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Bailout is a done deal

Sunday, September 28, 2008, 7:48 AM

As predicted by many here and elsewhere, a great show of "protecting the taxpayer" commenced, but, in the end, the bailout bill sailed through largely unchanged.

Quote:
WASHINGTON — Congressional leaders and the Bush administration reached a tentative agreement early Sunday on what may become the largest financial bailout in American history, authorizing the Treasury to purchase $700 billion in troubled debt from ailing firms in an extraordinary intervention to prevent widespread economic collapse.

Link (NYT)

Sure, they tacked on a few trinkets, such as "limiting CEO pay," but in the end, this was simply the largest handout ever given to the banking industry since monopoly power was granted to the Federal Reserve in 1913.

I am dead-set against this bailout, and I judge it to be the very worst possible reaction to this crisis.  Sure, our banking system could have taken a tumble, but it deserved to do so and needed a lesson in moderation.  Now that opportunity is gone.  

I have just become a single issue voter.  I will absolutely vote against any and every incumbent who votes for this bailout package.  Period.  I don't care WHO is on the other side of that ticket.

And here's why.  When it came right down to it, Congress extracted not one single concession from the banking industry.  Not one.  Although it is presented here as a "D vs. R" sticking point, let's be clear  - this was really a "bankers vs. the taxpayers" sticking point.  The bankers won.

Quote:
Among the last sticking points was an unexpected and bitter fight over how to pay for any losses that taxpayers may experience after distressed debt has been purchased and resold.

Democrats had pushed for a fee on securities transactions, essentially a tax on financial firms, saying it was fitting that they contribute to the cost.

In the end, lawmakers and the administration opted to leave the decision to the next president, who must present a proposal to Congress to pay for any losses.

Get that?  They couldn't even get a nominal (and probably meaningless) transaction fee stapled onto the bill without folding on the issue.  And, of course, I see nothing in here about banks giving up past or future profits, or in any way returning even a small portion of the loot they stole or favor they received.

Nothing.

In the end, these "intense meetings" were a sham, designed to project the impression that real issues were being discussed - but nothing of the sort really happened. The banking industry gets to offload all of its toxic stuff and continue on its merry way, while you get to live with a now highly elevated risk of a major dollar collapse.

We were sold out.  

Probably for about $10 million in campaign contributions. 


If you're a DC power broker, is there a time that is any more exciting than when you've directed the largest single chunk of taxpayer money towards the monied elite?  It is giddy, heady stuff, as this picture makes clear.

This picture leaves me feeling a little ill.

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50 Comments

rlee's picture
rlee
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Is anybody here surprised?
This deal was drawn up months ago.  It just needed the right timing to sell it.  The heavy-handed sales pitches, and the late- night- eating- catered- food meetings are a sham of a sham!  What makes the whole thing worse is the majority of the american people are following along just like ducklings crossing the highway.  These are the same BS scare tactics that led to the rise of the Nazi's!  If that photo of those snub rat bastards patting themselves on the back doesn't sicken and enrage you, then maybe you need to take another valium or zanax and go back to bed.  Whoever the next president is may be irrelevant at this point, our future is here and now.  God help us!
machinehead's picture
machinehead
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The Predators Ball

That photo says it all -- toad-jowled, child-molesting catamite Barney Frank humbly accepting his nomination as God of the Financial Markets; Kongressional 'leaders' Reid and Putalosi, laffing like jackals and hyenas as they slobber over the meal they're going to make of America's working class; while just behind Reid, the pudgy blank rictus of Hank the Class Clown grins like Banquo's ghost.

Something in this decadent scene reminds me of eastern Europe, circa November 1989. Tell me, comrade: where are our 'freedom trains'? Why are all these angry-looking people gathering in the streets with bricks, bottles and torches in their hands? Is something WRONG here? Surprised

ned38's picture
ned38
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Predators Ball

The only thing missing from that photo are the villagers and townspeople coming up behind them with their torches and pitchforks

 

PS. Good to see ya Machine

locklimitdown's picture
locklimitdown
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Anyone Surprised?

Good point. No doubt the package was constructed many months ago just as the Patriot Act was planted on the American people with no real debate or review. Is there any question the Patriot Act was years in the making?.

 Much as I dislike CNN I have made it a point to see what they have to say in recent days. Conclusion? Biggest con/sell job in the history of America. I'm not so sure, this time, it will be a Patriot Act pushover. The sheeple are beginning to wake up. Declining net worth was the only way that was going to happen and here we are. Sure this thing will be rammed down everyones throats but I expect open revolt and rage as the dots are connected. If I'm wrong and there is little in the way of demonstrations and outrage we may as well go and pick up our RFID chips now as it will only get easier for them

IMHO the next few days will be the most telling in the history of the country.

RSLCOUNSEL's picture
RSLCOUNSEL
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Where is the details

Any idea on where I can read the details of this plan from official government documents?  For an important matter such as this I have no problem pouring over a 100 or so pages of this agreement to understand it for myself.    I will start search this morning but if anyone can save me time with a link I would appreciate it. 

