Tomorrows Friday

[Sassy]

The Feds already printed up over $700 billion last week - $188 billion a day of fiat money - money not backed by anything...  so with the newest plan that was just voted down, there still was no real oversight except for Paulson watching the hen house, there was a plan that if in 5 yrs the funds did well, they would make a proposal that the tax payer might get some money back    So we leave Paulsen in place to decide where the money is going, we buy at above market prices & we also pay interest on the money - what a deal 

So, like Don said - Chrysler was bailed out but it was a loan & they were expected to pay it back with interest.  They also produce a product that we need.  How is that like what is being proposed...  we bail out the investment banks who have printed money out of thin air, considered that assets, leveraged it over & over - back in 2003 the regs were relaxed for Goldman Sachs, Lehman Bros, Merrill, JP Morgan & one other, so they could leverage up to 60x's; they also have the derivative market that isn't even regulated - we pay top dollar & we pay interest - I know I am repeating myself, but gee whiz, I don't see how that could be anything like Chrysler & the whole thing doesn't make any sense except that it is an outright slap in the face of the US tax payer - how is this going to stabilize the housing market or anything else?  How is that going to cause trust when, as I stated earlier in a post, the US is bankrupt - people don't trust us anymore - so what is more printed money or electronic cash transfers going to provide?      Please explain because I'm not getting it... 

[Sassy]

In case someone thinks I pulled the $188 billion/day out of my head here's a link to the Financial Week article
http://www.financialweek.com/apps/pbcs.dll/article?AID=/20080926/REG/809259963

[glenn kangiser]

Barbara Bush said it about New Orleans ....and probably us.....

[MountainDon]

Well, one thing I wonder about is what will happen to many businesses, if credit becomes tighter. Back when I was involved in the retail camera trade, 4 stores, there were times of the year that we relied on our bank to loan us money for paying bills or making payroll. Most of the time it was not necessary, but when it was if we could not have easily borrowed we would have been screwed.

Locally today I now someone with a small fledgling business who has just been told he has to pay certain suppliers every week rather than every 30 days.

[MountainDon]

On the other hand BofA just sent me notice that they've upped my credit card limit again.   

[Sassy]

we get offers in the mail of more credit on a daily basis.  But to continue on the bailout

and BTW, this from Newt Gingrich "Having a former chairman of Goldman Sachs preside over disbursing hundreds of billions of dollars to Wall Street is a terrible concept and inevitably will lead to crony capitalism and the appearance of - if not the actual existence of - corruption," says Gingrich in his statement. "The Bush Administration has now provided three case studies in arrogance, isolation, and destructiveness: Michael Brown during Hurricane Katrina, Ambassador Jerry Bremer in Baghdad, and Secretary Paulson at Treasury."

"It is a tragic and very expensive legacy," he continued. "No conservative and no Republican should doubt how much it has hurt our cause and our party."  although he has changed his stance & now to "reluctantly and sadly" support the $700 billion Wall Street bailout bill.   But Paulsen has to be out of the picture...  http://blogs.abcnews.com/politicalradar/2008/09/gingrich-now-ba.html

[glenn kangiser]

I agree it is a bad deal, Don, but these guys have already proved that they will walk off with the cash drawer.  They cannot be given more no matter what .... not all can be winners.  The Fed really is getting real money back with air and the Fed is not a US entity per US court.  It is private --

http://www.globalresearch.ca/index.php?context=va&aid=8518

First ref I found for backing - no reason in particular.  There are more if you don't like this one.