Obama Admin To Unveil New Rescue Plan For Banks

After weeks of internal debate, the Obama administration has settled on a plan to inject billions of dollars in fresh capital into banks and entice investors to purchase their most troubled assets.

The new financial industry rescue plan, to be outlined in broad terms on Monday in a speech by the Treasury secretary, Timothy F. Geithner, will not require banks to increase their lending. That is despite criticism that institutions that already received money from the Troubled Asset Relief Program, or TARP, either hoarded it or used the funds to acquire other banks.

Read the whole story here.

Comments

[Forest]

US and Production is key to resolving our problem. But what can we produce other than more debt?

[research]

Rescuing banks NEVER WORKS. It's Hoover and Japan all over again.

Regulate Wall street.

Investing/spending on Americans ALWAYS WORKS.

Of course the GOP hate Americans.

Just ask them:

If War stimulates the economy, investment in Americans Won't?

What stark, is many conservatives will lie at that point, and go down a whole fantasy of how war doesn't work.

But with a little research, you usually an find where they argue that war , of course, stimulates the economy,

For instance the F22 the conservatives defend spending on because it creates jobs and helps the economy.

Why anyone takes the GOP seriously, or believes a word out of their mouth,

That, I cannot understand.

[Jazzcomedian]

As a member of the Federal Reseve, after reviewing all the financial data worldwide, regarding the current global economic catastrophe, due to excessive indebtedness, and global insolvency, I've concluded there are only two possible ways for governments, and central bankers to stop the global economic tailspin, and restore Earth to economic growth:

1. Forgive all debt of all kinds worldwide, and let everybody keep what they have--free. That way everybody starts over, and people owed money won't lose, because they won't have to pay the people they owe--all the way up the debt chain. In addition, extract written affidavits from every debtor, and banker in the world promising to never engage in that type of irresponsible financial behavior again. The banks worldwide could then have "toxic securities" burning parties, freeing up capital to lend.

2. Relax counterfeiting laws, so everybody can print money that could be accepted everywhere. Institute reasonable standards, so people can't make money in any color they want, or on any paper they want, and allow merchants the discretion to reject currency tthey feel looks too absurd, thus forcing people to make money of higher quality. Businesses would have dramatically lower payroll costs, since people could make the money they need. It would reduce the need for credit cards, and banks would be flush with deposits of citizen's newly made money.

This economic self-suffiency would free the Fed of the responsibility of printing money, and let them concentrate solely on monetary policy.

[bogues]

I am going to wait and hear what the plan actually is. There has been entirely too much speculation and condemnation of plans before they can even get announced.

[research]

it's too late to influence it by then.

[leftLibertarian]

I'm tired of bailing out poorly run financial firms run by over-paid criminals.

[DWX]

I am not an economist, still common sense tells me the only way to fix this structural problem in the economy is to nationalize all major banks across the globe. Currently, the banks are afraid to make new loans because companies are failing by the day and people are losing their jobs. In this type of economic climate, lending money would be just too risky for banks. Once the economy has bottomed out, banks will start to make new loans again. Since no one really knows where the bottom is, the economy is feeding itself and spiraling downward endlessly. The governments of G20 must nationalize their banks and take over the banking operation. In order to fix the credit crisis, money must start to flow into the economy again. Disregarding any bottom line due to potential “bad debt”, only government can assume such risk. Of course, the downside would be a haven for criminal to legally defraud the banking system. Once the economy has recovered, government can then privatized their banking system again.

[welliecat]

I don't get it. Why are these welfare banks NOT required to lend the money they are/will be getting? Isn't lending the major reason for banks to exist?

I don't get the process either. I assume this plan would have to approved/voted for Congress and Senate... am I wrong?

If so, I am writing my reps to protest!!

[Beamreach]

I guess CHANGE we could believe in just meant spare change for us, folks. Cuz it looks like that's all we're gonna get. Oh, that and the debt from TARP and the NON-stimulus bill.

I guess that's what happens when you fill all your economic policy slots with corporate lackeys. Enjoy the ride down.

[Lupin77]

Am I missing something here? I thought the first half of the tarp funds bailed out the banks. Why must the second half go to the crooks who are buying corporate jets, redecorating their offices and having expensive junkets for their executives with the tarp funds they already received? If the plan is to continue throwing our dollars away by giving them to the banks, then we are really in trouble. Why not take the second half of the tarp funds and give every tax paying American a stimulus check? We know how to stimulate the economy.

[sueinmn]

Because the first half didnt work. they didnt require accountability so no one knows if it was used to buy up other banks as some merged or aquired. they have also talked of the Federal reserve also giving trillions to them. I read reports it would take 407 trillion to make the banks clear. why should we lose everything get screwed on this stimulus because the gop are whiners and no one says a work howmuch they give the banks,. ony when they give us its a huge fight!

[gotalifepost]

Three gop decided to try to work with a brand new President in a time of crisis with millions of Americans hurt by this economic 9/11.

Three.

[sueinmn]

pretty sad what about the peoeple they represent are they all hateful also? why arnt they calling.

Im sure they are believing every lie they are told. they need to learn to help themselves and smarten up.

[gotalifepost]

The bipartisan unity is the American people hating what our government and Wall Street has done.

It is something most Americans agree on. The gop decided to play politics in a time of crises because they have nothing left to lose.

Real Americans thinking country first is the biggest lie ever made.

They will ignore the election and the mandate to try to fix it and be the party of no when our country is collapsing.

[MyTake]

What a great front photograph. Bernanke, a Bilderberg member, on the left and Gueithner, a Council on Foreign Relations member, on the right.

Americans are the most duped audience in the world thanks to the allied corporate control of media. None of those media reported that 90% of the Obama appointments were drawn of the membership roster of the Council on Foreign Relations, a Rockefeller funded, organized and controlled that is interlocked with their Bilderberg parent group that is headed up by the likes Rothschild, Rockefeller and Kissinger.

Here is Bernanke leaving that last Bilderberg meeting in his black car and using his blackberry (page down after the two security types show you that you are #1): http://cryptome.info/bilderberg08/bilderberg08.htm

And the attendee list recorded the names of Guithner and Paulson : http://bombs.wordpress.com/2008/06/09/official-2008-bilderberg-participant-list/ . I am guessing they chatted.

Gee, I am guessing the power of these people at this secret meeting might just use INSIDER FINANCIAL, BANKING AND STOCK MARKET INFORMATION to increase their wealth and do lot's of other crime around the globe.

Here is the most well thought of Vice President in history joking about how he withheld information from the government about his exclusive CFR director membership: http://ca.youtube.com/watch?v=XOAk-7F1EVU

It is a pity no one talks or blogs on this.

[crazylady]

Stop dishing out the money and guarantee/backstop the loans. Write or call your senator to stop the madness.

[magibrotherhood]

my s.en.a.tor does not give a f---, coz he`s OWNED by them---

[sueinmn]

every day I call and email I also call every day the whote house Obama line they reported this week that the gops beat us 100:1 on calling.

[bluejay10027]

Call Obama.

[nogimmicks]

Obama needs to replace Geithner (his administration most toxic asset) by Volcker, stop the bank giveaways and balance the budget.

[magibrotherhood]

Toxic-asset Timmy----yes,that fits nicely.

[2008CaliforniaFan]

If someone like Warren Buffet started a (private) Bank and put his name and reputation behind it... who

would invest with Him rather than Citbank and BofA.......? (Give us a choice)

I'd trust Buffet and pull my Money