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Dolphins9954
09-17-2008, 10:04 AM
The U.S. government stepped in Tuesday to rescue American International Group Inc., one of the world's largest insurers, with an $85 billion injection of taxpayer money. Under the deal, the government will get a 79.9 percent stake in AIG and the right to remove senior management.

AIG's chief executive, Robert Willumstad, is expected to be replaced by Edward Liddy, the former head of insurer Allstate Corp., according to The Wall Street Journal, citing a person it did not name. Willumstad had been at the helm of AIG since June. A call to AIG to confirm the executive change was not immediately returned.

It was the second time this month the feds put taxpayer money on the hook to rescue a private financial company, saying its failure would further disrupt markets and threaten the already fragile economy. AIG said it will repay the money in full with proceeds from the sales of some of its assets.

Under the deal, the Federal Reserve will provide a two-year $85 billion emergency loan to AIG, which teetered on the edge of failure because of stresses caused by the collapse of the subprime mortgage market and the credit crunch that ensued. In return, the government will get a 79.9 percent stake in AIG and the right to remove senior management.
The move was similar to government's seizure on Sept. 7 of mortgage giants Fannie Mae and Freddie Mac, where the Treasury Department said it was prepared to put up as much as $100 billion over time in each of the companies if needed to keep them from going broke.
The Fed said it determined that a disorderly failure of AIG could hurt the already delicate financial markets and the economy.
It also could "lead to substantially higher borrowing costs, reduced household wealth and materially weaker economic performance," the Fed said in a statement.




http://news.yahoo.com/s/ap/20080917/ap_on_bi_ge/aig



Corporate Welfare at it's finest. Where does the Federal Reserve plan to get this money? The taxpayers don't have it. So once again the Fed will print the money out of thin air and thus continue to add to the inflation of our currency. Which in reality is an inflation tax that effects the poor and working class more than anything. So what is our representation doing about this? The GOP wants to give more power to the Federal Reserve. And the Dems want to give even more power to the FED than the GOP does.

http://money.cnn.com/2008/03/31/news/economy/paulson_regulation/index.htm?postversion=2008033115


So in other words we're screwed by our so-called representation. And the two-party system once again let's us down. Neither party offers a solution or a difference. No one even brings up the fact that the Federal Reserve is illegal and unconstitutional. They have no authority to print money and bailout corporations and leave the taxpayers with the bill. Not only that but this amounts to a government takeover of Wall Street and the economy. 80% of the company and the government controls who's in charge of the company. The last thing the government needs to do is be in charge of even more money. They have the worst track record when it comes to more money and power. Can 2012 happen already.

MDFINFAN
09-17-2008, 11:41 AM
http://news.yahoo.com/s/ap/20080917/ap_on_bi_ge/aig



Corporate Welfare at it's finest. Where does the Federal Reserve plan to get this money? The taxpayers don't have it. So once again the Fed will print the money out of thin air and thus continue to add to the inflation of our currency. Which in reality is an inflation tax that effects the poor and working class more than anything. So what is our representation doing about this? The GOP wants to give more power to the Federal Reserve. And the Dems want to give even more power to the FED than the GOP does.

http://money.cnn.com/2008/03/31/news/economy/paulson_regulation/index.htm?postversion=2008033115


So in other words we're screwed by our so-called representation. And the two-party system once again let's us down. Neither party offers a solution or a difference. No one even brings up the fact that the Federal Reserve is illegal and unconstitutional. They have no authority to print money and bailout corporations and leave the taxpayers with the bill. Not only that but this amounts to a government takeover of Wall Street and the economy. 80% of the company and the government controls who's in charge of the company. The last thing the government needs to do is be in charge of even more money. They have the worst track record when it comes to more money and power. Can 2012 happen already.

