$700B Bailout Plan Discussions...

First time I believe this man (Bush I mean)

Could this be one of the reason's Paulson wants complete control of situation with no oversite?

http://www.nytimes.com/2008/09/24/us...w24davis.html?

I wonder how many other skeletons are lurking in the Wall Street closets???? It's almost Holloween

LOL -- You can't believe anything the NY Times says. They've been completely discredited.

The $700 billion financial bailout bill is "almost a done deal," a key member of the House Financial Service Committee, Paul Kanjorski, told CNBC.

Wall Street bailout plan: 10 reasons to just say no
By J. BOYD PAGE

Thursday, September 25, 2008

Reason No. 1: The $700 billion Wall Street bailout is merely a “drop in the bucket.” It will not correct Wall Street’s problems. The government’s suggestion that a $700 billion bailout of Wall Street and its bad investments will somehow solidify the markets is simply unfounded. The true facts show that there are more than $12 trillion worth of mortgages outstanding in the U.S. alone.

Reason No. 2: The bailout plan smacks of cronyism. Treasury Secretary Henry Paulson and many of his chief advisors are Wall Street alumni. Paulson’s close relationship with the Wall Street community strongly suggests ulterior motives may impact his recommendations.

Reason No. 3: Paulson and Federal Reserve Chairman Ben Bernanke do not understand the problems confronting the American economy and are not qualified “to be king.” Dean Baker, co-director of the Center for Economic and Policy Research in Washington, stated: “This administration is asking for a $700 billion blank check to be put in the hands of Henry Paulson, a guy who totally missed this, and has been wrong about almost everything.”

Reason No. 4: The bailout plan proposes to give Paulson unfettered discretion to do as he sees fit with no accountability to anyone and no review of his actions by either courts or administrative agencies. To create a “get out of jail free” card for anyone associated with the proposed bailout offers unlimited possibilities of abuse.

Reason No. 5: The Wall Street bailout plan is a “knee-jerk reaction” and there may well be better alternatives for spending $700 billion of taxpayer money. The $700 billion plan is aimed at a very small segment of American employees — generally the group of people who have earned excessive income over many years and who live in “ivory towers.” Alan Meltzer, a economic advisor to President Ronald Reagan, summarized the situation saying, “This is scare tactics to try to do something that is in the private but not the public interest.”

Reason No. 6: President Bush and Paulson have proposed a bailout plan even though they have no idea of what to do. Prior to committing $700 billion of taxpayer funds, our government should at least have a plan on what is going to be done with the money.

Reason No. 7: The bailout plan will undoubtedly result in a weaker dollar with many adverse consequences for the American economy. David Woo, the Global Head of Foreign Exchange at Barclay’s in London, stated that “the downdraft on the dollar from the hit to the balance sheet of the U.S. government will dwarf the short-term gains from solving the banking crisis.”

Reason No. 8: The bailout plan is unlikely to avoid a recession. Even experts who suggest there are long-term benefits to a bailout plan note that it could take the better part of a decade before beginning to show any impact on the U.S. economy.

Reason No. 9: There is no transparency to the bailout plan. Lack of transparency is one reason our economy is in the position it finds itself today.

Reason No. 10: Under the bailout plan Paulson and Bernanke intend for the U.S. to pay above- market prices for the assets that the country buys. Bernanke is urging that any bailout plan buy illiquid assets at values above those for which they could be sold on the open market. In other words, Bernanke wants the American people to overpay for Wall Street’s illiquid assets.

Sound like a good idea to you? It doesn’t to me.

Boyd Page, an Atlanta attorney, specializes in investment and securities litigation.

700b to start and 1 quadrillion in OTC derivatives outstanding to go. Only a toilet paper dollar or renamed AMERO can save the US taxpayer now.

It's election year. People in charge today cares about stuffing the skeletons back in the closet for a few months. $700 billion can do it.

Most of the crowd involved will be far away by the time these $12 trillion worth mortgages start showing teeth...
The troubled banks will then live to die another day (ripping off all they can in the process - thank you very much).

Carbon the currency of a new world order
http://www.theaustralian.news.com.au...-12250,00.html
The purpose is to impose this system on the world. Britain and Europe are setting benchmarks for a new global order. Miliband's paper makes this explicit: "By forming a single negotiating block, the EU will be influential in forging a post-2012 framework." Britain's next prime minister, Gordon Brown, said last week: "My ambition is to build a global carbon market founded on the EU emissions trading scheme and centred in London."

A new statutory body (a variation of central bank powers) will provide independent expert advice on carbon budgets and make progress reports to which governments must respond. Miliband says this means "the government is held to account every year on its progress towards each five-year carbon budget and the 2020 and 2050 targets". Governance is being remade to deliver a low-carbon economy.

US taxpayers will have the whole tax paying world to support this bailout, when it blows out beyond 1 quadrillion, now we will have a new centralize bank system to save us. !!!

