the 'system' is working. WTF!

See, we weren't going over the cliff - they just wanted us to think so!

The "bailout" simply provides some financial relief for bankers and stock holders as well as political cover for all.

Un. Con. Stitutional.

Once again, we see just how things work. This was featured on ABC news and explains this rogue administration.

http://ugv.abcnews.go.com/Category.aspx?uid=536827

That is how the Federal Reserve System works, as a lender of last resort. Also... the Federal Reserve also isn't part of the Executive Branch, though it often works in concert with the Department of the Treasury, so, while political pressures definitely play a role, it is not correct to say that "The Bush Administration did this."

That's our bush boy, asking forgiveness instead of permission! and why not? this is how the gramm/bliley/leach thingy was passed originally. There were banks already ########### illegal activities and the dereg bill just made it legal after the fact.

Oops, we already spent the money! So write that check, Mommy!!

Yikes.

From what I understand, the liquidity pumped into the markets came at a time when it was thought the bill would pass.

If Congress doesn't give Bush what he wants... Executive order #51 by Friday.

i daresay, by the time this fight's over, somebody's going to wake up with 3 black eyes, and i don't think it'll be lady liberty.

one punch from the left, one punch from the right, and one punch right down the middle.

I doubt the Fed even consulted Bush on this but I'm sure Paulson knew if it wasn't his idea in the first place.

Rasputin @ 17:

If Congress doesn't give Bush what he wants... Executive order #51 by Friday.

PS. that would be a nice way for him to "postpone" the election indefinitely...

taxation

The US and global financial crisis is becoming much more severe in spite of the Treasury rescue plan. The risk of a total systemic meltdown is now as high as ever
PrintShare
Nouriel Roubini | Sep 29, 2008

It is obvious that the current financial crisis is becoming more severe in spite of the Treasury rescue plan (or maybe because of it as this plan it totally flawed). The severe strains in financial markets (money markets, credit markets, stock markets, CDS and derivative markets) are becoming more severe rather than less severe in spite of the nuclear option (after the Fannie and Freddie $200 billion bazooka bailout failed to restore confidence) of a $700 billion package: interbank spreads are widening (TED spread, swap spreads, Libo-OIS spread) and are at level never seen before; credit spreads (such as junk bond yield spreads relative to Treasuries are widening to new peaks; short-term Treasury yields are going back to near zero levels as there is flight to safety; CDS spread for financial institutions are rising to extreme levels (Morgan Stanley ones at 1200 last week) as the ban on shorting of financial stock has moved the pressures on financial firms to the CDS market; and stock markets around the world have reacted very negatively to this rescue package (US market are down about 3% this morning at their opening).

Let me explain now in more detail why we are now back to the risk of a total systemic financial meltdown…

EconDork @ 9:

That is how the Federal Reserve System works, as a lender of last resort. Also... the Federal Reserve also isn't part of the Executive Branch, though it often works in concert with the Department of the Treasury, so, while political pressures definitely play a role, it is not correct to say that "The Bush Administration did this."

Think Bilderburg.
That might change your opinion.

That flushing sound you're hearing? The rest of the US going down the toilet.

Snidely Whiplash @ 16:

Does anyone think that the Republicans in Congress might have shot down the bailout proposal as posturing for November -- to portray themselves as standing up to the Democrats, Wall Street -- and also distance themselves from Bush?

Or are they that smart?

Well, I'm not sure if "smart" is the right word, but maybe they are survivalist. Common sense tells them not to be associated with the bush party if they can any way avoid it. They are hearing from their constituency and what they are hearing is the people are mad as hell. A vote to support the bailout could well be the vote of death for their campaigns.

EconDork @ 9:

That is how the Federal Reserve System works, as a lender of last resort. Also... the Federal Reserve also isn't part of the Executive Branch, though it often works in concert with the Department of the Treasury, so, while political pressures definitely play a role, it is not correct to say that "The Bush Administration did this."

that is pretty ignorant and simplistic. the recipients of the FedRes loans are FedRes banks and the US will pay interest for these fucks lending money to themselves.

No, this doesn't have anything to do with the bailout.

This is a move being done to make more dollars available outside the us, because there's a high pressure now for borrowing money in USD.

The Fed swaps some dollars for some Euros, Yen, Pounds and all the other currencies from all the other Central Banks who are willing to help, and those banks then auction off dollar loans to whoever needs dollars.

