Politico:
In a change from the original proposal sent to Capitol Hill, foreign-based banks with big U.S. operations could qualify for the Treasury Department's mortgage bailout, according to the fine print of an administration statement Saturday night.
The theory, according to a participant in the negotiations, is that if the goal is to solve a liquidity crisis, it makes no sense to exclude banks that do a lot of lending in the United States.
Want to reply to a comment? Hint: Click "Reply" at the bottom of the comment; after being approved your comment will appear directly underneath the comment you replied to
Is there a rep that has not been paid off? Paulson would like to know. Such men are dangerous.
All the more reason why we should be persuing this bailout from the bottom up.
Seven Hundred Billion Dollars to multinational banks and not a penny to actually help the home price tumble is pushing the whole thing forward.
Instead of spending 700 billion on bailing out banks spend the same 700 billion buying out homeowners who are at negative equity and cannot keep up with payments. Make the buyouts for the value of the purchase loan, nothing more.
Not only will that give the homeowner an escape route, but it will help the banks. The big problem with these mortgage-backed securities is that nobody knows what they are worth. If the underlying mortgages won't default, their worth, and book value, will be stable and known.
The government would rent the houses (to the former homeowner if they wish) and cover their interest cost and then in 4 to 7 years sell the houses at a profit when prices recover.
Of course the republicans would never support it because it would be 'rewarding individual irresponsibility'. They would rather reward corporate irresponsibility.
4 to 7 years the prices will recover???
ARE YOU HIGH?
We won't even hit bottom for another 3-4 years. We will NEVER see prices like this again for at least 20-30 years.
No wonder we're in such a mess, with d e l u s i o n a l i d i o t s like you out there.
Wornder how they will sell all the Vacant Lots with HomeLoans of over $ 300k.
Espically the one where the HOMES WERE NEVER BUILT ?
The fundamentals are not good - Wall St has been tying up US money is risky foreign ventures, without regard for existing American owned companies. The problem is not one of liquidity. It is a problem of corruption and mismanagement.
Sure foreign banks are included and "not american households", this is why Paulson doesn't want oversight. regulations is the republican way. 700Billlion tax-payers money and make it illegal to ask how its being spent.
This republican neo-con thug Paulson is selling the (Iraq war on wall street) all over again. SEC. Paulson should not be in charge of taxpayers money. You might as well give it to george bush.
How's this for a radical plan? Instead of relying on consumer CREDIT to keep the economy going, how about making sure that the average working person makes enough money to buy stuff with their paychecks instead? Crazy, I know. . .
Hang on to your shorts, America...here comes $200+ a barrel oil.
People are right when they say this is just the next weapons of mass destruction. They do not distinguish American and foreign banks, and they say the fundamentals are good. LOL Do the hustle.
Watching the Treasury Secretary on TV provide a feeble explanation does not inspire confidence. He refuses to help the American homeowners and has not reason why, but he is willing to bail out foreign banks.
WHAT?
i guess i'm most disturbed by the unknowingness of it all -- financial collapse -- a mushroom cloud if you will. we can't value it, they say. there's evidence, there's been some before.
700 billion dollars spent to increase demand would sure go aways, especially if done "progressively". if it all collapses, the gov't can buy the property on the cheap anyway. we don't know if this will work. the alternative is worse, we are lead to believe. you have to get sicker to get better. pain medication masks, it doesn't heal.
isn't it time to cut our losses and keep the "money", as if we had it. this administration has lied about mushroom clouds before to get a blank check from congress. it can't happen here some may say, but it sure as heck looks like it's happening again. this is the trouble in having a gov't that you can't trust. so, if there is a collapse, blame bush and the republicans. if i could trust them, then the bailout would've been done already. no doubt, others got us here now, but it's the lack of trust that makes me say no bailout.
read this .stop the bailout now .forward this to everyone you know http://memes.org/why-do-saudis-want-j-p-morgan-j-p-morgan-chase-citi-bank-owns-30-4-bp-l987-bp-was-largest-holder-us-
An "educated" guess as to what Paulson told the congressional leaders--
"We have massive debt overseas. China alone owns enough of our treasury bonds that they could crash us by massive selling. Remember, this is just China."
I guessing, here...the foreign governments that have been financing our spending spree over the last seven years (we import more than we export, exporters take US dollars and buy US Treasury bonds) have had a "come to Jesus" meeting with Paulson. If we allow their banks to take massive losses because of phony paper hung on them with AAA ratings, they will in turn dump our bonds. The US government would be bankrupted in a day.
The "world" is telling us, "You lied to us. You sold us products with investment grade ratings--AAA--that are worse that junk. You make us whole or we'll crash your country." Now if that sounds extreme consider that the losses foreign banks face for having bought our phony paper is on a scale that could crash their economies, the scenario is not extreme. In fact, it's just.
We must do the honorable thing and eat the loss. THEN, we must go after the thieves that perpetrated this con, strip them of all assets and jail them. We, as part of our agreement to honor our obligations, must demand that foreign countries reveal the secret bank accounts the fat cats have used to squirrel away their plunder and suck them dry.
---------------------------------------------------------------------------
America, brace yourself
Whatever happened to COUNTRY FIRST?
#1 My Buddies on Wall Street
#2 Foreign Banks
#Never Homeowners in our Country
No More WASP OLD MONEY Around......................................It`s become Chinese Renminbis (The Peoples Money)
HA HA HA HA HA HA HA ......................................suck it up
For all you people that don't believe that elements of the b us h admin had anything to do with 9 -11, I'm sure you also believe that b us h and his cronies had nothing to do with this finanical 9 -11. The ter roisty are not in the mi-east.
They knew exactly what they were doing, they have billion dollar computers that run the most elaborate finanical simulations, every move was calculated.
Yup. They saw the writing on the wall during the Gingrich years. Demographics. China and Asia are ascendant and we're descendant. Clinton's idea was to make us part of the process so that we retained our wealth and held a leadership position in the world. Gingrich and Co. decided to plunder the country and create a new royalty, euphemistically known as the "investment society".
Gingrich and Co. realized the soft underbelly of American society was Her faith and played the Geezus freaks for all they could get, and succeeded. We are now so divided that we can't even have a civil conversation.
------------------------------------------------------------
America, brace yourself
Yes. By the way, Where IS Newtie boy, lately? Noticeably absent it seems.
eMAIL Them: This is an Election cycle Let your own voice be heard.
Let them Know your watching how they vote before you vote in November
Find Your Senator
http://www.senate.gov/general/contact_information/senators_cfm.cfm
Find your Congress Critter
http://forms.house.gov/wyr/welcome.shtml
Sen Obama's mSG
First, there must be no blank check when American taxpayers are on the hook for this much money.
Second, taxpayers shouldn’t be spending a dime to reward CEOs on Wall Street.
Third, taxpayers should be protected and should be able to recoup this investment.
Fourth, this plan has to help homeowners stay in their homes.
Fifth, this is a global crisis, and the United States must insist that other nations join us in helping secure the financial markets.
Sixth, we need to start putting in place the rules of the road I’ve been calling for for years to prevent this from ever happening again.
Loading comments…
First Posted: 09-21-08 09:27 AM | Updated: 10-22-08 05:12 AM