 |
 |
 |
|||
 |
|||
 |
|||
 |
|||
 |
|||
 |
|||
 |
|||
 |
|||
 |
|||
 |
|||
 |
|||
 |
|||
 |
|||
 |
|||
 |
|||
 |
|||
 |
|||
 |
|||
 |
|||
|
|||
 |
|||
|
|||
 |
|||
|
Big bailout is unlikely to work
- Text size
James Saft
Reuters
September 26, 2008
The U.S. “hold-to-maturity” bailout plan is really just the new “mark-to-myth,” and even its heroic proportions are not likely to paper over solvency problems in the banking system.
 |
|
|
|
|
Ben Bernanke, the chairman of the U.S. Federal Reserve, told lawmakers that the plan to spend $700 billion to buy up bad assets would allow banks to avoid unloading loans at fire-sale prices.
“Auctions and other mechanisms could be devised that will give the market good information on what the hold-to-maturity price is for a large class of mortgage-related assets,” he said, trying to persuade a skeptical Congress that the plan he and Treasury Secretary Henry Paulson Jr. have been pushing will give value for taxpayers’ money.
Banks are forced to mark their assets to market, a process that has become increasingly painful and is likely to lead to bank failures as a shortage of investors and the swiftly declining performance of the underlying collateral have driven prices lower. Since many securities are so complex that they seldom trade, banks sometimes must mark the assets according to modeled prices, a process sometimes referred to as “marking to myth” by doubters.
|
-
- Social bookmarks
- Email this article
-
- Print this page
- Share on Twitter
September 26th, 2008 at 3:35 pm
Everyone on INFOWARS listen carefully. Go and Google “Support H.R. 2755″. This resolution was introduced by none other than Ron Paul and is known as the “Federal Reserve Board Abolition Act” which will repeal the Federal Reserve Act and abolish the US Federal Reserve at the end of 1 year after its passing into law. Everybody go start blogging and e-mailing everyone you know with this info. It’s time for everyone to write your local and state officials as well as your congress and urge them to support this resolution. Lets do this. This is the only viable answer to the ever growing problem that is our economy.
September 26th, 2008 at 3:45 pm
Support H.R. 2755
September 26th, 2008 at 3:56 pm
These are supposed to be the great minds that think they can figure all of this out. Obviously, it was all set up as distortions and lies so a few people would benefit. We are in for a lot of trouble.
September 26th, 2008 at 4:04 pm
The longer it goes on, the less likely people will buy into. Oh crisis crisis…what a bunch of bull!!!
I bought the first season of Bullwinkle and rocky and it makes more sense then this bailout and a bunch of traiters trying to hang this manufactured crisis on us.
September 26th, 2008 at 4:12 pm
ANYONE KNOW WHAT HAPPENED TO http://WWW.DOCUMENTARYWIRE.COM
September 26th, 2008 at 4:17 pm
I think the government is brain washed do they actually think they have the money to do this ? If they spend 700 billion and it does not work then we all are going to be in hell ..
From the math this could only work IF we had money coming from other sources than we have and we have NO money left to be playing shit games like this .
Let the stock market work its self out spend the 700 billion on gold and save it so the united states will be worth at least some money when we all fall to the darkness of hell .
…………………………………………….
Alex would it be possible for a little Guns N Roses music next week on your radio show .
You always have music between breaks and It would be a big boost of energy for a little welcome to the jungle
Any song from them would be cool .
September 26th, 2008 at 4:22 pm
H.R. 2755
September 26th, 2008 at 4:41 pm
This isn’t about bailing out banks or the economy. This is about saving the Federal Reserve System.
It’s not about lending to bad borrowers or lenders following bad practices or deceptive practices.
It is about the debt system that has grown so large that it must fall and the ride ends, or they dump more debt to buy up debt to allow the Federal Reserve System to stay functional.
Without this bail out, the Federal Reserve System will be finished. They will not allow that to happen.
Yes HR 2755 exists, but stands as much chance of passing as an elephant through a pin hole.
This is the line in the sand for the Feds, they know it and are using the fall of the economy as a spin. It will be the Federal Reserve System that will fall.
It’s 1913, and the fraudulent passing of the 16th Amendment. This is 2008 and the passing of a spending bill to allow them to put their venomous poison debt upon the citizens.
Everyone I know are blind to the reality of this bill, and the Federal Reserve System, and will not listen to anyone. Just like the the rest of the blind uneducated people of this stupid country.
If they pass this bill, we’re fucked. Those criminals will own over 50% of the property in the United States.
JPMorgan is buying every failing bank he can buy at pennies on the dollar, yet the depositors are getting $100,000 if they had $200,000. It will be the biggest transfer of wealth since 1929.
