AMERICAblog: Where are they finding the bailout money?
KarenMrsLloydRichards
· 1 year ago
Answer: somewhere in a basement in the Treasury Department there is a printing press...
OneManComotion
· 1 year ago
Do these companies have to pay back these funds?
Anybody?
jebauer
· 1 year ago
I just talked to my broker today. Money markets are NOT insured. All of my extra cash was in one and I pulled it out today and put it in a cash reserve, which is insured. I've learned more than I ever wanted to know about finance these last two days. My broker did say money markets are very stable, but just hearing the words "not insured" made me think this is not good. I am now making absolutely no money in interest thanks to the lovely Fed "fix all" of lowering interest rates to the point my mattress is seriously looking like a good option. These clowns are doing things an eight year old would have the sense not to do.
Kansaskitty
· 1 year ago
The problem here is the amount of money the FDIC has on hand. There is not enough money to cover all the banks that will go bad. Then what? The good old taxpayer again, no doubt. Sickening.
tlsintx
· 1 year ago
talk about trickle down...gigantic money-market fund shut down...there goes the old retirement pot...
But what about the latest rumor that sent the market over 11,000 that the government would be creating a new Resolution Trust Corporation to take over all the bad debts. This would be untold billions of dollars more.
KarenMrsLloydRichards
· 1 year ago
Not a rumor, now: reported as "possibility" by the Wash Post. Just like it was a "possibility" on Monday that AIG would be bailed out...
tbhull
· 1 year ago
Billions my ass, clearly trillions.
barkleyg
· 1 year ago
I haven't heard much about earmarks from McSHAME today. I guess when national earmarks total 18 billion a YEAR, and King George hands out 180 billion worth of earmarks for 4+ companies in 1 WEEK, McSHAME aint going to be crying about earmarks for a while.
dasein211
· 1 year ago
Marketwatch and Bloomberg said it was 900BILLION!!! They get it from the Treasury who prints treasury securities and they take the money from the securities sale and transfer it to the FED.This is just printing money at taxpayers expense as simple as that. The FED ran out of money as their account was 850 billion.
MNUSA
· 1 year ago
But we can't afford universal healthcare.
sherifffruitfly
· 1 year ago
Isn't it literally unconstitutional for the government to back out of a financial obligation it promises to keep?
cab02149
· 1 year ago
This feels like the Savings and Loan Crisis during the Reagan years when Hundreds of lost billions of taxpayer money was seemingly swept under the rug. Clearly the drones who make up congress have buzzed far away when this hit. But the worst conditions which led to this were set in place when congress was totally controlled by Republicans. By the way, today's details are exactly like those which led to The Great Depression. We also can not overlook the fact of generational differences and attitudes as contributing to risk taking. It was led by no one who had ever really known about, let alone knew anyone who suffered. Generational blindness and historical dismissal is or has become very much a part of the American culture. It is fed by Madison Avenue and the mass media. It divides us. Generational differences must not be dismissed in this current threat to our economy. Rule making not rule following is at the crux of this disaster. The former come from contempt for the authority of rules. That comes from fatherlessness.
tbhull
· 1 year ago
No more taxpayer dollars, no way no how. One thing the RTC and the failures in the late 80s taoght was that the shenanigans could continue and good mother government would save thes rich bloated fucktards.
These same free market shitheads like Kudlow suckling so nicely at the breast of good mother looking for another bailout bailout that will cost in the many trillions are phonies, cowards and wrong on relying on government to help the situation. I do not think government (headed by an old Goldman Sachs man) can handle this crisis no matter how hard they may try.
Why should anyone have any confidence that the Fed, the same folks that fueled this crap and knew of the financial hocus pocus of leverage and did nothing, can find a resolution?
Before all this shit hit the fan it was estimated that the credit default swap/derivative market was $760 trillion and the collapse of the credit market and Lehman's bankrutpcy failure triggered AIG's exposre to a small piece of this because AIG wrote ("insured") the credit default swaps on Lehman, only one in many who will fail.
Instead of taking $85 billion taxpayer dollars and sending it to banks and foreign wealth to secure their held debt never to be recovered for the taxpayers, now is the time the market should be left alone. This is when the market works most efficiently, brutally and teaches its finest lessons.
The government should walk away and let all of this unwind without any further government intervention/expatriating of any more US taxpayer funds of any sort, let the blood flow and the heads roll, all so that we can rebuild a more just and sound system when the death spiral is over. It, after all, is only money, an abstraction and by no means a truth element.
AC_in_MI
· 1 year ago
760 Trillion $? That seems wrong? NY Times had it at 45.5 Trillion in May
AC_in_MI
· 1 year ago
My Fault - Credit Default Swpas were 45.5 Trillion, Derivatives 730 Trillion
tbhull
· 1 year ago
Where are the democrats that control Congress? Are they the slaves of the FED?
They are getting it from other financial institutions by using the credit of the Social Security Trust Fund as collateral.
vkobaya
· 1 year ago
Bush doesn't really care where the money comes from or if it will be there for these companies. All he cares about is surviving the next 4 months, until 8:00 am EST on January 21, 2009, he and the Republicans can start screaming how the Democrats and Obama let the country go to hell during their watch.
heathwood
· 1 year ago
The problem is that they are creating money. Reagan basically did the same thing when he was the crazed republican in charge. But he had luck on his side, doubtful it will work this time.