I'm glad you brought up corp welfare, first we have the underground corp welfare with low taxes and loopholes for more, and then we have the outright bail out... I'm waiting for all those fiscal conservatives to defind the corp welfare, since it's never good to give to an individual person...

http://www.finheaven.com/images/imported/2008/10/fiscalconservatives-1.jpg

LouPhinFan
09-17-2008, 12:03 PM
While I agree that bailing out troubled companies shouldn't be the governments calling, but in the case it had to happen. If AIG went under it could have triggered a global financial crunch that would have affected more countries than just ours. It probably would not have been pretty. So I agree with this particular case of "corporate welfare" as you call it.

The real question you should ask is "Why does the government keep deregulating the financial sectors thinking they can actually self-regulate?"

The finanical institutions of this country have repeatedly shown that they cannot regulate themselves. The stockmarket crash early in the 20th century, the S & L crisis of the 1980's, the energy companies of the 1990's, now the lending and housing sectors...a see a pattern that repeats.

phinfan3411
09-17-2008, 12:31 PM
While I agree that bailing out troubled companies shouldn't be the governments calling, but in the case it had to happen. If AIG went under it could have triggered a global financial crunch that would have affected more countries than just ours. It probably would not have been pretty. So I agree with this particular case of "corporate welfare" as you call it.

The real question you should ask is "Why does the government keep deregulating the financial sectors thinking they can actually self-regulate?"

The finanical institutions of this country have repeatedly shown that they cannot regulate themselves. The stockmarket crash early in the 20th century, the S & L crisis of the 1980's, the energy companies of the 1990's, now the lending and housing sectors...a see a pattern that repeats.


I honestly agree with everything you write hear, but I have one question.

Do or did, the bankers already have to operate by a set of guidelines as to who loans go to (as far as percentage) what income levels etc..? If this is in fact true, I believe the start of gov interference was the start of the problem.

MDFINFAN
09-17-2008, 12:42 PM
I honestly agree with everything you write hear, but I have one question.

Do or did, the bankers already have to operate by a set of guidelines as to who loans go to (as far as percentage) what income levels etc..? If this is in fact true, I believe the start of gov interference was the start of the problem.

That use to be true when they were regulated, when under scruitiny, they had to show sound practices when audited.. Once Gramm started the deregulations, and allowed companies to more or less govern themselves, the rules became so laxed that there wasn't much oversight at all. Lou has properly stated the case in terms of history and what happens every time we weaken oversight laws...that's can I always use the faze those who forget history often repeat it.. We need to face facts, that in order to run a orderly society, there has to be rules and oversight of the those rules.. Man, while good, will still crater to his personal needs at the expense of others.

phinfan3411
09-17-2008, 12:46 PM
Didn't much of this deregulation happen between 97 and 01 under hud secretary Andrew Cuomo (who was appointed by Clinton by the way)?

MDFINFAN
09-17-2008, 12:59 PM
Didn't much of this deregulation happen between 97 and 01 under hud secretary Andrew Cuomo (who was appointed by Clinton by the way)?

Actually it started with Reagan, it was one his favorite subjects.. He plus bush = 12 years of dereg..Clinton didn't really need to gut the system anymore, but Gramm when the repubs took over went a bit farther..and Now Bush 2 and laxed oversight, so we've had 20 years of Repub oversight..to 8 years of Dem...guess where all those problems Lou alluded to happened..

phinfan3411
09-17-2008, 01:03 PM
Actually it started with Reagan, it was one his favorite subjects.. He plus bush = 12 years of dereg..Clinton didn't really need to gut the system anymore, but Gramm when the repubs took over went a bit farther..and Now Bush 2 and laxed oversight, so we've had 20 years of Repub oversight..to 8 years of Dem...guess where all those problems Lou alluded to happened..

You are unbelieveable MD, yep your right Cuomo had NOTHING to do with it.

