Money Beat

Bush is following someone else's lead again? No surprise there....

Only goes on to show how incompetent the ex-Goldman CEO is. Mr. Stuttering Fool was adamant about not injecting capital (along with the other moron, Bernanke) into institutions because this was about successful banks and not failure. He wanted to just put the losses under the rug but obviously he didn't know what was coming. About time we stop giving so much attention to wall street insiders who brought the nation to its knees to fix their mess.
Bottom line, close down insolvent banks and inject capital into solvent ones. Its that easy if you want to save the economy. If you want to save insolvent ones too (such as Goldman Sachs and Morgan Stanley etc) you can give the taxpayers another half a trillion dollar bill. As long as the crooks are in the treasury we will unfortunately be bailing out the insolvent ones too.

Someone must've tied and bound Bush. This might be the first and only time he listens to anyone but his good old boy network of bad advisors. Maybe Tony Blair promised him another sleepover if he went along with Gordon Brown's plan.... either way - I hope it all works!

Last week, Bush was faulted for the big drop.

Why not run a story about how he engineered a big upturn.......

Oh, I forgot, this is ABC News, the pro Democrat news service.

This is a massive government effort to resuscitate an unsustainable economic climate. For years - probably a decade or more - the foundations have been built on an impossible debt-laden spending spree that has put us far from any kind of sustainable long-term equilibrium. And, we're using ever more debt as the "fix". Leaders, even in a great democracy, still believe as Jack Nicholson once barked in an excellent movie, "You can't handle the truth!

Its hard to inject capital directly into banks when you have trillions in deficit. What does the US government do? Takes out a loan and gambles with it. That is the american way.

I wonder why so many run to blaming Bush when this problem has neve fallen solely on his shoulders? In fact, people seem to be forgetting relatively quickly that there was a very high percentage of Democrats that voted for this bailout.

I agree that no one should have listen to Bernanke and Paulson. Why would you let the person who got you lost try to lead you out of the woods?

Here's the uncomfortable truth, poorly run banks must die and their CEOs blacklisted in the natural open market way. Bernanke needs to increase the interest rate and the government needs to insure credit lending. Then every American needs to tighten their belts and pay the piper. No, it's not a popular idea, but we are going to have a recession either way. Personally I'd like to come out of it with a stronger economy and banking industry rather than one that has been falsely valued and set up for a big failure within a decade.

BTW - Greenspan please come back! Bernanke is in way over his head!

to understand more of what is going on in the markets you might want to read this webpage-it's a few years old but has hit this fiasco on the mark and explains the rush for a bail-out if needed;

http://www.revelations.org.za/Reports.htm#Iranian_Oil_Bourse

It was David McWilliams the Irish economist who first came up with this plan. The Irish gov followed his advise 2 weeks ago. Brown was against this plan until this weekend.

The UK politicians apparently work together (watch BBC to see live coverage of their "bailout") when they need to whereas US politicians find a way to point fingers at those on the opposite side of the aisle while not thinking about the general public - their constituency. The divide between the parties seemed to grow larger in recent history. When they start working TOGETHER we can see changes but for now, it's still a "what's in it me" mentality among our elected officials.

There is going to be a spectacular crash the end of this week and option contracts come due. They are not going to have enough money to cover the drop.

I can't believe people are this stupid. A worldwide recession is underway, 2009 reduced earnings have not been taken into account yet, hugh layoffs coming and the American buy this "Rescue Plan" hook line and sinker. Look for DJIA to go under 7,000 real soon. I really can't believe how gullible the average American is. Oh well, I guess everybody deserves what they get in the end.

Again everything is about money. All those miniatures words in the bottom line. That is were the catch are most of the time which restrict the options for the smooth flow of the buying part of the game. And on the other hand the credit bureaus scoring and all of that restricting boundaries play in the credit choking dilema at same time.

David McWilliams
http://archives.tcm.ie/businesspost/2008/09/28/story36245.asp

Last week, Bush was faulted for the big drop.

Why not run a story about how he engineered a big upturn.......

Oh, I forgot, this is ABC News, the pro Democrat news service.

Posted by: Airtime | Oct 13, 2008 11:34:02 AM
**************Perhaps becuase this article is about Britain's idea and not the US's......