The one thing no one wants to talk about is this - the money, whether from the "taxpayers" or not (in quotes because, with record deficits, it's not the current generation of taxpayers that will likely pay for this if Republicans have their way), it has to come from somewhere. I think what needs to happen is, and this is like kryptonite for Republicans... and will be framed by Republicans, if Democrats support, to be kryptonite for Democrats too is that taxes need to be raised on the top 5% who gained all of their wealth on the back of the working class. They're greedy so they aren't going to just give that money to help save everyone else. Take Carly Fiorina for example. She didn't think twice about taking $45 million on her way out the door at the cost of 20,000 people losing their jobs. So why should anyone think twice if the government wants to tax that money and recoup it to help the rest of us?

Or, the Democrats could just play it like this. Let the Republicans, with their dreams of the free market being all perfect, continue the debate on this. When the market doesn't correct itself in a few months, sure it'll be after the elections, but then we can begin the process of showing that no regulation, which is what the free market is, means a vast, vast majority of the country suffers. Then, whenever that argument is brought up, we need only point to this time.

Rasputin @ 34:
Thanks, I caught that last week. I'll keep passing his info until registration is required. Roubini got out of those markets last year and was blasted by the American Financial press for pointing out the repercussions of the housing bubble.

HDon Says: Since the bill was not passed, doesn’t this qualify as tazation without representation?

Yep, the American Taxpayers has been tazered again.

I'm not sure what all of this means. Let me consult with Sarah Palin and I'll try to get some like total information for ya. Be right back.

Pog mo 'thoin Bush/Cheney!

Is anyone surprised by this?

Our nation's economy is being waterboarded.

You guys are embarrassing at times. This was independent of the bailout. It had noting to do with the bail out, and was going to happen anyways. Read the articles next time.

I think this sucker's going down
Faster than the speed of sound
The "V" is turning upside down
In this sea of debt you'll drown

I bet you wish your ass was me
Fuck all y'all, I'm "43"

The only thing I know for sure is that George Bush should be swinging from a Wall Street lamppost.

please watch as the dollar tanks and our economy collapses.

This is a time when the gov'ts of the world have to realize that they can't save failing companies just because they're being run by your friends.

Nihilists....must be exhausting.

pissed off patricia @ 45:

I'm not sure what all of this means. Let me consult with Sarah Palin and I'll try to get some like total information for ya. Be right back.

Hilarious, POP! That must be the call to the martini bar - see you there.

Annoyed Canuck @ 46:

If this is what it takes, fine by me. This is the worst financial crisis since 1933, when FDR closed the banks temporarily to stop a run on the entire system. The fact is, the Fed and the Treasury do have discretion to act when the value of the currency and the availability of credit is threatened. This is such a time.

The alternative to the hundreds of billions of dollars in loans to the banks is a chain-reaction collapse of the US banking system, followed by collapses in Europe and Asia, along with large-scale bankruptcies, stock market crashes and uncontrolled deflation. In other words, another Great Depression. The situation really is this bad.

bush is not the federal treasury, this is not his call.
it's congress call.

Zilam @ 51:

You guys are embarrassing at times. This was independent of the bailout. It had noting to do with the bail out, and was going to happen anyways. Read the articles next time.

Sorry.

We strive to be embarrassing at all times.

Anon @ 50:

thread sucks

get a thimble

maybe it failed today because someone knew it was xmas? they were always going to get a present.

Nancy, take the bailout off the table and put impeachment back on the table.

Bobby @ 44:

> BUSH/CHENEY ARE OUT TO DESTROY THE U S ECONOMY

No, they're just pursuing their mandate to run the country for the short-term advantage of the richest segment of the public.

no they are out to destroy th country. if the country has any resources when they leave office, boosh and cheney are liable for war crimes, among other things.

MsJoanne @ 70:

BeeSting @ 52:

And people laughed at Ron Paul for wanting to shut down the Fed.

R on Paul also wants to shut down every single regulatory agency and believes in NO regulation ever. 'nuff said.

Ron Paul. Racist twit. Another deregulating Repug.

zugzug @ 57:

please watch as the dollar tanks and our economy collapses.

This is a time when the gov'ts of the world have to realize that they can't save failing companies just because they're being run by your friends.

The companies are, of course, failing precisely BECAUSE they're being run by your friends.