LouPhinFan
09-17-2008, 01:15 PM
Yes there were some misguided moves to deregulate by the Republicans. HUD pushed the loan companies to get more people in their own homes, regardless of their income. Thus you have people who make $40K a year buying $500K homes with exotic loans that blow up on them when they can't resell their homes. The deregulations of the '80's and '90's by all of government allowed the lending sector an avenue to accomplish what HUD wanted.

phinfan3411
09-17-2008, 01:22 PM
Actually it started with Reagan, it was one his favorite subjects.. He plus bush = 12 years of dereg..Clinton didn't really need to gut the system anymore, but Gramm when the repubs took over went a bit farther..and Now Bush 2 and laxed oversight, so we've had 20 years of Repub oversight..to 8 years of Dem...guess where all those problems Lou alluded to happened..

I tell you MD, I do not know about you. I learn much from this forum, I hope I am right 50% of the time. I live in NY, Cuomo wants to become governor bad, many people here, both liberal, and conservative note that he does not have much chance because of how he ran HUD.

You, on the other hand, told me how conservative you are, and I put Cuomo out there because he is actually a former HUD leader I know about, and you go to the edge trying to defend him, and bring all the blame on the conservatives.

I may be wrong on many things, but I do not misrepresent myself. What I say to you today, I still am tomorrow.

Dolphan7
09-17-2008, 02:05 PM
Well....more bailouts for sure, but if we don't bail some of these failing companies out, there may not be anything left to fix.

I am not sure I trust the Fed. I think we need to keep an eye on this whole market for the next 20 years or so.

MDFINFAN
09-17-2008, 02:13 PM
I tell you MD, I do not know about you. I learn much from this forum, I hope I am right 50% of the time. I live in NY, Cuomo wants to become governor bad, many people here, both liberal, and conservative note that he does not have much chance because of how he ran HUD.

You, on the other hand, told me how conservative you are, and I put Cuomo out there because he is actually a former HUD leader I know about, and you go to the edge trying to defend him, and bring all the blame on the conservatives.

I may be wrong on many things, but I do not misrepresent myself. What I say to you today, I still am tomorrow.

When did I defend Cuomo..I don't even remember discussing him..in any thread..

I'm only telling you what I know, and that's dereg was a central theme of the repubs, and they're the ones who pushed for it the most..and while in office they enacted the most legislation to dereg oversight portions of the gov't... I have my complaints about Dem's too..don't get me wrong, I can't stand peosi.. but for this particular debate, this is really a repub issue.

MDFINFAN
09-17-2008, 02:15 PM
Well....more bailouts for sure, but if we don't bail some of these failing companies out, there may not be anything left to fix.

I am not sure I trust the Fed. I think we need to keep an eye on this whole market for the next 20 years or so.

I agree, but as you've seen several times over the last 25 years, we can't trust our financial institutions either, hopefully we come up with an effective compromise that works to protect and yet allow the financial institutions to grow..

Eshlemon
09-17-2008, 02:46 PM
Well, now we don't have to worry about any qualms over to much or to little regulation of borrowing as the government now completley owns and controls Fannie Mac, Fannie Mae, and AIG. Think next up for the good of everybody of course is government compleley taking over healthcare and energy and...

Dolphins9954
09-17-2008, 08:22 PM
Well, now we don't have to worry about any qualms over to much or to little regulation of borrowing as the government now completley owns and controls Fannie Mac, Fannie Mae, and AIG. Think next up for the good of everybody of course is government compleley taking over healthcare and energy and...



You know what the scary thing is. It's not really the government controlling the economy. It's the Federal Reserve. Which has nothing to do with the government. It's a collection of Private Banks around the world controlling our economy and our money. And this private entity has no oversight or overview by the American people. They can do whatever they want because the Dems and GOP let's them. In fact they give them more power to do so.

Dolphins9954
09-17-2008, 08:46 PM
Major points are getting ignored in this thread.

1. The Federal Reserve is Unconstitutional. Only the government has the power to coin and print money. That power was given to the Federal Reserve illegally. Every time the government needs money (which is all the time). They go to the Fed. Who then prints the money out of thin air and charges us interest on it.

2. All these bailouts and loans from the FED. Destroys our currency. The Fed (A Private Entity) has control over our money and our economy. They inflate the currency with bailouts and loans to our government. Which has alot to do with the decline of the dollar. This amounts to an inflation tax that effects the working class and the poor more than anything. That's why everything costs so much. Inflation brought on by the FED. And a reckless spend-happy government.

