Another $800 billion? Just add it to our tab.

Bloomberg

The Federal Reserve announced two new efforts to unfreeze credit for homebuyers, consumers and small businesses, committing up to $800 billion.

The central bank will purchase as much as $600 billion in debt issued or backed by government-chartered housing-finance companies. It will set up a $200 billion program to support consumer and small-business loans, the Fed said in a statement today in Washington.

This news is just breaking now - I'm still trying to wrap my head around it.

My initial reading of this is that the Fed will be spending $600 billion to buy troubled assets from Fannie, Freddie and Ginnie. They will spend an additional $200B in loans to those who hold securities backed by new consumer loans (auto, student, credit card, and small business loans).

This is being touted as help for the consumer in that it's supposedly to encourage banks to lend again.
In reality, it seems very much like it's just a means to take bad debt off financial institutions' books. As the economy continues to suffer, consumer loans will be defaulting at a greater number; this program appears to be set up to buy the failing debts from lenders.

Take note that the original TARP bailout was intended to buy bad assets. Now they're not doing it. Instead, the bad assets will be purchased by the Fed...conveniently enough without the need for even the minimal oversight demanded by the TARP bailout.

I feel sick....

That is wonderful, while lining up the pockets of the corrupted entities that has brought to us the mess in the economy, the consumers are going to get more debt, credit and defaults with not jobs to support any of that.

You can tell how corrupted and greedy are the powers running behind the fed and the treasury department when they are making plans to keep America in debt without any solutions to free America from stagnation, the stagnation we are having now due to excessive lending and debt.

The so call liberation of credit is nothing more than slavery for the consumer, the same practices that brought the mortgage crash is still going rampant now using the government backed loans.

No regulations as usual, the vicious cycle of recycling the debt continues

People need to opens their eyes and start looking what is eating America right now.

reply to post by marg6043


Seems like the only real solution to all of this is to wipe the books and pretend all of this never happened and start again.

-This may happen, if they make it happen.
-It must happen.
-no choice
So much money is being borrowed from the fed right now, it's like they don't care anymore, like there is a massive plan to bail anyway.
Let's go for broke!

Maybe even abolish the FED?
Declare all money loaned was worthless anyway as it's backed by nothing, hence nothing owed!
The only solution.

Americans are being shafted financially with paper notes printed, or computer entries typed into existence and assigned value.

What we all need is our own printing press, go into business like the FED and create our own wealth, they do it why not us?
We can all be worth BILLIONS!

Originally posted by Toadmund
So much money is being borrowed from the fed right now, it's like they don't care anymore, like there is a massive plan to bail anyway.
Let's go for broke!

Let's see, we start with $7.4 trillion.
Add $300 billion for Citigroup.
Add $800 billion for this latest bailout.
So now we're looking at $8.5 trillion spent or promised to be spent on our failing economy.

I think it's safe to say that we don't need to go for broke -- we are broke.

That would be the solution but the greedy fat rats don't' want to give power to the people in the nation because is a game this people play with the populations.

You wipe the debt and people is free, that is unacceptable, people needs to be under control, control peoples pockets and you have a slave to do as yo wish.

The US is in a double bind. They have and will continue to have a trade deficit, as well as a massive budget deficit for the forseeable future. The US makes far, far less than it imports, including petrol, and that will not change for quite a while. It is also fighting two very expensive wars, and at least one of them will continue to be a drain for the forseeable future. Add to this an economic disaster ON PAR with the Great Depression, and you have a double bind that makes it IMPOSSIBLE for the US to spend itself out of this situation. The only hope for the country is to move aggressively into green energy and spend massively on its own infrastructure. All other spending is just feeding a morbidly obese person fudge.

Canada and the Obama Admin have announced large infrastructure programs. This is one of the best moves in a recession. It does two things: it puts your people and companies to work in a slow period, and it allows the country to reduce infrstructure spending during better economic periods in the future since that work will have been done. Think of it as taking a loan out on future prosperity.



[edit on 25-11-2008 by Silenceisall]

We aren't broke yet, the Fed still has their printing presses, they just print more $$ up and pretend it's worth something.

Dollar is falling today. But the average Joe 6 Pack doesn't realize what's happening, and how it will affect him and his progeny.

Maybe when that 6 pack of beer costs $20 ol' Joe will finally wake up.

Bernanke's thesis on not letting deflation happen is being played out in our grand theatre.

What a shame that we will all too soon, see inflation take over. Then all we can do is pray that some rectumite in Washington, DC can see the danger of hyper-inflation and not allow that to happen.

