankers will never allow this to happen. Paul is the only US politician who has spoken out against the Fed and their tactic of creating excess liquidity.Their printing press is working overtime! (They literally create money out of thin air!) Paul has also mentioned going back to a Gold standard currency.The problem here is: do they actually have the gold in the vaults that they say they have? Let's not forget that in the UK, the current PM Gordon Brown sold most of Britain's gold at record lows during the early 80's (+-$200-$220 per troy ounce as opposed to the current gold price of +-$800)and his US counterparts have been following a similar bail-out. WHAT A MESS!?
The Fed's back is to the wall, and unfortunately the only tactic they'll employ to combat these US financial woes, is the same tactic they've used for the last few decades, they'll keep flooding the global market with ever worth-less US dollars!!

Nice post Doji Star!

But if politics become as fickle und unpredictable as the global markets, then perhaps Ron Paul has a chance.

People's reaction to the bailout has been overwhelmingly negative!
Check out this response forum on CNN to the news:

http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/2007/12/06/is-the-freeze-a-good-idea/

Almost all comments displayed outrage. This goes against the American ideal of fairness... so, for now, good bye Obama, Clinton and every other candidate who think they will bring in some votes by supporting this ($@#%%)!!!!! (or anything similar for that matter)

Regards,

rudenstein

Federal Rescue Bail-out! Talk about a moral hazard precedent!The whole system needs to be purged. Unfortunately this proposed "solution" only benefits the banks. The people that will have to foot the bill will be the working and middle class US citizens, considering the huge tax breaks Pres.G.W.Bush gave to the wealthy.

Spare a thought for all the countries that were duped into buying bad US debt wrapped up as AAA+ (OR you bet your bottom dollar these'll be paid back!!)loans.The recent European and GCC financial meetings were filled with lots of angry bankers that had been taken for a ride. Europe, Japan, China and the oil-rich Gulf countries will NEVER fall for this again!These countries are awash with dollars and they're looking for ways to get rid of it. And people think the $ has bottomed!? Correction...dead-cat bounce...maybe...but corrections are normal in this raging $ bear market. The assault on the $ has only just begun and will start to accelerate soon.

Amen to that.

See
http://calculatedrisk.blogspot.com/2007/12/plan-my-initial-reaction.html

overview of some more at
http://forexfactory.com/news.php?do=news&id=59719


and related thread where you could have put this also
http://forexfactory.com/showthread.php?t=21763

Doji,

not sure that all countries are seeking to dump their dollars... china has benefited nicely from flooding the market with their yuan and buying up US treasuries, therefore depreciating thi. Yes, I agree that the dollar will continue to get smashed... I believe we will see 1.5 (and beyond), but November should teach us that during times of risk aversion, investors can actually view the dollar as a safe-haven despite the US's economic state.

rudenstein

[quote=rudenstein;1750197]Doji,

not sure that all countries are seeking to dump their dollars... china has benefited nicely from flooding the market with their yuan

“We have had a very clear diversification plan,” said Chinese central bank chief Zhou Xiaochuan on Nov 9th 2006. “We are considering lots of instruments for diversification, including currencies, investment instruments, and emerging markets.”

Chinese deputy central banker Wu Xialong on November 25th 2006: “Firstly, long-term US interest rates are falling. Secondly, the exchange rate of the US dollar, which is the major reserve currency, is going lower, increasing the depreciation risk for east Asian reserve assets,”

On October 10th 2006, Fan Gang, another member of People’s Bank of China’s policy committee, made similar comments, “China risks an erosion of its holdings because the US dollar will probably decline.”

On August 29th 2006, Gang wrote, “The US dollar is no longer a stable anchor in the global financial system, nor is it likely to become one, therefore it is time to look for alternatives.”

PBoC chief economist Yu Yongding in December 2006: “Asian countries don’t need more than $2 trillion of foreign exchange reserves, and dangerously exposed to a decline in the dollar.”

Since when do we believe the word of communists?

True.Could be jawboning...BUT...it still moves markets.

agreed

It was probably all planned.

Hillary and the dems are the ones that pushed the programs to get those mortgage loans to all those people who didn't otherwise qualify.

Greenspan lowered rates to ridiculous levels. (Now he writes a book to explain why he's not responsible, and to say that the war is just over oil).

As usual, the taxpayer will foot the bill, and the bankers make money, after our politicians take their cut for the favor.

Remember the savings and loan crash? GHW Bush's pals made a few billion by selling the real estate to the S&L's.

Solution: stop whining and go make money.

problem is, the 'stop whining and go make money' attitude is was got us into this mess in the first place.

It's just more moronic delusion from the Bush Administration. More shifting of the deck chairs on the US Titanic.

The US economy is headed for hell in a handbasket, the era of the bigger fool selling a house to an even bigger fool borrowing money from an even bigger fool who securitises the morgage and sells it on to UBS or an even bigger fool is almost over. Watch out below, subprime is coming to a town near you!

I live in Australia and I'm waiting for it to arrive.

Speaking of fools, Paulson, phew! What can you say?

MiddleCamp,

Until now it seems that Australia has weathered the credit storm fairly well. A predication has even been made that the BOA will lincrease the interest rate by 25bps in feb 08 and then again in may 08. So far you guys are doing well, but It's always good to hear from somebody at the scene.

rudenstein

... and yes, it was probably all planned.