The US is always a day late and a dollar short compared to Britain. That's why they have to send broadcasters and stars over here because our people are too stupid to think...Britain has to stand in for our brains that we're lacking on this side of the Atlantic. All we have to offer the world is un-reality-tv and the pornographic rap of "Lil Wayne". We can't even figure out why not to vote for John McCain. Now THAT IS STUPID.

Mr. Paulson, the friend of the financial industry, should resign, at a bare minimum.
His plan was to steal from the taxpayers in direct violation of his fiduciary responsibilities.
His plan was to shift the losses of the industry to the taxpayers.
The infusion of equity via the preferred stock with warrants route is the correct method.
Yes..., it will dilute shareholders' interests, but that is appropriate and the nature and residue of capitalism.
Someone suggested that Bush was not given credit for the recent "adjustment".
He was forced into accepting the "modification" from larceny to rationality.
Credit? He should go the route of Mr. Paulson, since he advocated the origianl plan.
After all, what should happen to a Congressperson who writes a two million dollar check from public funds to a friend??
Perhaps jail?
Lastly, it's the economy, stupid.
This banking phenomenon did not cause the poor economics. The poor economics caused the banking phenomenon.

Enjoy...............

Funny how the Republicans drove us into socialism.

Thanks to the Republicans, America will be number three, behind Britain and China. We are going down, down, down. Obama, Help us!!!!!!!!!!!!!!!!!!!!

Nicely said lee. And for Megan,sounds like your a Republican. Too bad for you,just ask your family members how their 401Ks and other retirement plans looking today. ENOUGH SAID!!!!!!!

McCain Bush are followers, they were asleep at the wheel and almost caused a depression thanks to republican greed and short term "thinking" !

This is an excerpt of a webpage written in 2006;

Whatever the strategic choice, from a purely economic point of view, should the Iranian Oil Bourse gain momentum, it will be eagerly embraced by major economic powers and will precipitate the demise of the dollar. The collapsing dollar will dramatically accelerate U.S. inflation and will pressure upward U.S. long-term interest rates. At this point, the Fed will find itself between Scylla and Charybdis-between deflation and hyperinflation-it will be forced fast either to take its "classical medicine" by deflating, whereby it raises interest rates, thus inducing a major economic depression, a collapse in real estate, and an implosion in bond, stock, and derivative markets, with a total financial collapse, or alternatively, to take the Weimar way out by inflating, whereby it pegs the long-bond yield, raises the Helicopters and drowns the financial system in liquidity, bailing out numerous LTCMs and hyperinflating the economy.

Sound familiar?
check out the rest at;
http://www.revelations.org.za/Reports.htm#Iranian_Oil_Bourse

SORRY MEGAN,I MEAMT AIRTIME.

Those are two different solution to two different problems.

The whole thing stems from the problems in the mortgage market. Which in turn stems from Democrats passing laws to make it possible for poor uneducated irresponsible people to get home loans they couldn't handle. PERIOD

McCain Bush Palin Cheney time for all of them to retire or even better be arrested for treason!

Britain is fineing and jailing some bankers and Bush (the weasel) should do the same. Bush sure talks tough to terrorists with torture, but barely a slap on the wrist for his buddy bankers and financiers/lobbyist who perpetrated the sham and cost millions of us our retirment , savings, job etc. As far as I am concerned they are financial terrorist and derserve the same if not worse than those at Gitmo!

Sorry but I think your comment in the article isn't quite: it was not Britain but the Netherlands who first spend some 36 billion euro to get stakes and stocks in their bank. The bailout money for such a small county is 200 billion euro.

GOOD THATS GREAT NEWS...WE FOUGHT THE WAR AND THEY PAY THE BILL GREAT...

Paulson have lost all his credibility when he scared Bush and Congress to immediate passage of his $700B Paulson Bailout Scam that helps none and nobody but his friends and former cohorts in Wall Street.

Paulson had now also lost the confidence of the other 6 finance ministers of the G7 Group and of the European countries, including its Prime Ministers.

With Paulson worldwide downfall, US no longer leads the world financial communities but become a follower and copycat to the financial ministers of the said G7 and of European countries.

With the big stock market surges today, Paulson and Obama would claim credit for being right about solving or easing our financial crisis.

Forget about McCain, he does not have the audacities of Obama to know and claim superior experienced expertises on anything and everything to be our country’s President.