Surging Blue Lensman @ 61:

pissed off patricia @ 45:

I'm not sure what all of this means. Let me consult with Sarah Palin and I'll try to get some like total information for ya. Be right back.

Hilarious, POP! That must be the call to the martini bar - see you there.

Yep, the bar is about to open and Sarah and I are fer sure going to chat about health care, jobs, spreading democracy and lipsticks. Join us if you like. We were going to talk about the bailout plan but yuck could anything be more like totally less interesting? Maybe we'll get lucky and Sarah will bring her most recent moose gutting pictures. She has an idea for a new lipstick shade, Moose blood red.

Zilam @ 51:

You guys are embarrassing at times. This was independent of the bailout. It had noting to do with the bail out, and was going to happen anyways. Read the articles next time.

Since the article that you claim no one read actually links the two, I would say you are wrong. The embarrassment you feel is all yours.

The root of the problem is that the derivatives which are the basis for this melt-down are not instruments to generate capital but to collect interest on debt.

it started with reagan.

his corpoRat mandate was to keep wages low and profits high.

the corpoRats were endeavoring (successfully as ti turned out) to decouple productivity with worker prosperity. so, in the 80s, while productivity rose spectacularly, wages were kept stagnant.

To provide folks with the illusion of prosperity amid penury, Raygn's boys prevailed upon Greenspan to loosen credit. This let the schmoes buy all kinds of things on credit, without actually costing the corpoRats any of their profits...

and everybody since then bought into the shame...

The trech bubble was only the first of the financial frauds perpetrated byt the Pres (no matter who) and the Congress (also regardless of the names).

The chickens are coming home to roost again.

And the "serious" people want to put Col Sanders in charge of the coop...

Fiat Empire ~ Why the Federal Reserve Violates the U.S. Constitution 1 hr.
http://video.google.com/videoplay?docid=5232639329002339531

Men Behind the Curtain ~ 47 minute primer on the Federal Reserve System
http://video.google.com/videoplay?docid=-1693084887024293324

Copy and Paste into emails to your friends and family if you like...

Surging Blue Lensman @ 3:

See, we weren't going over the cliff - they just wanted us to think so!

The "bailout" simply provides some financial relief for bankers and stock holders as well as political cover for all.

BS. $1Trillion lost in market cap today. When companies cannot buy capital good and pay their workers the average 'Joe' is going to get layed off by the tens of thousands.

Honestly on both sides of the aisle I am amazed at how many people think that Main St. and Wall St. are unconnected.

Zilam @ 51:

You guys are embarrassing at times. This was independent of the bailout. It had noting to do with the bail out, and was going to happen anyways. Read the articles next time.

Oh shit, we are only embarrassing at times? Damn, we aim to be embarrassing at all times. Okay troops pull your weight. Someone has been slacking off.

Rasputin @ 17:

If Congress doesn't give Bush what he wants... Executive order #51 by Friday.

Rasputin. You have a solid record of knowing what you are talking about. Thanks. And keep it up :)

This is prime time to spread the knowledge of this illegal administration.

Barrett D @ 78:

does this mean the bail out has happened without it being on the backs of tax payers?

I'm no expert, but I think that it means that they just pumped more paper into the economy.

This means that your dollar is worth less.

This means I gotta start drinking Old Skullpopper instead of Glenfiddich 21.

CoIntelPro for Pronktastic Victory Over SCLM, DIEBOLD, ESS and SEQUOIA! @ 86:

MsJoanne @ 74:

wardropper @ 68:

Dahgrostab'ph-r-i @ 42:

she's a millionaire.

That, too.

J.C. @ 2:

How do you give away that much money without the approval of Congress. Something is seriously wrong with that and needs to be changed. People need to start getting pissed off about this sh*t and demand better.

I believe George Carlin had the answer a while back :From "The American Dream ..."But I’ll tell you what they don’t want, they don’t want a population of citizens capable of critical thinking. They don’t want well-informed, well-educated people capable of critical thinking. They’re not interested in that. That doesn’t help them. That’s against their interests. They don’t want people who are smart enough to sit around the kitchen table and figure out how badly they’re getting fucked by a system that threw them overboard 30 fucking years ago. They don’t want that! You know what they want? Obedient workers - people who are just smart enough to run the machines and do the paperwork, and just dumb enough to passively accept all these increasingly shittier jobs with the lower pay, the longer hours, reduced benefits, the end of overtime and the vanishing pension that disappears the minute you go to collect it. And now, they’re coming for your Social Security money. They want your fucking retirement money. They want it back, so they can give it to their criminal friends on Wall Street. And you know something? They’ll get it.