When will we all have enough, and march to our capitol together, and demand the Congress take back the issuing of our currency?
If we don’t we will lose even more than we have.
September 26th, 2008 at 5:19 pm
What are you doing this week-end?How about getting together,go for a walk,go visit our friendly bankers.I heard that they are organising an open house.Come an join me ,it will be fun.
September 26th, 2008 at 6:11 pm
Does anybody understand one word that “ELMER barney frank FUDD” says when he mumbles? How embaracing for the dumb dems! Bush is giving them all roofies and dumb water, while trying to fool them! They’re screwed, no matter how they try and change the paulson plan, they will still fall for it, IDIOTS! What a comedy, at least the repubs are laying low. Pelosi, what a dimwit, and harry reid just wants to call names, what a bunch of stooges!
September 26th, 2008 at 6:12 pm
This bailout equals about $30,000 for every American. Why should the bankers get it? Wouldn’t $30k in everyone’s pocket boost the economy even more? Or why not give it the FDIC to cover the money depositors will be out when all the banks fail for real? Why isn’t it making news that all banks are broke? According to the Federal Reserve’s own website, every bank is BROKE! To bail out the banks for real, they need $158,345,000,000 which is the amount of non-borrowed assets of every bank in the Federal Reserve system COMBINED plus the $700 billion they need to buy the useless paper backed by defaulted mortgages. If the banks didn’t borrow money every single day they would be out of business. BTW- where are all of our bank deposits?
September 26th, 2008 at 6:44 pm
If you give people 30 000 dollars or pay off everyones home from money that is not even real or money that just printed up to fix it then the US dollar will be worth nothing
September 26th, 2008 at 7:15 pm
Here are some recent revealing GW Bush quotes:
“I’m a strong believer in free enterprise, so my natural instinct is to oppose government intervention. I believe companies that make bad decisions should be allowed to go out of business.”
“The FDIC has been in existence for 75 years, and no one has ever lost a penny on an insured deposit, and this will not change.”
“The problems we’re witnessing today developed over a long period of time. For more than a decade, a massive amount of money flowed into the United States from investors abroad because our country is an attractive and secure place to do business.”
Is our president implying that the foreigners who buy up our infrastructure are simply the ones to blame? The “credit crisis,” as Bush describes it, is perhaps nothing more than the kind of crisis a high school kid faces when his parents scale back on his allowance. It means less high living, a few more nights pretending to do homework rather than going out with his weed smoking, drinking friends. It does not mean the end of the world. Free enterprise is a profit and loss system. This is a time of losses, stemming from an overinflated credit sector. Since when has it been an article of our national religion that the economy must never, ever, under any circumstances, be permitted to fall into recession, even slightly? This GW Bush logic is completely insane. Virtually our entire financial system is based on an illusion. We spend more than we earn, we consume more than we produce, we borrow more than we save, and we cling to the fantasy that this can go on forever. The glue that holds this crumbling “Humpty Dumpty” scheme together is the fiat currency known as the Federal Reserve Note. The way I see it, if the president and Congress sought a godly solution they would strive to save the hostages, not the kidnappers. I see the Federal Reserve and Wall Street as the kidnappers. We the taxpayers are simply refusing to be held hostage in this “Economic Armageddon.” The Federal Reserve has morphed into the Federal Abandon. Like the old expression “that’s swell,” will any sane person still use the expression “you can bank on it?”
Here are a couple timeless Thomas Jefferson quotes:
“To preserve their [the people's] independence, we must not let our rulers load us with perpetual debt. We must make our selection between economy and liberty, or profusion and servitude”
“If the American people ever allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all their property until their children will wake up homeless on the continent their fathers conquered.”
September 26th, 2008 at 7:58 pm
Washington you’re spot on Sir!!!
September 26th, 2008 at 7:59 pm
I just contacted all of my Oregon House representatives and Senators, 2:00 PM 09-26-2008 all were in meetings, however the congressional aids were all appreciative of the message, and they assured me they would pass it on. The message was: we here in Oregon are fed-up with politicians that are voting for big business bills such as the Bailout Bill, and further more, where is the 700 billion suppose to really come from? We don’t have it! In-addition, for those congressional leaders that are voting for the Bailout Bill that are not in my district, I will campaign for their upcoming opposition, next election. Please Phone your representatives! http://www.senate.gov/general/.....m?State=OR
September 26th, 2008 at 8:57 pm
Take that fucking bastard Paulson and dip him from head to foot in tar and diesel fuel, then stick a pole up his ass and light him on fire… a one a be dictator of the usa…
September 27th, 2008 at 4:16 am
Aides to lawmakers in both parties say telephone calls from constituents are running heavily against the bailout — in some cases nearly 100-1 against, making the vote a potentially tricky one for a candidate in a competitive race
well we are doing some good got this off msn
September 27th, 2008 at 9:11 am
SOLUTION FOR THOSE WANTING TO STOCK UP NOW:
Max out your credit cards in order to purchase survival gear and then subsequently, file Chapter 7 bankruptcy. The bankruptcy court will have to approve it as long as you wait 6 months (180 days) after your last major purchase and not make it look fraudulent.