Obama is simply a much better salesman than Paulson and McCain.

we should be happy that gov paid up. now let's get to work and elect mccain. obama can lead when he shows more passion and in 4 years or 8. he is young enought to wait and we need experience to sustain the tought times we have gone thru. country still too devided for him to lead but i bet he will win hands down when all dust settles. hurray for usa and britain. i'll be investing in pharmaceuticals in years to come as we now face an againg society. almost 80 million of the 300 million americans will retiring in next several years and it's our turn to take care of them. greeeeeeeeeeaaaaaat news.

"Reconstruction Finance Corporation". Is this the GOP "October Surprise"?

Sounds like Russo was right.

http://michaelfury.wordpress.com/2008/09/24/as-wall-street-is-transformed-a-reminder-from-aaron-russo/

Actually the fault lies in Executive pay based on short term goals, which caused the need for different financial instruments that allowed the Corporate Executives to push fake earnings, and increase their pay. In short, GREED!

You say you want a revolution. I'am at that point. Between me and you what we need is to start throwing these Wall St. Terrorists and criminals in jail. Yes I said TERRORISTS and CRIMINALS. What they should be charged with is TREASON!!!! How dare they (Criminals like Phil Gramm) call me a whiner when they take my money that I invested for my retirement and steal the money and leave me with nothing. I did not screw up I played by the rules, I went out and worked mu 8 plus overtime every day. I did not go out and figure out ways to screw the United States populace on my 3 martini lunch brakes. They say that the money was never there in the first place. Well explain where the MONEY in my 401k went to. I deposited it. Huh Now as these a###oles get their bonuses and ride off to their Mansions and gated communities with their truckloads of cash. As I eat my catfood and have my house foreclosed on. I hope that HELL has a special place for you. If I was King for one week I'd make sure that all you TERRORISTS would be swing at the gallows by friday. It does not matter if you steal with a gun or with a keystroke it is stealing.

IT IS A SHAME THAT AMERICA IS NO MORE SUPER-POWER UNDER THE REPUBLICANS ! 8 YEARS OF ECONOMIC DOOM. AND WITH J.McCAIN DECLARING HE NEEDS EDUCATION ON THE ECONOMY AT THIS TIME, IT IS VERY SCARY!! YOU CAN´T BE MILITARILY STRONG IF THE ECONOMY CONTINUE TO GO DOWN THE DRAIN !!

IT IS A SHAME THAT AMERICA IS NO MORE SUPER-POWER UNDER THE REPUBLICANS ! 8 YEARS OF ECONOMIC DOOM. AND WITH J.McCAIN DECLARING HE NEEDS EDUCATION ON THE ECONOMY AT THIS TIME, IT IS VERY SCARY!! YOU CAN´T BE MILITARILY STRONG IF THE ECONOMY CONTINUE TO GO DOWN THE DRAIN !!

If anyone reading this cannot realize they are wrong about what they think about this situation, there is no hope of you ever becoming correct.

Similar, I know that my final analysis will most likely be wrong, but I blame the lack of real knowledge being described to the population, not the lack of intelligence. Most people 75-80% are geniuses at least they are in elementary school (just finished an experiment showing this factually).

Now to the economy, Derivatives in America, do NOT get an automatic stay during bankruptcy. THEREFORE, technically, they beat ALL creditors, EVEN Federal government. It has been because of OFF-SHEET tranactions, the same 'type' as ENRON that has screwed the banks.

ALSO, DO NOT BLAME THE DEMS, IT was the BANKS who LOBBIED and ADVERTISES for over TWO WHOLE YEARS to allow for Equity Lines of Credit. It has been the use of houses as ATMs that has 'screwed the pooch.'

As an bubble, housing burst, but the causing of systemic collaspe has been because unlike Enron and Worldcom, banks had to keep these assets on their books. Also PRIVATE EQUITY funds have been robbing the public firms balance sheets for years after Enron.

When you blame one reason, like Dems, Bush, or others, like only derivatives, or only housing, you will most certainly be wrong. Even though in this case, mostly it was 'free-market radicals' termed 'liberal economics' in Britain, but called 'conservative economics' in America, that caused most if not all these problems.

HILLARY CLINTON SAID:

SENATOR JOHN MCCAIN HAS A LFETIME OF EXPERIENCE THAT HE WILL

BRING TO WHITE HOUSE AND SENATOR OBAMA HAS A SPEECH HE GAVE IN 2002.

NO WAY. NO HOW. NOBAMA.