They’ll get it all, sooner or later, because they own this fucking place. It’s a big club, and you ain’t in it. You and I are not in the big club.

The owners of this country know the truth: It’s called the American dream ’cause you have to be asleep to believe it." --George Carlin

The announcement is here:
http://www.federalreserve.gov/newsevents/press/monetary/20080929a.htm

It has nothing to do with buying mortgages related junk securities, so it has nothing to do with bypassing Congress. Incidentally, I think I heard that the stock market went down $1.2 trillion today (not at all sure if the dollar amount is true). At some point, probably sooner rather than later, we're going to have to ask whether not bailing out the mortgages is penny wise and dollar foolish.

The American people have a right to feel angry, and I think there is reasonable suspicion that a crime has been committed. This whole fiasco was enabled because the mortgages were bundled into securities that were then graded AAA. This rating of AAA permitted the securities to be sold for more than they were worth, providing the incentive to bundle more mortgages into mortgage backed securities. I saw on 60 minutes last night a small snippet where it was mentioned that the securities was too complex to evaluate properly, which is why they were graded wrong. I disagree. We knew that the underlying debt instrument was a "subprime" instrument, we knew the borrowers were being solicited with "interest only" and "no income verification required" sales pitches. I think that any hobo from any city ally would know that these securities weren't AAA, better than most corporate bond. This is where the criminal investigation needs to be focused. As the victims we are, we need to demand that no stone be left unturned to uncover any criminal wrongdoing. In the case of the rating, if those ratings were made with the knowledge that they weren't entitled to those ratings, that would be conspiracy to defraud investors.

In the meanwhile, we have to ask whether no bailout is penny wise and dollar foolish. Herbert Hoover did nothing; he let the market place decide, and by the time Roosevelt took office in 1933, 25% of the banks had already gone under. We really only have that one example to go by, and "past performance is no guarantee of future results". Still, when you have people like Buffet saying "bail out", to me at least, that creates the rebuttal presumption that bailout is indicated. What I'm not interested at this point is listening to a no regulation ideologue trying to defend his ideology.

For those of you who don't already know, what this means is that they're firing up the printing presses. Money is just paper, and they're making more of it. Which means that every dollar in your wallet is worth less.

Which is just facing up to reality.

Just send all your money to the richest people in America like the republiKKKons do and EVERYONE will get hurt.

dadams @ 14:

how many times do i have to repeat myself
BUSH/CHENEY ARE OUT TO DESTROY THE U S ECONOMY

i guess this won't sink in until they have completely
FUCKED EVERYONE OVER......

how does that wall feel on your heads now?

geeeeeeeze.......this has been a no-brainer
for over two years now.

won't impeach.....won't impeach.......won't impeach
will how does that dry-hump feel for the tenth time?

I've said for years that this was a stated goal of Bush's. Can't remember where I saw the quote - so I know it's nearly worthless to say it -- but I know he said it.
*

The only thing this post shows me is that authors and editors at C&L need some education in economics. This action isn't what you think it is. Panic about the things you know, don't just make things up.

Mick Piobr @ 102:

pissed off patricia @ 89:

Zilam @ 51:

You guys are embarrassing at times. This was independent of the bailout. It had noting to do with the bail out, and was going to happen anyways. Read the articles next time.

Oh shit, we are only embarrassing at times? Damn, we aim to be embarrassing at all times. Okay troops pull your weight. Someone has been slacking off.

See my @65 I've done my part in acting like an asshole.

It's not even an act!

Act or not, you are to be commended for your contribution to the embarrassment factor.

America: Freedom To Fascism
http://video.google.com/videoplay?docid=-1656880303867390173

"The Truth is an Offense, but not a Sin" ~ Bob Marley

WTF? Why do we even have a Congress? WTF? Why does insane in the membrane Georgie get the reins?

NoBuddy @ 99:

cut the bullshit and have alook at what the rest of the fucking other countries in the world, whose banks are also in danger, did today: they nationalized banks.

go check history before you spuot off!

