Bush promises 'unprecedented' action on financial crisis (4th Lead)
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By Chris Cermak Sep 19, 2008, 15:52 GMT
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'There will be ample opportunity to debate the origins of this problem, now is the time to solve it.'
What a frinkin' idiot!
Everyone knows the cliche:
You can't solve a problem unless you know what it is, its origins.
What Bush is suggesting is to spend more money and build up more debt. Like a mentally ill person, he is addicted to debt spending and will do anything to get his hands on more money.
Lets debate for real instead of making up stories of WMDs and other things.
This guy would not step up and deal with a problem if it bit him in the ass (and this one did).
Bush does not lead, and he barely delegates. Paulson is the domestic Petraeus, keeping things glued together, more or less.
'We must act now to protect our nation's economic health from serious risk,' Bush said at a White House press conference. 'There will be ample opportunity to discuss the origins of this problems. Now is the time to solve it.'
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The FNMA action was taken, after long delays, with a conservatorship on 9/7. Then came Merrill, and the problems with Goldman, Lehman and WAMU. Along with that came AIG, possibly the biggest potential problem of all.
Bush finally takes to the podium NOW, after everyone else has done the heavy lifting, for his usual public bow, followed by a giant fart.
Take this bum, along with Wasilla the Hun, and you get fertilizer.
We have not only a repeat of Katrina, but of Iraq - wait around for someone else to fix it; and then say 'who cares WHY it happened?'.
Idiot McCain says that 'The Economy is strong'; and then lies and says that he was speaking of the 'working man'. News for McCain - the economy is the money supply, jobs, GDP and the rest - people are a RESOURCE, just like capital or manufacturing capacity. This old fart would be unfit to serve on the Commerce Commitee.
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www.businessweek.com/bwdaily/dnflash/content/sep2008/db20080918_661224. htm?chan=top+news_top+news+index+-+temp_news+%2B+analysis
Just two days earlier, Treasury officials had said no broader entity was needed. But rather than easing market woes, the $85 billion federal bailout of insurer American International Group (AIG) sent new waves of fear through the market, as investors tried to assess what other corporations might suddenly turn up insolvent. With the markets down through midday Sept. 18, and lending among institutions all but grinding to a halt, regulators and lawmakers decided a more systematic approach was needed to keep more institutions from buckling under the strain.
(Bush took too darned long to get to this point; and meanwhile frightening the public into believing that nothing would end it. Getting banks to lend is a bigger problem, as well as dealing with unaffordable mortgages not yet in default, and the collapse in housing values underlying eeven mortgages paid up-to-date. The market is reassured for now, but no one knows the ultimate costs. There have also been sizable withdrawals from money-market accounts, which hold short-term corporate paper - and the Fed is looking into extending coverage to those accounts; as that's how businesses borrow short-term.)
www.forbes.com/feeds/ap/2008/09/18/ap5444741.html
BOSTON -
Seeking to soothe investor jitters, State Street Corp. said Thursday that it will not have to consolidate conduits and that its money market funds are stable. Shares of the Boston-based investment services company slid $5.75, or 9 percent, to close at $59. The shares hit a low of $29.09 earlier in the session, a level not seen since 1998.
State Street said in a statement that it would have ample liquidity even if it needed to consolidate, as it raised $2.8 billion in equity capital in June. The financial services firm does not currently have plans to raise more capital.
www.nytimes.com/2008/09/18/business/yourmoney/18money.html?ref=yourmone y
On Tuesday, the Reserve Primary Fund, a giant money market fund whose parent helped invent that investment, said its customers would lose money. Instead of each share being worth a dollar for every dollar invested, it said its customers’ shares were worth only 97 cents. In Wall Street parlance, it “broke the buck,” a rare occurrence.
So far, it appears that no other money market funds have fallen below a dollar a share. And other money market managers have hastened to reassure investors that their money is safe. But the Primary Fund’s announcement did raise this question: What, in today’s world, is truly safe?
In his case, that would be THINKING!
The sad thing is the small people and small business lose and pay. Excutives and boards of these companies will still get there big salaries, big jets and bigger bonuses. No one will face the facts that this group failed big time!
Cox - must agree with McCain - He did nothing to protect the system. He should go. Naked shorts? For Vagas not the market. There is no capitalistic value in investment games - it does not provide growth capital, in fact it absorbs real growth capital.
Cox - must agree with McCain - He did nothing to protect the system. He should go. Naked shorts? For Vagas not the market. There is no capitalistic value in investment games - it does not provide growth capital, in fact it absorbs real growth capital.