3. Neither party is going to do anything about it. Both sides are in Bed with the FED. (No Pun intended).


The best course of action here would be to End the Fed. Then at least we could bring the Inflation under control. Next would be a government that doesn't put us in debt and constantly has to borrow money. Doesn't look like that will be anytime soon. Or from any of the Candidates. 2012 is all we can hope for.

Dolphins9954
09-18-2008, 10:18 AM
Looks like the Fed is at it again.





Scrambling to break the grip of a worsening global credit crisis, the Federal Reserve on Thursday pumped $55 billion into the nation's financial system.

The Federal Reserve Bank of New York's came in two operations injecting cash into temporary reserves, a move aimed to help ease a strained financial system in danger of freezing up.

The maneuver takes place as Fed Chairman Ben Bernanke battles the worst financial crisis since the Great Depression. In the last few days, the American financial system has been badly shaken as bad bets on dodgy mortgage-backed securities claimed more Wall Street giants.
The cash infusion was designed to help ease a spike in the overnight lending rate between banks. A sharp rise in such borrowing costs makes banks reluctant to lend to each other, worsening already tight credit conditions.

Hours earlier at 3 a.m. the Fed in coordinated action with other central banks, stepped up action to ease the intensifying crisis that erupted just over a year ago. They banded together to flood global markets with dollars. All told, the Fed increased lines of cash to central banks by $180 billion to $247 billion.


http://news.yahoo.com/s/ap/20080918/ap_on_bi_ge/fed_credit_crisis



If the bailout of Fannie Mae and the 85 billion dollar bailout/takeover of AIG. Wasn't enough. Now you have another 55 billion dollars to add to this. Their printing this money out of thin air. And flooding the economy with it. Which in turn will only add to the inflation and devalue of the dollar. Maybe that's the goal. Things are about to get more expensive people. Things are about to get worse.

Dolphan7
09-18-2008, 11:47 AM
According to NESARANOW:

Today we are witnessing why in paper fiat-land debt is a four letter word;
and a nasty one at that. The only thing the Federal Reserve has accomplished
since its creation in 1913 is the loss of 95% of the dollar's purchasing
power; and they are hard at work destroying what little is left.
Incompetence does not even begin to describe their actions.

This means that you and I - all of us, except the elite few - are becoming
poorer by the day. Our standard of living is decreasing - not increasing. We
owe more than we own: a prescription for debt-servitude - not the
accumulation of wealth.

The Fed was supposedly created to prevent bank runs and financial disasters
commonly known as depressions. Yet within 20 short years of its creation the
greatest depression ever to visit our shores occurred - The Great Depression
of the 1930's. It seems today they are trying for a new record.

Another reason the Fed was created was to supply an elastic money supply -
one that could easily be expanded whenever the powers that be, in their
all-knowing wisdom, determined more money was needed. There are a few points
here that miss the mark.

First, it is impossible for a few individuals to know what is best for the
market. The market is much wiser and all-knowing than any group of bankers,
as the market's recent actions clearly show. Such delusional thinking is
pure elitism.

Second, when money ceases to be gold and silver coin - hard money, and
becomes paper money, i.e. Federal Reserve Notes, the supply of money can
expand, as the elite wanted, on a whim; however - there is a price to pay.

Funny money is a funny thing, the more you expand the supply of it - the
more its purchasing power lessens: it is known as the debasement of the
currency - it loses value. Suddenly it takes more units (quantity) of money
to buy the same amount of goods.

Money is no longer the means to pay off debt, paper money is debt. The
United States has gone from being the world's largest creditor nation to the
largest debtor nation in the world. Weekly we are witnessing the unwinding
of the paper fiat money system, as it reverberates around the world.

Banks our going under, financial institutions are falling; hedge funds are
collapsing, bail outs are needed on a regular basis. Who pays for all this
mismanagement? We do - you and me.