ASK FDR:

FDR Economic Recovery Plan, Fireside Chat #4 1933/10/23

FDR Fireside Chat #5, Report On Recovery 1934/6/27

CoIntelPro for Pronktastic Victory Over SCLM, DIEBOLD, ESS and SEQUOIA! @ 115:

NoBuddy @ 99:

cut the bullshit and have alook at what the rest of the fucking other countries in the world, whose banks are also in danger, did today: they nationalized banks.

go check history before you spuot off!

ASK FDR:

FDR Economic Recovery Plan, Fireside Chat #4 1933/10/23

FDR Fireside Chat #5, Report On Recovery 1934/6/27

Why I adore you!

pissed off patricia @ 109:

Mick Piobr @ 102:

pissed off patricia @ 89:

Zilam @ 51:

Oh shit, we are only embarrassing at times? Damn, we aim to be embarrassing at all times. Okay troops pull your weight. Someone has been slacking off.

See my @65 I've done my part in acting like an asshole.

It's not even an act!

Act or not, you are to be commended for your contribution to the embarrassment factor.

Cool!

dennis will be sooo jealous.

MsJoanne @ 66:

CoIntelPro for Pronktastic Victory Over SCLM, DIEBOLD, ESS and SEQUOIA! @ 27:

The US and global financial crisis is becoming much more severe in spite of the Treasury rescue plan. The risk of a total systemic meltdown is now as high as ever
PrintShare
Nouriel Roubini | Sep 29, 2008

It is obvious that the current financial crisis is becoming more severe in spite of the Treasury rescue plan (or maybe because of it as this plan it totally flawed). The severe strains in financial markets (money markets, credit markets, stock markets, CDS and derivative markets) are becoming more severe rather than less severe in spite of the nuclear option (after the Fannie and Freddie $200 billion bazooka bailout failed to restore confidence) of a $700 billion package: interbank spreads are widening (TED spread, swap spreads, Libo-OIS spread) and are at level never seen before; credit spreads (such as junk bond yield spreads relative to Treasuries are widening to new peaks; short-term Treasury yields are going back to near zero levels as there is flight to safety; CDS spread for financial institutions are rising to extreme levels (Morgan Stanley ones at 1200 last week) as the ban on shorting of financial stock has moved the pressures on financial firms to the CDS market; and stock markets around the world have reacted very negatively to this rescue package (US market are down about 3% this morning at their opening).

Let me explain now in more detail why we are now back to the risk of a total systemic financial meltdown…

OK, but first you have to explain what you just said!! I love Nouriel Roubin, he's very, very bright, but usually speaks in relative English. On what he said above...huh?

Lucy, 'splain...Ricky no understandy.

If you go to the article you'll get to the last two paragraphs to see the punch line:

When investors don’t trust any more even venerable institutions such as Morgan Stanley and Goldman Sachs you know that the financial crisis is as severe as ever and the fear of collapse of counterparties does not spare anyone. When a nuclear option of a monster $700 billion rescue plan is not even able to rally stock markets (as they are all in free fall today) you know this is a global crisis of confidence in the financial system. We were literally close to a total meltdown of the system on Wednesday (and Thursday morning) two weeks ago when the $85 b bailout of AIG led to a 5% fall in US stock markets (instead of a rally). Then the US authorities went for the nuclear option of the $700 billion plan as a way to avoid the meltdown together with bans on short sales, a guarantee of money market funds and an injection of over $300 billion in the financial system. Now the prospect of this plan passing (but there is some lingering deal risk the votes in the House are not certain) -as well as the other massive policy actions taken to stop short selling “speculation” and support interbank markets and money market funds - is not sufficient to make the markets rally as there is a generalized loss of confidence in financial markets and in financial institutions that no policy action seem to be able to control.

The next step of this panic could become the mother of all bank runs, i.e. a run on the trillion dollar plus of the cross border short-term interbank liabilities of the US banking and financial system as foreign banks as starting to worry about the safety of their liquid exposures to US financial institutions; such a silent cross border bank run has already started as foreign banks are worried about the solvency of US banks and are starting to reduce their exposure. And if this run accelerates - as it may now - a total meltdown of the US financial system could occur. We are thus now in a generalized panic mode and back to the risk of a systemic meltdown of the entire financial system. And US and foreign policy authorities seem to be clueless about what needs to be done next. Maybe they should today start with a coordinated 100 bps reduction in policy rates in all the major economies in the world to show that they are starting to seriously recognize and address this rapidly worsening financial crisis.