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Cox was another lame Bush partisan appointment; a former GOP Senator, and this was his reward.
en.wikipedia.org/wiki/Christopher_Cox
McCain voted against Cox's bill:
en.wikipedia.org/wiki/Private_Securities_Litigation_Reform_Act
'The PSLRA was enacted into law by the U.S. Congress over a veto by President Bill Clinton. The U.S. House of Representatives approved the bill by a 319-100 margin, and the U.S. Senate approved it 68-30. Every Republican in the House voted in favor of the legislation, and only four Republicans in the Senate voted against it: William Cohen, John McCain, Richard Shelby, and Arlen Specter.'
Normal 'short selling' is healthy, because the stock has to be purchased in order to cover later. In a normal situation, the short seller is expressing an opinion of over-valuation, and is at real risk when the price move against him. Someone LONG a stock can see it go to zero; but the short seller has potentially unlimited losses. There are 'bear funds' that allow investors to participate.
What happened here was outright manipulation, and the 10-day 'freeze' is there to send a message. When you sell short, you should be borrowing stock to deliver, and paying the lender interest.
Once a stock has been sold to the public, it no longer provides 'growth capital' - that's what the IPO was for.
Ah, welfare at the highest levels. You've got to love it when the very people (rich, 'free market', wall street types) who get up in arms over our government spending on welfare come begging with cupped hands when there own greed gets the best of them. Where is Ron Paul when you need him.
Where's all this money coming from? Still paying off the S&L scandel from the 80's.
Put 'american way to fail' into Google and read the first item for a comprehensive understanding of how it will affect the average american
This is a typical monetarist 'solution' - Throw money at the problem and see where it sticks. Paulson, Bernake, et al chose to relieve the financial institutions of their evil debt burden without getting to the root cause of the problem, which is the millions of homeowner's mortgage debt structures. Millions of foreclosures will still occur, causing even more billions of dollars to be thrown at the bigger problem. Instead, the mortgages should have been frozen in place, so that foreclosures would cease. The mortgagors would pay at their current rate. Put the financial institutions into receivership and let them pay for their errors in ethics and judgment.
U.S. NATIONAL DEBT CLOCK
The Outstanding Public Debt as of 19 Sep 2008 at 06:44:00 PM GMT is:
$9,650,504,450,078.82
The estimated population of the United States is 304,757,428
so each citizen's share of this debt is $31,666.18.
The National Debt has continued to increase an average of
$1.80 billion per day since September 28, 2007!
Concerned? Then tell Congress and the White House!
Bush has run up 9.6 Tril $'s of DEBT.
It was a good ride while it lasted but it looks like the party is over. “Brother can you spare a dime?”
Corporate welfare at its finest. When these investment banks were making huge profits they were all for the 'free market' and no regulation. Now it seems the the prefer free access to taxpayers money. Disgusting! Privatize profits and socialize losses. Hmm, where can I get a deal like that? Oh thats right I can't because, after all, I don't get to take Chuck Schumer et al out to nice lunches.
Why did everyone vote for a 'financial jonah' ,who already had three failed businesess BEFORE he became a President?
i think we need to wait for sp4 to slither in and give his useless oppion of his his useless president.
DID ANYONE EITHER ON WALL ST OR THE GOVERNMENT CALL 'FREE CREDIT REPORT .COM' IN THE LAST YEAR?
Shadenfreude!
What a wonderful word! What a wonderful feeling!
Nobody, absolutely nobody commented on it, but that extremely short speech Dubya made was a total joy to behold. I enjoyed it immensely.
I enjoyed his scrunched up features, that horrified 'Let me out of this presidency!' look hidden behind the squint, his totally defeated body language, his hurried exit. Hell, the little bastard almost RAN for cover.
He was a man who had just glimpsed the sheer magnitude of his ineptness, the crowning achievement of his stupidity.
His reign was failure, his legacy is disaster. His name will forever only come up in tones of contempt and will be synonymous with immense power wrongly attributed to and misused by a fool.
All the terrorists on earth wouldn't be able to do as much damage as he did right under everybody's nose, legally and legitimately ... well, semi legally and semi legitimately anyway. That will be a point for future consideration.
In a nutshell, here was a man who now knows beyond the shadow of a doubt that he is indeed The Worst President In History.
Shame!
Anathema!
Bye bye, Dubya...
Spitfire
by corporations and both parties are bought off.
That is why neither party and neither candidate talks about it.
Obama wants these bail outs just as much if not more that McCain. That is how the game has been playing for ages.
It is a super elite top 1% of the top 1% that is ruling over us and that own the vast majority of wealth.
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