The government gets money in one of two ways: they tax the people or they
issue (sell) debt (T-bonds). Federal Reserve Notes are the currency of the
realm. United State's T-bonds "secure" FRN's. T-bonds are paid for with
FRN's. Do you see the conflict of interest here - the moral hazard? Debt is
being used to secure debt. Credit is used to create more money and more
debt: promises back promises. It is a mug's game.

This is why the Constitution states that gold and silver coin is money - not
paper money. Nowhere in the Constitution does it allow for paper money to
circulate as the currency. As a matter of fact, the Constitution has an
express disability prohibiting bills of credit (paper money) from being used
as legal tender between the states.

Section 10. No state shall enter into any treaty, alliance, or
confederation; grant letters of marque and reprisal; coin money; emit bills
of credit; make anything but gold and silver coin a tender in payment of
debts; pass any bill of attainder, ex post facto law, or law impairing the
obligation of contracts, or grant any title of nobility.

When you look around and see all the financial problems occurring daily, it
is ultimately caused by the fact that our money is paper fiat debt-money,
when it should be gold and silver coin, as the above quote from the
Constitution expresses.

A paper fiat monetary system can only do what we are witnessing -
self-destruct, as the more of it that is issued - the more it loses
purchasing power. It is like a cancer that eats its host from within. What
is occurring is the systemic destruction of money, of the "system" - of
paper fiat debt-money.

No bail out or lending facility, no white knight or band aid is going to
save paper money, its fate was sealed the day it was created; it is simply
playing out the hand that was dealt.

The only answer for our economy and way of life is a new system - the system
the Constitution mandates: gold and silver coin: honest weights and
measures; and no bills of credit.

Dolphins9954
09-20-2008, 01:40 PM
Think the debt and inflation is bad now. Wait it gets better.





President Bush has asked Congress for the authority to spend as much as $700 billion to purchase troubled mortgage assets and contain the financial crisis.
The legislative proposal - the centerpiece of what would be the most sweeping economic intervention by the government since the Great Depression - was sent by the White House overnight to lawmakers. (Read the text here (http://money.cnn.com/).)
President Bush said Saturday that the plan matches the scope of the problem.
"It is a big package because it's a big problem," he told reporters at a joint news conference with Alvaro Uribe, the president of Colombia.
"The risk of doing nothing far outweighs the risk of the package," Bush said.
Treasury Secretary Henry Paulson, lawmakers and their aides are expected to work through the weekend in an effort to craft a bill swiftly. Democratic leaders on Capitol Hill said they expect the bill to go before a vote within days.
Paulson, Federal Reserve Chairman Ben Bernanke and other officials have said in recent days that the lack of easy credit between banks and other financial institutions threatens to inflict serious damage on the economy if not addressed immediately.



http://money.cnn.com/2008/09/20/news/economy/bailout_proposal/index.htm?postversion=2008092009



Things are about to go from bad to worse.

Dolphins9954
09-20-2008, 01:57 PM
Let's see if the candidate of "change" will come to our rescue.





In Saturday's Democratic radio address, the presidential nominee praised the efforts of Federal Reserve chief Ben Bernanke and Treasury Secretary Henry Paulson to protect the well-being and savings of American families and help the financial markets avoid collapse.

"We need to help people cope with rising gas and food prices, spark job creation by repairing our schools and our roads, help states avoid painful budget cuts and tax increases, and help homeowners stay in their homes," said the Illinois senator. "And we must also ensure that the solution we design doesn't reward particular companies, or irresponsible borrowers or lenders, or CEOs, some of whom helped cause this mess."

The administration is asking Congress to let the government buy $700 billion in toxic mortgages in the largest financial bailout since the Great Depression, according to a draft of the plan obtained Saturday by The Associated Press.

The plan would give the government broad power to buy the bad debt of any U.S. financial institution for the next two years. It would raise the statutory limit on the national debt from $10.6 trillion to $11.3 trillion to make room for the massive rescue. The proposal does not specify what the government would get in return from financial companies for the federal assistance.

