US Weighing Plan to Set Up Facility for Bad Debts

Infinite deregulation of corporations brought us Enron and the mess that is going on with our economy.

Anyway, they want to wipe out corporate debt as in the financial institutions so they can start again another vicious cycle of loans to the people.

I thought that the loans and credit are part of the mess

reply to post by marg6043


Yes, your right marge. They still think they can make it work. But in the process of trying to fix it, they are doing nothing but digging a hole and covering us with more debt. You know, when it gets stacked on us to a point where it may fall over, to make it better, they dig a nice deep hole for us to stand in, that way, they can add to the pile now.

reply to post by FiatLux


Did you heard Paulson about the price tag to the tax payer for their new bad Debt facility billions of billions, now that means trillions.

Now who is going to wipe that debt from the tax payer?

I guess we are truly nothing more than slave to the our own government and now the new empowered federal government.

I am still without words as why nobody is screaming foul play and fighting for the American tax payer.

reply to post by FiatLux


That's why figures in Wall Street now believe New York will lose out to London as the finanical capital of the world. I'm not being bias towards my nationality - but it's true.

Wall Street has no choice, but to be controlled from Washington for about 18 months to two years in order to reconstruct the financial system (and to ensure tax payers money is protected.)

reply to post by marg6043


"Did you heard Paulson about the price tag to the tax payer for their new bad Debt facility billions of billions, now that means trillions."

Oh yea, it doesn`t suprise me a bit.


"Now who is going to wipe that debt from the tax payer?"

No one is, they expect us to pay for it in the end. Remember, it`s being done for our own good, you know, a new branch of the government. So we pay for it.

"I guess we are truly nothing more than slave to the our own government and now the new empowered federal government."

I`m being sarcastic here, but, welcome to our new country comrade marge.

"I am still without words as why nobody is screaming foul play and fighting for the American tax payer."

Well, there are people like Ron Paul who are trying to. But, as I have said before, when the everyday person stands up and says something, they get howled down as being unpatriotic. It makes me sick of people who do that to others. Talk about unpatriotic, when we can`t do what the constitution and the bill of rights say we can. That`s a dictatorship, if nothing else.

What is interesting is that the Dow is up. Not just on the day but it is considered a positive week.

Markets around the world have surged.

I guess the investment class around the world are happy that when they make a mistake, we the taxpayer is here to pay for it.

Originally posted by infinite
reply to post by SeekingAlpha

 

The bad debts will be sold back to the market when the housing correction is over with. I believe the US made a profit during the savings & loans crisis when selling back assets.

ARE YOU KIDDING ME? THE GOV MADE A PROFIT OFF OF ALL THIS # ? somebod y tell me he's misinformed or i'm gona be real mad.

the Treasury idea (which still has to be hammered out with congress)
is basically a 'Do Over'

the Treasury, as the money-of-last-resort, has been duped by the Federal Reserve that the US Treasury is the only entity with deep-enough-pockets
to 'set aside' all that bubble created mortgage & credit building
debt instruments that now have no trading market...


the Treasury is being buffaloed into thinking that they can buy that mortgage & credit bubble toxic debt paper for anywhere between .22cents to .60cents on the dollar right now---
And the Treasury will make a great return by the 7 year maturity date of all those Credit Mortgage debt instruments....


this is another swindle going on, imho....
the Fed wants to trade all the fraudulent, greedy, overpriced, overrated, created over the 2000-2007 era ...and bundle all that up->
say 'time-out' and start over with Treasury financing...
We're talking somewhere near $10 Trillion for the bottom line.


the illuminati, has for the above mentioned years, stacked their corporations books with the supposed 'profits' from all the toxic crud that is stalling the markets right now.... and the elite Execuitives raked in Billion$ in bonu$e$ over the year$...
lets wake up people... another French Revolution (but not so bloody)
is something to consider, heads should roll, instead of bailing out the culprits... just to save the 'Markets' which act as a sort of cardio-vascullar system of the USA.



Go Gold !

Originally posted by wutone
What is interesting is that the Dow is up. Not just on the day but it is considered a positive week.

Markets around the world have surged.

I guess the investment class around the world are happy that when they make a mistake, we the taxpayer is here to pay for it.

One of the details of todays package was they banned short sales for a while, so it is forcing everybody to cover their short positions today. Today is a classic "short covering rally".

Why they didn't just reinstate the uptick rule is beyond me.

JK

reply to post by St Udio


There is just something really odd about this deal and the whole situation. Effectively, the United States has just socialised the entire mortgage market and the finanical system too.

The Federal Reserve now owns the distribution of wealth, the assets and basically the market (manipulation by banning short selling.) The world's largest insurance organisation is now the federal government (the government is the main shareholder in AIG.)

So, in 72 hours, the most silent coup d'etat has occurred.

Where's the protest?




