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.