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Thread: Wall Street rich fucker bailout: 1.8 TRILLION FUCKING DOLLARS

  1. #1
    Elite Member Grimmlok's Avatar
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    Exclamation Wall Street rich fucker bailout: 1.8 TRILLION FUCKING DOLLARS

    The U.S. Treasury Department is working through the weekend with Congress to craft a plan to spend as much as $700 billion to absorb bad mortgages and other assets from bank or other institution balance sheets to keep the financial system from collapsing.

    The move comes close on the heels of an $85 billion Federal Reserve rescue of American International Group and the Treasury's takeover of housing finance firms Fannie Mae and Freddie Mac.

    The Treasury plan, which follows a new federal guarantee for money market fund holdings, would push Washington's potential bailout tab to $1.8 trillion.

    Following are details of actions, proposals and amounts:

    —Up to $700 billion to buy assets from struggling institutions. The plan is aimed at sopping up residential and commercial mortgages from financial institutions but gives Treasury broad latitude.

    —Up to $50 billion from the Great Depression-era Exchange Stabilization Fund to guarantee principal in money market mutual funds to provide the same confidence that consumers have in federally insured bank deposits.

    —The Fed committed to make unspecified discount window loans to financial institutions to finance the purchase of assets from money market funds to aid redemptions.

    —At least $10 billion in Treasury direct purchases of mortgage-backed securities in September. In doubling the program on Friday, the Treasury said it may purchase even more in the months ahead.

    —Up to $144 billion in additional MBS purchases by Fannie Mae and Freddie Mac.The Treasury announced they would increase purchases up to the newly expanded investment portfolio limits of $850 billion each. On July 30, the Fannie portfolio stood at $758.1 billion with Freddie's at $798.2 billion.

    —$85 billion loan for AIG, which would give the Federal government a 79.9 percent stake and avoid a bankruptcy filing for the embattled insurer. AIG management will be dismissed.

    —At least $87 billion in repayments to JPMorgan Chase [JPM 41.85 -5.20 (-11.05%) ] for providing financing to underpin trades with units of bankrupt investment bank Lehman Brothers [LEH 0.19 -0.0251 (-11.67%) ]. Paulson said over the weekend he was adamant that public funds not be used to rescue the firm.

    —$200 billion for Fannie Mae and Freddie Mac. The Treasury will inject up to $100 billion into each institution by purchasing preferred stock to shore up their capital as needed. The deal puts the two housing finance firms under government control.

    —$300 billion for the Federal Housing Administration to refinance failing mortgage into new, reduced-principal loans with a federal guarantee, passed as part of a broad housing rescue bill.

    —$4 billion in grants to local communities to help them buy and repair homes abandoned due to mortgage foreclosures.

    —$29 billion in financing for JPMorgan Chase's government-brokered buyout of Bear Stearns in March. The Fed agreed to take $30 billion in questionable Bear assets as collateral, making JPMorgan liable for the first $1 billion in losses, while agreeing to shoulder any further losses.

    —At least $200 billion of currently outstanding loans to banks issued through the Fed's Term Auction Facility, which was recently expanded to allow for longer loans of 84 days alongside the previous 28-day credits.

    Copyright 2008 Reuters. Click for restrictions.
    You know what's sick?

    Lehman bigwigs are getting massive golden parachutes, as well as other institutions. Can you believe it? Billions in golden parachutes for assholes who trashed the economy.

    Are they insane? They shouldn't be getting one red cent!
    I am from the American CIA and I have a radio in my head. I am going to kill you.

  2. #2
    Elite Member sluce's Avatar
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    Grimm - Early this year they did a special on the Today Show about the bonuses many traders were getting for the 07 performance. They interviewed high end car dealers and jewelers in Manhattan. They said this was a huge profit time for them because these people came in and dropped hundreds of thousands without thinking. Realtors said they expected to sell many mutil million dollar apartments where they would pay cash from their bonuses. It's an insane system.
    Last edited by sluce; September 22nd, 2008 at 02:00 PM.

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    Elite Member kingcap72's Avatar
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    This is one of the reasons why the Dems are pushing for this bailout plan to do more to help out the taxpayers, especially the people with the mortage problems.

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    Elite Member tkdgirl's Avatar
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    ^^ The bailout will screw everyone, especially the candidates and their proposed ideas. There won't be any money left for those ideas, and the only way to fund them is to raise taxes.

    As I said in the other thread, I'm sick of these fools screwing up everything and expecting the gov't to bail them out. Let them fail. Sometimes the hardest lessons to learn are the most costly.

    A government big enough to give you everything you want,
    is strong enough to take everything you have. ~Thomas Jefferson

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    Elite Member Sweetie's Avatar
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    Maybe both the dem. and repub. could use some of the millions they have gotten for this silly election.

    I think it would better used towards helping people out, than towards silly ads about wolves and stuff.