One thing I am looking for is direct action at the root cause which was the CRA legislation.   If the catalyst that triggered this event is still law, then what are we doing here?

RSLCounsel

RSLCOUNSEL's picture
RSLCOUNSEL
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EndGamePlayer's picture
EndGamePlayer
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3 things to stop this insanity-

1. Disseminate information. Particularly to those they USE like the young people fighting thier wars (and the generations of kids they are preparing for the next wars), voters and college students. That online video I saw on WTC, 911, Amereo and sheeple was the best explaination I've seen so far. Be active - send out the link and post it everywhere. Send it out in emails, stop in at libraries to strike up conversations in the computer lab and take others to the link. You'll get a % of people who don't want to know but those you reach can help spread the word.

2. Stop the taxes and the money coming in. Pay off or stop paying. Stop using energy as much as possible - at home, at work and for recreation. They are deeply imbedded into our energy system and we won't see anything come of their policies except their profits. 

3.  Work to develop the New Game Plan - What will replace the old system? Computerized government - where no one represents anyone and we all vote on issues of importance via mass communication backed by paper votes. A simple - less cost and very transparent government. Break it down by local issues, county, state and national issues. Who ever builds this system - make duplicity the norm as each system checks and balances itself with computerized systems being upheld by paper systems and vice versa. Who ever builds this system needs to be guarenteed a portion of the government money they save. 

Game On-

EndGamePlayer

 

cmartenson's picture
cmartenson
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Re: Where is the details

When you find them and pore over them please be sure to let us know what you find.

As the 700 page PATRIOT Act  taught us, the devil is in the details.

chameleon's picture
chameleon
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Money Masters will need updating

I guess the Money Masters video will need some updating in light of this recent scam.

locklimitdown's picture
locklimitdown
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BAILOUT PACKAGE

Just heard the text of the package will be posted online at NOON.

Sorry no lonk yet.

miranda's picture
miranda
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Among last sticking points was an unexpected and bitter fight...

I really want to know how who was fighting whom? Who was fighting for some better tax-payer protection? And who was pushing hardest against them on behalf of the banking industry? And who caved and why? I want to know who has some decency and who is totallly in the pocket.

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joe2baba
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not surprised

lock down you are right on the money oh there is no money  THANKS CHRIS YOUR "END OF MONEY GOT ME STARTED" i dont own a tv so i have not heard much on cnn except i watched lou dobbs a couple of times and he definitely gets it. even oreilly sorta gets it. but National Public Radio is on the payroll. coast to coast radio gets it. but even though we have been screaming at them the vast number of americans are totally clueless. i have been sending out emails to friends and family constantly. got a reply back from a friend (has between 15 and 20 million depending on market ) he said i was wrong and the EXPERTS say we need this bailout and that the market is for the long haul and it always comes back. then he said he has lost 30% this year. what do you do with that. i wonder how in the hell he ended up with that much money,  folks we have met the enemy and it is us . we have been fat dumb and happy. i know i am to blame for not paying as much attention as i should have so shame on me. the really funny thing is the next president will be left ot deal with it. here is my scenario for how that plays out.first thing is if mccain is elected palin resigns to go home and take care of her family  emergency. she will have served her purpose. mcacain then appoints his good buddy lieberman as vp. then they discover iran has weapons of mass destructionand is planning astrike on israel. we launch an invasion on iran. while we are distracted with that they finish up the looting. if it is obama his response will be more nuanced. he will immediately fly to beijing get down on his knees and get his instructions. he is a very smart man he will bring knee pad. he will be on his knees a very long time. news bulletin this just in on the deal.....the last detail has been hammered out. in a concession to to the american taxpayer and to stimulate them every man woman and child will receive a tube of ky  jelly. hunter it has gotten weird enough for me.

cmartenson's picture
cmartenson
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That's easy

Anybody who votes FOR this bailout is an enemy of current and future taxpayers.

I don't care what sorts of noises they make before or after the vote, I only care about their vote on the bailout itself.

I am seriously disturbed by this and think that it's time to let a little emotion shine through.  I plan to attend every 'town hall' meeting between here and the elections (assuming there are any) and let a little of that taxpayer anger show through.  It's time to send a message.

After all, it's not everyday that your country is destroyed.

 

NLP's picture
NLP
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Equilibrium

A month ago I was "awake" (or so I thought) and busy living my daily life as wife, mother, employee, and citizen.  I felt secure in my knowledge about how the world works, and I felt strong in my ability to navigate my way through.  Call this equilibrium, bliss, or ignorance.

Then I was sent an email at work about the Crash Course from a PR firm that ALWAYS send blasts and rarely do I read them all the way through.  Luckily it was a slow Friday and for some reason, I sat at my computer and plugged in my headphone and sat through all posted chapters of the Crash Course.  Suffice it to say I was shaken to the core.  Call this disequilibrium, anger, abject fear, or truth.