If you still have credit during the 6 month period, you can use your credit cards to buy groceries, pay rent, utilities, gas and car maintenances during this “waiting” period—just no major purchases. The key is using the right strategy and doing it smart!
As a caveat, my sage advice is to transfer—title ownership only—your house, car, etc. to someone else during the meantime so that the court cannot relegate them. A friend of mine purposely maxed out his credit cards up to $60K then filed Chapter 7 successfully. He still has everything and is now $60K richer in survival gear including guns, ammo, storable food, bunker, etc.
You can do it too but do it now before the imminent collapse of the United States of Hysteria!
September 27th, 2008 at 9:12 am
For those who say “my solution” is stealing:
I’ll bequeath unto you a little example:
Let’s say you and your family are left with nothing—no money, no food, nothing. Now, the only option for you is to steal a loaf of bread from a corporation (e.g. credit card company), to feed your children or else they starve to death. Would you do it? I would, thus, my children live. You wouldn’t, thus, your children die. Sometimes, the right thing to do is the immoral thing to do. Look up moral consequentialism and learn something.
==========================
For anyone else whining:
This solution worked for my friend successfully, who filed Chapter 7 just last year. It works! You just have to be smart about how you do it.
Moreover, You CAN’T be thrown in jail for debt, UNLESS:
1) It’s for income tax evasion <- Not Applicable
2) It’s for child support evasion. <- Not Applicable
3) It’s found fraudulent. <- (which I already covered) If you make it look legit, then you can’t be found fraudulent.
Furthermore, the debt that you accumulate does NOT get paid back from our pockets! When a credit card company grants you a credit limit increase, do you know where the money comes from? It’s called fractional reserve banking, meaning they can loan up at a minimum 10 times for every dollar. This means it’s created out of thin air, NOT from our pockets! Thus, paying back the debt doesn’t come from people like you and me.
Besides, the merchants you buy from will be happy because you’re purchasing their stuff and they get paid regardless. You only end up screwing the credit card companies! Woe is them!
By the way, I know stealing is stealing. I did say it was immoral (read above) and I also posted something about moral consequentialism (read above). But you won’t be complaining about stealing when you’re starving on the streets after the police take your house away.
September 27th, 2008 at 9:13 am
@Cindy
Tell my friend how inaccurate or misleading it is, since he filed Chapter 7 successfully last year. stupid b1tch.
September 27th, 2008 at 11:04 am
BECOME A SOLDIER IN THE INFORMATION WAR!!!
HIT THE STREETS WITH FLYERS AND DVD’S!
Wearechange.org has a great 911 Truth flyer. Of course, you can cover whatever issue you feel is most important, or whatever you are most educated about. You can even just leave flyers and/or DVDs laying around for people to discover.
WHAT KIND OF CREATIVE, UNIQUE INFORMATION WARFARE TACTICS CAN YOU DEVISE? IF YOU COME UP WITH A GOOD IDEA, MAYBE YOU COULD FILM YOURSELF IN ACTION AND SHARE IT WITH YOUR FELLOW INFOWARRIORS!
Remember, the first step in turning this thing around for Freedom and Justice is to have a critical mass of well-informed and inspired individuals.
SO LET’S KICK SOME ELITIST ASS… OUR FAMILY’S FUTURE IS AT STAKE!!!
On with the r3VOLution!!!…
!!!DTTNWO!!!
September 29th, 2008 at 10:03 am
Peace and blessings unto all.
As we see with this unbelievable and horrible economic crisis, “they” will do whatever “they” want in “their” own interests despite the suffering it will inflict on us the masses at large. Amazingly enough, America has been ruled by these ivy-league aristocratic bankers who continually create these terrible socio-economic circumstances and somehow are still seen as the “best and brightest”. It’s time to realize that these ruling elites are the enemies of humanity and serve only themselves and their kind. If you doubt this, just wait and watch it unfold before your very eyes on the false prophet of television that is their greatest propaganda weapon yet.
Here’s what to do – realize that we are powerless to the process. Stop participating in any and all governmental activities short of violating any laws. Stop voting. Stop spending beyond your means. Spend time with your family and loved ones. And pray for mercy.
Go further, think deeper & seek the truth at all costs. Learn more at http://www.subversivearchitect.com