[edit on 19-9-2008 by infinite]

Originally posted by infinite
reply to post by St Udio

 

There is just something really odd about this deal and the whole situation. Effectively, the United States has just socialised the entire mortgage market and the finanical system too.

The Federal Reserve now owns the distribution of wealth, the assets and basically the market (manipulation by banning short selling.) The world's largest insurance organisation is now the federal government (the government is the main shareholder in AIG.)

So, in 72 hours, the most silent coup d'etat has occurred.

Where's the protest?

[edit on 19-9-2008 by infinite]

I suspect the reason we're not getting any protest (yet) is this recent nationalization on so many fronts is defacto protecting the wealth of the rich and the poor are sadly too stupid to realize they've just been saddled with another 1 Trillion Dollars in public debt.

Further, most people don't understand the ARM (adjusted rate mortgage) market is almost 1/2 as big (500B) as the sub-prime market and their reset schedual is just beginning.

reply to post by infinite


Don't you get it, the American citizens just don't have enough conjones to do anything about.

reply to post by infinite



where is the protest...


well there are mostly two group minds at work as i see it...

the institutional and independent investor class with both money & leverage

the other group are the ill informed...

who look at today's Treasury+Fed action as something beneficial,
i.e. bringing a type of stability to the stock market and money multiplier engine,
... A money money multiplier system which is currently suffering a bowel obstruction from all the toxic paper they have eaten lately


I think that the public at large was taken in with irrational exhuberence at the Stock Market open... but as the day wore on.... with all the analysis by a broad range of knowledgeable persons,
the Market closed high---but not so high as to reflect a total & complete support of the Fed/Treasury open-end plan.


Monday the market could well drop to 11K & change... then keep drifting back to the 10,700 range again...
just wait until the more realistic cost of all three-or-four of the liquidity programs are presented... it will be in the $10trillion range i have earlier suggested.
(5-6 Trillion on Freddie/Fannie, ~1Trillion already spent on the swaps etc,
~close to another 3-4 Trillion on the CDS & derivitive stuff,,,along with the ARM resets which 'Leo123' just cited)



all in all, the system is being mutated into a hybrid China-Capitalisn Model,
all we can do is grin and bear it.


Oh, the talking heads on TV were wondering just what to name the new Resolution Trust 2.1
=> i say the "Second Beast" ...as in the one which appeared from the dry land... in the end-times Revelation prophecies


thanks


[edit on 19-9-2008 by St Udio]

Originally posted by marg6043
reply to post by infinite

 

Don't you get it, the American citizens just don't have enough conjones to do anything about.

Maybe, but do remember the 1930's depression protests didn't begin until 1932 (I believe) and that was 3 years after the '29 crash.

Give it time, I say, give it time.

Originally posted by St Udio
reply to post by infinite

 

where is the protest...


well there are mostly two group minds at work as i see it...

the institutional and independent investor class with both money & leverage

the others are the ill informed...
who look at the Treasury+Fed action as something beneficial,
i.e. bringing a type of stability to the stock market and money multiplier engine,
... A money money multiplier system which is currently suffering a bowel obstruction from all the toxic paper they have eaten lately


I think that the public at large was taken in with irrational exhuberence at the Stock Market open... but as the day wore on.... with all the analysis by a broad range of knowledgeable persons,
the Market closed high---but not so high as to reflect a total & complete support of the Fed/Treasury open-end plan.


Monday the market could well drop to 11K & change... then keep drifting back to the 10,700 range again...
just wait until the more realistic cost of all three-or-four of the liquidity programs are presented... it will be in the $10trillion range i have earlier suggested.
(5-6 Trillion on Freddie/Fannie, ~1Trillion already spent on the swaps etc,
~close to another 3-4 Trillion on the CDS & derivitive stuff,,,along with the ARM resets which 'Leo123' just cited)



all in all, the system is being mutated into a hybrid China-Capitalisn Model,
all we can do is grin and bear it.


Oh, the talking heads on TV were wondering just what to name the new Resolution Trust 2.1
=> i say the "Second Beast" ...as in the one which appeared from the land in end-times, Revelation prophecy



[edit on 19-9-2008 by St Udio]

Good post St Udio, IMO today was nothing more than a textbook short covering rally.

JK's 2 bits.

How nice for the banks and all. How about setting up a device to help me out for my bad debts? Why give banks money? Give the money to the people who cannot afford their home loans anymore. Won't that be the same as giving the money to the banks, but letting the homeowner remain in his or her home? Just a thought. I never said I was an economist or a financial genius.

edited to just note that I do not need help with my debts or house payment and no, I don't agree we should let someone who bought a house they could not afford get the house for free while I continue to pay for my little house I can afford and pay for someone elses house. I just don't see why if we give money to banks, why not pass it through a middle man's hands first, ie. a homeowner.

[edit on 19-9-2008 by kyred]