Immediately I forwarded the website to every person in my inner circle.  Of the handful I informed, presently two went completely through the course and of the two only one gets IT.  Not the reaction I expected at all.  So much for my community, although I have not given up hope. 

Since then, I have been trying to keep up with all of the levels of information posted here.  I celebrate and smile with every shared quip; raise my voice in an loud "amen" to the well stated calls for action; scratch my head when acronyms and theory are beyond my reach, and I am back to the library today for more books.   All the while trying to get back to equilibrium--- because EVERYONE wants to be there.  Call it sheeple, Xanax, apathy, but the fact remains we want/need to live our lives PEACEFULLY.  But how to do that in times of crisis is truly the question, no?

I was struck this morning by the word "transaction"---  trans from the Latin for on the other side of, across, or beyond and action for the state or process of doing or acting.   "On the other side of doing"-- I think that is key.  To me therein lies a truth; my power, my leverage, my revolt is in taking every transaction I enter into with the utmost care because what happens "on other side of doing" is worth a serious examination. 

The routine of our daily lives is more empowering than we give it credit.  We may not have the resources to have precious metal in hand, we may not have 401k's, we may not have 3 months of earnings buried in the backyard, but we may have health, talent, skills, and a willingness to think about each transaction we enter into... and by ceasing transactions that are too costly is an effective tool in our collective toolbox.

I send a grateful thank you to Chris, his family for joining/supporting him on this journey, and to each member/subscriber old and new.  It's comforting to be on the planet with you all.

machinehead's picture
machinehead
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Baffle 'Em With BS

Hey Ned,

Got a perfect example of how this is going down at church today. The priest is a literate man -- three college degrees; can make an extemporaneous speech citing multiple sources; etc. Yet today, he said he read the Times articles about the crisis and about AIG, and the financial/technical terms left him baffled. He didn't understand a word of it. So, he is at the mercy of 'experts' who say that we have to hold our noses and do this.

His one insightful comment was, "I smell greed behind this."

Exactly! But like most educated Americans, he has been taught to let his rational processes override his emotional judgment. His nose -- with perfect accuracy -- tells him that the bailout stinks. But his head tells him, "I can't understand all this. Let the experts handle it."

And this scene is being repeated in millions of households. Little do they realize that the key expertise being employed is in propaganda. Baffle folks' heads, then engage the emotion of BLIND FEAR. "Three million jobs will be lost in a few weeks," as Bonesman Kerry ominously threatened.

The Reichstag is burning, comrades. Pass the Enabling Act for the Relief of the People and the Rich! Quick! Yell

gsti's picture
gsti
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Nice post

thats a nice post npeykani,

Try not to feel too bad about friends who don't get it or don't want to listen.  Most people ignore big problems, it's quite natural, and add to this a huge propoganda machine that encourages you to ignore problems other than exactly what is presented to you, it really is very hard for most people to make that kind of jump from thinking "we are ok" to " we are in the s***". 

And the old saying is true; you can lead a horse to water ..... . 

draper87's picture
draper87
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stupid or ignorant

Quote:

"A banking system in crisis after the collapse of a housing bubble. An economy hemorrhaging jobs. A market-oriented government struggling to stem the panic. Sound familiar?"

As a 21-year old aussie looking in on this major blow up in the US economy I can't help but say that firstly I am not surprised the bill is going to be passed, well done Paulson (from all your banker mates). I just read a short article on how the Swedes dealt with their similar situation back in the early 1990's and it seemed to me that they followed the way Chris said it should have happened, having these failed institutions keep the balance of their debts on their books.

"Banks had to write down losses and issue warrants to the government"

It is crystal clear to me that the US could have easily taken some advice from a country like Sweden but predictably chose the more selfish option in keeping the filthy rich/selfish happy, and failed institutions for that matter, by simply buying their bad debt with the taxpayers having to foot the majority of the bill.

I feel nothing but contempt for Paulson and his colleagues and can only thank GOD that I don't live in USA right now and at least have a bit of time over here in Perth to try and gear myself for what might turn into a disaster that affects everyone. Love your work Chris, I am officially obsessed with monitoring your updates daily so keep up the good work its people like yourself that are needed in the US to educate them in this hour of craziness.

srbarbour's picture
srbarbour
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Cool it, angry minds will make it worse

[quote]I have just become a single issue voter.  I will absolutely vote against any and every incumbent who votes for this bailout package.  Period.  I don't care WHO is on the other side of that ticket.[/quote]

I hate to say it, but that kind of silliness (being a single issue voter) is a large part of the reason why we are in so many messes in the first place.   Sorry, but single issue voting strikes me as intellectual laziness and a deep lack of foresight.

The reality is, that a number of individuals that will 'vote' against this bill will be doing so on the complaint that it does too much for the taxpayer and too little banks.  That is after all, the deducible impetus of the Republican counter offer.

I'd agree though, that ALL the senate and house leaders should probably be jerked.    The Democrats, because they have continuously chose safe over right out of fear that it would imperil their election chances . The Republicans because they were, in effect, trying to force the democratic party to strip what little protection this bill has.