Capice?... There were numerous foreign banks that tanked over the weekend and the ones left standing have no confidence in Paulson's plan or the bail-out compromise and the G-7 ministers said as much.

Those banks and foreign depositors are scared spitless with the failure of WAMU and Wachovia and have begun pulling their assets out of American banks. If this accelerates it will cause more of those "banks to big to fail" to go right into the crapper and the whole system will come down.

The dollar will be worth about the same as the WWII lira... loaf a bread? Gotta wheelbarrow of bucks?

There will be shit about this...

No it's not and end around. What we are witnessing is the Bush/Rove Might Republican Machine has run out of gas by the side of the highway and its crew of rodents are fleeing into the nearby woods for protection.

Rasputin @ 121:

MsJoanne @ 66:

CoIntelPro for Pronktastic Victory Over SCLM, DIEBOLD, ESS and SEQUOIA! @ 27:

The US and global financial crisis is becoming much more severe in spite of the Treasury rescue plan. The risk of a total systemic meltdown is now as high as ever
PrintShare
Nouriel Roubini | Sep 29, 2008

It is obvious that the current financial crisis is becoming more severe in spite of the Treasury rescue plan (or maybe because of it as this plan it totally flawed). The severe strains in financial markets (money markets, credit markets, stock markets, CDS and derivative markets) are becoming more severe rather than less severe in spite of the nuclear option (after the Fannie and Freddie $200 billion bazooka bailout failed to restore confidence) of a $700 billion package: interbank spreads are widening (TED spread, swap spreads, Libo-OIS spread) and are at level never seen before; credit spreads (such as junk bond yield spreads relative to Treasuries are widening to new peaks; short-term Treasury yields are going back to near zero levels as there is flight to safety; CDS spread for financial institutions are rising to extreme levels (Morgan Stanley ones at 1200 last week) as the ban on shorting of financial stock has moved the pressures on financial firms to the CDS market; and stock markets around the world have reacted very negatively to this rescue package (US market are down about 3% this morning at their opening).

Let me explain now in more detail why we are now back to the risk of a total systemic financial meltdown…

OK, but first you have to explain what you just said!! I love Nouriel Roubin, he's very, very bright, but usually speaks in relative English. On what he said above...huh?

Lucy, 'splain...Ricky no understandy.

If you go to the article you'll get to the last two paragraphs to see the punch line:

When investors don’t trust any more even venerable institutions such as Morgan Stanley and Goldman Sachs you know that the financial crisis is as severe as ever and the fear of collapse of counterparties does not spare anyone. When a nuclear option of a monster $700 billion rescue plan is not even able to rally stock markets (as they are all in free fall today) you know this is a global crisis of confidence in the financial system. We were literally close to a total meltdown of the system on Wednesday (and Thursday morning) two weeks ago when the $85 b bailout of AIG led to a 5% fall in US stock markets (instead of a rally). Then the US authorities went for the nuclear option of the $700 billion plan as a way to avoid the meltdown together with bans on short sales, a guarantee of money market funds and an injection of over $300 billion in the financial system. Now the prospect of this plan passing (but there is some lingering deal risk the votes in the House are not certain) -as well as the other massive policy actions taken to stop short selling “speculation” and support interbank markets and money market funds - is not sufficient to make the markets rally as there is a generalized loss of confidence in financial markets and in financial institutions that no policy action seem to be able to control.

The next step of this panic could become the mother of all bank runs, i.e. a run on the trillion dollar plus of the cross border short-term interbank liabilities of the US banking and financial system as foreign banks as starting to worry about the safety of their liquid exposures to US financial institutions; such a silent cross border bank run has already started as foreign banks are worried about the solvency of US banks and are starting to reduce their exposure. And if this run accelerates - as it may now - a total meltdown of the US financial system could occur. We are thus now in a generalized panic mode and back to the risk of a systemic meltdown of the entire financial system. And US and foreign policy authorities seem to be clueless about what needs to be done next. Maybe they should today start with a coordinated 100 bps reduction in policy rates in all the major economies in the world to show that they are starting to seriously recognize and address this rapidly worsening financial crisis.

Capice?... There were numerous foreign banks that tanked over the weekend and the ones left standing have no confidence in Paulson's plan or the bail-out compromise and the G-7 ministers said as much.

