Jon Stewart catches Hank Paulson in a tortured flip flop
By SilentPatriot Tuesday Oct 14, 2008 3:00pm
When Hank Paulson first went to Capitol Hill last month with hat in hand, he flat out rejected the "Japan model" of recapitalizing struggling banks with federal money. After his initial plan did NOTHING to help stabilize the economy -- indeed, things got much, much worse -- Paulson and the Bush administration finally caved and decided that nationalizing the banks wasn't such a bad idea. Fortunately for us, Jon Stewart was there to catch him in the act.
Stewart: So what are we gonna do to ease the credit crunch and get banks loaning money again? Well, last month Secretary Paulson made clear what we won't do.
Paulson: There are some that said we should just go and stick capital into the banks. That's what happened in Japan. But we said the right way to do this is not going around and using guarantees and injecting capital. That's the Japanese solution.
Stewart: We know the Japanese solution didn't even work. Their economy has been stagnant for fifteen years, there's no way we're ever gonna be so desperate to try that...
ABC News Report: Treasury Secretary Hank Paulson plans to inject money directly into banks that need it...
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I think its a good thing he's willing to flip-flop. If the situation requires a different strategy from a few weeks ago, then go for it
That is not good solution. However a new Bretton Woods gold standard would be.
Financial Crisis: Gordon Brown calls for 'new Bretton Woods'
www.telegraph.co.uk/finance/financetopics/fin...
Ever notice how you never see Hank Paulson and Jesse Ventura in the same place? Think about it.
(And yes, I would MUCH rather hanve Jesse Ventura as the Treasury Secretary than THIS corrupt plutocrat.)
All this tells us is, the people running the show don't have a clue. They're in the try anything mode, without thinking about the consequences.
I remember C&L supporting the bailout. Why aren't you backing it anymore?
Actually, I don't think it is fair to say the initial plan "did NOTHING" -- the plan was to authorize funds for the Fed -- the plan itself is supposed to take a few months to implement -- they never claimed there would be an immediate impact. After all, it is not just investor anxiety they are trying to calm, the whole idea is that there is a lack of available credit -- until that money is actually available for the banks to lend again there is no reason to see major improvement.
turning japanese i really thought so.......didn't want to tell the media the real deal when it was huge news.
"The fox is in charge of the chicken coop." -- or something like that. Gather around, you're about to be plucked, skewered, roasted and eaten.
Add one more head and you've got Wall Street Squares (with your host, Peter Marshall).
Who's gonna be Paul Lynde?
The NeoCon Tax-Cuts-To-Prosperity DeRegulate-Everything Crowd is EATING CROW.
After rejecting the "Japanese Solution" Paulson stuck his hand out for $700 Billion, with NO STRINGS ATTACHED.
Congress eventually passed the bill, with a provision that the Sect of the Treasury COULD inject capital by purchasing shares (partial NATIONALIZATION of the banks).
But Paulson still wouldn't consider nationalizing the banks, not even a little bit for a little while.
The Market PLUNGED.
Then Iceland nationalized their banks.
And then the UK.
And then the ENTIRE EU.
And FINALLY Paulson agreed, under pressure from EVERY industrialized nation, to buy shares in US banks.
ANATHEMA to the Free Trade Ideologues.
HA HA HA
Except the Congress seems to have overlooked placing a limit on what the Banks can do with the CAPITAL INJECTION. As I understand it, they might even turn around and issue it as dividends, for instance.
We will be hearing about that if there is justice in this world.
Also, I think the Nobel committee giving the Nobel Prize to Paul Krugman the other day was meant as another kick in the nuts to the trickle-down, free market economists while they're already on the ground. As long as the europeans are feeling "liberated," why the hell not?
Europe knows how to do things right. It is good we are following their lead. Reagan should have followed them and this detour into the twilight zone wouldn't have happened. It's time for the US to give up the leadership business.
Europe knows how to do things right. It is good we are following their lead. Reagan should have followed them and this detour into the twilight zone wouldn't have happened. It's time for the US to give up the leadership business.
After yesterdays rally on Wall Street, why did it tank today? Is this a Ponzi scheme or what? I know nothing about investing, so what happens next?
Wall Street ended a relatively calm session with a moderate loss Tuesday as investors, while happy with the government's plans to spend up to $250 billion to buy stock in private banks, decided to cash in profits from the previous day's massive advance. . . . . no further discussion required
investors are waiting for the credit market to relax. watch the Libor. commercial paper loans and credit market loans between banks. looks like a recession will be had by definition. everyone is talking about the bottom. it could have a U shape, a V shape or it could be like the end of a hockey stick L. will have to see.
mondays rally was due to oversold stock prices and the funds to morgan stanley.