In the end though, we should save our outrage until we've had a chance to read over the bill, and have reminded ourselves that we should save far more anger for those actively attempting to screw the taxpayer (us) in favor of big business or any other kind of elite, rather than those who were simply too cowardly to do the right thing.  (In a perfect world, we'd get rid of both.   However, this is not a perfect world).

--

Steve 

bluebird's picture
bluebird
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Credit bubble is going to burst anyway
This bill solves nothing, other than raiding the Treasury of our good tax dollars for worthless junk. Paulson and his rich cronies are making sure they are not the ones left to hold the empty bag. The inevitable crash is delayed maybe until after the elections. I feel ill, for my children and grandchildren.
salisbury's picture
salisbury
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Not getting this bailout at all

This is my understanding: the $700 billion bailout is to purchase potentially worthless mortgage CDOs from the banks and then somehow sell these worthless mortgages for a profit some time in the future? Meanwhile the banks, relieved of the tonnage of bad loans strung around their necks, are now free to start loaning again?

Right back to business as usual? There has been no talk about how Americans are living beyond their means in the first place, both as families and individuals, and as a country. No talk about having to save money rather than borrow in order to purchase a couch or a car or whatever.

What am I missing?

And how is the new RTC going to recoup the $700B by selling worthless mortgages in the future? Aren't they worthless, or worth much less, due to the housing market being an utterly unsustainable bubble? I've heard the pundits say they expect a profit to be made within 2 to 3 years. What don't they - or me - understand about "bubble bursting"? Seems to me that it could take 30 or 40 years before the housing prices returned to their 2006 peaks, if ever. A lot of us will be dead by then. 

Nope, I'm not getting this bailout thing at all...

gsti's picture
gsti
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too hard

Hi salisbury,

I think you are being too hard on yourself, you seem to get it completely. 

I can only imagine you are struggling with the bailout concept because you think it might or at least should have been for normal Americans, rather than corporate America.

salisbury's picture
salisbury
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Bailout for Corporate America?

gsti,

Thanks for your reply. I'm still baffled. I don't see how we could do this unless the banks are promising not to make bad loans anymore. But then that would be like us giving a coked-up drug addict in terminal withdrawal an endless flow of methamphetamines so long as he promises not to shoot up anymore...

And also, doesn't this just completely undermine the value of the dollar, which has already been in decline for years given our growing addiction to credit?

Still baffled...

 

srbarbour's picture
srbarbour
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Getting the bailout (but still don't like it)

[quote]Right back to business as usual? There has been no talk about how Americans are living beyond their means in the first place, both as families and individuals, and as a country. No talk about having to save money rather than borrow in order to purchase a couch or a car or whatever.[/quote]

Heretic, heretic! Burn him at the stake! =)

No, the reason we don't talk about saving is because that word sends deep chills down the spines of Washington. 70% of our economy is consumer spending, so if consumers stop spending...

[quote] And how is the new RTC going to recoup the $700B by selling worthless mortgages in the future?[/quote]

The mortgages aren't worthless. They are just worth less. As for how we will recoup anything? That depends on the minor details of this bailout. The original treasury bailout would probably have resulted in 50% to 90% losses, and probably on the worse end of that estimate (for every 100 billion out, 10-50 billion comes back). This bill will probably be a bit more favorable, however we won't be able to even make a real guess of how good or how bad until the bill is fully revealed and scanned through in depth.

And for that matter, we don't know if it is going to actually be '$700 billion' bailout, or, as in the original, an infinite dollar bailout with a pipe big enough to jam through $700 billion at a time.

I'd point out that profits are indeed possible, but highly unlikely. Again, it depends on the exact wording of the bill. It will, however do nothing to solve the solvency issue that is plauging banks if, indeed, it is profitable.

--

Steve

gsti's picture
gsti
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Getting the bailout

Steve, you are very right to point out that a profit could very well be made on these mortgages, especially if people do not default. 

 I would like to point out though that salisbury could well be right too, rather than worth less they, could be worthless if they become permanent defaults and their is not enough liquidity in the market for anyone to purchase these properties at any price, then they are worthless, or .... America can start a big step towards socialism with social housing ;)   (might not be so far fetched - all the evicted people have to live somewhere).

I think the solvency issue facing alot of banks will be fine if the goverment buys all their bad loans.  Of course that is a difficult call to make, especially without seeing the bill.  If the government buys all auto, house, card loans that have a default on them... well , that would free up alot of potential lending from the banks, who will lobbying for no meaningful rule changes at all.

As for 700 bill at a time, what if that is used for example on auto loans, and the next day , they are written off, cleared for the next 700 bill, I am not saying the government would be this obvious about it, but is it possible ?

 

mtview05's picture
mtview05
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So now what?

OK, so the "bailout" is a done deal.

 Now what?

Do we gird our loins for inflation or even hyperinflation?

Will foreign sovereign banks be unimpressed so the dollar will fall drastically?