For all intents and purposes the US is a scroomed, it's just not in our face yet

[edit on 11/25/08 by redhatty]

Originally posted by Toadmund
reply to post by marg6043

 

Seems like the only real solution to all of this is to wipe the books and pretend all of this never happened and start again.

-This may happen, if they make it happen.
-It must happen.
-no choice
So much money is being borrowed from the fed right now, it's like they don't care anymore, like there is a massive plan to bail anyway.
Let's go for broke!

Maybe even abolish the FED?
Declare all money loaned was worthless anyway as it's backed by nothing, hence nothing owed!
The only solution.

Americans are being shafted financially with paper notes printed, or computer entries typed into existence and assigned value.

What we all need is our own printing press, go into business like the FED and create our own wealth, they do it why not us?
We can all be worth BILLIONS!

I could only wish but if we could print our own bills. I could imagine that the value of the dollar would go hit the tank many times faster than what the government spends on. For all of us to be billionaires we would be printing out 100,000,000 dollar bills that are actually worth 1 dollar in value.

I would be producing coins instead of bills, because of the metal content in coins can retain it's value. So the next time your in a store, ask them to exchange a 20 dollar bill for 2,000 pennies. Then you can turn pennies into dimes. But you would need possibly a 100-200 ton jack press and several metal molds of a dime that can replicate it's shape and design. There you go, now your 2,000 pennies just turned into 2,000 dimes. Now you have about $200 worth of them. Downside that it would take a long time. Unless if you have a machine that can do in very little time. Then I would exchange the 2,000 dimes and ask for 20,000 pennies, and turn 20,000 pennies into 20,000 dimes. that would be worth 2,000 bucks and yeah repeat steps above.

[edit on 25-11-2008 by Shrukin89]

I can't wait to hear the news about Obama's Stimulus Package.

What will that be? Another $700 Billion?

If anybody is wondering if the US economy is being destroyed by design... you should have your answer by now.

I say give the $800b directly to the people..... I guarantee this will boost consumer spending.

I am not from the US and I need an explanation on the following:
When the $700b bailout was announced, it had to be voted by House of Representatives, then why not the $800b?

Because the 800 billion is reserves from the central bank to its member banks. In other words it is doing what it was designed to do; it's nothing out of the ordinary (so to speak). The original bailout involved tax money..

Originally posted by k-string
Because the 800 billion is reserves from the central bank to its member banks. In other words it is doing what it was designed to do; it's nothing out of the ordinary (so to speak). The original bailout involved tax money..

Thanks for the reply K-String..

would you happen to know how much is the US reserves?

Tax money or not, the reserves are for the American people and should be put to vote..

I found this for another forum...
Government bailout hits $8.5 trillion

That sum represents almost 60 percent of the nation's estimated gross domestic product.

They just opened the flood gates and the rich are lapping it up. Its time for a fight.

If they keep this up, all I can hope for is a piece of the 200 billion for consumers and small business.

I'm sure there will be a catch though.

Notice the "Backed by the Govt?" A.K.A. slave labor debt

And the CEO's? Check out their Payouts
www.abovetopsecret.com...'

Dear government sanctioned criminals,

Please continue to throw money away at a rate of nearly 1 trillion each time.
Please continue to print up even more 'magic' money from thin air until the dollar completely collapses.

I am tired of you raping 30% of my income annually and would love the opportunity to watch your house of cards collapse so that we can remove your ability to print money and devalue our dollar.
I would also love to see you cause us to run up such an incredibly high national debt that it has to be wiped clean and we end up not having to pay anything.
Better yet just keep bleeding this country dry until even the weakest and most nonviolent americans take up arms and burn you all at the stake.

I really am sick of seeing what you people are doing to this country, and would like to take this opportunity to thank you for doing it at such a fast pace, because soon we will have no choice but to hunt you all down and take our country back and form a new government, and then we can all have the lives we want rather than the life you force us to live.

Sincerely yours,
Just another pissed off slave wage servant.

Already some analysts are saying that the US Dollar is not backed by anything. How many more trillions will they throw at this sinking ship.

The US spends more on the military than Russia and China combined. Is the US prepared to cut expenditure on its Military?

Originally posted by rattan1 Is the US prepared to cut expenditure on its Military?

I would like for that to happen, but again, look who has been ruling in the presidents' chair for years and years. Not only that but military spending will only increase up until the War of Terror ends... (That includes WW3.)

Originally posted by rattan1
Is the US prepared to cut expenditure on its Military?

That IS a joke right?
Is a heroin junkie prepared to cut expenditure on it's habit?
Not even protests and demands from the American public could slow down military spending, the bully will continue to grow more powerful until it's knocked firmly onto it's posterior and has it's weapons taken away.