I don't trust them. They knew this was coming six months ago and they sat on it. It still could turn into a massive boondoggle.
The great Ponzi scheme is the Credit Default Swaps, many many Trillions.
We have a steep recession, if they don't play it right we will have a depression.
The stock market is only an indicator. All the analysts you hear in the media saying why the market is up or down, they really don't know except for the broadest of terms.
When the market is going way down, traders think 'oh my gawd, someone knows something I don't know I must sell'. When the market is going way up, like yesterday they think 'oh my gawd, I am going to miss the boat, I better buy'. Neither is rational.
Markets are driven by fear and greed and can turn on a dime.
When the world bails on the dollar, we will make Argentina look good.
No, it's not a Ponzi scheme, but you can expect the stock market to be volatile for awhile. (And it didn't actually tank. It was fairly even today. It just didn't continue to rise the way it did yesterday.) But when the Dow sank below 8000 last Friday it was just too tempting to resist, and a lot of people were buying (including me). So, after the rally, a few panicky people, who didn't panic fast enough to sell last week, figured this might be their last chance, and were selling while the Dow was above 9000 again. Those people are worried the rally was just a dead cat bounce , and that it will continue to fall.
many want to blame everything negative onto the congress. my understanding is that congress had
this written in the "bailout" legislation so that it could be done if needed. the purchasing of stock.
what will be interesting to see if the stock purchase allows the public to have shareholder voting abilities.
I doubt the Treasury will have shareholder voting abilities.
BUT the good side is that IF this solution works (and it should, because it restores confidence and liquidity) then the value of the shares will increase, and the Treasury could actually see a profit when it sells the shares after the period of intervention is over.
http://www.zweg.com/dump/photo/conservts5.jpg
They all got us into this mess. Fire them all.
I voted today for the candidate that "says" he will NOT throw money at corporations. Chances of him winning? Slim to nil. Oh well. At least it was over in 5 weeks completely.
Now, howz about them there banks? Ain't it just great all that there money the gubmint is givin' them ta halp them out in their time of need? Barf. We just gave ours billions too. Even though they have made billions profit since the dawn of banks. Poor buggers couldn't even afford their maids anymore.
If it weren't for Jon Stewart, all of this would be so depressing I wouldn't be able to leave my house. He puts such a wonderful twist of "my, are our leaders that stupid, greedy, .. pick your own adjective". I still laugh picturing McCain next to Gollum (there was quite a resemblance)... we loves the bill.... we hates the bill... Jon Stewart for any office he wants!!!!!
Cities are now gearing down to "save" money!!!
CHICAGO (CBS) ― Mayor Richard M. Daley said Tuesday he will shut down "non-safety related city services" for six days abutting holidays over the next two years to save millions of dollars.
Jeebus. Heckuva job Bushie!!
The financial crisis and the incipient recession are two (mostly) separate problems.
Without the current financial crisis we'd still have a recession.
The financial crisis is on top of the recession, believe it or not.
There is no crisis believe it or not. Banks got together and decided, "hey, let's pad our bottom line"....that's it....in Canada we have highly regulated banking system....our banks are NOT in any kind of financial problems at all...there is no mass exodus of homeowners..it's called fraud...hell my bank made billions even this year in profit, and we are STILL bailing them out. Why?
i'm gonna get on my quibble horse (nay!) and point out that Paulson's initial plan to jump into the mortgage-backed security shitpile hasn't started. so uh, saying it did NOTHING to help is a bit much. this is still officially part of the program even though it will (hopefully) be tossed in favor of full-on recapitalization, which is way easier, more effective, and gives tax payers a stake in any potential upside, or at least not as big a flop on a downside.
also the "japan plan" is pretty much the same as the "swedish plan", which worked well and actually turned a profit for their govt eventually. japan dithered for years though which is the big difference there.
Can someone explain why CC censors the DS on its 11PM showing? It's cable ?!?!?!?!?
Non-premium cable is allowed swearing, but only after midnight or 1 am. CC used this ruling to air South Park: Bigger, Longer & Uncut unedited a about 4 years ago.
Paulson's original "plan" was a three page outline that said, put all the power in the hands of me, your Treasury Secretary, trust me to do what is right even though I'll give you no details, and, oh, by the way, I shall be subject to no Congressional, judicial, or regulatory oversight. God help us if, based on input from Congress, public pressure, or otherwise, Paulson couldn't "flip flop" and end up with an improved plan.
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