Is this "bailout" a mere pause in the collapse to give the Republicans a chance to pass the buck, as it were, to the next president?

How do we prepare now?   Do your previous admonitions still stand?

Bill

 

locklimitdown's picture
locklimitdown
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vague details

Congress expected to pass financial rescue package

 http://ap.google.com/article/ALeqM5ioHc80xKMiATnqCpK0cDKJzk_nPQD93FR38O0

snippet..

The government would receive stock warrants in return for the bailout relief, giving taxpayers a chance to share in financial companies' future profits.

To help struggling homeowners, the plan requires the government to try renegotiating the bad mortgages it acquires with the aim of lowering borrowers' monthly payments so they can keep their homes.

"Nobody got everything they wanted," said Democratic Rep. Barney Frank of Massachusetts, chairman of the House Financial Services Committee. He predicted it would pass, though not by a large majority.......

 

I cant wait to see how they plan to pull this off. Warrants for the sheeple as they are the lenders of last resort. What next? Social security investing in these warrants? Mandatory 401K warrant forced purchase plan?

Even if you cant afford to make payments on THEIR over appraised, over valued,  home, now melting down in value they will renegotiate the debt trap and ensure the imploding asset is kept off their books.

Thanks but no thanks

Home prices are still way to high yet they continue to suggest otherwise. They will never get it

 In a matter of a few weeks financial infrastructure has been trashed, reorganized under the new American socialism act and put back into intensive care in much much worse shape.Treason doesn't go half way to describe what is now game set match

A sad sad day in America.

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cmartenson
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Re: So now what?

Hi Bill,

Here's how I might guess at the action over the next few days to months.

  1. This next week is a near-certain lock to be a grand explosion upwards in the stock markets led by the financial shares.  Remember, GE and GM are essentially financial shares so this will be fairly broad based.   This will happen in no small measure because the President's Working Group on the markets, in coordination with all the other worried central banks around the world, will assure that that the markets head off in the "right direction" beginning in the futures market later this evening.  Our free and open markets demand such an outcome so it will happen.
  2. Coincident with this I would expect a dollar rally.  Not because one makes fundamental sense - it does not - but because a dollar rally will be required to help sell the idea that this bailout is being soundly and roundly embraced by "investors".  Mainly, these investors will be the Bank of Japan and the ECB, but that's not important.  Sending the right message is what counts here.  I think this will send gold down in the near-term representing one of the last great moments to "get on board".  If the dollar starts to sell off here it would be the *right* thing to do, but that would surprise me to no small extent.
  3. After the initial euphoria wears off, say in about 3 weeks, I am expecting reality to set in.  It will become obvious that even with "improved credit flow" house prices are still falling and consumers are still retrenching and jobs are still disappearing.  I wish I could get true insider information during this period to see how many foreign dollars were arriving vs. departing our shores during the relief rally.
  4. Once it becomes obvious that the credit bubble is still dying a rapid death because of lack of borrowing demand (not supply) and that the US government's borrowing needs are conflicting with state, municipal and corporate needs we will get to stage II of this whole mess.  That will be the credibility shaking event where more people begin to figure out that you cannot solve a problem rooted in excessive borrowing by merely transferring the ill-effects of the prior binge to another party.
  5. By late October I expect the second leg of this to be underway.
salisbury's picture
salisbury
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Buying time ... but for what?

The Guardian has an article today entitled: $700bn won't save America from a slump:


http://www.guardian.co.uk/business/2008/sep/28/globalrecession.useconomicgrowth

The article details how the dollar will now decline further, even precipitously, as a consequence of the bailout.

Here is an excerpt from near the end of the piece:

"It is almost as if Paulson and Bernanke have created a plan that will see them through the next few months without concern for the long-term effects of their actions. 'I regard this as nothing more than a stopgap measure to get us through the election,' says S&P's chief economist David Wyss."

So why do this bailout?

Why, if David Wyss is right, are we "buying time" solely to get past the election? What purpose does that serve?

As you can see, I am still not getting this bailout thing...(please bear with me as I try to think this stuff through...)

 

salisbury's picture
salisbury
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Interesting 'supply-side'...

So this is a "supply-side" attempt to ...

Interesting. Kind of like the Colin Powell doctrine to go to war only with overwhelming force?

So the supply-side solution to this gusher of a housing glut is to flush us with even more capital and cheap loans, overwhelm us with an explosion of credit hoping that we'll all go on a spending and housing spree that got us here in the first place after the government has swallowed the first batch of bad loans?

My head is hurting now...getting dizzy...

Okay, so they're buying time. But for what? The result will be the same, whether before the election or after. Are they worried about civil unrest during the election, some kind of electoral / political meltdown?

 

locklimitdown's picture
locklimitdown
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Now What

Agreed on all counts Chris. The """""""""""""""market"""""""""""""""""" must approve and approve it will

They are already softening up the masses on CNN. Just heard.. THIS IS NOT A BAILOUT! WALL STREET ALWAYS COMES BACK! Credit lines will allow us to get back to business as usual ...Deals will now get done probably starting tonight. etc etc etc

 Its a full court press as they insert the last nail in the coffin

Opposition to passage has totally disappeared

Its so over.