Democrats were discussing whether to try to attach middle-class assistance to the legislation, despite a request from Bush to avoid adding controversial items that could delay action.



http://news.yahoo.com/s/ap/20080920/ap_on_el_pr/democrats_economy;_ylt=ArIkltSMWV7kVaRbncWmsvKs0NUE



Obama praising the Federal Reserve and Henry Paulson? Not exactly the "change" we need. Looks like the Dems are going to pass this 700 billion dollar illegal bailout. And they want to add even more to it. Way to go guys. Thanks for offering the American people a difference and choice. Thanks for the opposition!!!! Looks like the Federal Reserve is going to be working all night long. Printing Money out of thin air and inflating our currency. And putting us in even more debt.

Here is video as we speak.

http://www.youtube.com/watch?v=uPcpXFERiR4


When our whole entire economy comes crashing down. (And it will make no doubt about it). Many will be wondering who's fault it was. The blame lies with the whole entire government. Both parties and candidates. Neither side is offering change or solutions. This is a failure of government.

poornate
09-20-2008, 02:29 PM
The legality of it never enters the equation for me... do you realize what would happen if they didn't attempt this? Obviously you cannot know the implications or you wouldn't be questioning their actions... I never thought I would say this but.... Go Bush!?!

Dolphins9954
09-20-2008, 03:01 PM
The legality of it never enters the equation for me... do you realize what would happen if they didn't attempt this? Obviously you cannot know the implications or you wouldn't be questioning their actions... I never thought I would say this but.... Go Bush!?!


If the legality of the Federal Reserve is not in your equation. Try reading the Constitution.(Article 1 Section 8) Then explain to me how the power of printing and coining money that only our Congress has. Was given to the Federal Reserve without the required ammending of the Constitution. Only the Congress has this power. It was given illegally to the Federal Reserve. The founding fathers were very wise in realizing that this power should only belong to the government. Because they knew even back then that this power in the hands of Private Banks would destroy the economy. And that is what the Federal Reserve is. It's not Federal at all. Quite the opposite. It's a collection of Private Banks around the world that has contol over our money, economy, and inflation. Shouldn't we have that power? The constitution says we should. Jefferson once said he was "more afraid of Banks than he was invading armies." He was right.

Your "Go Bush" comment just affirms the fact that you have no clue what you're talking about. If you really think that printing money out of thin air. Flooding the Economy. Adding Trillions to the debt. Destroying the currency with Inflation. Is the best course of action. Then you don't know the implications at all. Then again "Go Bush" can be replaced with "Go Obama". Because Obama would be no different than Bush when it comes to Debt, Spending, Inflation and the Federal Reserve.

In fact these actions would do more to hurt poor and working families that Obama loves so much. This amounts to an inflation tax that would hurt them more than anything.

Thundercracker
09-20-2008, 03:09 PM
Fractional Reserve banking. More debt = more money, no debt = no money. ****ty system, and one that requires small amounts of foreclosures. See large amounts and you will see the destruction of the system.

shula_guy
09-20-2008, 03:11 PM
Im no econimist nor do I claim to be one. I hear this alarmist attitude that if we
(the tax payers) don't come to the rescue then it will spell econimic disaster for this country. They do it with the insurance companies, bankers and airlines. They seem to be the big three. It reminds me of anytime they need to raise taxes they always attempt to scare us into it. If we dont raise taxes we wont be able to educate our children or have policemen to protect you. The reality is there is plenty of other programs that could be cut that they dont want to, they want more of our money.

Now as I said at the start of this of this post, Im no economist and I do not really know if letting these people fail would be an econmic doomsday for us. Personally I tend to believe that yes we would take a step backwards and it would be a self induced market correction, which is what we need to beat inflation. If Im wrong, which I probally am, and we are really forced to bail these guys out. I want two things to happen here. I want people held accountable in the forms of jail time and the taxpayers being reinburst for their expenses with intrest. I would not let these companies open bacjk up, buiness as ussaul without major restrictions in place desighned for them to pay us the tax payers back for our losses.

