Financial Meltdown

[Chris Fleming]

http://news.yahoo.com/s/ap/20080920/ap_ ... l_meltdown

[somatai]

how can anyone argue that the republicans are not really pushing forth a secret "communist" agenda.....they are talking about capitalisim, but clearly that was a distraction technique to cleverly lead us in the direction of a nationalized economy and a death blow to free markets....clever bastards!

[count]

So, if I understand this, Bush wants to borrow another $800,000,000,000 to pay off the bad investments. And he wants everyone to help pay for this. So, who is loaning us the 800 billion.

I remember their estimates about how much the Iraq war was going to cost. I hope they're closer on this estimate?

[H2O_Dragon]

I don't think we have to worry about Super W saving the world again. The Congress looks like it's going to do what Bernanke and Paulson say on this one, not Georgie. Let the Economists run the economy. We'll all be a lot better off in the long run.

[internalenthusiast]

fwiw. apparently the ability to buy bad debt extends beyond US companies?

any thoughts on this?

http://news.moneycentral.msn.com/printa ... id=9169658


Treasury keeps options open on asset purchases
September 20, 2008 7:49 PM ET
Reuters

WASHINGTON (Reuters) - The Treasury Department said on Saturday that its financial rescue plan could permit it to buy assets beyond those backed by mortgages and potentially buy them from foreign holders.

A fact sheet issued by Treasury on legislative proposals it has before lawmakers said the intent was to buy residential and commercial mortgage-related assets, which may include mortgage-backed securities and whole loans, but added a significant proviso.

"The Secretary will have the discretion, in consultation with the Chairman of the Federal Reserve, to purchase other assets, as deemed necessary to effectively stabilize financial markets," the fact sheet said.

Troubled assets eligible for purchase should come from financial institutions with "significant operations" in the United States. But it said there could be an exemption to that condition by the Treasury secretary, in consultation with the Fed chairman, that broader eligibility is necessary to stabilize financial markets.

Treasury said it would try to set prices for assets it buys using market mechanisms where possible, adding that included the use of "reverse auctions," in which financial institutions would offer their assets for government purchase.

(Reporting by Glenn Somerville; Editing by Tim Dobbyn)

Copyright 2008 Reuters

[Teazer]

fwiw. apparently the ability to buy bad debt extends beyond US companies?
any thoughts on this?

I suppose like any bunch of assets the merit would depend on how much/little they could buy it back for. The current problem is these assets are hard to price, not that they're entirely worthless. So on the plus side I can see the possibilities of making a little cash since the banks really want to offload this stuff. If it is not too expensive there is the chance for the US gov to be viewed positively for a change if it helps stabilize foreign markets. Still, it all depends on how well the entire program is put into action.

[Michael]

Let the Economists run the economy. We'll all be a lot better off in the long run.

You mean like Greenspan? Great idea. Tell me again how this all happened.

[Interloper]

So, if I understand this, Bush wants to borrow another $800,000,000,000 to pay off the bad investments. And he wants everyone to help pay for this. So, who is loaning us the 800 billion.

Borrow? I think he was just planning to sell California, Hawaii and Alaska to China.

[Michael]

That stuff was already sold during the Clinton years. Whatever wasn't sold was given to the IMF as collateral, and just look who's going to be giving the USA a big "margin call" pretty soon.