 

gsti's picture
gsti
Status: Bronze Member (Offline)
Joined: Jul 21 2008
Posts: 60
Lending
Chris, do you see mortgages becoming easier to obtain and lower rates being offered again in the short term?
ike's picture
ike
Status: Member (Offline)
Joined: Sep 17 2008
Posts: 19
Instant gratification - Call and yell!

I finally did it and it was REALLY satisfying and now I'm encouraging all of you to do it too...join the campaign...

Let's Fill Every Congressional Voice Mail Box In The Country

Give your opinion to the people who need to hear it. Take a few minutes and CALL CONGRESS! It feels really good to hear yourself speaking up to the people WHO ARE ACCOUNTABLE for making this decision.

Reading/writing the comments on this site is great, but CALLING CONGRESS is even better!

The calls to congressmen are running 300-1 or 300-2 against the bailout. We wouldn't have those numbers to take heart in if those 300 people hadn't called!

Take five minutes out of  reading the comments of everyone who agrees with you and add your voice. Make it 400 to 1 or 500 to 1 or 1000 to 1. Help make it clear that WE ARE WATCHING and there will be repurcussions to those who vote for this bill.

Many reps have staff in the office today. Call and tell them, succinctly but forcefully that the people do not want this by a wide margin and anyone who votes for it is voting against their constituents and WILL BE VOTED OUT!

It's so easy. Ten buttons on the phone and bang, you'll immediately feel better for PARTICIPATING in this process.

If your rep's mailbox is full, call another rep. They all need to hear the same message!

Here's the phone list - how easy is that!

http://clerk.house.gov/member_info/mcapdir.html

Action feels MUCH MUCH better than inaction.

 

machinehead's picture
machinehead
Status: Diamond Member (Offline)
Joined: Mar 18 2008
Posts: 1077
9:45 a.m. Flameout

"After the initial euphoria wears off, say in about 3 weeks, I am expecting reality to set in." -- Dr. M

Three weeks; three days; three hours. Ever heard of the legendary "9:45 a.m. flameout"? Point being, don't take your elegantly manicured index finger off the 'sell' button.

Here's a paradox to consider. For at least 20 years, it has been proposed to invest some of the Social Security Trust Fund in stocks, to obtain a higher return. Some agree and some don't, and we don't need to resolve that here. BUT, Congress has consistently rebuffed the proposal. Among the grounds for rejecting it were: excessive risk; subsidy to Wall Street; and political favoritism in selecting issues to invest in.

Well, ALL of those arguments apply against the Paulson bailout plan. And moreover, instead of investing in a carefully-vetted list of sound blue-chip securities, Paulson's proposal asks the taxpayers to cannonball-trade into distressed securities, many of which are so opaque that they can't be analyzed and valued, in line with the most basic fiduciary obligation to exercise due diligence. This is not only a bad idea; it's probably felony racketeering, larceny, bid-rigging and insider trading to boot.

How is it possible that Congress spent 20 years consistently rebuffing a plan to invest in sound securities, but now sweeps aside all of its former objections to embrace, in a single week, a reckless plan to invest in UNSOUND securities?

I'll sum it up in one sentence: HEADS WE WIN, TAILS YOU LOSE.

And yes, for the record: I am a sore, pissed-off, bad-sport loser, just looking for a chance to pick a bankster's pocket or steal his Porsche. As they have so convincingly demonstrated, crime pays -- especially officially-sanctioned crime. Maybe I need to become an auxiliary police officer or sheriff's deputy before I begin my spree. Then I can use a larger magazine in my hold-up weapon. Laughing

1215's picture
1215
Status: Member (Offline)
Joined: Sep 26 2008
Posts: 6
Personal action plan?

Chris,

Assuming the bailout gives us a bit of breathing room to continue with our plans, I

would appreciate any guidelines or outline of steps you have taken.

I have read the two planning guides you have posted and have started working on those details.

I am more interested in your lifestyle changes and thoughts on storage. What are the next steps,

we are running out of time......

Thanks!

 

LifeisGood's picture
LifeisGood
Status: Bronze Member (Offline)
Joined: Aug 16 2008
Posts: 27
Money Master

chameleon,

You mentioned the movie "The Money Masters" - its quite funny because I found this movie the other day and I think it was made about 15 years ago. It's amazing how they knew all this would happen.

Chris - you probably get this 1 million times a day but I am also "obsessed" with all of this and I come daily and sometimes multiple times to your site to get every news bit.

But somehow, all this news has effected me in a negative way - its just that I am not happy when I read these things but I must read to be informed. It's like having to breath but every time I breath my chest hurts. (just an anology) You get me?