Forty2
· 1 year ago
This assumes that there will be BUYERS of that debt. At some point, these auctions will come back stamped "NO BIDS". That point is not far off.
And yeah there really are half a quadrillion dollars of derivatives outstanding. That much actual money does not exist worldwide.
Wily Trax
· 1 year ago
Instead of golden parachutes, luxury penthouses and East River yacht clubs, the severance packages for some of these CEOs should be a chain, a cinder block and a row boat ride to the middle of the East River. That should free up a little money. But that's just my opinion.
First off, Bush had nothing to do with this. And I am glad as hell he hasn't played a role in cleaning up this mess.
Second, the Fed is called the "Lender of Last Resorts" for this very reason. Its whole purpose is to step in when there is a danger of a full on meltdown of the economy. Third, the FED is not really a part of the US government. It is owned by the banks technically, and was completely in their legal authority to do this (but true, they did have to pull out a little used clause to justify it). Third. The fed controls the money supply. Every single day it puts in money, or pulls money out of the country. Thats its job. It does not have to go ask congress every time it puts in or pulls money out of the economy. That would be horrible if they did. They need to act much more quickly than congress can act. But, they do have to go testify in front of congress every so often and tell them what they are doing.
This post reads like you have absolutely zero understanding of the Federal Reserve, or any central bank in any government.
I truly believe that the Fed saved the US economy this week from a complete and horrific meltdown. I'll take the taxes I have to pay for that over the meltdown any day of the week.
The Fed is not who should be criticized right now. Its the clowns that got us into this. Bush and the GOP definitely have their fair share of blame there (and, honestly, Greenspan does too, and hence the Fed), but Bernanke and Paulson did a heck of a job. And, for the record, they are making AIG sell off everything to pay them back. We might even make some money off this deal (although I can understand one's doubts about getting paid back).
This anger is being directed in entirely the wrong direction. Blame the people who caused this, not the ones doing their damnedest to clean up the mess the best they can. I hate the overpaid CEO's, golden parachutes, bad tax laws for capital gains and dividends, etc. too, but lets focus our anger there please.
All Comments
Anybody?
http://www.washingtonpost.com/wp-dyn/content/ar...
These same free market shitheads like Kudlow suckling so nicely at the breast of good mother looking for another bailout bailout that will cost in the many trillions are phonies, cowards and wrong on relying on government to help the situation. I do not think government (headed by an old Goldman Sachs man) can handle this crisis no matter how hard they may try.
Why should anyone have any confidence that the Fed, the same folks that fueled this crap and knew of the financial hocus pocus of leverage and did nothing, can find a resolution?
Before all this shit hit the fan it was estimated that the credit default swap/derivative market was $760 trillion and the collapse of the credit market and Lehman's bankrutpcy failure triggered AIG's exposre to a small piece of this because AIG wrote ("insured") the credit default swaps on Lehman, only one in many who will fail.
Instead of taking $85 billion taxpayer dollars and sending it to banks and foreign wealth to secure their held debt never to be recovered for the taxpayers, now is the time the market should be left alone. This is when the market works most efficiently, brutally and teaches its finest lessons.
The government should walk away and let all of this unwind without any further government intervention/expatriating of any more US taxpayer funds of any sort, let the blood flow and the heads roll, all so that we can rebuild a more just and sound system when the death spiral is over. It, after all, is only money, an abstraction and by no means a truth element.
http://www.dependablerenegade.com/dependable_re...
And yeah there really are half a quadrillion dollars of derivatives outstanding. That much actual money does not exist worldwide.
But that's just my opinion.
http://www.wilytrax.com
Second, the Fed is called the "Lender of Last Resorts" for this very reason. Its whole purpose is to step in when there is a danger of a full on meltdown of the economy. Third, the FED is not really a part of the US government. It is owned by the banks technically, and was completely in their legal authority to do this (but true, they did have to pull out a little used clause to justify it). Third. The fed controls the money supply. Every single day it puts in money, or pulls money out of the country. Thats its job. It does not have to go ask congress every time it puts in or pulls money out of the economy. That would be horrible if they did. They need to act much more quickly than congress can act. But, they do have to go testify in front of congress every so often and tell them what they are doing.
This post reads like you have absolutely zero understanding of the Federal Reserve, or any central bank in any government.
I truly believe that the Fed saved the US economy this week from a complete and horrific meltdown. I'll take the taxes I have to pay for that over the meltdown any day of the week.
The Fed is not who should be criticized right now. Its the clowns that got us into this. Bush and the GOP definitely have their fair share of blame there (and, honestly, Greenspan does too, and hence the Fed), but Bernanke and Paulson did a heck of a job. And, for the record, they are making AIG sell off everything to pay them back. We might even make some money off this deal (although I can understand one's doubts about getting paid back).
This anger is being directed in entirely the wrong direction. Blame the people who caused this, not the ones doing their damnedest to clean up the mess the best they can. I hate the overpaid CEO's, golden parachutes, bad tax laws for capital gains and dividends, etc. too, but lets focus our anger there please.