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    Elite Member ana-mish-ana's Avatar
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    Quote Originally Posted by tkdgirl View Post
    ^^ The bailout will screw everyone, especially the candidates and their proposed ideas. There won't be any money left for those ideas, and the only way to fund them is to raise taxes.

    As I said in the other thread, I'm sick of these fools screwing up everything and expecting the gov't to bail them out. Let them fail. Sometimes the hardest lessons to learn are the most costly.

    From what I read- the bailout legislation is totally screwy (there is no oversight and is very broad in its definition that there is a suggestion that foreign banks may get involved!!!!!!) and its still no guarantee that it may work and might make the whole situation worse. Credit card debt will be another bombshell especially when interests rates will go up. Its greed that fueled this mess I agree that the fat cats should pay for it and face up to the shitstorm they made. The taxpayers are going to end up with a lot of crap because of this.

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    Elite Member darksithbunny's Avatar
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    I had to leave a relatives house this weekend because one of her friends is a major player for them. I was so gonna beat that bitch down.

  8. #8
    Elite Member tkdgirl's Avatar
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    ^^ And this damn push by Bush to get is passed right away is crap. It needs to be studied in depth.

    In fact, there are parts of this bill that many believe unconstitutional.

    A government big enough to give you everything you want,
    is strong enough to take everything you have. ~Thomas Jefferson

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    Elite Member sluce's Avatar
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    ^^ Agreed. It's like they think it needs to be rushed through since there is an election 6 weeks away. It didn't get this way overnight and they better slow down and do some careful research before they go throwing our hard earned money around. I swear they forget who they actually work for.

  10. #10
    Elite Member kingcap72's Avatar
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    Quote Originally Posted by tkdgirl View Post
    ^^ The bailout will screw everyone, especially the candidates and their proposed ideas. There won't be any money left for those ideas, and the only way to fund them is to raise taxes.

    As I said in the other thread, I'm sick of these fools screwing up everything and expecting the gov't to bail them out. Let them fail. Sometimes the hardest lessons to learn are the most costly.
    I agree that the bailout is going to make it harder for Obama or McCain to push through their agendas. And taxes are probably going to have to go up across the board.

    But, as much as I hate to admit it, the government did have to step in to avoid a complete meltdown of the financial system. What I hate is that this near-meltdown could have been avoided if the government hadn't been deregulating the banking/financial industry, so that the rich could get richer, and then bail them out and expect the taxpayers to foot the bill.

  11. #11
    Elite Member ana-mish-ana's Avatar
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    The crazy thing is that they knew this was going to happen. People were writing and warning about this a few years ago- yet now they are crying for rushed bailout that will probably cause more repercussions.

    Bush urged Congress to move fast on the $700 billion bailout package for Wall Street. Democratic lawmakers urged caution, citing warrantless wiretapping as an example of what happens when a bill is passed in haste. Below is an excerpt on Bush's statement regarding the rescue plan. Underneath the excerpt is a quote from Senator Leahy, comparing Bush's urgency today with his push to pass the Patriot Act, legislation that has been criticized for giving the government enhanced powers to spy on the public.

    From The Washington Post:


    President Bush this morning warned lawmakers against trying to make too many changes to the proposed financial bailout legislation, saying the plan needs to be passed quickly and relatively intact to stem damage to global financial markets.

    Weekend negotiations "made good headway" in crafting a bill to bolster a system weighed down by problem home mortgages, Bush said. But with proposals circulating to include provisions for homeowners in the bill or to use it to limit executive compensation, Bush cautioned that too many added provisions could impede approval of critically needed legislation.
    Patrick Leahy on the bailout package:
    "We will do something this week -- but if we learned anything from right after 9/11, it's that the biggest mistake is to pass anything they ask for just because it's an emergency," Leahy says.

    The Senate Judiciary Committee chairman knows of what he speaks. He sponsored the original Patriot Act, only to feel betrayed later when the Bush administration used it to justify domestic wiretapping.
    Bush Pushes To Pass Bailout Package.... Dems Say Not So Fast

  12. #12
    Elite Member tkdgirl's Avatar
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    King, I agree *to a degree* with some of the help. But, if you know you're always going to have a safety net in a gov't bailout, it really allows folks to wreak havoc, and ultimately, screw the American people.

    I have a huge issue with the Freddie/Fanny bailout. Yes, it had to be done. But damn! It was run by the frickin government! It was doomed from the start, for crying out loud. The whole subprime crap and giving mortgages to people who absolutely should not have them was just inherently wrong. Yes, its noble to want low income families to have a home. But not to the point of screwing the rest of America.

    This package needs more scrutiny, but if it gets loaded with pork or restricts those who are playing fair, forget it. It will never get pased.

    A government big enough to give you everything you want,
    is strong enough to take everything you have. ~Thomas Jefferson

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