Thank you Bilderberg,CFR, Rothschilds,Rockefeller. What timing, love your work.

Key lawmakers have reported an agreement in principle on a bailout of the financial industry designed to avert a deeper economic crisis..

I have yet to see the tax payers be beneficiary of anything except a hard screwin.

I am not a trained Economist, but it seems that we are right now standing on the edge of a cliff. and the ground under us is cracking. If we do the $700B plan, (which I am certain we will on Sunday, so close those trades before Friday night)LOL. We end up with a huge burden to the Tax Payers, and will take several years to recover from. If we do not, we end up seizing the credit markets, and that prevents even the average person from getting a simple car loan unless they have a score above 730.

My opinion is it has to be done, and then we can light the torches afterward and form a angry mob and hunt down the culprits later. We must preserve our credit system. Our personal safety is also at risk here.

The other thing I was thinking about is, if we do the $700B deal, doesn't this dilute and weaken the dollar?

If we don't do the deal, doesn't this destroy confidence in the dollar and thereby weaken the dollar?

It seems to me, the only direction the dollar can go is weaker. Maybe someone else can offer discussion of why this would not happen. I am sure open to a less gloomy outlook.

Scott

All I've got...

Sept. 25 (Bloomberg) -- Investors should buy the euro against the dollar as weakness in the world's largest economy and a slow adjustment of its housing sector will push the greenback lower, according to Citigroup Global Markets Inc.

The Euro may rise as high as $1.53 versus the U.S. currency as the market focuses on underlying fundamentals once a plan to bail out U.S. banks is approved, according to a research report from a team of analysts at the world's fourth-biggest currency trader. The U.S. is facing ``grave threats'' to financial stability, Federal Reserve Chairman Ben S. Bernanke said yesterday in Washington.

``The recent spot dip represents a buying opportunity,'' according to the research note from Citigroup sent to Bloomberg yesterday. ``Greater stabilization in housing is a pre-condition for a sustained economic recovery and by extension a U.S. dollar recovery.''

What would a progressive "gringo" say to the $700 billions bailout? Let me get this straight...we can't afford social security, Medicare, Medicaid, improvements to our infrastructure. We can afford a war in Iraq/Afghanistan. We can afford to turn Wall Street Executives who ruined our financial system into Welfare Queens. Here are my preconditions as a taxpayer. 1. Require the Hedge Funds to put down 20% of the total bill. They have the money. If they need more they can sell a few mansions in Greenwich and a couple of yachts. 2. Strict oversight of every penny spent. A federal takeover is the best way to do this. 3. NO multimillion packages for these highway robbers. They should be made to feel like newly minted Welfare Queens. Give them say $100K for all their good work. I have taken pay cuts so has everyone else I know. 4. I want to be a stockholder like Warren Buffet. Return me something on my hard earned money. 5. Cancel their passports...I don't want them skipping the country to enjoy the money they have shipped overseas with no extradition treaties. 6. Make them live in a 2 bedroom house in like Levittown and buy a ford. If they need another job, let them look for it on Hotjobs and see what they can find.

The bail out with the new notes

Yes, I agree with most of what you say here. However, lets light the torches and grab our pitchforks after we get this thing done, so that we, hopefully just skirt a DEPRESSION. We are going to have a prolonged Recession no matter what. I think we should try to contain the damage as much as possible.

To quote Youg Frankenstein, " An angry mob is an ugly thing, and it is high time we had one".

Recession in a fat ass economy like that, ok it's a recession, but it's not a recession like in emerging countries. Japan is undergoing a multi-year recession / stagnation and you don't see Japanese people jumping off the bridges.

Maybe it will serve for a bigger cause, starting by haulting the fanfarre in Wall Street....

May China go on with the double digit growing to balance the problem...

US print 1Q of negative GDP then start recoverying and we will have Paulson / Bernanke in Forbes Magazine as The Financial Chiefs of the Decade and everybody will call it a "soft landing".. A $700billion soft landing.

The fate of a Wall Street bailout remained unclear as a White House meeting of both parties ended without an agreement and some participants said a deal may even be dead

That's how it will be all the way through this damn process. Gossips, rumours, bs.

"Hey Obama didn't kiss his wife on the way out of the diner, the bailout plan is dead"

"Hey Paulson is stuttering above average in this press conference.. Yup, the plan is dead"

As gloomy as this all sounds right now, I believe that conservative minded businessmen and govt officials understand the importance of getting this mess back on track. Having said that, I agree that CEO welfare recipients should have their passports taken and their personal finances handled just as if they were in personal bankruptcy.

I sense a general consensus that we need to invest in America's infrastructure. Assuming this will happen with the next administration, we should begin a slow recovery that will need to be nurtured along the way. If the next administration continues along the same path were on now, I'm moving to Europe and will apply for work on the Hydron Collider's janitorial crew.

C'mon, Paulson is one of them (former CEO of Goldman Sachs).. He bailing out his beer-bbq-bimbo buddies