Those banks and foreign depositors are scared spitless with the failure of WAMU and Wachovia and have begun pulling their assets out of American banks. If this accelerates it will cause more of those "banks to big to fail" to go right into the crapper and the whole system will come down.

The dollar will be worth about the same as the WWII lira... loaf a bread? Gotta wheelbarrow of bucks?

so throwing $600,000,000,000.00 into the equation will do nothing but cause rapid inflation.

MoeBush @ 126:

WAIT A SECOND! The article says the Fed (Federal Reserve Bank) is pumping $630 billion into the system. As much as I despise Bush, how is he involved? I really want to understand what is happening. Please explain.

Here, read something other then what the TV idiots are saying.

http://tinyurl.com/46htk

redratio1 @ 87:

Surging Blue Lensman @ 3:

See, we weren't going over the cliff - they just wanted us to think so!

The "bailout" simply provides some financial relief for bankers and stock holders as well as political cover for all.

BS. $1Trillion lost in market cap today. When companies cannot buy capital good and pay their workers the average 'Joe' is going to get layed off by the tens of thousands.

Honestly on both sides of the aisle I am amazed at how many people think that Main St. and Wall St. are unconnected.

Show me a corporation that has to borrow money to pay their workers and I'll show you a company that is doomed to fail anyway.

MoeBush @ 126:

WAIT A SECOND! The article says the Fed (Federal Reserve Bank) is pumping $630 billion into the system. As much as I despise Bush, how is he involved? I really want to understand what is happening. Please explain.

Exactly!

I CAN'T WAIT until this hits television...
...this is going to be on television right?!

what-the-news-media-isnt-showing-you

http://tinyurl.com/4zq2qt

Get ready for more price inflation and dollar devaluation.

L.A. Confidential @ 129:

MoeBush @ 126:

WAIT A SECOND! The article says the Fed (Federal Reserve Bank) is pumping $630 billion into the system. As much as I despise Bush, how is he involved? I really want to understand what is happening. Please explain.

Here, read something other then what the TV idiots are saying.

http://tinyurl.com/46htk

That still doesn't answer my question. I totally agree that the bail out plan is BAD. I am glad that it was rejected. The reason is that I think the Corporate Elite (Republicans and even some Dems) are trying to steal our money and bankrupt the country. $700 BILLION is $14 BILLION for every state. You could give one million dollars to 14,000 people in EVERY STATE. That is SHOCKING!

I posted thsi the otehr day, too, but I think it has merit:

Here's my idea. Since all of this to-do is about big numbers written on pieces of paper - 'cause money (dollars) don't really "exist" they just "represent" work or product or the worth of some commmodity/object (eg., gold).

So, let's get a huge supply of White-Out (that would be an economic boon to the company that makes it) and then white out all of the nasty numbers we don't like on balance sheets, bank statements and government records. Then we will have a
"blank slate" and we can start up our economy all over again at ZERO!

Brilliant. NO????

For a moment don't listen let your eye off the ball. The issue is not to place blame on the other party. Both parties get WAY too partisan. There are good people all around who cares what party they are in. Its the person and not the label.
Many of you get off base by blaming this and that, and getting caught up emotionally without using your own thought and judgment.

The WHOLE issue is THIS IS NOT JUST A BAD BILL. THERE SHOULD BE NO BILL. WALL STREET DUG THEIR OWN GRAVE AND NOW THEY WILL HAVE TO LAY IN IT.

NO BAIL OUT, IT IS UNCONSTITUTIONAL.

Rasputin @ 23:

Rasputin @ 17:

If Congress doesn't give Bush what he wants... Executive order #51 by Friday.

PS. that would be a nice way for him to "postpone" the election indefinitely...

Actually to add drama Bush would institute Executive Order #51 just prior to the debate Thursday between Palin and Biden, thus causing McCain to "postpone" (indefinitely) the debate.

MoeBush @ 126:

WAIT A SECOND! The article says the Fed (Federal Reserve Bank) is pumping $630 billion into the system. As much as I despise Bush, how is he involved? I really want to understand what is happening. Please explain.

it's called a "pyramid scheme". and, no, bush isn't the guy sitting on top of the pyramid. nor is cheney. keep going higher and you'll find who you seek.

hint: his name isn't rumpelstiltskin, and it isn't rich uncle pennybags.