I realize that the news won't stop and there will be continous bad news and warnings here so have I had enough? I already know that my country is insolvant, the dollar is crap and we're probably going into the "next great depression" - so what else is really there to know besides prepare and buy massive amounts of gold? (which I have)

Perhaps I should meditate daily and learn to become centered as my training has taught me in the past. Perhaps I need to realign and not let it get to my emotions. Its hard.

 

Will

joe2baba's picture
joe2baba
Status: Martenson Brigade Member (Offline)
Joined: Jun 17 2008
Posts: 807
money master

chameleon thank you. had not seen the  video just got done watching it will forward. a lot of it i already knew but like this site it puts it all into a neat little package. i am writing the idiots and calling. i disagree that we should not be angry it is a useful emotion and if used correctly can accomplish great things as in casting out the money changers. i thinks half our idiots are just that and the other half in the outer circle of the club

it always comes down to kaikaroo "what to do" . i suggest we start a "dead fed" movement get a page going and mobilize and get candidates to run on the idea of killing the creature. i am with chris on this single issue idea. vote out anyone who votes for this and vote for those who will vote to change the system ............ron paul anyone?

 until i watched the money  masters i did not rtealize how many people died after trying to get rid of the money changers.

i winder if ron paul realized he was actually putting his life on the line.

i love you all let's keep going together and take back our country

kcim67's picture
kcim67
Status: Member (Offline)
Joined: Aug 19 2008
Posts: 13
UK Impact
Last week there was a thread about how this debacle would play out in the UK, Where's it gone? There was also other bloggers from the UK participating on the thread. Get back in touch. Thanks
melissap's picture
melissap
Status: Member (Offline)
Joined: Sep 19 2008
Posts: 5
It hurts to breath

My advise is to take the long view. Over the course of human history, we advance and retreat in civil society. But over the long run, we do advance. I have lived in many societies all over the world. Oddly, there is a point where people are happier with less. Believe me, I love my internet, I love my pedicures, browsing the bookestore with my latte in hand et al, but I have lived in much much happier worlds. The times that are coming will be hard, but if we can reach back and take a page from our grandparents who lived through this before, and try to help each other, we may find a new way out. I remember my grandmother who told me about the tramps that came to their back door during the depression. Her mother always, always gave them something. Even though they had so little themselves. Now, it's all about - "you're stupid, "you didn't listen when I told you what was happening" "your greed put you in a mortgage you couldn't afford." But nobody mentions what we were hearing before this - like "the smart people invest in property." "Renting is for people who have no financial sense." "Historically, home prices always go up -so how you you lose!!!" It was like you'd be an idiot if you didn't buy large. Even now, no one's mentioning that when people bought homes just a few years ago, gas and food were also a lot cheaper - so a big mortgage was more affordable. We have an economy that depends on people buying ever more - yet we are condemned for having done just that. The little guy is slapped no matter what choices we make.

Anyway, I have been buying food. Food for myself and food to share if it comes to that. No doubt food will rise even more and when it comes down to it, food can be eaten, shared or traded.

jrf29's picture
jrf29
Status: Gold Member (Offline)
Joined: Apr 18 2008
Posts: 453
ytterbius's picture
ytterbius
Status: Member (Offline)
Joined: Jun 22 2008
Posts: 19
It's a sticky situation either way.

Lets say this bill failed to pass.  Sure, you might agree with the reasons for various folks to vote against it.  Then, however, look at your predictions about the stock market and the dollar on passage, and recognize that with no bill, those same manipulative interests would take the markets the other way, particularly since it seems to be the general assumption that MONDAY is D-Day.  Monday with no Bill is a really really ugly day on the market, and suddenly people who had previously believed that nothing should be done, will be pounding on their representative's door to save them.

I have to wonder what it was that Paulson / Bernanke said to GW and Congressional leaders about what was coming. 

cmartenson's picture
cmartenson
Status: Diamond Member (Offline)
Joined: Jun 7 2007
Posts: 5754
History repeats

The last time public input to congress ran anywhere close to the opposition expressed to the Bailout plan (and it's a distant second) was during the deliberation phase of the Iraqi war resolution in the fall of 2002.

I went eye-to-eye with my congressman of the time, a scary bastard whose prior claim to fame was running the infamous torture prison in Vietnam under the Operation Phoenix program, and called him a liar for saying the he had top secret irrefutable proof that Iraq was an imminent threat to the US due to its WMDs. 

I had read all of the UN reports on the subject and knew that what he claimed was impossible and told him so.  Probably not the smartest move of my life, but I don't see any particular reason to let people get away with bald-faced lying.  I can still recall the look of pure venom he had for being questioned by a 'nobody'.

The public was absolutely right then too but, as now, congress felt itself above the will of the electorate and in possession of better information that required "bold leadership" and "doing the right thing".

Of course, that all turned out to be wrong and the "little people" turned out to be completely right.

This time congress will turn out to be even more spectacularly wrong.

Either you believe in democracy or you don't.   Either the will of the collective is smarter than the individual or it is not. 

But let's at least be honest with ourselves here; we do not have a democracy.