I am not even going to get started on the unconstituniality of the fed. Fix our tax system first. This country needs to move to a consuption tax that works off of our GNP. It needs to stop siezing our pay checks and stealing our money. Get that accomplished, then we can begin looking at a plausable solution to the fed.

Dolphins9954
09-21-2008, 12:44 PM
No Opposition. No Choice. No Representation.






Sept. 20 (Bloomberg) -- The Bush administration asked Congress for unchecked power to buy $700 billion in bad mortgage investments from U.S. financial companies in what would be an unprecedented government intrusion into the markets.

The plan, designed by Treasury Secretary Henry Paulson (http://search.bloomberg.com/search?q=Henry+Paulson&site=wnews&client=wnews&proxystylesheet=wnews&output=xml_no_dtd&ie=UTF-8&oe=UTF-8&filter=p&getfields=wnnis&sort=date:D:S:d1), is aimed at averting a credit freeze that would bring the financial system and economic growth to a standstill. The bill would bar courts from reviewing actions taken under its authority.

``It sounds like Paulson is asking to be a financial dictator, for a limited period of time,'' said historian John Steele Gordon (http://search.bloomberg.com/search?q=John%0ASteele+Gordon&site=wnews&client=wnews&proxystylesheet=wnews&output=xml_no_dtd&ie=UTF-8&oe=UTF-8&filter=p&getfields=wnnis&sort=date:D:S:d1), author of ``Hamilton's Blessing,'' a chronicle of the national debt. ``This is a much-needed declaration of power for the Treasury secretary. We can't wait until the next administration in January.''

As congressional aides and officials scrutinized the proposal, the Treasury late today clarified the types of assets it would purchase. Paulson would have authority to buy home loans, mortgage-backed securities, commercial mortgage-related assets and, after consultation with the Federal Reserve (http://www.bloomberg.com/apps/quote?ticker=FDTR%3AIND) chairman, ``other assets, as deemed necessary to effectively stabilize financial markets,'' the Treasury said in a statement.
The Treasury would also have discretion, after discussions with the Fed, to make non-U.S. financial institutions eligible under the program.
Bigger Than Pentagon

The plan would raise the ceiling on the national debt and spend as much as the combined annual budgets of the Departments of Defense, Education and Health and Human Services. Paulson is asking for the power to hire asset managers and award contracts to private companies. Most provisions of the proposal expire after two years from the date of enactment.

The proposal would raise the nation's debt ceiling to $11.315 trillion from $10.615 trillion and require the Treasury secretary to report back to Congress three months after Treasury first uses its new powers, and then semiannually after that.



http://www.bloomberg.com/apps/news?pid=20601087&sid=aZ2aFDx8_idM&refer=home




Unchecked power.
Government Intrusion.
Financial Dictatorship.
No overview or oversight.
Banning courts from reviewing it's authority.
Giving up to 125 billion to foreign banks.
Raising the debt to 11.3 trillion dollars.
Printing money out of thin air.
Flooding the Economy with it.
Destroying the currency with inflation.
More power to the illegal Federal Reserve.

Can anyone explain to me why this is good for the country?

You also have two candidates ready to add another 4 to 5 trillion dollars of debt to this mess. Good times ahead.

Ferretsquig
09-22-2008, 06:54 PM
Can anyone explain to me why this is good for the country?

The main difference between the US and the rest of the industrialized world, outside our amazing system of higher education, is the ease at which capital flows. That entrepreneurial spirit we are so famous for and the abundance of small businesses driving growth doesn't exist without cheap and easy money.

Personally I think they should let the whole thing collapse, make a few million people homeless as punishment for their stupidity, and send the executives who thought up this mortgage pyramid scheme to jail for the rest of their lives. But it's a choice between inflation and recession, and they chose the former. Either way it'll lead to another period where we experience a reduction in the quality of life....bringing us ever closer to the rest of humanity.