Not when public opposition is running better than 100:1 against something that gets decided over a single weekend.

EndGamePlayer's picture
EndGamePlayer
Status: Platinum Member (Offline)
Joined: Sep 2 2008
Posts: 546
My Phone is out - someone call for me!!!
Senator Norm Coleman (R- MN) 202-224-5641 202-224-1152 http://coleman.senate.gov/public/index.cfm?
FuseAction=Contact.ContactForm
Senator Amy Klobuchar (D- MN) 202-224-3244 202-228-2186 http://klobuchar.senate.gov/emailamy.cfm
Representative Tim Walz (D - 01) 202-225-2472 202-225-3433

http://walz.house.gov/zip_auth.shtm

 

 

 

 

 

MY PHONE IS OUT - PLEASE SOMEONE CALL FOR ME - S JANSEN

cannotaffordit's picture
cannotaffordit
Status: Gold Member (Offline)
Joined: Jun 12 2008
Posts: 273
Money Masters video

Yes, but I just wonder what else they would say - that everything predicted is now coming to pass?

Does it seem reasonable to assume that it is far too late to change all this?   After all, anyone who COULD vote, for example, to issue REAL U.S. currency to replace fiat Fed Bank money, would never do so because they are all bought and paid for too.  And, it should also be pretty clear, from the past, that anyone who speaks out against the present system will, sooner or later, be simply killed.

 Still looking for a place to live where World Bank tentacles do not extend yet.

Ben 

dps's picture
dps
Status: Martenson Brigade Member (Offline)
Joined: Jun 27 2008
Posts: 442
The Senator to remember
Richard C. Shelby of Alabama, the senior Republican on the banking committee, who would normally be his party’s point man.

Pressed about his role, Mr. Shelby replied, “My position is ‘No.’ ”

 

That's a name I want to remember.  This is the good guy.

c.a. chapman's picture
c.a. chapman
Status: Member (Offline)
Joined: Sep 28 2008
Posts: 1
bailout b.s.
hard to disagree w/ complaint core:   having said that, WHY is everyone dumping ONLY on Frank, Pelosi, et al;   HOW about Hanke-Panke Paulson and Bush League;   they KNEW this was coming ------had HOPED to stall and let new prez. handle---(thus saving them the stressed out legacy)----Bottom line-----the future was coming toooo fast and they could not hold their finger in the dike any longer----------these 2, and Greenspan and Phil Gramm were HUGE in causing this---(and Mccain would prob. pick Gramm as his replacement for Paulson---------wheee-----
kingkang's picture
kingkang
Status: Member (Offline)
Joined: Aug 24 2008
Posts: 5
wait a minute!
if this is a blank check, how can the effects of this bailout go away?  i'm trying to time on when i want to get back into gold.
decky's picture
decky
Status: Member (Offline)
Joined: Sep 22 2008
Posts: 1
People of USA can have

People of USA can have their say over this shameless act - pull your money out of the foony banks, stop paying your morgage. Show your civil unrest - refuse to be enslaved by the banksters. Stop voting - do not accept politicians payed by the banks. You always have a choice!

pongchen2000's picture
pongchen2000
Status: Member (Offline)
Joined: May 19 2008
Posts: 1
everybody should have your opinion spread out

I call every single person on the list, most of their voice box are full. Great, UNITED WE STAND.

We should let our voice heard!!!

 contribute your time and energy now!!

gsti's picture
gsti
Status: Bronze Member (Offline)
Joined: Jul 21 2008
Posts: 60
UK

Hi kcim67,

if you mean me, you can contact me directly on email : comps (at) theintroducers.co.uk  (@)

nothing worse than having an email address crawled.

Lisa_P's picture
Lisa_P
Status: Member (Offline)
Joined: Nov 20 2008
Posts: 2
Re: Bailout is a done deal

Proponents of the new House plan say it should be palatable to critics of
any perceived bailout because both investors and borrowers would take a loss.
Banks and investors who hold those mortgages — often in complex mortgage
securities — would be required to write-down their value, while homeowners
would have their loans refinanced into more affordable ones.

It appears that a TARP was not enough to cover up the
mortgage crisis. Endangered mortgage homeowners could not benefit from the kind
of credit repair scores presented by Treasury Secretary
Paulson’s Troubled Asset Relief Program. On the contrary, 1.5
million homeowners can obtain a sense of security when they’re facing
foreclosure through the Federal Insurance Corp Chairman Sheila Bair’s new
mortgage modification program. This straightforward system, a $24.4 billion
program drawn from the $700 billion pool that TARP set up,
will allow lenders a stipend of $1,000 per loan they renegotiate with
financially stuck homeowners. In the event of default on a loan, the FDIC
has pledged to take on up to 50 percent of the loss. While Paulson proclaims
this as a mere spending that will only bankrupt the FDIC, many
view Bair’s movement as a needed investment to maintain the liquidity in the
mortgage industry. While this won’t solve all the problems immediately, it’s
certainly a bold effort to help repair credit.

Click to read more on Credit Repair

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